CTC CTC Supplier Relations & Negotiations

Question 1

What is a 'preferred supplier' arrangement in a travel agency context?

Accepted Answer

A supplier with whom an agency has a formal agreement to direct business in exchange for enhanced commissions or benefits

Answer

A supplier that offers the lowest prices to travelers at all times

Answer

A supplier approved by ASTA for ethical business practices

Answer

A supplier that exclusively works with one travel agency

Question 2

What does 'override commission' mean in travel industry supplier contracts?

Accepted Answer

Additional commission earned above the base rate when an agency meets or exceeds a specified sales volume target

Answer

A commission paid directly to the traveler as a rebate

Answer

Commission earned when the supplier overrides an agent's booking

Answer

The standard commission rate applied uniformly to all bookings

Question 3

What is a 'FAM trip' (familiarization trip) primarily designed to accomplish?

Accepted Answer

Familiarize travel agents with destinations, products, and services so they can better sell them to clients

Answer

Allow clients to preview a vacation itinerary before committing to a booking

Answer

Train airline staff on new international routes

Answer

Test new GDS software in real-world booking conditions

Question 4

What is a 'net rate' in the context of hotel supplier negotiations?

Accepted Answer

A wholesale rate provided to agents from which they mark up to create their own retail price

Answer

The rate charged to guests after all applicable taxes are added

Answer

The rate available only through internet direct-booking engines

Answer

The average nightly rate for a hotel calculated over a full year

Question 5

What is the primary advantage of a travel agency joining a consortium such as Virtuoso or Ensemble?

Accepted Answer

Enhanced preferred supplier agreements, higher commissions, and marketing support through collective negotiating power

Answer

Reduced legal liability for travel errors and cancellations

Answer

Access to exclusive government travel contracts

Answer

Exemption from IATA reporting and bonding requirements

Question 6

What does 'co-op advertising' mean in the context of travel supplier relations?

Accepted Answer

A supplier subsidizing an agency's marketing costs in exchange for featuring the supplier's products prominently

Answer

A travel agency buying advertising space directly from a supplier's media properties

Answer

Two competing agencies sharing advertising costs to reduce expenses

Answer

An agency and supplier opening a joint storefront location

Question 7

What does 'last room availability' (LRA) typically guarantee in a hotel preferred supplier agreement?

Accepted Answer

The hotel guarantees preferred rate availability even when the property is nearly fully booked

Answer

The hotel guarantees the last unsold room is always available for walk-in guests

Answer

Travel agents receive the lowest available rate only when the hotel has low occupancy

Answer

The agency earns the right to purchase the last available room at a discounted price