Travel Management 5

Question 1

Which financial tool do travel managers use to analyze whether a corporate travel program is delivering savings?

Accepted Answer

A travel spend report with key performance indicators (KPIs)

Answer

Travel spend reports with KPIs like average ticket price and policy compliance rate help managers measure program effectiveness and savings.

Question 2

What is the purpose of an 'override commission' offered by airlines to travel agencies?

Accepted Answer

To incentivize agencies with extra commission for exceeding volume targets

Answer

Override commissions reward agencies with bonus payments when their bookings with an airline exceed a pre-agreed revenue or volume threshold.

Question 3

What does a 'blackout date' mean in the context of travel rewards programs?

Accepted Answer

A date when award redemptions are restricted or unavailable

Answer

Blackout dates are specific periods, often peak travel times, when frequent flyer miles or hotel points cannot be used for free redemptions.

Question 4

A tour operator sells a package below cost to gain market share. This pricing strategy is known as:

Accepted Answer

Penetration pricing

Answer

Penetration pricing intentionally sets prices below cost or market rates to attract customers and build market share quickly.

Question 5

Which international organization sets global standards for travel agents and tour operators?

Accepted Answer

IATA (International Air Transport Association)

Answer

IATA sets global standards for airline ticketing, accredits travel agents, and governs much of the commercial aviation ecosystem.

Travel Practice Test