Travel Agent Proficiency Test Final
Review
Fixed Expenses - Answer-costs that remain unchanged during a specific period despite changes in the
volume of business.
Variable Expenses - Answer-are costs that increase and decrease directly and proportionately with
changes in business volume.
Semi-Variable or Mixed Expenses - Answer-are costs that change in response to a change in business
volume, but they change by less than a proportional amount.
Income Statement - Answer-summarizes revenues earned and expenses incurred for a particular period
Balance Sheet - Answer-it shows the financial position of a business at a particular time and may
compare it to the business's position at the same time of a previous year. This includes assets, liability
and equity
Suppliers receive payment in four ways - Answer-Directly from client
CC company
In the form of checks from agencies
Through ARC (Airline Reporting Corporation)
,Agents Receive Payments in 3 Ways - Answer-Through ARC
By deducting commission prior to sending to supplier
By check from supplier
ARC (AIRLINE REPORTING CORP) - Answer-an organization owned by major airlines that regulates the
sale of airline tickets by appointing those who may sell them.
Accountable Documents - Answer-issues standardized numbered forms that serve as tickets, and it
operates a centralized system for processing sales.
Area Bank Settlement Plan - Answer-the system set up by ARC through which participating suppliers
receive payments for sales by travel agencies
ARC Report - Answer-Each travel agency pays the ARC suppliers weekly by electronically filing a
mandatory report of sales
base fare - Answer-the fare shorn of all taxes
Escrow Account - Answer-An account held by a third party or a bank that holds on to funds until all
requirements are fulfilled for them to be released
overrides - Answer-bonus commissions to agencies that meet various sales goals or move clients to the
supplier's products
Income for Travel Agencies - Answer-Commission on sales of transportation, accommodation, cruises,
tours and other services
Override commissions
Fees and service charges
,Markups on net charges
Cost Benefit Analysis - Answer-A tool entrepreneurs use to hold down expenses and ensure profits (ex.
Buying flowers or gifts for a client)
Consortium - Answer-which is an association of agencies that retain their independent identities but
pool their resources for certain purposes
Miscellaneous Charges Order (MCO) - Answer-It records deposits and full prepayments for
transportation, tour packages, supplemental charges, accommodations, or additional collections. A clear
description of the type of service for which it is issued must be indicated on the MCO.
Voucher - Answer-Any document used to confirm arrangements, identify clients, or indicate payments
made
Invoice - Answer-Indicates the amount due from a client and constitutes an implied contract between
the agency and the client for services rendered in exchange for payment
Receipt - Answer-Invoices that indicate an amount paid and the method of payment.
ARC's Industry Handbook - Answer-lists the forms of payment accepted by specific airlines, and CRSs
indicate if a particular credit card payment is not acceptable to the airline being used.
Travel Agency Service Fee (TASF) program - Answer-allows agencies to accept credit card purchases for
non-ARC items, such as service charges, and to process them through the Area Bank Settlement Plan for
a 3.5 percent fee
Protocol with checks and travelers checks - Answer-Do not accept checks from anyone unless they are
trustworthy, or if you can hold on to the tickets until the check clears
, Do not accept checks from someone else who is not the person booking
Do not accept checks that are over the amount that they are charged
Some agencies use a check verification service to ensure that the funds will clear, although it is not
necessary
Write clients name, proof of identity, address, phone number, Drivers License on the back of the check
Never accept pre signed travelers checks
Only accept travelers checks from reputable companies
Geography - Answer-The study of relationships between people and their environment
Physical Geography - Answer-Focuses on people and their patterns of settlement and activity
Travel Geography - Answer-Application of knowledge to travel, tourism and hospitality agency
Longitude - Answer-Horizontal Lines
Latitude - Answer-Vertical Lines (Lateral!)
prime meridian - Answer-through Greenwich, England and the 180 degree meridian through the pacific
ocean
Globe - Answer-Scale model of the earth
Cartography - Answer-Map Making
Geographic Information System (GIS) - Answer-Can retrieve, record, analyze and manipulate information
gathered by satellites
Review
Fixed Expenses - Answer-costs that remain unchanged during a specific period despite changes in the
volume of business.
Variable Expenses - Answer-are costs that increase and decrease directly and proportionately with
changes in business volume.
Semi-Variable or Mixed Expenses - Answer-are costs that change in response to a change in business
volume, but they change by less than a proportional amount.
Income Statement - Answer-summarizes revenues earned and expenses incurred for a particular period
Balance Sheet - Answer-it shows the financial position of a business at a particular time and may
compare it to the business's position at the same time of a previous year. This includes assets, liability
and equity
Suppliers receive payment in four ways - Answer-Directly from client
CC company
In the form of checks from agencies
Through ARC (Airline Reporting Corporation)
,Agents Receive Payments in 3 Ways - Answer-Through ARC
By deducting commission prior to sending to supplier
By check from supplier
ARC (AIRLINE REPORTING CORP) - Answer-an organization owned by major airlines that regulates the
sale of airline tickets by appointing those who may sell them.
Accountable Documents - Answer-issues standardized numbered forms that serve as tickets, and it
operates a centralized system for processing sales.
Area Bank Settlement Plan - Answer-the system set up by ARC through which participating suppliers
receive payments for sales by travel agencies
ARC Report - Answer-Each travel agency pays the ARC suppliers weekly by electronically filing a
mandatory report of sales
base fare - Answer-the fare shorn of all taxes
Escrow Account - Answer-An account held by a third party or a bank that holds on to funds until all
requirements are fulfilled for them to be released
overrides - Answer-bonus commissions to agencies that meet various sales goals or move clients to the
supplier's products
Income for Travel Agencies - Answer-Commission on sales of transportation, accommodation, cruises,
tours and other services
Override commissions
Fees and service charges
,Markups on net charges
Cost Benefit Analysis - Answer-A tool entrepreneurs use to hold down expenses and ensure profits (ex.
Buying flowers or gifts for a client)
Consortium - Answer-which is an association of agencies that retain their independent identities but
pool their resources for certain purposes
Miscellaneous Charges Order (MCO) - Answer-It records deposits and full prepayments for
transportation, tour packages, supplemental charges, accommodations, or additional collections. A clear
description of the type of service for which it is issued must be indicated on the MCO.
Voucher - Answer-Any document used to confirm arrangements, identify clients, or indicate payments
made
Invoice - Answer-Indicates the amount due from a client and constitutes an implied contract between
the agency and the client for services rendered in exchange for payment
Receipt - Answer-Invoices that indicate an amount paid and the method of payment.
ARC's Industry Handbook - Answer-lists the forms of payment accepted by specific airlines, and CRSs
indicate if a particular credit card payment is not acceptable to the airline being used.
Travel Agency Service Fee (TASF) program - Answer-allows agencies to accept credit card purchases for
non-ARC items, such as service charges, and to process them through the Area Bank Settlement Plan for
a 3.5 percent fee
Protocol with checks and travelers checks - Answer-Do not accept checks from anyone unless they are
trustworthy, or if you can hold on to the tickets until the check clears
, Do not accept checks from someone else who is not the person booking
Do not accept checks that are over the amount that they are charged
Some agencies use a check verification service to ensure that the funds will clear, although it is not
necessary
Write clients name, proof of identity, address, phone number, Drivers License on the back of the check
Never accept pre signed travelers checks
Only accept travelers checks from reputable companies
Geography - Answer-The study of relationships between people and their environment
Physical Geography - Answer-Focuses on people and their patterns of settlement and activity
Travel Geography - Answer-Application of knowledge to travel, tourism and hospitality agency
Longitude - Answer-Horizontal Lines
Latitude - Answer-Vertical Lines (Lateral!)
prime meridian - Answer-through Greenwich, England and the 180 degree meridian through the pacific
ocean
Globe - Answer-Scale model of the earth
Cartography - Answer-Map Making
Geographic Information System (GIS) - Answer-Can retrieve, record, analyze and manipulate information
gathered by satellites
