AITO
A trade group based in Britain, 120 tour operators in 200+ countries (independent), protected holidays, assesses members financially and business practice before granting membership, sets tour standards.
B2B
Business to business; this is when a business sells a product to another business.
B2B2C
Business to business to consumer; this is when a business sells a product to another business who then sells that product to a consumer.
B2C
Business to consumer; this is when a business sells a product directly to a consumer.
Buyer
Someone working on behalf of an intermediary, such as a DMC or tour operator, who sources and negotiates contracts to buy services from individual tourism suppliers.
Commission
A percentage of the sale paid to a third party for facilitating a booking, covering services such as marketing.
Consumers
Customers, including families, couples, solo travellers, business travellers, domestic tourists, and international tourists, visiting friends and family.
Contractor
Typically refers to a person or company that enters into a contract to provide services or goods.
Distribution channel
Refers to a group of similar resellers; for example, online travel agencies (OTAs) such as Viator, Expedia, and GetYourGuide, are considered part of the OTA distribution channel.
Distributor
Also known as travel trade or intermediaries through whom businesses can sell their bookable product either to other businesses in the travel distribution system or to the end consumer.
Domestic
Pertains to domestic tourism, organizing travel within a country, domestic travel agencies and transport operators; serves the inbound market.
Experience
Can be used instead of "product" to describe what is offered to the customer.
FIT
Financially independent traveller.
Ground
This means doing the groundwork at grassroots levels; involves a network of connections, third-party ground operators, local contracts, suppliers, and market data; common for small operators, handling operators, or agents.
Gross or retail rate
The amount the customer pays.
Inbound
This means to bring tourists into Scotland; involves local travel agencies and transport operators to facilitate arrangements for their customers.
Net Rate
The amount that remains after all commissions are deducted from the gross rate, essentially the net amount the business receives.
Online marketplace
Generally refers to a website or app that facilitates buying and selling between third-party suppliers or service providers and consumers.
Outbound
Sends tourists out of a country, involving foreign travel agencies and transport operators.
Principles
What is being sold, including accommodation, transport, attraction tickets, insurance, car hire.
Product
The combination of goods and services that make up the visitor experience, including the standard of facilities and equipment, the level of service, and the quality of interpretation.
Retailers
Travel agents, OTAs, or bookings made independently (e.g., TUI, Travel Supermarket, STA Travel).
Social proof
A psychological concept that people are influenced in their decision-making by others; in marketing, it refers to evidence that other people have purchased and found value in a product or service, influencing others to make similar purchases.
Travel intermediary
Agents or businesses that act as middlemen in the selling of tours, accommodations, and other travel products. They bridge the gap between the supplier of the travel product and the consumer.
Wholesalers
Tour operators such as TUI, Expedia, Kuoni, Cox & Kings.
