Fare Selection

In the world of air travel, numerous fare options are published

between any given city pair. Therefore, one of the most crucial skills
for travel professionals is the ability to select the most suitable fare for
a specific trip. This skill goes beyond simply identifying the correct
global indicator and journey type.

When choosing the appropriate fare, travel professionals must also

consider several additional factors:

● Fare Type: Fares differ in their characteristics, including

flexibility, potential additional costs, minimum stay
requirements, and mileage earned.
● Predominant Carrier: Different airlines might offer the same
route at varying prices or provide distinct services and
amenities for the same cost.
● Conditions Governing the Fare: Fares often come with terms
and conditions that dictate aspects like refund and change
rules, restrictions on travel days, and travel season.

By understanding and effectively evaluating these factors, travel

professionals can choose the fare that best addresses the traveler's
needs and requirements.

Normal vs. Special Fare Types

In international long-haul flights, like Jeddah (JED) to Sydney (SYD) or

Jeddah (JED) to Chicago (ORD), airlines often operate a three-class
configuration:

● First Class (F): Premium cabin with the highest level of service
and amenities.
● Business Class (C): Offers increased comfort and amenities
compared to Economy Class.
● Economy Class (Y): The most cost-effective cabin option.

Within each class, airlines typically offer two main fare types:

1. Normal Fares:
- Greater Flexibility: Allow changes to reservations or full
refunds, often without penalty.

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- Higher Cost: Typically the most expensive fare option.

- Suited for: Corporate travelers with flexible schedules
or unpredictable travel needs.
2. Special (Promotional) Fares:
- Lower Cost: Significantly cheaper than normal fares for the
same route and seat class.
- Restrictions Apply: Often limited availability, change fees, or
non-refundable features.
- Suited for: Leisure travelers with flexible travel dates and
budget constraints, willing to accept limitations for savings.

Crucial Considerations for Travel Professionals:

Understanding the key differences between normal and special fares

is crucial for selecting the most suitable option for your client's needs.

● Normal fares: Ideal for clients who value flexibility and

itinerary changes, even if it comes at a higher cost.
● Special fares: Best suited for budget-conscious clients with
flexible travel plans who are comfortable with potential
restrictions.

Unrestricted vs. Restricted Normal Fares

Normal fares offer greater flexibility than most promotional fares, but
within this category, further distinctions exist.

1. Unrestricted Normal Fares (Primary Fares):

● Flexibility: Allow unlimited stopovers and transfers
within the permitted mileage limit (Maximum
Permitted Mileage - MPM) for the city pair.
● Cost: Generally the most expensive normal fare option
within a class.
● Representation: Displayed as single letters (F, C, Y) or
with a "1" suffix (F1, C1, Y1) in fare displays and tables.
● Ideal for: Travelers valuing unrestricted travel options
and potential itinerary changes, even at a higher cost.
2. Restricted Normal Fares (Secondary Fares):
● Flexibility: Impose restrictions compared to
unrestricted normal fares. These may include:
○ Limits on stopovers and transfers.
○ Restrictions on travel seasons, days of the week,
or specific flights/airlines.
● Cost: Lower than unrestricted normal fares due to the
imposed limitations.

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● Representation: Identified by codes with a "2" suffix

(F2, C2, Y2) in fare displays and tables. Additional codes
may indicate specific limitations:
○ Seasonal variations: "H" for high season, "L" for
low season.
○ Day of week restrictions: "X" for weekdays, "W"
for weekends.
○ Limited stopovers: No code explicitly indicates
stopover restrictions, but the itinerary details
will reflect this.

Special/Promotional Fares

Special (Promotional) Fares offer significant cost savings compared to

normal fares, but come with various limitations and restrictions.

Key Characteristics:

- Lower Cost: Often much cheaper than normal fares for the
same route and class.
- Increased Restrictions: Typically involve limitations on:
- Length of Stay: Minimum and/or maximum number of days
required for travel.
- Advance Purchase: Requirement to purchase tickets well in
advance of the travel date.
- Reservations, Payment & Ticketing: Specific timeframes for
reservations, payments, and ticket issuance.
- Day/Time of Travel: Restrictions on travel days
(weekdays/weekends) or specific times (peak vs. off-peak
hours).
- Eligibility: May have limitations based on age, nationality, or
other factors.
- Refundability & Changeability: Often non-refundable or
subject to change fees.
- Fare Display: May be published as a fixed amount or with an
alphabetic code.

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Types of Special Fares:

1. Public Special Fares:

- Late Booking Fare: Discounted fare for last-minute
bookings.
- APEX Fare: Advance Purchase Excursion fare with
specific minimum and maximum stay requirements.
- PEX Fare: Previously Embarked Excursion fare, similar
to APEX but with shorter advance purchase
requirements.
- Excursion Fare: Round-trip fare with minimum and
maximum stay requirements.
2. Inclusive Tour Fares: Combine airfare with accommodation and
other ground services, often sold as a package deal.
- Group Inclusive Tour: Designed for pre-formed groups.
- Individual Inclusive Tour: Offered to individual travelers.
3. Public Group Fares: Discounted fares for groups meeting
specific criteria.
- Common Interest Group: For groups with a shared
interest (e.g., students, senior citizens).
- Incentive Group: Offered as an incentive for travel
agents or businesses.
- Non-Affinity Group: Open to any pre-formed group.
- Affinity Group: Restricted to groups with a specific
affiliation (e.g., alumni association).
4. Reduced Fares for Specific Categories: Offered to individuals
with special eligibility, such as children, students, seniors, or
military personnel.
5. Miscellaneous Fares: Other fare types with unique conditions,
such as one-way fares or standby fares.

Implications for Travel Professionals:

- Understanding the diverse types and limitations of special

fares is crucial for recommending the most suitable option for
clients.
- Matching client needs: Consider budget, travel dates, flexibility
requirements, and other factors when choosing a special fare.
- Informative guidance: Clearly communicate the restrictions
associated with special fares to manage client expectations.

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Fare Codes
Understanding fare codes is crucial in airfares and ticketing courses.
Let's break down the components:

1. Class Codes:

● The first letter indicates the class of service:

○ First Class: P (Premium), F (First), A (Discounted)
○ Business Class: J (Premium), C (Business), D
(Discounted), I (Discounted), Z (Discounted)
○ Economy/Coach Class: W (Premium), S
(Economy), Y (Economy), B/H/K/L/M/N/Q/T/V/X
(Discounted Economy/Coach)

2. Season Codes (Optional):

● These letters follow the class code and indicate the fare
season:
○ H - Highest level: Used for fares with multiple
seasonal levels.
○ K - L: Represent various levels within a fare
having multiple seasons.

3. Week Part Codes:

● These codes indicate the travel day:

○ W: Weekend travel
○ X: Weekday travel

4. Part of Day Code:

● This code applies to specific times of travel:

○ N: Night travel

5. Fare and Passenger Type Codes:

● These codes provide additional information about the

fare and passenger:
○ AP: Advance Purchase Fare
○ BT: Bulk Inclusive Tour/Operator Package
○ CD, CH: Senior Citizen, Child fare
○ CP: Companion Fare
○ CT: Circle Trip fare
○ DL, DT: Labour, Teacher fare
○ EE: Excursion fare
○ EX: Extra seat for comfort
○ GI, GV: Group - Incentive, Group Inclusive Tour
fare

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○ ID: Air Industry Employee fare

○ MZ: Military - Specific category
○ OJ: Open Jaw ticket (different arrival/departure
airports)
○ OW: One-Way ticket
○ OX: Excursion One-Way fare
○ PX: PEX Fare
○ RT: Round Trip ticket

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NUC Conversion Procedure

Fare Construction and Currency Challenges:

In airfare construction, combining or comparing fares from different

currencies can be problematic. For example, adding a fare from Taipei
(TPE) in Taiwanese Dollar (TWD) to a fare from Karachi (KHI) in
Pakistani Rupee (PKR) is impossible due to differing currencies.

Neutral Unit of Construction (NUC) to the Rescue:

To address this challenge, a standard unit called the Neutral Unit of

Construction (NUC) was established. Each local currency has an
equivalent NUC value, facilitating easier fare construction and
comparison regardless of the origin currency.

NUC Conversion Process:

1. Fares in Local Currency and NUC: Fares are published in both

their local currency and equivalent NUC value.
2. NUC Calculations: All calculations during fare construction
occur in NUC.
3. Final Conversion to Local Currency: At the end, the total NUC
amount is converted back to the local currency of the starting
travel point.
4. IATA Rate of Exchange (IROE): This official exchange rate,
established by the IATA Clearing House, is used for conversion.
○ Frequency: Updated four times a year, remaining fixed
for three-month periods (unless significant currency
fluctuations occur).
○ Finding the IROE: Check the latest edition of relevant
tariff books.

Using IROE for Conversion:

● NUC to Local Currency: Multiply the NUC by the IROE of the

starting travel point's country.
● Local Currency to NUC: Divide the local fare by the IROE of the
starting travel point's country.

Rounding Rules:

Each local currency has its own rounding rules. The example above
demonstrates rounding to the nearest whole unit in the Saudi Arabian
market (SAR).

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MPM & TPM

Maximum Permitted Mileage (MPM):

● Defines the maximum allowable distance between the origin

and turnaround point (the furthest point reached before
returning).
● MPMs are always one-way distances.
● For round trips, mileage is calculated from the origin to the
break point, then back to the origin.
● The break point is the city with the highest MPM on the
itinerary.

Mileage Method of Fare Construction:

● This method is widely used for international fares, allowing

airlines to service destinations they don't fly directly to.
● Instead of specifying a specific route, it assigns a mileage
allowance between points.
● This enables airlines to create fares through global indicators,
even with indirect routings.

Stopovers and Mileage Fares:

● Stopovers are permitted under certain conditions, such as

being pre-arranged and included on the ticket.
● Mileage fares allow stopovers as per published rules unless
prohibited by specific fare limitations.
● Special fares may have limitations or require surcharges for
stopovers.

Ticket Point Mileage (TPM):

● Used to determine if an itinerary falls within the MPM

allowance.
● TPM calculation involves adding the mileage of all sectors,
including surface sectors and connections.
● It must be calculated in both directions as MPMs are one-way.

Calculating TPMs:

● All sectors, including surface and connection segments, are

included in the calculation.
● MPMs are directional, so calculate each direction separately.

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Mileage Fares and Surcharges:

● When the chosen routing exceeds the MPM, an excess

mileage surcharge applies.
● Surcharges range from 5% to 25%, depending on the degree of
excess mileage.

Example:

● TPM: 5373
● MPM: 4728
● Excess Mileage: (5373 - 4728) = 645
● Surcharge Percentage: 15% (as the excess falls within the 1.11
to 1.15 range)

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