Part B (5 marks )

Explain the terms of Taxes in ticketing.

The term "taxes" refers to additional charges imposed by governments and authorities that are
levied on air travel services. These taxes contribute to various aspects of the aviation industry
and are essential components of the total cost of an air ticket. Terms related to taxes in air
ticketing are :

1. Airport Taxes: These fees are typically levied by the airports and can vary based on the
airport you're departing from and arriving at. The primary purpose of Airport Tax is to
generate revenue for the maintenance, operation, and development of airport
infrastructure. This includes the construction and upkeep of runways, terminals, air traffic
control systems, and other amenities that contribute to a safe and efficient travel
experience.

2. Security Charges: These fees are meant to cover the costs of security measures in
place at airports. These charges are aimed at ensuring the safety and security of
passengers, crew, and aircraft during air travel. The primary purpose of Security
Charges is to fund the various security measures and protocols implemented at airports.
These measures include passenger screening, baggage checks, enhanced security
personnel training, and the deployment of advanced security technologies to prevent
and respond to potential threats. Security Charges are typically integrated into the
overall cost of an air ticket. Airlines and travel agencies include these charges in the
ticket price, and the collected funds are then remitted to the relevant aviation security
authorities or agencies responsible for implementing security measures.

3. Passenger Facility Charges (PFCs): These charges go towards funding airport

infrastructure and improvements. These charges are collected to support improvements,
expansions, or maintenance of airport facilities, enhancing the overall passenger
experience. The primary purpose of PFCs is to generate revenue for airport projects that
directly benefit passengers. These projects may include the construction of new
terminals, runways, taxiways, parking facilities, security enhancements, or environmental
initiatives.

4. Federal Excise Tax: This is a tax imposed by the U.S. government on domestic flights.
Federal Excise Tax (FET) on air travel is a U.S. government-imposed tax applied to the
purchase of commercial air transportation. It is a federal tax collected on the fare amount
paid by passengers for domestic flights within the United States. The primary purpose of
the Federal Excise Tax is to generate revenue for the federal government. The funds
collected through this tax contribute to various government programs and services

5. International Taxes: For international flights, there may be taxes and fees imposed by
both the departing and arriving countries. International air travel involves a range of
 taxes and fees that may vary by country and region. These charges contribute to the
overall cost of an international air ticket and are imposed by governments, aviation
authorities, and international organizations.

6. Fuel Surcharges: Some airlines may add fuel surcharges to account for fluctuations in
fuel prices. Fuel prices in the global market are subject to constant fluctuations due to
geopolitical events, economic factors, and supply and demand dynamics. The Fuel
Surcharge allows airlines to adjust ticket prices to reflect these changes without
frequently modifying their base fares.

7. Government Taxes and Fees: Various countries may impose their own taxes and fees
on air travel.

8. Value Added Tax (VAT): In some regions, Value Added Tax is applied to air tickets.
This tax is a percentage of the ticket price and is collected by the government. The rate
and applicability of VAT can vary between countries.

Explain the types of software in ticketing.

In the field of air ticketing, various types of software are used to streamline processes, enhance
efficiency, and provide better services to travelers.

Reservation Systems (CRS/GDS):

Explanation: Central Reservation Systems (CRS) and Global Distribution Systems (GDS) are
fundamental to the airline industry. CRS facilitates reservation and inventory management for
airlines, while GDS connects travel agencies with real-time information on flight availability,
pricing, and booking.

Airline Reservation Software:

Explanation: This type of software is specific to individual airlines and is used for managing flight
schedules, seat availability, and reservations. It integrates with other systems to provide a
comprehensive view of the airline's operational status.

Online Booking Engines:

Explanation: Online booking engines enable travelers to directly book flights, hotels, and other
travel services through the airline's or travel agency's website. These engines provide a user-
friendly interface, secure payment options, and real-time availability.

Check-In Systems:

Explanation: Check-in systems allow passengers to check in for their flights, choose seats, and
obtain boarding passes. These systems can be integrated with mobile apps and online
platforms, providing passengers with convenient options for pre-flight check-in.
Payment Gateway Software:

Explanation: Payment gateways are crucial for secure online transactions. In air ticketing, these
gateways ensure that financial transactions, such as ticket purchases, are processed safely and
efficiently.

Flight Operations Software:

Explanation: Flight operations software helps airlines manage and optimize flight planning, crew
scheduling, fuel consumption, and other operational aspects. It contributes to improving
efficiency and reducing operational costs.

Revenue Management Systems:

Explanation: Revenue management systems help airlines optimize pricing strategies based on
factors like demand, competition, and market conditions. These systems aim to maximize
revenue by adjusting ticket prices dynamically.

Customer Relationship Management (CRM) Software:

Explanation: CRM software in air ticketing focuses on managing customer interactions and
improving customer satisfaction. It helps airlines and travel agencies maintain a database of
customer preferences, manage loyalty programs, and enhance overall customer service.

Baggage Management Systems:

Explanation: Baggage management systems assist airlines in tracking and managing passenger
baggage throughout the journey. These systems contribute to minimizing baggage mishandling
and improving overall customer experience.

Mobile Apps:

Explanation: Many airlines and travel agencies provide mobile apps for convenient access to
flight information, booking services, check-in, and real-time updates. Mobile apps enhance the
overall travel experience for passengers.

Crew Management Systems:

Explanation: Crew management systems assist airlines in scheduling and managing flight crews
efficiently. These systems consider factors such as crew availability, regulatory requirements,
and scheduling preferences.

Virtual queuing and Boarding Pass Apps:

Explanation: These apps allow passengers to virtually queue for boarding and access digital
boarding passes. This reduces physical contact and enhances the efficiency of the boarding
process.
 Write short notes on global distribution system.

A Global Distribution System (GDS) is a computerized network that facilitates the distribution of
travel-related services, products, and information to travel agencies, online travel agencies
(OTAs), and other entities involved in the travel industry. Here are some key points about Global
Distribution Systems:

1. Functionality:

 GDS serves as a centralized platform that enables travel agents to access and
book various travel-related services such as flights, hotels, car rentals, and more.

 It provides a comprehensive database of travel inventory, including real-time

availability, pricing, and booking information.

2. Participants:

 GDS involves multiple participants, including airlines, hotels, car rental

companies, and travel agencies. These entities connect to the GDS to manage
their offerings and distribute them to a wider audience.

3. Booking Process:

 Travel agents use GDS interfaces to check the availability and prices of travel
services. They can then make reservations and bookings on behalf of their
clients directly through the GDS platform.

 GDS facilitates the seamless integration of various travel services into a single
itinerary, allowing for comprehensive trip planning.

4. Key Players:

 Major GDS providers include Amadeus, Sabre, Travelport (which owns Galileo
and Worldspan), and Abacus. These companies connect travel service providers
with a vast network of travel agencies worldwide.

5. Global Reach:

 GDS has a global reach, connecting travel service providers and agents across
different regions and countries. This global distribution network ensures that
travel inventory is widely accessible and visible to a diverse range of customers.

6. Technology Integration:

 GDS has evolved with technology, incorporating features such as online booking
tools and mobile applications. This allows for more convenient access to travel
information and services, not only for travel agents but also for end consumers.
 7. Efficiency and Standardization:

 GDS enhances efficiency in the travel industry by providing a standardized

platform for information exchange. This results in quicker and more accurate
booking processes, benefiting both travel agents and customers.

8. Revenue Management:

 Airlines and other travel providers use GDS to implement dynamic pricing
strategies, adjusting fares based on factors such as demand, time of booking,
and route popularity.

What are the elements to check in order to compute the right taxes for an air
ticket?

Computing the right taxes for an air ticket involves considering various elements to ensure
accuracy and compliance with relevant regulations.

1. Base Fare:

 Start with the base fare, which is the initial cost of the air ticket before the
addition of taxes and fees. This serves as the foundation for calculating the total
fare.

2. Route and Destination:

 Different routes and destinations may have varying tax structures. Be aware of
the specific taxes applicable based on the departure and arrival locations.

3. Airport Tax (Passenger Service Charge - PSC):

 Check the airport tax or Passenger Service Charge (PSC) applicable at the
departure and arrival airports. This fee contributes to the use of airport facilities.

4. Fuel Surcharge:

 Verify if a fuel surcharge is applicable. This charge helps airlines offset

fluctuations in fuel prices and is often calculated as a percentage of the base
fare.

5. Security Fee:

 Include any security fees imposed by relevant authorities. Security fees cover the
costs of passenger screening, baggage checks, and other security measures.

6. Value Added Tax (VAT) or Goods and Services Tax (GST):

  Consider the application of VAT or GST, which is a consumption tax applied to
the purchase of goods and services, including air tickets. Verify the tax rate and
its applicability.

7. Passenger Facility Charge (PFC):

 Determine if there are Passenger Facility Charges (PFCs) applicable. These

charges contribute to specific airport development projects and vary by airport.

8. Federal Excise Tax (FET):

 For U.S. domestic flights, check the application of the Federal Excise Tax (FET),
which is a federal tax applied to the base fare.

9. Customs Duties and Tariffs:

 Be aware of any customs duties or tariffs that may apply, especially in the
context of international travel. These charges can vary based on the destination
and the goods or services involved.

10. Other Applicable Taxes and Fees:

 Investigate any other specific taxes or fees that may be relevant to the route or
type of travel. This may include departure taxes, arrival taxes, or other region-
specific charges.

11. Currency Exchange Rates:

 Consider the impact of currency exchange rates, especially for international

travel. Fluctuations in exchange rates can affect the effective cost of air travel in
local currencies.

12. Regulatory Changes:

 Stay informed about any changes in tax regulations or government policies that
may affect the calculation of taxes for air tickets. Regulations can evolve, and
staying current is crucial.

13. Dynamic Pricing Considerations:

 Recognize that airlines may use dynamic pricing strategies, adjusting fares
based on factors such as demand, seat availability, and booking patterns.

14. Transparency in Communication:

 Ensure transparent communication of the breakdown of charges to passengers

during the booking process. Passengers should be informed about the various
components contributing to the total fare.

Explain what is HIP check ?

Refer notes maximum permitted mileage

What are the advantages of automatic ticketing service and write a short note on
E-ticket?

Advantages of Automatic Ticketing Service:

1. Efficiency and Speed:

 Automatic ticketing services streamline the ticketing process, reducing manual

efforts and increasing efficiency. Customers can quickly and easily purchase
tickets, leading to faster transactions.

2. Accuracy:

 Automation minimizes the chances of human errors in ticket issuance.

Automated systems can accurately calculate fares, taxes, and fees, ensuring that
customers receive correct and transparent information.

3. 24/7 Availability:

 Automatic ticketing services are available 24/7, allowing customers to make

reservations and purchase tickets at any time, irrespective of business hours.
This flexibility caters to the needs of a global and diverse customer base.

4. Convenience:

 Customers can access automatic ticketing services from the comfort of their
homes using various platforms, such as online websites, mobile apps, or kiosks.
This convenience enhances the overall customer experience.

5. Real-time Updates:

 Automated systems provide real-time updates on seat availability, flight

schedules, and pricing. This allows customers to make informed decisions based
on the latest information.

6. Integration with Other Services:

 Automatic ticketing services often integrate with other travel-related services,

such as hotel bookings, car rentals, and travel insurance. This integrated
approach simplifies the travel planning process for customers.

7. Reduced Operational Costs:

  Airlines and travel agencies benefit from reduced operational costs as automated
systems require less manual intervention. This can lead to cost savings and
improved overall business efficiency.

8. Electronic Record Keeping:

 Automated ticketing systems create electronic records of transactions, making it

easier for both customers and businesses to track and manage their travel
history and expenses.

An Electronic Ticket, commonly known as an E-ticket, is a digital alternative to traditional

paper tickets. It has become the standard in the airline industry for several reasons:

 Paperless Convenience:

 E-tickets eliminate the need for physical paper tickets. Instead, passengers
receive an electronic confirmation that includes all the necessary travel details.

 Accessibility:

 E-tickets can be accessed anytime and anywhere through email or by logging

into the airline's website or mobile app. This accessibility enhances convenience
for travelers.

 Reduced Risk of Loss:

 Since E-tickets are stored electronically, there's no risk of losing or misplacing

physical tickets. Travelers can easily retrieve their ticket details through email or
the airline's system.

 Efficient Check-In:

 E-tickets facilitate a smoother check-in process. Passengers can use self-service

kiosks or check in online, saving time and avoiding long queues at the airport.

 Flexibility and Changes:

 E-tickets provide flexibility for making changes to travel plans. Passengers can
often modify their itineraries or choose seats online without the need for
extensive paperwork.

 Environmentally Friendly:

 The shift to E-tickets aligns with environmental sustainability efforts as it reduces

the consumption of paper and contributes to the airline industry's eco-friendly
initiatives.
  Integration with Mobile Devices:

 E-tickets can be stored on mobile devices, allowing passengers to present their

ticket using their smartphones or tablets. This adds to the convenience and
digitization of the entire travel experience.

 Secure and Traceable:

 E-tickets come with secure identification codes, making them traceable and
reducing the likelihood of fraudulent activities. This enhances the overall security
of the ticketing process.

Explain the role of Travel agency in Aviation.

Role of Travel Agency in Aviation:

1. Ticket Sales and Reservations:

 One of the primary functions of a travel agency in aviation is to sell airline tickets.
Travel agents assist customers in finding suitable flights, making reservations,
and providing information about available options.

2. Flight Planning and Itinerary Management:

 Travel agencies help customers plan their journeys by providing information on

flight schedules, routes, and possible layovers. They assist in creating
comprehensive travel itineraries based on customer preferences.

3. Booking Accommodations and Ground Transportation:

 In addition to flights, travel agencies often assist customers in booking

accommodations, such as hotels or rental cars. This comprehensive service
helps travelers plan their entire trip seamlessly.

4. Knowledge and Expertise:

 Travel agents possess knowledge about various airlines, destinations, and travel
regulations. Their expertise enables them to provide valuable advice to
customers, helping them make informed decisions based on their preferences
and budget.

5. Specialized Services:

 Travel agencies offer specialized services such as group bookings, corporate

travel management, and arrangements for special events or occasions. They
tailor their services to meet the specific needs of diverse clientele.

6. Visa and Documentation Assistance:

  Travel agencies often assist customers with visa applications, entry
requirements, and other documentation needed for international travel. This
support helps travelers navigate complex regulations and ensures a smooth
travel experience.

7. Customer Support and Issue Resolution:

 Travel agents serve as a point of contact for customers throughout their journey.
They provide support in case of flight delays, cancellations, or other travel-related
issues. Travel agencies play a crucial role in resolving problems and ensuring
customer satisfaction.

8. Negotiating and Securing Discounts:

 Travel agencies, especially those specializing in corporate travel, negotiate with

airlines to secure discounts and special deals for their clients. This can lead to
cost savings for businesses and individuals.

9. Technology Integration:

 Modern travel agencies leverage technology to enhance their services. Online

booking platforms, mobile apps, and automated systems streamline the
reservation process, making it convenient for customers to book and manage
their travel arrangements.

10. Travel Insurance and Risk Management:

 Travel agencies often offer travel insurance options to customers. They educate
travelers about the importance of insurance and help them choose policies that
provide coverage for unforeseen events such as trip cancellations, medical
emergencies, or lost baggage.

11. Promotion of Travel Packages:

 Travel agencies may create and promote travel packages that include flights,
accommodations, and activities. These packages cater to different interests and
can be customized based on customer preferences.

12. Advisory Services:

 Travel agents provide advisory services on travel trends, safety concerns, and
destination information. Their insights help customers make well-informed
decisions and stay updated on travel-related developments.