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Special Fares Calculation

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An introduction about the calculation of Special Airlines Fares (IATA)

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Special Fares Calculation

  1. 1. Special Fares How to Calculate Special IATA Fares? Magiel Venema Revised 2017 Edition
  2. 2. 2 What are Special Fares? • Reduced Fares, but with: • Certain Travel Restrictions – Stopovers – Minimum Stay Requirement – Maximum Stay • Why: to fill up empty spaces • Why Restrictions: – To make them unattractive for full fare paying passengers, like business travelers
  3. 3. 3 Types of Special Fares • Excursion Fares (EE) – Highest, least restrictions • Purchase Excursion Fares (PX) – Intermediate • Advance Purchase Fares (AP) – Lowest, most restrictions • Late Booking Fares – Last minute, internet fares
  4. 4. 4 To recognize them • Fare Basis Code: • Format: • Class – Season – Fare Type – Max. Validity – YLEE3M: Y L EE 3M – YHPX1M: Y H PX 1M – YKAP60: Y K AP 60
  5. 5. 5 Restrictions • Number of Stopovers • Maximum Duration of Journey • Minimum Stay at Destination • Moment of Booking • Cancellation Penalties • Only in Economy Class and only for Returns
  6. 6. 6 How to deal with them? • See (Air Tariff or GDS) if there are any Special Fares between origin and destination • Note all the fares and their Rule number • Analyze the trip in this order on these points: – Number of stopovers – Duration of Minimum Stay – Duration of Total Journey • Why in the above order: Stopover Restriction is in most cases the strongest restriction
  7. 7. 7 How to count the number of stopovers? • Stopover is a scheduled interruption of the journey of more than 24 hours • It does not matter if it is on the demand of the traveler or not • Do not include in the count the point of turnaround! • Count outbound and inbound journey seperately
  8. 8. 8 How to analyze the maximum duration of the journey? • Count from the day after departure to the day of departure for the (last leg) of the return journey • Validity in months: to the same day of the last month – 3 months: November 30 -> February 28!
  9. 9. 9 How to analyze the Minimum Stay? • At what date is the departure from last stopover point (including for this matter, also the point of Turnaround)? • Start counting from the day after departure from Point of Origin to that date • Compare number of days with the minimum stay requirement • Easy?
  10. 10. 10 Example 1: AMS – MAD – CAS – LIS - AMS • Departure AMS: July 16 • Arrival CAS: July 19, Departure July 24 • Departure LIS: July 25 • What is the last stopoverpoint: • LIS • How many days: • 9 Days (Start counting day after departure AMS until departure from LIS)
  11. 11. 11 Example 2: AMS – MAD – CAS – X/LIS - AMS • Departure AMS: July 16 • Arrival CAS: July 19, Departure July 24 • Departure LIS: July 25 • What is the last stopoverpoint: • CAS (Point of Turnaround) • How many days: • 8 Days (Start counting day after departure AMS until departure from last stopoverpoint = CAS)
  12. 12. 12 Structure of the Rules • Each Special Fare has its own Rule • Each Rule has 30 paragraphs (0 – 29) • With the rules, only the paragraphs that are different from the Standard Paragraph SC100 are mentioned • Mentioned Paragraphs have precedence over Standard Paragraphs
  13. 13. 13 How to go ahead • Analyze the itinerary of the trip • Go to the rule of the lowest Special Fare • Check paragraphs 8 – 6 – 7 • If paragraph is not mentioned, then consult Standard Rule SC 100 • Compare checks with itinerary • If it matches, then use that fare • If not, go to the next lower Special Fare and repeat your checks • Etc.
  14. 14. 14 Once you have found an applicable Special Fare • Check for the season (Paragraph 3): • Day of departure decides which season is applicable • Write down the correct Fare Basis • Note date and city from which earliest return may commence • Note last date of validity • Write down ‘Not Valid Before’ and ‘Not Valid After’ for the applicable segments of the journey
  15. 15. 15 Example Not Valid Before Not Valid After • Departure Date: 19JUN • Fare Basis YHEE4M • Minimum Stay Requirement: 6 Days: – Earliest departure last stopover city is 25JUN • Maximum Validity: 4 Months – Latest day of validity is 19OCT
  16. 16. 16 Not Valid Before & Not Valid After NOT VALID BEFORE NOT VALID AFTER 19OCT 19OCT 19OCT 25JUN 19OCT
  17. 17. 17 To sum it up: • Look for the lowest Special Fare • See which Rule is applicable (Y …) • Check Rule against Trip Itinerary • If a Paragraph is not mentioned, than SC 100 applies • If you find something that does not comply, abandon and • Go to next lowest Special Fare • See which Rule is applicable (Y…) • Repeat check of Rule against Trip Itinerary • When you have found a fare, note Fare Basis and establish Season and Not Valid Before and Not Valid After
  18. 18. 18 Finally • Explain client the rules: – Minimum Stay – Maximum Stay – Payment Pariculars – Cancellation Rules • Prepare and Issue Ticket

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