TRAVEL AGENT PROFICIENCY TEST
FINAL REVIEW EXAM QUESTIONS AND
ANSWERS GRADED A+ 2025/2026
Fixed Expenses - ANS costs that remain unchanged during a specific period despite changes
in the volume of business.
Variable Expenses - ANS are costs that increase and decrease directly and proportionately
with changes in business volume.
Semi-Variable or Mixed Expenses - ANS are costs that change in response to a change in
business volume, but they change by less than a proportional amount.
Income Statement - ANS summarizes revenues earned and expenses incurred for a particular
period
Balance Sheet - ANS 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 - ANS Directly from client
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,CC company
In the form of checks from agencies
Through ARC (Airline Reporting Corporation)
Agents Receive Payments in 3 Ways - ANS Through ARC
By deducting commission prior to sending to supplier
By check from supplier
ARC (AIRLINE REPORTING CORP) - ANS an organization owned by major airlines that
regulates the sale of airline tickets by appointing those who may sell them.
Accountable Documents - ANS issues standardized numbered forms that serve as tickets, and
it operates a centralized system for processing sales.
Area Bank Settlement Plan - ANS the system set up by ARC through which participating
suppliers receive payments for sales by travel agencies
ARC Report - ANS Each travel agency pays the ARC suppliers weekly by electronically filing a
mandatory report of sales
base fare - ANS the fare shorn of all taxes
Escrow Account - ANS 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 - ANS bonus commissions to agencies that meet various sales goals or move clients
to the supplier's products
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Income for Travel Agencies - ANS Commission on sales of transportation, accommodation,
cruises, tours and other services
Override commissions
Fees and service charges
Markups on net charges
Cost Benefit Analysis - ANS A tool entrepreneurs use to hold down expenses and ensure
profits (ex. Buying flowers or gifts for a client)
Consortium - ANS which is an association of agencies that retain their independent identities
but pool their resources for certain purposes
Miscellaneous Charges Order (MCO) - ANS 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 - ANS Any document used to confirm arrangements, identify clients, or indicate
payments made
Invoice - ANS 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 - ANS Invoices that indicate an amount paid and the method of payment.
ARC's Industry Handbook - ANS 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.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Travel Agency Service Fee (TASF) program - ANS 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 - ANS 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 - ANS The study of relationships between people and their environment
Physical Geography - ANS Focuses on people and their patterns of settlement and activity
Travel Geography - ANS Application of knowledge to travel, tourism and hospitality agency
Longitude - ANS Horizontal Lines
Latitude - ANS Vertical Lines (Lateral!)
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
FINAL REVIEW EXAM QUESTIONS AND
ANSWERS GRADED A+ 2025/2026
Fixed Expenses - ANS costs that remain unchanged during a specific period despite changes
in the volume of business.
Variable Expenses - ANS are costs that increase and decrease directly and proportionately
with changes in business volume.
Semi-Variable or Mixed Expenses - ANS are costs that change in response to a change in
business volume, but they change by less than a proportional amount.
Income Statement - ANS summarizes revenues earned and expenses incurred for a particular
period
Balance Sheet - ANS 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 - ANS Directly from client
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,CC company
In the form of checks from agencies
Through ARC (Airline Reporting Corporation)
Agents Receive Payments in 3 Ways - ANS Through ARC
By deducting commission prior to sending to supplier
By check from supplier
ARC (AIRLINE REPORTING CORP) - ANS an organization owned by major airlines that
regulates the sale of airline tickets by appointing those who may sell them.
Accountable Documents - ANS issues standardized numbered forms that serve as tickets, and
it operates a centralized system for processing sales.
Area Bank Settlement Plan - ANS the system set up by ARC through which participating
suppliers receive payments for sales by travel agencies
ARC Report - ANS Each travel agency pays the ARC suppliers weekly by electronically filing a
mandatory report of sales
base fare - ANS the fare shorn of all taxes
Escrow Account - ANS 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 - ANS bonus commissions to agencies that meet various sales goals or move clients
to the supplier's products
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Income for Travel Agencies - ANS Commission on sales of transportation, accommodation,
cruises, tours and other services
Override commissions
Fees and service charges
Markups on net charges
Cost Benefit Analysis - ANS A tool entrepreneurs use to hold down expenses and ensure
profits (ex. Buying flowers or gifts for a client)
Consortium - ANS which is an association of agencies that retain their independent identities
but pool their resources for certain purposes
Miscellaneous Charges Order (MCO) - ANS 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 - ANS Any document used to confirm arrangements, identify clients, or indicate
payments made
Invoice - ANS 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 - ANS Invoices that indicate an amount paid and the method of payment.
ARC's Industry Handbook - ANS 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.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Travel Agency Service Fee (TASF) program - ANS 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 - ANS 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 - ANS The study of relationships between people and their environment
Physical Geography - ANS Focuses on people and their patterns of settlement and activity
Travel Geography - ANS Application of knowledge to travel, tourism and hospitality agency
Longitude - ANS Horizontal Lines
Latitude - ANS Vertical Lines (Lateral!)
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
