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Fare basis code
View on WikipediaA fare basis code (often just referred to as a fare basis) is an alphabetic or alpha-numeric code used by airlines to identify a fare type and allow airline staff and travel agents to find the rules applicable to that fare. Although airlines now set their own fare basis codes, there are some patterns that have evolved over the years and may still be in use.
Airlines can create any number of booking or fare classes, to which different prices and booking conditions may apply. Fare classes are complicated and vary from airline to airline. The meaning of these codes is not often known by the passenger, but conveys information to airline staff; for example, they may indicate that a ticket was fully paid, discounted, part of an excursion package, or purchased through a loyalty scheme.
Fare codes start with a letter called a booking class (indicating travel class among other things), which almost always matches the letter code that the reservation is booked in.[1] Other letters or numbers may follow. Typically a fare basis will be 3 to 7 characters long,[2] but can be up to 8.[1]
Booking class
[edit]The first character of the fare basis code is always a letter, and will almost always match the booking class.[3] Booking codes are the identifiers used by the airline's revenue management department to control how many seats can be sold at a particular fare level. For example, a plane may have 25 economy seats still available and the airline may show it in a reservation system as Y7 K5 M4 T6 E3 which indicates how many of each booking class can be reserved. Some codes cannot be sold by agents, and those seats may be reserved for international connections, loyalty programs, or airline staff relocation.
Booking codes were defined by IATA,[citation needed] but airlines have deviated from the IATA standard and current booking codes are airline-specific.[4] The same code may have different meanings for tickets issued by different airlines. Many airlines use nearly all letters of the alphabet to allow finer yield management. Nevertheless, certain booking codes have retained the same meaning across most airlines:
| Booking code | Meaning |
|---|---|
| F | full-fare First class,[5] on airlines which have first class distinct from business class. |
| J | full-fare Business class |
| W | full-fare Premium economy[6] |
| Y | full-fare Economy class |
Other common patterns
[edit]Letters and numbers in other sections of the fare basis code may provide the following information:
| Code | Standard position in fare basis code | Meaning |
|---|---|---|
| E | Second letter | This often indicated that the fare was an "Excursion Fare". These fares typically had a minimum and maximum stay requirement to encourage use by the holiday market and not business travellers. |
| Numerals | Latter parts of the fare basis | Numerals often indicate the maximum stay the fare rules will allow at a destination. Thus a YE45 is an economy excursion fare with a maximum stay of 45 days. Similar patterns could be YE3M indicating a 3-month maximum.[1][5] |
| H or L | Other than first letter | High or low season[5] |
| W or X | Other than as the first letter | These two letters are commonly used in airfares to state if a fare is valid on a weekday (X) or restricted to weekends (W).[5] The specific days of a weekend may vary, and can include Friday travel. |
| OW | On higher level fares, normally follows the initial booking code. | One-way fare only[5] |
| RT | On higher level fares, normally follows the initial booking code. | Return fare |
| Two-letter country codes | Usually at the end of the code, except if followed by "CH" or "IN" | Fare bases often end with two-letter country codes. This will be the case when an airline has an international fare in both directions. For example, a fare from Great Britain to Australia may be YE3MGB, and YE3MAU from Australia to Great Britain.[5] This allows the fare to have similar rules, but may have some variations in change fees or to comply with local trade restrictions. |
| CH | Last two characters | Child fare (typically up to 11 years old, but 15 in some cases) |
| IN | Last two characters | Infant fare (typically up to 2 years old, but 3 years in some cases) |
Airline-specific codes
[edit]There is an endless list of other codes on modern fares. These are not standardized in any way, and may often be for short-term use. The following are some examples:
- Codes that indicate an airline's common name for a fare. As a hypothetical example, an airline selling what they refer to as their "Super-Saver" fare may use SPRSVR in the fare basis, or may use it as the entire code.
- Codes that limit a fare to a particular company or organisation. An airline may negotiate a fare with the XYZ company and include these letters in their fare basis. Negotiated fares are normally only visible to agents that have a contract to sell them, and are not publicly listed.
- Codes for use with military personnel, or federal government employees. These are commonly used in the United States, and often indicate fares with minimal or no restrictions on changes and refunds.
- ID and AD used for airline staff (Industry Discount) and travel agency staff (Agent Discount). It may include a number indicating the percentage of discount from the full fare, e.g., AD75.
Fare details
[edit]Each published fare basis code corresponds to a fare, which applies to travelling between two cities on a certain airline, with certain restrictions.
These restrictions can include, but not limited to:
- which particular flights can / cannot be taken on this fare
- whether the fare can be used for one-way / round-trip journeys
- changeability / refundability
- restrictions on connections and stopovers
- any minimum / maximum stay requirement (applicable for round-trip fares)
- whether open jaw is allowed or not
- combinability with other fares
- advanced purchase restrictions
which is published in legalese such that it can be validated automatically by global distribution systems.
Fare construction
[edit]Fare construction refers to the application of fares which can cover the flights in the reservation, necessary to price the air ticket for issuance.
It is commonly presented as a single line with standardized codes[7] which can be used for travel agents to price the ticket in global distribution systems. For example, a fare construction may say:
| HKG | LX | X/ZRH | LX | ARN | 598.78SCLA | /-CPH | SK | X/AMS | KL | RDU | 371.37ACLA | NUC 970.15 | END | ROE 7.849222 | XT 160G3 120HK 45I5 105DK 33LV 61XM 713YQ |
| from Hong Kong | by Swiss International Air Lines | transfer in Zürich | by Swiss International Air Lines | to Stockholm-Arlanda | 598.78 on fare SCLA | arrival unknown to Copenhagen | by Scandinavian Airlines | transfer at Amsterdam | by KLM | to Raleigh | 371.37 on fare ACLA | total fare in NUC | end of fare | rate of exchange | the various taxes, fees and charges added in ticketing currency |
Fare construction is a complicated task because each fare comes with a lot of rules regarding the usage, however the rules are designed to be validatable by computers so the system can decide to accept or reject easily. Most commonly fare construction is done by a computer automatically, but it is not guaranteed that the lowest fares can be found. Due to the above reason, or in case when the automatically generated fare has some restrictions which the traveller does not want, manual fare construction can also be done, which means finding the suitable fares manually and applying the fares to an itinerary in order to buy a ticket.
Multiple fare basis
[edit]It is common for a multi-sector air ticket to have more than one fare basis, particularly if it is for carriage on more than one airline, or different classes of travel are involved. The issuing airline may often have an interline agreement to allow other airlines on the ticket. One disadvantage of this system is that if any change is made, the most restrictive fare rule, and/or the highest change fee, may apply to the entire ticket, not just the portion being changed.[8]
Global Distribution Systems
[edit]In a Global Distribution System, the fare basis will typically display as part of a fare display, and will not normally be shown in an availability display. Some modern booking systems allow availability searches using parameters such as time of day and lowest fare, and may negate the need for an agent to firstly study the fare basis rules.
Tickets
[edit]The fare basis is normally shown on the air ticket. On older paper tickets, it was highlighted on the relevant coupon for that flight. On modern e-tickets, it is often printed under the flight details.
See also
[edit]References
[edit]- ^ a b c "The Cranky Flier, Fun with Fare Basis Codes". 2007. Retrieved 19 December 2013.
- ^ Todd/Ginger, Rice, Susan (2005). A Guide to Becoming a Travel Professional. p. 244.
{{cite book}}: CS1 maint: multiple names: authors list (link) - ^ Galileo 360(degrees). V1 Course book. Galileo Travelport. 2009. p. 9.
- ^ Galileo 360(degrees). V1 Course book. Galileo Travelport. 2009. p. 12.
- ^ a b c d e f Galileo 360(degrees). V1 Course book. Galileo Travelport. 2009. 2009. pp. 13–16.
- ^ on airlines that offer it, may be some discount economy on airlines without it such as Turkish Airlines
- ^ Fare Calculation Symbols and Explanations, Amadeus
- ^ "What is a Fare Basis (or fare code)?". Businesstravel.about.com. 2014-03-03. Archived from the original on 2014-04-12. Retrieved 2014-04-24.
Fare basis code
View on GrokipediaFundamentals
Definition
A fare basis code is an alphabetic or alpha-numeric code, typically 3 to 8 characters long, used by airlines to classify ticket types and the associated rules governing their use, such as refundability, changeability, and routing restrictions.[5][6] These codes serve as a standardized identifier within airline reservation systems, enabling precise application of fare conditions to specific bookings. The code always begins with a single-letter booking class indicator, which denotes the general class of service, such as economy or business.[2] Subsequent characters provide additional details on fare attributes, like trip type or eligibility criteria. For instance, "YOW" represents a basic economy one-way fare, while "J1" indicates a full-fare business class.[7][8] Historically, fare basis codes originated as a standardized system developed by the International Air Transport Association (IATA) in the mid-20th century to simplify fare rules and booking processes across airlines, particularly as computerized reservation systems emerged.[5] This framework facilitated efficient fare identification and management in global distribution systems.Purpose and Importance
Fare basis codes play a central role in airline pricing by enabling precise control over seat inventory allocation based on fare types. For example, airlines can limit the number of seats available in full-fare economy class, often denoted by the "Y" booking class, to protect higher-yield inventory for last-minute or flexible bookings. This mechanism allows carriers to manage capacity dynamically, ensuring that lower-fare seats are released strategically to match demand patterns without cannibalizing premium sales.[9] In revenue management, these codes link directly to yield-optimized strategies that segment passengers by willingness to pay, such as offering deeply discounted, restricted fares to leisure travelers while reserving unrestricted higher fares for business customers. By tying specific codes to availability levels—such as displaying only five seats remaining for a particular fare class like "G5"—airlines can adjust pricing in real-time to maximize overall revenue from each flight. This approach supports intertemporal price discrimination, where early bookers access lower fares with advance purchase requirements, while late bookers face higher rates for flexibility.[10] Fare basis codes also govern essential ticket restrictions, including refundability, change penalties, advance purchase timelines, and minimum or maximum stay rules, which are encoded in the alphanumeric string to enforce fare conditions. For instance, the suffix "EN" typically signals a non-refundable ticket, while "A" imposes an advance purchase requirement, helping airlines enforce compliance and reduce revenue leakage from misuse. These elements ensure passengers receive clear terms, preventing disputes and enabling efficient operations.[9] On the regulatory front, the International Air Transport Association (IATA) mandates the use of fare basis codes for international fares under Resolution 728 to promote transparency in global ticketing and standardize fare rule application across carriers. This requirement facilitates accurate documentation in electronic tickets and orders, supporting compliance with international standards and enabling seamless interoperability in distribution systems. Economically, by fostering effective segmentation and inventory control, fare basis codes help airlines optimize profits in a high-fixed-cost industry, where even small improvements in load factors and yield can significantly impact financial performance.[11][10]Components
Booking Class
The booking class is the single uppercase letter that serves as the first character in a fare basis code, identifying the cabin class and the corresponding inventory bucket used by airlines for revenue management and seat allocation.[5] This letter categorizes tickets into broad service levels while allowing airlines to control how many seats are sold at associated price points within each class.[2] Common designations include F for full-fare First Class, C or J for Business Class (with J often indicating full-fare and C discounted), Y for full-fare Economy, B, H, or M for discounted Economy fares, and Q, V, or K for deeply discounted Economy options.[9] These codes enable precise inventory tracking; for example, a display of "Y9" signifies that at least nine seats remain available for sale in the full Economy bucket on a given flight.[12] Airlines allocate limited seats per bucket to balance demand and yield, preventing overbooking in higher-fare categories.[13] Originally standardized by the International Air Transport Association (IATA) to facilitate global ticketing consistency, booking classes allow for airline-specific variations in sub-classes to accommodate diverse fare structures.[5] For instance, the letter D is used by some carriers for premium economy seating, while others apply it to discounted Business Class.[2] Similarly, A often denotes premium economy or flexible Business Class on long-haul international flights, reflecting adaptations to modern cabin configurations.[9] This initial letter forms the foundation of the complete fare basis code, with subsequent elements specifying rules like advance purchase requirements.Additional Elements
Following the initial booking class letter, which serves as the prefix indicating the general fare category, fare basis codes incorporate additional elements as suffixes to specify modifications to the fare type, such as restrictions, applicability, and qualifiers.[6] These suffixes typically consist of letters, numerals, or a combination thereof, allowing for precise differentiation of fare rules within airline pricing systems.[5] Typical suffixes include numerals that denote stay limits, where a number like "30" indicates a maximum stay of 30 days for the itinerary.[6] Other common indicators are "OW" for one-way tickets, restricting the fare to single-direction travel, and "RT" for round-trip fares, which apply to return journeys.[14] Season indicators further refine applicability, with "H" signifying high season pricing during peak travel periods and "L" for low season rates in off-peak times.[5] Passenger type modifiers are also appended as suffixes, such as "CH" for child fares offering reduced rates for passengers under a certain age, typically 2 to 11 years, and "IN" for infant fares, which provide even lower pricing for children under 2 years traveling with an adult.[6] Geographic qualifiers often appear as two-letter country codes at the end of the code, like "GB" to denote rules specific to the United Kingdom market, ensuring compliance with regional regulations or pricing structures.[14] The overall length of fare basis codes can vary but is commonly limited to up to 8 characters to accommodate these complex modifiers without exceeding system constraints in global distribution platforms.[5] This extensibility allows airlines to encode intricate rule sets efficiently while maintaining interoperability across industry standards.[6]Patterns and Variations
Common Patterns
Fare basis codes often follow standardized patterns established through industry practices influenced by the International Air Transport Association (IATA) and managed by organizations like the Airline Tariff Publishing Company (ATPCO), allowing airlines to encode fare restrictions consistently across global systems.[5][15] These patterns build upon the core booking class (e.g., "Y" for full-fare economy) by appending letters, numbers, or suffixes that denote specific conditions such as stay requirements or purchase deadlines.[5] Excursion fares, designed for leisure travel with round-trip requirements and minimum stay durations, commonly incorporate an "E" to indicate the excursion type, often combined with a numeral for the minimum stay period. For instance, economy excursion fares may require a 7-day minimum stay, sometimes with additional rules like Saturday night stays.[5][15] This pattern helps airlines differentiate discounted leisure options from full-fare tickets while enforcing travel rules. Advance purchase requirements are typically denoted by "A" or a direct numeral representing the number of days prior to departure, such as "14" for a 14-day advance booking mandate. Examples include "KX14" for a discounted economy fare requiring 14 days in advance.[15][5] These elements ensure revenue management by limiting last-minute bookings on promotional inventory.[16] Non-refundable fares embed "N" or "NR" to signal ineligibility for refunds, frequently appearing at the end of the code alongside other restrictions. A representative code like "YH7NR" breaks down to economy class ("Y"), high season ("H"), 7-day advance purchase ("7"), and non-refundable ("NR").[5][15] This pattern is prevalent in deeply discounted economy tickets to protect airline yield.[6] Promotional fares utilize designations like "SALE" for special or time-sensitive discounts, often as suffixes to highlight limited availability.[15] Such codes facilitate marketing campaigns while tying into broader fare rules for capacity control. One-way first-class fares use "F" to denote the cabin, with additional elements specifying the direction and rules, simplifying fare filing in global distribution systems.[15]| Pattern Type | Suffix/Element | Example Code | Meaning |
|---|---|---|---|
| Excursion | E + numeral | E (general) | Excursion fare with minimum stay requirements[15] |
| Advance Purchase | A or numeral | KX14 | Discounted economy with 14-day advance requirement[5] |
| Non-Refundable | N or NR | YH7NR | Non-refundable economy with 7-day advance and high season[5] |
| Promotional | SALE | SALE | Special discounted promotional fare[15] |
