Plain definitions of 137 words tour and activity operators run into every day, from pax, FOC and net rates to TOBTAB licences, e-invoicing and ATDW listings. Each entry gives a one-line definition and a real tour example, with extra detail for operators in Malaysia and Australia.
Showing all 137 terms
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3D Secure Payments
3D Secure is an extra check during an online card payment, such as a code sent to the guest's phone or a prompt in their banking app.
Also called: 3DS
It cuts card fraud and, in many cases, moves the cost of fraud chargebacks away from the business.
An affiliate booking is a booking sent to an operator by a partner, such as a blogger, hotel or website, who earns a commission for it.
Also called: affiliate ·In Bahasa Malaysia:tempahan affiliate
The partner shares a tracked link or books on the guest's behalf. The operator needs to know which affiliate each booking came from, so the right commission gets paid at the end of the month.
An allocation is a set number of places kept aside for a particular partner or channel, such as an agent or OTA.
Also called: allotment, block ·In Bahasa Malaysia:peruntukan
It gives the partner confidence it can always sell, but places it doesn't sell can go empty unless there's a release date when they return to general sale. Many operators now prefer shared live availability to fixed allocations.
ATDW (the Australian Tourism Data Warehouse) is Australia's national database of tourism listings, which shares operators' details with state tourism websites, Tourism Australia and other partners.
Also called: Australian Tourism Data Warehouse, ATDW listing
An operator creates one listing, with descriptions, photos, prices and booking links, and ATDW sends it out to many websites, including each state's official tourism site and Australia.com. For a small operator, it's one of the simplest ways to appear on the sites visitors and trade buyers actually use when planning. Listings are managed through ATDW's online portal, and state tourism bodies check new listings. Keeping the listing current matters: an old price or a dead booking link looks bad on an official site. Some state tourism bodies also run campaigns open only to operators with an ATDW listing. Operators outside Australia can't list, but Australian partners of Malaysian operators, such as inbound agents, may ask whether a product is on ATDW before including it in their programmes.
Availability is the number of places still open to book for a particular date and time.
Also called: live availability, real-time availability ·In Bahasa Malaysia:ketersediaan
It changes every time someone books or cancels, on any channel. Showing live availability everywhere, on the operator's own website and on each OTA, is what prevents overbooking. Guests read it as a signal too: a session with two places left gets booked faster.
Blackout dates are days when a discount, voucher or deal can't be used, or when a tour isn't available at all.
In Bahasa Malaysia:tarikh blackout
Operators usually black out public holidays and peak dates from promotions, and close dates for maintenance, weather or private charters. The dates should be clear before the guest pays, so they don't find out at checkout.
A booking engine is the software that lets guests pick a date, see what's available, and book and pay online.
Also called: online booking system, booking system ·In Bahasa Malaysia:enjin tempahan
It's the part of a booking system guests see. Behind it, the operator's side handles the calendar, payments and guest details. A good booking engine works well on phones, shows live availability and takes payment in the method the guest prefers.
A booking form is the set of questions a guest answers when booking, from names and contact details to anything the operator needs to know.
Also called: custom fields, booking questions ·In Bahasa Malaysia:borang tempahan
Good forms ask only what's needed: dietary needs, the hotel for pickup, weight or height for safety limits, or swimming ability. Long forms lose bookings, especially on phones. Questions the operator only needs later, like T-shirt sizes for a team event, can be collected after booking by email instead. Anything personal, such as health details or ID numbers, should be asked for only when it's genuinely needed.
A booking widget is a small piece of code that puts a booking engine inside an operator's own website.
In Bahasa Malaysia:widget tempahan
Guests choose a date and pay without leaving the operator's site, which keeps the brand in front of them and usually converts better than sending them elsewhere.
Buy now pay later (BNPL) lets a guest split a payment into instalments, while the business is paid upfront by the BNPL provider.
Also called: BNPL, instalment payment ·In Bahasa Malaysia:beli sekarang bayar kemudian
It can help guests afford higher-priced trips and group bookings. The provider takes on the risk of the guest not paying and charges the business a fee. In Malaysia, providers such as Atome are offered through some payment gateways.
A cancellation policy sets out what happens if a guest cancels or doesn't show up, and what happens if the operator cancels.
Also called: cancellation terms ·In Bahasa Malaysia:polisi pembatalan
A typical policy has steps: a full refund if the guest cancels well ahead, a partial refund closer to the date, and nothing for late cancellations or no-shows. Group and charter bookings often have stricter terms, because the operator turns other guests away for them. The policy should also cover what happens when the operator cancels, for weather or too few guests, which usually means a full refund or a free change of date. OTAs often apply their own rules to bookings made through them, so operators line their policies up to avoid confusion. The policy needs to be short, plain and shown before payment, not buried in the terms. Clear policies cut arguments and chargebacks, because the guest agreed to them when booking.
Capacity is the most guests a tour or session can take.
In Bahasa Malaysia:kapasiti
It's usually set by the tightest limit: seats in the vehicle, places on the boat, life jackets, or guests per guide. Some tours have more than one limit at once, and the booking system should stop sales as soon as any of them is reached.
A chargeback is when a guest asks their bank to reverse a card payment, and the bank takes the money back from the business.
Also called: payment dispute ·In Bahasa Malaysia:caj balik
Guests usually do it when they say a tour didn't happen, was cancelled without a refund, or wasn't what was promised. The operator can dispute it with evidence: the booking record, the terms the guest accepted, check-in records and messages. Chargebacks usually carry a fee, even when the operator wins.
A charter is the private hire of a boat, vehicle, guide or whole tour by one group.
Also called: private charter, private hire ·In Bahasa Malaysia:sewa khas
The group pays for the whole thing rather than per seat, and usually chooses the time and sometimes the route. Charters are common for boats, fishing trips and island hopping. Operators usually take a deposit and set clear terms for weather cancellations.
A child policy sets the rules and prices for children on a tour: minimum age, age bands, prices, and whether an adult must come along.
In Bahasa Malaysia:polisi kanak-kanak
Operators often set a child price, free places for infants, and safety limits like minimum height or swimming ability. Stating how age is counted, such as age on the day of the tour, avoids arguments at check-in.
Commission is the share of the price an OTA, agent or partner keeps for selling a booking, usually a percentage of the public price.
Also called: travel agent commission ·In Bahasa Malaysia:komisen
OTAs and resellers work on commission, and so do hotel concierges, affiliates and many travel agents. There are two common set-ups. In the first, the partner collects the full price from the guest and passes the operator the rest after taking its commission. In the second, the operator collects the full price and pays the partner's commission later, often monthly. Commission is the main reason direct bookings earn operators more. When setting prices, operators check that a booking still leaves enough margin after commission to cover guides, fuel, insurance and payment fees, which is where net rates and commissionable rates come in. Many Malaysian operators still settle commission with small partners by hand, so recording who sent each booking matters.
A commissionable rate is a public price that includes the seller's commission, which is paid out of it after the sale.
In Bahasa Malaysia:harga berkomisen
The guest pays the same price they'd see on the operator's website. The agent or OTA keeps its commission, and the operator receives the rest. This is the usual model for OTAs and many travel agents, and it keeps prices the same everywhere. The difference from a net rate is where the seller's income comes from. With a commissionable rate, it's inside the public price. With a net rate, the reseller adds its markup on top of the operator's price. Before agreeing to a commission, operators check that what's left still covers the cost of running the tour, including guides, fuel and payment fees. Hotels use the same term for rooms.
A concession is a reduced price for certain guests, such as children, students, seniors or pensioners.
Also called: student discount, senior discount, concession price ·In Bahasa Malaysia:harga konsesi
The word is common in Australia. In Malaysia, operators more often list child, senior or student prices. Operators usually ask for proof, like a student card, at check-in. Whatever the name, each reduced price needs clear rules on who qualifies and how age is counted, shown before the guest pays.
A concierge booking is one made by a hotel concierge or front desk on behalf of a hotel guest.
In Bahasa Malaysia:tempahan concierge
Hotels are a steady source of bookings for day tours and activities, especially from guests who decide on the spot. The hotel usually earns a commission, and the booking needs the guest's name, hotel and pickup details.
A credit note is a document that reduces or cancels an amount already invoiced, for example after a cancellation or a price change.
In Bahasa Malaysia:nota kredit
Instead of editing the original invoice, the operator issues a credit note against it. Depending on the terms, it records a refund or gives the guest credit for a future booking. Accountants and tax systems expect it, including Malaysia's e-invoice system.
A deposit is part of the price paid when booking, to secure the place, with the balance paid later.
Also called: down payment ·In Bahasa Malaysia:bayaran pendahuluan
Deposits protect operators from no-shows and late cancellations, especially for private charters, groups and multi-day trips where costs are paid in advance. The terms need to be clear before payment: how much the deposit is, when the balance is due, and whether the deposit is refunded if the guest cancels. For corporate and MICE groups, the deposit is often requested with a proforma invoice, and the booking is confirmed once it's paid. For short day tours, most operators take full payment at booking instead, which is simpler and cuts no-shows further. Whatever the set-up, the booking record should show clearly what has been paid and what is still owed, so staff on the day don't have to chase guests for money at check-in or rely on memory and WhatsApp threads.
A direct booking is one a guest makes with the operator itself, through its website, phone, WhatsApp or counter, with no OTA or agent in between.
In Bahasa Malaysia:tempahan terus
No commission is paid, the operator keeps the guest's contact details, and it can invite them back. Direct bookings usually earn the most per guest, which is why operators work to grow them with a good website, an up-to-date Google Business Profile and repeat guests.
DMC (destination management company) Selling and distribution
A DMC (destination management company) is a local business that plans and runs trips, events and ground arrangements in its own destination for overseas agents and groups.
Also called: destination management company, ground handler, inbound agent ·In Bahasa Malaysia:syarikat pengurusan destinasi
A travel agent in Europe selling a Borneo trip usually doesn't deal with every hotel, driver and guide. It works with a DMC in Malaysia, which puts the programme together, books the local suppliers and handles everything on the ground. DMCs are big buyers of tours and activities: they book day trips, transfers and experiences for their groups, often at net rates and often months ahead. For an activity operator, one good DMC relationship can mean regular group bookings. DMCs expect clear net rates, reliable confirmations and invoices, and a named contact for each group. Many DMCs also handle MICE groups for companies.
Dynamic pricing means changing a tour's price based on demand, such as charging more on busy weekends and less on quiet weekdays.
Also called: demand-based pricing ·In Bahasa Malaysia:harga dinamik
Airlines and hotels have done it for years. For tours, it usually means a few simple rules: a higher price in peak season or for the last few places, a lower one for early bookings or slow days. It helps fill quiet sessions and earn more from busy ones.
An e-invoice is an invoice issued in a set digital format and validated by LHDN, Malaysia's Inland Revenue Board, through its MyInvois system.
Also called: e-invoicing, MyInvois, e invoice ·In Bahasa Malaysia:e-invois
Malaysia has been phasing in e-invoicing by business size since August 2024, starting with the largest companies and moving down to smaller ones, with the smallest businesses exempt under the current rules. Tour operators, travel agencies and hotels are covered like any other business, and LHDN has published guidance for tourism cases. In practice, a business in scope issues an e-invoice for each sale, or a consolidated e-invoice covering many small sales to guests who don't ask for their own. Buyers such as companies and government bodies may ask for an e-invoice with their tax number on it. Because the dates and turnover thresholds have changed more than once, operators check LHDN's current timeline for a business of their size.
A fam trip (familiarisation trip) is a free or discounted trip that lets travel agents, hotel staff or media experience a tour so they can sell or write about it.
Also called: familiarisation trip, familiarization trip, famil ·In Bahasa Malaysia:lawatan pengenalan
People sell what they've tried. An agent who has done your mangrove kayak tour describes it better and recommends it with more confidence. Fam trips are often organised by tourism boards, DMCs and associations, and operators take part by hosting a group for free or at cost. They work at a smaller scale too: inviting the concierge teams of nearby hotels for a free session is one of the simplest ways to win hotel referrals. To make a fam trip pay off, give guests the same experience paying guests get, follow up with booking details and net rates, and track which partners book afterwards.
FOC (free of charge) means a place given without payment, most often the free place a group leader, guide or driver gets on a group booking.
Also called: free of charge ·In Bahasa Malaysia:percuma
In Malaysia, FOC is everyday booking language. A DMC might ask for "1 FOC per 15 pax", meaning every 15 paying guests earn one free place, usually for the tour leader. Operators also give FOC places to young children, on fam trips, or as a goodwill gesture after a problem. An FOC place still costs the operator a seat, a life jacket and a share of the guide's time, so the rule should be agreed before a quote is accepted: how many paying guests earn an FOC place, and whether it covers meals, transport and entrance fees. Many operators cap FOC places per booking and exclude them from any commission.
Force majeure means events outside anyone's control, such as storms, floods, pandemics or government orders, that stop a service going ahead.
A force majeure clause says what happens then, usually that neither side is at fault and the guest gets a refund, credit or new date. For outdoor operators in Malaysia, monsoon weather is the most common case.
FPX is Malaysia's online banking payment method: the guest picks their bank at checkout and approves the payment in their banking app.
Also called: Financial Process Exchange, online banking
It's run by PayNet and is one of the most used ways to pay online in Malaysia. The money comes straight from the guest's bank account with no card needed, which suits guests who don't have or don't want to use a credit card.
A gift voucher is a prepaid credit or a specific experience that someone buys for another person to use later.
Also called: gift card, gift certificate ·In Bahasa Malaysia:baucar hadiah
Vouchers bring in money before the tour runs and bring in new guests, especially around festive seasons and birthdays. Operators set an expiry date and any blackout dates up front, so there are no surprises when the voucher is used.
Google Things to Do is the part of Google Search and Maps that lists tours, activities and attractions, with prices and links to book.
When someone searches for an activity in a place, Google can show booking options from the operator's own website and from OTAs side by side. Operators appear through a connected booking system. A direct listing gives guests a way to book with the operator rather than through an OTA.
A gratuity is a tip: money a guest chooses to give guides or crew on top of the price.
Also called: tipping ·In Bahasa Malaysia:tip
Tipping habits differ by country. Malaysian guests don't always tip, while many visitors from North America expect to. If a gratuity is already included in the price, say so, so guests don't tip twice. Operators who pool tips should explain to staff how they're shared, and some booking systems let guests add a tip at checkout or after the tour.
A group booking is one booking for several guests travelling together, often arranged by one person, a company or an agent.
In Bahasa Malaysia:tempahan kumpulan
Groups often want a quote, a group rate, a private session or a set time, and pay a deposit and then the balance. One contact handles changes, and final numbers are usually confirmed a few days before the tour.
In Malaysia, a homestay usually means a stay with a local family in a village, under MOTAC's registered homestay programme.
Guests live with the host family, share meals and join village activities, often as a group. Many private rentals also call themselves homestays but aren't part of the programme. Homestay villages often work with tour operators on packages for schools, companies and overseas groups.
iCal is a standard file format for calendar events, used to share or sync bookings between calendars and systems.
Also called: iCalendar, .ics, calendar sync
Operators use iCal links to show bookings in Google Calendar, Apple Calendar or Outlook, or to block dates from another system. iCal syncs are usually one-way and can lag behind, so they suit viewing bookings more than keeping live availability.
An indemnity form is a document in which the signer agrees to cover the operator's costs if their actions, or those of someone they're responsible for, lead to a claim.
Also called: indemnity letter ·In Bahasa Malaysia:borang indemniti
In Malaysia, borang indemniti is the everyday word for what many operators use as a waiver, and schools often ask parents to sign one for trips. Strictly, an indemnity and a waiver do different jobs, and many forms include both.
Inventory is everything an operator has to sell: every place on every session across the season.
In Bahasa Malaysia:inventori
The word comes from hotels and airlines. For tours, inventory is shared between channels: a place sold on an OTA is one less on the operator's website. Keeping one pool of inventory for every channel, rather than splitting it up, avoids both overbooking and empty seats.
An invoice asks for payment; a receipt confirms payment has been made.
In Bahasa Malaysia:invois dan resit
Operators send an invoice when payment is due later, as with company groups, and a receipt once the guest has paid, as with most online bookings. Companies often need both for their records. In Malaysia, e-invoicing rules may decide what form these documents take.
An itinerary is the plan of a trip: where guests go, in what order, and at what times.
In Bahasa Malaysia:itinerari
For a day tour, it might be a short timeline. For a multi-day trip, it's a day-by-day plan with meals and accommodation. A clear itinerary helps guests decide, cuts down questions, and sets expectations about what's included. Timings should be realistic, with buffers for traffic, weather and toilet stops, and the itinerary should say what may change on the day and why.
A liability waiver is a document a guest signs before an activity, accepting its risks and agreeing not to hold the operator responsible for certain injuries or losses.
Also called: waiver, release form ·In Bahasa Malaysia:penepian liabiliti
Waivers are standard for adventure activities such as ATV rides, diving, rafting and climbing. They usually describe the risks, confirm the guest is fit to take part, and record consent for minors, signed by a parent or guardian. A waiver doesn't cover everything: how much protection it gives depends on local law and how it's worded, so operators get legal advice on theirs. It works alongside good safety practice and public liability insurance, not instead of them. Digital waivers, signed on a phone before arrival, save time at check-in and keep records safe and easy to find if a claim comes up years later.
Low season is the time of year with the fewest guests and usually the lowest prices.
Also called: off-season, off-peak ·In Bahasa Malaysia:musim rendah
Some operators close. Others switch to local guests, schools and company groups. On Malaysia's east coast, many island operators pause during the northeast monsoon.
A manifest is the list of everyone booked on a session: names, numbers, contact details and anything the guide needs to know.
Also called: passenger manifest, guest list ·In Bahasa Malaysia:senarai peserta
Guides use it for check-in and safety counts, and boat operators may need to give it to marine or park authorities. It should come straight from the booking system, so late bookings and changes are included.
Markup is how much you add to your cost to set a price; margin is how much of the final price is profit.
In Bahasa Malaysia:markup dan margin keuntungan
They sound alike but give different numbers. If a tour costs 60 to run and sells for 100, the markup is 67 percent (40 added on top of 60), but the margin is 40 percent (40 of the 100 is profit). Mixing them up costs money: an operator aiming for a 40 percent margin who adds a 40 percent markup ends up with a margin of about 29 percent. It matters most with resellers and OTAs, because their commission comes out of the price, so the operator needs enough margin to give some away and still cover guides, fuel, insurance and payment fees. Knowing the cost per pax and the margin at each price makes it easy to decide which partners and discounts are worth it.
MATTA (the Malaysian Association of Tour and Travel Agents) is Malaysia's main trade association for travel agencies and tour operators.
Also called: MATTA Fair
Its members are licensed agencies across the country, and membership of a recognised association like MATTA is one of the requirements for a TOBTAB licence. MATTA also runs the MATTA Fair, a large consumer travel fair in Kuala Lumpur where agencies sell holiday packages directly to the public.
MCP (Model Context Protocol) is an open standard that lets AI assistants like ChatGPT and Claude connect to other software, read its data and take actions in it.
Also called: Model Context Protocol, MCP connector, AI connector
Without MCP, an AI assistant only knows what you paste into the chat. With an MCP connector, it can look things up and act in the connected app, within the permissions you give it. For a tour operator, that means asking an assistant who is on tomorrow's 9am trip and whether everyone has signed their waiver, and getting the answer from the booking system, or asking it to move a booking and draft an email to the guest. Anthropic introduced MCP in late 2024, and many AI apps and software companies now support it. The connector decides what the assistant can see and do, so it matters which actions it allows and which still need a person to confirm.
The merchant of record is the business legally responsible for a sale: its name appears on the guest's statement, and it handles refunds, chargebacks and tax.
Also called: MoR
When a guest books directly, the operator is usually the merchant of record. When they book through an OTA, it's often the OTA: the guest pays the OTA, the OTA's name shows on their card statement, and the operator is paid later. This decides who deals with disputes, who issues receipts or e-invoices, and whose name the guest remembers. Some booking platforms act as merchant of record for their operators, which can simplify payments but means the operator's money passes through someone else's account first. It's worth checking which set-up a booking system uses before signing up, especially for tax and e-invoicing.
MICE stands for meetings, incentives, conferences and exhibitions: business travel for groups, arranged by companies and event planners.
Also called: meetings, incentives, conferences and events
A company flying its sales team to Langkawi as a reward, or a conference in Kuala Lumpur with a free afternoon for delegates, both count as MICE. The E is sometimes read as events. For tour and activity operators, MICE means large, prepaid group bookings, usually arranged through a DMC or event agency. These groups want private sessions, fixed times, a quotation and a proforma invoice before paying, and one contact who handles changes. They often book months ahead and change numbers close to the date, so clear terms on minimum numbers, deposits and cancellations matter. MICE groups also value custom touches: branded items, a private guide or an exclusive time slot.
Minimum pax is the smallest number of guests needed for a tour to run.
Also called: minimum group size, guaranteed departure, minimum numbers
If fewer book, the operator may cancel, move guests to another session, or offer a private-tour price instead. The minimum, and what happens if it isn't reached, should be in the terms, so guests aren't surprised the day before. Operators usually decide 24 to 48 hours ahead whether a session runs, which gives guests time to change plans. A guaranteed departure is the opposite promise: the tour runs whatever the numbers.
A MOTAC licence is the everyday name for the licence Malaysian tour and travel businesses need from MOTAC, the Ministry of Tourism, Arts and Culture.
Also called: MOTAC license ·In Bahasa Malaysia:lesen MOTAC
Officially, it's the TOBTAB licence, issued under the Tourism Industry Act 1992, and it covers inbound tours, outbound travel, ticketing, or a mix. MOTAC also licenses tourist guides and tourism vehicles, and runs the homestay programme, so "MOTAC licence" can mean different things depending on who's asking. For a tour business, getting licensed usually takes a registered Sdn Bhd company, commercial premises that MOTAC inspects, a required course, membership of a recognised tourism association, and an application through MOTAC's online licensing portal. Sole proprietorships and partnerships don't qualify for a tour operating licence. Operators who sell only their own single activity sometimes ask whether they need one. The answer depends on exactly what they sell and how, so it's worth checking with MOTAC directly.
A net rate is the price an operator charges a reseller, who then adds their own markup to reach the price the guest pays.
Also called: net price, wholesale rate ·In Bahasa Malaysia:harga bersih
If the rack rate is the public price, the net rate sits below it, and the gap is the reseller's income. Net rates are common with DMCs, travel agents and wholesalers, especially for groups and packages, because the reseller wants freedom to set its own selling price or build the tour into a package. For the operator, it's simple: it receives the net rate, whatever the reseller charges. The risk is a reseller selling too cheaply and undercutting the operator's own website, so most net rate agreements require resellers to sell at or above the rack rate. Operators usually offer net rates only to partners with a track record, and keep them out of public view.
A no-show is a guest who has booked but doesn't turn up and doesn't cancel.
In Bahasa Malaysia:tidak hadir
No-shows cost the operator a place it could have sold. Reminders the day before, and taking full payment or a deposit at booking, cut them down a lot. The cancellation policy should say what happens to a no-show's payment. Most operators wait a set time past the start before counting a guest as a no-show, and many keep a waitlist or take walk-ins to fill the gap.
An off-platform booking is one taken outside the online booking system, such as by phone, WhatsApp, walk-in or through a partner, and added to it by hand.
Also called: manual booking, offline booking ·In Bahasa Malaysia:tempahan luar platform
Many Malaysian operators take most of their bookings on WhatsApp. Adding every booking to one system, however it came in, keeps availability right and stops two people selling the same place.
OTA (online travel agent) Selling and distribution
An OTA (online travel agent) is a website or app that sells tours, activities, hotels or flights from many suppliers and takes a commission on each booking.
Also called: online travel agency ·In Bahasa Malaysia:agensi pelancongan dalam talian
Viator, GetYourGuide, Klook, Expedia and Tripadvisor are all OTAs. They bring operators guests they could never reach alone, especially overseas visitors planning a trip weeks ahead. The cost is the commission taken from every booking they send, plus less control over the guest relationship: the OTA usually holds the guest's email address and the reviews. Most operators use OTAs for reach, then work to win repeat and local guests through direct booking, where no commission is paid. OTAs expect live availability, so the operator's booking system has to keep OTA sales and direct sales in one calendar to avoid double bookings. Some OTAs also ask for rate parity, meaning the operator shouldn't sell cheaper on its own website.
Overbooking is when more guests are booked on a session than it can take.
In Bahasa Malaysia:tempahan berlebihan
Airlines and hotels sometimes do it on purpose. For tours, it's usually an accident: an OTA and the operator's website both selling the last places at once, or a WhatsApp booking not entered in time. Live availability across every channel is the fix.
Pax means the number of people on a booking, whatever their age.
Also called: per pax, per person
A booking for "4 pax" is four guests. The word comes from travel and airline shorthand for passengers, and in Malaysia it's used everywhere, from tour quotes to restaurant set menus. Operators set a minimum pax for a tour to run, a maximum pax for each session based on boats, vehicles or guides, and often a different price per pax for each guest type, such as adult, child or senior. Quotes to agents and groups are almost always written per pax, and FOC places are counted in pax too. When counting pax for safety, operators include infants and children even if they travel free, because they still need a seat and a life jacket.
A payment gateway is the service that takes a guest's card, eWallet or online banking payment and passes it safely to the operator's bank account.
Also called: payment processor, payment service provider, PSP ·In Bahasa Malaysia:gerbang pembayaran
It sits between the booking page and the banks. The gateway checks the payment, protects card details, and pays the money out, minus its fees, on a schedule. The choice of gateway decides which payment methods guests can use. In Malaysia, that matters: many guests prefer FPX online banking or eWallets like Touch 'n Go to cards, and not every gateway supports them. Operators compare gateways on the payment methods they support, the fee for each method, how quickly they pay out, and how they handle chargebacks. It's also worth checking which currencies a gateway accepts, since overseas guests may be charged a conversion fee by their bank, and whether it supports the payment methods visitors from key markets expect. Switching gateways later is possible but disruptive, so it pays to choose with next season in mind.
A payout is the transfer of money from a payment gateway or OTA into the operator's bank account.
In Bahasa Malaysia:bayaran kepada pengendali
Gateways pay out on a schedule, such as daily or weekly, after taking their fees. OTAs often pay monthly, sometimes only after the tour has run. Knowing when each payout lands helps with cash flow in peak season, when costs like fuel and staff go up first.
The PDPA (Personal Data Protection Act 2010) is Malaysia's law on collecting, using and storing personal data in commercial dealings.
Also called: Personal Data Protection Act ·In Bahasa Malaysia:Akta Perlindungan Data Peribadi
It covers the guest details operators collect: names, phone numbers, ID numbers on waivers, health notes. The law was amended in 2024, adding duties such as reporting data breaches. Operators should collect only what they need, tell guests why, keep it secure, and get consent before sending marketing messages.
PIC (person in charge) is the contact responsible for a group booking or a piece of work.
Also called: person in charge, group leader ·In Bahasa Malaysia:orang yang bertanggungjawab
The term is very common in Malaysia. A school trip, company outing or DMC group will name a PIC who confirms numbers, receives the invoice and is the person to call on the day. Operators often name their own PIC for the group too.
A proforma invoice is a preliminary bill sent before a sale is final, so the buyer can arrange payment.
In Bahasa Malaysia:invois proforma
Companies and government bodies often need one to raise a purchase order or release a deposit. It isn't a tax invoice: once the booking is paid and confirmed, the operator issues the real invoice, which in Malaysia may need to be an e-invoice.
Public liability insurance covers a business if a guest or member of the public is injured, or their property is damaged, because of the business's activities.
Also called: tour operator insurance, liability insurance ·In Bahasa Malaysia:insurans liabiliti awam
For tour and activity operators, it's one of the most important policies to hold. In Australia, many councils, national parks and landholders ask for proof of it before granting permits or access, and OTAs and resellers often ask for a certificate of currency before listing an operator. In Malaysia, partners, venues and corporate clients increasingly ask for it too. The amount of cover, which activities are included, and any exclusions, such as water or motorised activities, matter as much as the premium. It works alongside waivers and safety procedures, not instead of them. Professional indemnity and cover for equipment and staff are separate policies.
A quotation is a written price offer for a specific booking, sent before the guest or company agrees to buy.
Also called: quote ·In Bahasa Malaysia:sebut harga
Company, school and MICE groups usually ask for one before anything else. A good quote lists the date, pax, what's included, the price per person or in total, payment terms, and how long the offer stands. Once accepted, it usually becomes a proforma invoice or a deposit request.
The rack rate is the full public price of a tour, before any discount or commission.
Also called: retail rate, public rate, published rate ·In Bahasa Malaysia:harga penuh
It's the price on the operator's own website and usually the one guests see on OTAs. The name comes from hotels, where standard room prices were once displayed on a rack behind the front desk. Operators build every other price from the rack rate. A commissionable rate is usually the rack rate, with the seller's commission paid out of it. A net rate is a lower price offered to resellers, who sell at the rack rate and keep the difference. Keeping one clear rack rate, and protecting it, matters: if guests find your tour cheaper through a reseller than on your own website, they'll book through the reseller, and you'll pay commission on guests you could have had directly.
Rate parity means selling a tour at the same price on every channel, including the operator's own website and each OTA.
In Bahasa Malaysia:pariti harga
Some OTAs ask operators not to undercut them on their own website. Operators can still reward direct guests in other ways, such as a free add-on or more flexible changes, where their agreements allow it.
A refund policy sets out when a guest gets their money back, how much, and how.
In Bahasa Malaysia:polisi bayaran balik
It's usually part of the cancellation policy: for example, a full refund up to a set number of days before the tour, a partial refund after that, and nothing for no-shows. Clear terms, shown before payment, cut disputes and chargebacks. Many operators offer credit or a free date change instead of cash where their terms allow.
A release of liability is a statement in which a guest gives up the right to claim against an operator for certain risks.
In Bahasa Malaysia:pelepasan liabiliti
It's often part of a liability waiver, and the two terms are used almost interchangeably. How much protection it gives depends on local law and its wording, so operators get legal advice on theirs. It usually sits alongside a description of the risks and a guest's confirmation that they're fit to take part.
A reseller is a business that sells another operator's tours or activities to its own customers, such as a hotel, travel agent or another operator.
In Bahasa Malaysia:penjual semula
Resellers usually buy at a net rate and sell at the public price, or earn a commission on the public price. Good reseller partners bring steady bookings without the cost of an OTA, especially for day tours near hotels and transport hubs.
Reserve with Google is a Google feature that lets people book a business straight from Google Search or Maps, through a connected booking partner.
The booking button appears on the business's Google listing. It only works if the business's booking system is a Google partner for that type of business. For tours and activities, Google's main product is Google Things to Do.
Resources are the things a tour needs that can only be in one place at a time, such as guides, boats, vehicles and equipment.
In Bahasa Malaysia:sumber
Two different tours might share one boat or one guide. Tracking resources, not just seats, stops two sessions being booked against the same boat, and shows which sessions still need a guide assigned.
Restech, short for reservation technology, is the software a business uses to take, manage and get paid for bookings.
Also called: reservation technology
In tours and activities, it's the system behind the "Book now" button: availability, payments, guest details, waivers and connections to OTAs. The word is used for the category as a whole, the way operators might compare restech pricing. In restaurants, the same word is also used to mean restaurant technology. Operators usually choose their restech on four things: what it costs per booking, which payment methods and OTAs it connects to, how easy it is for staff to use on a phone, and the support they get when something goes wrong on a busy morning. Switching restech is a big job, because bookings, OTA connections, payment accounts and staff habits all move at once, so most operators change only when their current system starts costing them bookings or time.
Revenue management is setting prices and availability to earn the most from a fixed number of places.
In Bahasa Malaysia:pengurusan hasil
A boat with 12 seats can't sell 13, and an empty seat today can't be sold tomorrow. Revenue management looks at booking patterns, seasons and how far ahead guests book, to decide when to discount, when to hold the price, and which channels get which places.
Shoulder season is the period between peak and low season, when demand is moderate and the weather is often still good.
In Bahasa Malaysia:musim pertengahan
It's often the best time to win bookings with small price changes, early bird offers or packages, because guests are flexible and there's less competition for their attention. Many operators plan staff leave and boat maintenance around it.
SSM registration is registering a business or company with the Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia).
Also called: SSM, business registration ·In Bahasa Malaysia:pendaftaran SSM
It's the first legal step for most Malaysian businesses, as a sole proprietorship, partnership or Sdn Bhd company, though sole proprietors in Sabah and Sarawak follow local rules. For tour operators, the type matters: a TOBTAB licence needs a registered Sdn Bhd company, so a sole proprietorship won't do.
SST is Malaysia's sales and service tax: a sales tax on certain goods and a service tax on certain services, collected by the Royal Malaysian Customs Department.
Also called: sales and service tax, service tax ·In Bahasa Malaysia:cukai jualan dan perkhidmatan
Whether a tour business must charge service tax depends on what it provides and its turnover, and the list of taxable services has been widened in recent years. Operators who bundle accommodation, food or transport should check which parts are taxable. Registered businesses show SST separately on their invoices. It's not the same as a service charge.
A surcharge is an extra charge added to a price, most often to cover card fees or a cost like fuel.
Also called: credit card surcharge, card surcharge ·In Bahasa Malaysia:surcaj
Card surcharges are regulated in both Australia and Malaysia, and the rules differ by country and card type and have changed over time, so operators check the current position with their payment provider before adding one. Any surcharge should be shown clearly before the guest pays.
Terms and conditions are the rules a guest agrees to when booking: payment, cancellations, safety, behaviour and liability.
Also called: T&Cs, booking terms ·In Bahasa Malaysia:terma dan syarat
Guests should see and accept them before paying. They're what the operator relies on in a dispute or chargeback, so they need to match what actually happens and stay readable. Most operators keep one page of terms on their website and link to it from every booking confirmation, and date each version so they know which terms a guest agreed to.
TOBTAB (Tour Operating Business and Travel Agency Business) is the licence Malaysian tour operators and travel agencies need from MOTAC under the Tourism Industry Act 1992.
Also called: tour operating licence, travel agency licence, MOTAC licence
It comes in three main categories: inbound (tours within Malaysia, including for overseas visitors), outbound (taking Malaysians abroad) and ticketing (selling air tickets). A business can hold one category or a combination, and some also hold an Umrah category. Each licence has a number and a validity period, and anyone can look a company up on MOTAC's public TOBTAB list. That's useful from both sides: guests, DMCs and OTAs may ask for your licence number, and you can check that a partner agency is licensed before working with it. Getting a TOBTAB licence usually takes a Sdn Bhd company, commercial premises, the TTMC course, and membership of a recognised tourism association.
A tour operator is a business that runs tours or activities and sells places on them to guests.
Also called: activity operator, activity provider, experience provider ·In Bahasa Malaysia:pengendali pelancongan
The operator owns the experience: the route, the guides, the boat or the vehicles. Travel agents and OTAs may sell the operator's tours, but the operator delivers them. In Malaysia, a business that organises tours for sale needs a TOBTAB licence from MOTAC.
A tour package is a set of travel services sold together for one price, such as transport, a hotel stay and activities.
Also called: package tour ·In Bahasa Malaysia:pakej pelancongan
Packages are common for multi-day trips and for groups booked through agents. In Malaysia, organising packages for sale usually needs a TOBTAB licence, so activity operators often sell their part to a licensed agent, who builds the package.
Tourism accreditation is certification that a tourism business meets set standards for things like safety, customer service and business practice.
Also called: accreditation, Quality Tourism Framework ·In Bahasa Malaysia:akreditasi pelancongan
In Australia, the national Quality Tourism Framework includes accreditation programmes, and some parks, tourism bodies and grant schemes ask for it. It can also help with insurers and trade partners. In Malaysia, MOTAC licensing and industry certifications play a similar role.
Tourism tax is a flat charge per room per night that foreign guests pay when staying at registered accommodation in Malaysia.
Also called: TTx, tourist tax ·In Bahasa Malaysia:cukai pelancongan
It's collected by the accommodation, not the tour operator, and paid to the Royal Malaysian Customs Department. If you only run tours and activities and don't provide rooms, you generally don't collect it. Operators selling packages that include accommodation should check who collects it.
A tourist guide licence is the licence MOTAC issues to individuals who guide tourists in Malaysia.
Also called: tour guide licence, tourist guide license ·In Bahasa Malaysia:lesen pemandu pelancong
Guides usually complete a MOTAC-approved course first, and there are different types, such as city guides and nature guides, some limited to one area. Operators who employ guides check that each licence is valid, and many OTAs and DMCs ask about it.
A travel agency is a business that sells travel made by others, such as tours, flights and hotels, usually for a commission or markup.
Also called: travel agent ·In Bahasa Malaysia:agensi pelancongan
Agents don't run the tour themselves. They book it for their customer and earn a cut, either as commission from the operator or by adding their own markup to a net rate. In Malaysia, travel agencies are licensed by MOTAC under the same TOBTAB system as tour operators, with separate categories for inbound, outbound and ticketing.
Upselling is offering a guest something extra, or a better version of what they're booking, such as a private boat or a photo package.
Also called: cross-selling ·In Bahasa Malaysia:upsell
Offered at checkout, in the confirmation email or on the day, it lifts earnings per guest without finding new guests. It works best when the extra is genuinely useful, like transport, gear hire or a longer session.