What NUC means
An international journey can combine fare components from several countries, each filed in its own currency. Adding them directly would mean mixing currencies. The NUC solves this: each component is expressed in NUC, the components and any surcharges are added, and the total is converted once into local currency at the end.
NUC is not a currency anyone pays with. Travelport describes it as an IATA-defined universal unit in which fares are expressed to standardise conversion, and its code, NUC, is treated as a valid currency code in pricing systems. NUC amounts are kept to two decimal places and are not rounded.
The conversion factor is the IATA Rate of Exchange (ROE or IROE). IATA publishes these rates monthly, based on a five banking day average ending on the 10th of the month, under Passenger Composite Resolution 024c. The ROE that applies is the one for the country of commencement, valid on the date of ticketing. After conversion, the local amount is rounded using the rounding unit set for that currency.
NUC and ROE appear on every international e-ticket fare calculation line, which is why agents dealing with interline and open-jaw tickets need to understand them.
How NUC works
Fare construction with NUC follows a fixed sequence from filed fares to a local currency total.
- Identify fare componentsThe itinerary is split into fare components, and the applicable fare for each is found in its filed currency.
- Convert to NUCEach local currency fare is converted to NUC so that all components share one unit.
- Add surchargesAny mileage, stopover or Q surcharges are added, giving the total fare in NUC to two decimals.
- Apply the ROEThe NUC total is multiplied by the IATA ROE for the country of commencement, valid on the ticketing date.
- Round and add taxesThe local currency amount is rounded per that currency's rule, then taxes and carrier-imposed charges are added.
NUC in practice
Illustrative fare calculation. A ticket from Kraków to London and back might show a line like:
KRK XX LON 394.19 XX KRK 394.19 NUC788.38 END ROE3.779830
Here XX stands for the carrier, each direction is 394.19 NUC, and the total is 788.38 NUC. Multiplying by an ROE of 3.779830 gives about PLN 2,979.94 before rounding. The amount is then rounded to the Polish zloty rounding unit and taxes are added. The ROE value in this example is for illustration; the real rate changes monthly.
Who uses it
Advantages and limitations
Advantages
- Fares from different currencies can be combined and compared on one basis.
- Exchange rate movements between intermediate countries do not distort a multi-component fare.
- A shared monthly rate reduces interline ticket rejections caused by inconsistent conversions.
Limitations
- Using the wrong month's ROE or rounding rule leads to incorrect fares and possible debit memos.
- The ROE is an industry rate, so the local price may differ from what bank exchange rates suggest.
- Fare calculation lines are hard to read for staff who do not handle international fares often.
Frequently asked questions about NUC
What does ROE mean on an airline ticket?
ROE is the IATA Rate of Exchange used to convert the total fare in NUC into the currency of the country where the journey starts. It appears at the end of the fare calculation line, after the NUC total.
How often does the IATA Rate of Exchange change?
IATA publishes rates of exchange monthly. Each rate is based on a five banking day average ending on the 10th of the month, and pricing uses the rate valid on the ticketing date.
Is NUC a real currency?
No. NUC is an accounting unit used only for constructing fares. Travellers never pay in NUC; the total is always converted into a local currency before taxes are added and the ticket is paid.
Are NUC amounts rounded?
NUC amounts are kept to two decimal places and are not rounded. Rounding happens only after the NUC total is converted into local currency with the ROE, using the rounding unit defined for that currency, which can differ widely between currencies.
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