In mileage terms, what denotes a point on an itinerary with a higher fare than the through fare between origin and destination?

• A. Higher intermediate point
• B. Hub point
• C. Midpoint fare point
• D. Higher intermediate point (HIP)

Answer: (D)

In mileage-based pricing, there is a threshold along an itinerary where adding an intermediate stop would push the distance from origin to that point beyond the direct distance to the destination. This threshold point is called the Higher Intermediate Point, abbreviated HIP. It marks where routing through the intermediate city would incur a higher fare than the through fare from origin to destination. The term HIP is the standard way to refer to this concept, which is why the correct option uses the acronym. Other terms like hub or midpoint aren’t the standard way this threshold is described in mileage pricing.