Reason code (RC)

A reason code (RC) is an alphanumeric identifier used in travel and hospitality to indicate why a particular action (e.g., cancellation, refund, or booking change) was made. 

It simplifies how airlines, hotels, travel agencies, and other service providers process and monitor such events across their reservation and accounting systems.

Reason codes help differentiate between cancellations due to customer choice, airline delays, system errors, or special promotions, which can impact refunds, penalties, or commission calculations.

By assigning a unique reason code to each action, companies can better identify patterns and analyze customer behavior. For example, it can be used in analytics to monitor trends like frequent no-shows or the financial impact of last-minute cancellations.