Which term is used for promotional fares designed to generate more business?

Which term is used for promotional fares designed to generate more business?

• A. Connection
• B. Discount Fare
• C. Consolidator
• D. Direct Flight

Answer: (B)

Promotional pricing to boost demand is called discount fare. Airlines use discount fares to attract more customers and fill seats, especially during slower periods or to compete with other carriers. These fares are sold at a reduced price and often carry restrictions such as advance purchase, limited travel dates, or minimum-stay requirements. The other terms describe aspects unrelated to pricing strategy: a direct flight is non-stop; a connection involves a stopover; and a consolidator is a third party that resells inventory to agents, not a term for the airline’s promotional pricing.

Promotional pricing to boost demand is called discount fare. Airlines use discount fares to attract more customers and fill seats, especially during slower periods or to compete with other carriers. These fares are sold at a reduced price and often carry restrictions such as advance purchase, limited travel dates, or minimum-stay requirements. The other terms describe aspects unrelated to pricing strategy: a direct flight is non-stop; a connection involves a stopover; and a consolidator is a third party that resells inventory to agents, not a term for the airline’s promotional pricing.