A discounted fare is an airline ticket sold at a price lower than the standard published fare. Airlines offer these fares to fill seats, attract price sensitive travelers, encourage early bookings or target specific customer groups such as students, seniors or people traveling to visit family.
Discounted fares are an essential part of airline pricing strategies. While they help travelers save money, they usually come with conditions such as limited seat availability, restrictions on changes or refunds and eligibility requirements (like age or student status).
Types of Discounted Fares
- Promotional Fares
- Advance Purchase Fares
- Last Minute / Distressed Inventory Fares
- Student Fares
- Senior Citizen Fares
- Corporate or Negotiated Fares
- Group Fares
- Military / Government Fares
- Youth Fares
- Companion Fares
- Inclusive Tour (IT) or Consolidator Fares
- ID / AD Fares (Industry Discounts)
- VFR Fares (Visiting Friends and Relatives)
- Charter Fares
- Loyalty Program Discounted Fares
Why Discounted Fares Matter
- For Travelers
Discounted fares open up flying to a much wider audience by making tickets more affordable. Students can travel abroad for studies, families can plan vacations without breaking their budget and senior citizens can fly more often to see loved ones. These fares also encourage first-time flyers, especially in developing markets where cost is a major barrier. However, the trade off is usually in flexibility most discounted fares are non refundable, have limited baggage allowances or require advance booking. Still, for travelers who can plan smartly, these fares unlock significant savings. - For Airlines
Discounted fares are a core part of an airline’s revenue management strategy. Empty seats generate zero revenue, so airlines use discounted pricing to fill them in advance or at the last minute. Specific discounts like VFR fares allow airlines to build loyalty among diaspora communities, while corporate fares ensure steady business traffic. By segmenting fares, airlines can target multiple customer groups budget travelers, students, business passengers or families without undercutting their premium offerings. Discounted fares for LCCs also give airlines a way to compete on highly competitive routes. - For Travel Agencies and OTAs (Online Travel Agencies)
Discounted fares give agencies a competitive edge. By accessing consolidator fares, group fares or negotiated rates, agencies can bundle them into packages (like flight + hotel + activities) and market them as attractive deals. This not only drives higher booking volumes but also strengthens customer loyalty travelers often return to agencies that can consistently find them cheaper or exclusive fares. For OTAs, discounted fares are a powerful tool to capture online search traffic for “cheap flights” and convert it into bookings.
At Flight Terminus, we give travel agencies the ability to configure dynamic rate codes and display their agreement fares directly in search results making it easier to offer competitive, customized options to customers. This not only improves the booking experience but also helps agencies increase their revenue by maximizing every fare opportunity.
