A lower fare offered by an airline to generate more business (AKA discount fare)

• A. Open-skies policy
• B. Promotional fare
• C. Overbook
• D. Paper ticket

Answer: (B)

Lower fares used to generate more business are a promotional fare. Airlines offer promotional fares to stimulate demand, attract new customers, and fill seats that might otherwise go empty. These fares are typically lower for a limited time and may come with restrictions like advance-purchase or nonrefundable rules, making them a strategic marketing tool rather than a routine price change.

Open-skies policy refers to international aviation agreements that expand route rights, not pricing. Overbook is a practice of selling more tickets than there are seats to compensate for no-shows. Paper ticket is simply the old, physical form of a ticket. So the option that best fits a price reduction aimed at driving more business is promotional fare.