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Budget fares refer to low cost travel tickets. High season refers to peak travel times when prices are higher, while low season offers cheaper tickets. Low-cost airlines may receive subsidies, and train and bus operators offer discounts to certain groups. Budget travel agencies offer vacation packages with cheap transportation fares.
The term budget fare is commonly used to refer to low cost travel tickets. People in the UK, Australia, and other English-speaking nations often use the word fare when referring to the price paid to travel, while in the US, the word is usually only applied to airline tickets. Precise definitions of economy fares vary, but the term can be used to describe any travel ticket purchased at a below-average price.
Certain times of the year, such as the summer months and time periods around major holidays, are referred to as the high season by travel agencies. During the high season, ticket prices are usually higher than usual. The opposite situation occurs during the low season when people tend to travel less. Many travel agencies try to attract more customers during the low season by reducing the cost of tickets.
People on tight budgets often take advantage of low-season fare promotions because such offers allow travelers to visit destinations that may be beyond their financial means during other months of the year. Low-cost airlines sometimes agree subsidies with municipalities and national governments, which allow the airline to sell tickets at a reduced cost. Governments recoup the initial cost of these subsidies through taxes that are levied on hotel rooms, food and goods. In other cases, local businesses subsidize the cheap flights, and these businesses recoup this cost through the revenue generated from the tourists the flights bring to the area.
Train, bus and coach operators sometimes offer cheap fares to students, senior citizens and children. Such arrangements are designed to generate goodwill for the transportation company and generate more revenue because family members of people who pay discount fares may have to pay regular priced fares. As with airlines, train and bus operators tend to offer cheap fares during times of year when ticket sales are slow.
Many travel companies specialize in budget or low-cost travel and often charter planes to take groups of tourists to specific destinations. Budget travel agencies often create vacation packages that include transportation, lodging, and meals, and these trips are aimed at people who have minimal travel experience and people who don’t have the time or desire to plan every aspect of their trip. In order to generate a profit but keep prices low enough to attract customers, budget travel agencies usually negotiate cheap fares for transportation.
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