Therefore, assuming an air travel price elasticity of -1.5, a
10% increase in the cost of the air travel price will reduce
demand for travel by 15% (if the demand for air travel
declines by 15%, it is assumed that the demand for the
whole travel package will also decline by 15%). However,
a 10% increase in the air travel price represents a 2.5%
increase in the total cost of travel. This implies that the
price elasticity with respect to total travel costs is -6.0
(-15% / 2.5%), an extremely high elasticity and one
which is not matched by the much lower elasticities
estimated by previous quantitative research of tourism
demand elasticities.