•
being equal, business travellers are less sensitive to
price changes (less elastic) than leisure travellers.
Business travellers generally have less flexibility to
postpone or cancel their travel than leisure travellers.
Short-Haul vs. Long-Haul Travel. Price elasticities on •
short-haul routes were generally higher than on long-
haul routes. In part, this reflects the opportunity for
inter-modal substitution on short-haul routes.
Airline vs. Market vs. National Elasticities. Some of •
the studies supported the concept that the demand
elasticity faced by an individual airline is higher than
that faced by the whole market.
Income Elasticities. Including income as an explanatory •
variable of demand isolates the effects of a shift along
the demand curve (caused by a change in air travel
price) from the effect of a shift of the whole demand
curve (caused by a change in incomes or GDP)