The review of previous studies helps to provide a greater
understanding of air travel price elasticities and provides
important insights for the new econometric analysis by
InterVISTAS Consulting (discussed in the next chapter).
The review looked at several academic and government
commissioned studies . The different studies produced a
wide range of air travel price elasticity estimates, varying
in accordance with the markets analysed, the time period
assessed, the methodology used and the available data.
Even within some particular studies, a range of elasticities
are estimated for different markets.
For example, a commonly referenced study by Gillen,
Morrison and Stewart8 found demand elasticities ranging
from -0.1 to -1.7, depending on the relevant market. It
identified various elasticity estimates for several distinct
markets for air travel, such as: