• Trans Atlantic (North America – Europe). A high price elasticity was found for this market, with an elasticity multiplier of 1.2. This market has long been developed by low fare charter airlines. Price is likely more important than frequency in this market than in US domestic markets
• Trans Pacific (North America – Asia). By contrast, markets across the Pacific are estimated to have a much less elastic response, with an elasticity multiplier of 0.6. There are no charter services and there remain markets with less liberal pricing regulation. There are early signs of long-haul LCCs emerging but at present this market shows much less sensitivity to travel price than the US domestic market or the trans Atlantic market.
• Europe-Asia. This market is estimated to be slightly less price sensitive, with an elasticity multiplier of
0.9. This result is in contrast to the results found in
the respective intra markets of Europe and Asia, and provides further evidence for lower elasticities on long- haul and intercontinental air transportation.