National Level.
• At the national level, travel price elasticities are expected to be lower, as travellers have fewer options for avoiding the price increase. For example, if a national government imposed a new or increased tax on aviation, travellers could only avoid this increase by travelling elsewhere, using another mode (which may not always be possible), or choosing not to travel. For example, if the UK government imposed an increased tax on aviation departures, UK residents travelling to mainland Europe could respond by travelling by Eurostar or by ferry, or choose not to travel. Similarly, travellers in France could respond by travelling to the UK by another mode or by switching their destination to another country, such as Germany or Spain.
Supra-National Level.
• This represents a change in prices that occurs at a regional level across several countries. For example, an aviation tax imposed on all member states of the European Union. In this case, the elasticity is expected to be even lower, as the options for avoiding the price increase are even further reduced.
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