Is airline travel an elastic or inelastic?

Answer 1

Airline travel is generally considered to be elastic, as demand tends to fluctuate with changes in ticket prices. When fares increase, many travelers may choose alternative modes of transportation or postpone their trips, while lower fares can stimulate demand. However, certain segments, like business travelers, may exhibit more inelastic behavior due to the necessity of travel regardless of price. Overall, the elasticity can vary based on factors like destination, time of year, and individual circumstances.