in chapter 3 of the textbook, we learn that the international aviation industry distinguishes the business traveler from the leisure traveler. the business air travel demand tends to be inelastic. why?

Respuesta :

International aviation industry distinguishes the business traveler from the leisure traveler and business air travel demand tends to be inelastic. This is due to people into business sector aren't affected by alteration or modifications in ticket cost, etc.

Even if there are fluctuations in cost, demand still remains the same and is not affected by external factors like change in policies of nations, ticket cost, etc. Usually, it is necessity or need for business traveler to travel through that class for business purpose. And mostly travelling cost is spent by business itself. So, as it is must and urgent to fulfill business needs, people choose it, and business air travel demand tends to be inelastic. Leisure traveler has an option to post or prepone his/her travelling according to ticket costs. But this is not possible in case of business purpose.

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