Reasons why air travel is getting cheaper

Price reductions in air travel are a fact. Airlines implement a price differentiation strategy targeting consumers of economy class that is highly price elastic. For business class, price differentiation is not an option, as airlines are targeting more sophisticated consumers. Besides, business class, although it accounts for 20 percent of aircraft seats, it returns approximately 40% of revenues. Therefore, business class pricing is highly inelastic, while

Read more ...