If passengers are relatively insensitive to air travel prices
at a national aggregate market level, and even less so at
a supra-national level, this strongly suggests that falling
real air travel prices have not been the main driver of air
travel growth2. Falling real air travel prices are important
in passengers switching from one airline to another,
and from one destination to another, but are much less
important in driving aggregate national-level air travel or
tourism growth.