Flights and Variations: Understanding the Dynamics of Elasticity in Air Transportation
DOI:
https://doi.org/10.71068/mcdwe838Keywords:
Economic growth, Price elasticity of demand, Air transport, Econometric models, PricingAbstract
A country's economic growth, reflected in its main indicators, acts as a generator of development in sectors such as commerce, industry, mobility, tourism, and infrastructure. Econometric studies allow for the quantification of interactions within this environment through data analysis and the construction of statistical models that provide optimal solutions to the complex problems of cities. Price elasticity of demand is an econometric measure indicating how changes in price affect the demand for products or services. Theory indicates that demand is elastic if the price elasticity of demand is greater than 1 and inelastic if it is less than 1. This research conducts a State of the Art review of the principal studies related to the price elasticity of air transport demand, a parameter that measures the effect on the quantity of tickets purchased in response to a price variation. In the air transportation market, various investigations seek to optimally model the relationship between the variables of price and demand, revealing a high sensitivity of elasticity to two determining factors: the variables involved in its measurement and the methodologies used for its determination. The findings can contribute to optimal decision-making in the pricing of services offered by associated institutions and companies.
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Copyright (c) 2025 PhD (c). Sebastián Alfredo Nader, MGS. Elsa Maritza Vargas Torres, Andrés Padilla Vergara, MGS. David Rodríguez Baldeón, MGS. Santiago Alberto Cabrera Báez (Autor/a)
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