National Level. At the national level, travel price
elasticities are expected to be lower, as travellers
have fewer options for avoiding the price increase. For
example, if a national government imposed a new or
increased tax on aviation, travellers could only avoid
this increase by travelling elsewhere, using another
mode (which may not always be possible), or choosing
not to travel. For example, if the UK government
imposed an increased tax on aviation departures, UK
residents travelling to mainland Europe could respond
by travelling by Eurostar or by ferry, or choose not to
travel. Similarly, travellers in France could respond by
travelling to the UK by another mode or by switching
their destination to another country, such as Germany
or Spain.