The bargaining power of buyers: The customers can be broken down into two main segments: business and leisure. Because business travelers often book flights at the last minute and frequently have their organization pick up the tab, they tend to be relatively price-insensitive, so high inelastic; Instead, the demand for air tickets among leisure travels is fairly price elastic. ... This makes the frequent flier programs a powerful tool in the leisure market as well. ...

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• Grade Level: Undergraduate