The method author uses could fairly and efficiently calculate the ferry transport price elasticity. It’s pretty comprehensive and impressive. Author takes all kinds of cost during the trip into consideration, which could firmly enhance the persuasion of the calculation. And he also successfully analyzes several situations in which the fluctuations in ferry transport price affect tourism demand. However, there are still a couple of aspects which lead to the method the author uses to calculate the elasticity unconvincing.
First of all, the data author uses are not sufficient. To accurately determine the price elasticity, we need to use a series of price-demand set. However, the data used by author in the report is only a pair of price-demand, which is about how the increase and decrease 20% in price affect the number of trips. Barely using a pair of data is not enough to explain the elasticity between price and demand. If more price-demand data can be used in study, it would be more convincing.
On top of that, there are a bunch of other variables the author didn’t take into account. For instance, it would be better if the author collects a series of price-demand pair with all kinds of income level. People from various income levels have different consuming preferences. We need to specify the different situation and different group of people when talking about the price elasticity to eliminate the bias. Furthermore, season is another significant variable. Normally, people have different touring preference during various seasons. The author didn’t mention the season when he collects the data. That’s a little unconvincing.
Additionally, since the author has already listed several cost categories, it would be more insightful if he calculates the elasticity of demand with all kinds of cost. By contrasting, we could clearly see the relationship between ferry transport fare and other costs and the relationship between various elasticity. To some point, that could help...