Assess two factors that would affect demand for a 'staycation' in the UK (8 marks)

Seasonality could affect demand for staycations because hot weather in the UK could encourage more consumers to stay in the UK for a caravan holiday. This could lead to a higher sales volume for campsites therefore allowing growth in the UK holiday market. However seasonality may mot affect demand because consumers are attracted to the culture and sights of other countries and so may prefer to travel abroad. Substitute goods may also affect demand for staycations because an increase in the price of international flights could encourage consumers to stay in the UK, due to the price elastic nature of flight tickets. This increased demand for staycations could lead to price increases on campsites, due to the rules of supply and demand. Therefore campsite owners are able to maximise profits. However demand for staycations may still be unaffected as consumers could could be willing to pay a higher price for flights and compromise on cheaper accommodation, to ensure they can still have a holiday abroad.

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Answered by Elizabeth C. Business Studies tutor

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