Nowadays, 90%+ is price. the recession has been here for six years and will (arguably) be here for another six. Price is all. They can boast about service levels all they like but if a family can save £50 a head on long haul (say) or even £10 on short - they will take it. (airport location notwithstanding)
Absolutely. We are a family of five who travel several times a year on a medium haul trip (five hours). The timing of the flights, stop-over location and length (if not direct) are very important, but there is a price difference that will rule out one option over another, and that is probably £50 per person.