Why Are Airport Food and Drinks So Expensive?
The reasons for high prices of airport food and drinks are attributed to high rents, extended operating hours, and limited competition.
Travelers are aware that airport food and drinks are expensive, with some items priced more than double their street cost. For example, a chocolate bar can be marked up by 120 percent and a burger can be priced 46 percent higher than its downtown equivalent, according to Business Insider.
The main reasons for these high prices are structural, including limited competition, higher operating costs, and pricing policies set by airport authorities.
Airports started treating passenger terminals as sources of revenue in the mid-20th century by adding restaurants and amenities to attract travelers and locals.
- Deregulation of airlines in 1978 led to cheaper fares and more fliers.
- Longer layovers in the 1980s created an opportunity to turn terminals into shopping malls.
Airport food and drinks are expensive due to high rents, extended operating hours, and limited competition.
Author's summary: Airport food is expensive due to high costs.