Why Are Airport Food and Drinks So Expensive?
The reasons why airport food and drinks are so expensive trace back to high rents, extended operating hours, and limited competition.
Travelers know airport food and drinks are expensive, but reporting shows some items are priced at more than double their street cost—with a chocolate bar marked up by 120 percent and a burger priced 46 percent higher than its downtown equivalent, according to Business Insider’s analysis of airport terminal menus and in-person reviews.
The reasons are structural: limited competition, higher operating costs, and pricing policies set by airport authorities.
Airports began treating passenger terminals as sources of revenue in the mid-20th century, adding restaurants and amenities to attract both travelers and locals.
The deregulation of airlines in 1978 brought cheaper fares and many more fliers, while longer layovers in the 1980s created a new opportunity—to turn terminals into shopping malls.
Some items are priced at more than double their street cost.
Author's summary: Airport food is expensive due to high rents and limited competition.