The cost of airport food is rising.
Travelers who pass through airports tend to wait to pay more for basic items such as water bottles, but why is it much more expectation?
A reporter from the USA Today shared in a column that she bought a Smartwater Smartwater bottle of 24 to Essence and a Snyder’s bag or Hanover Mini Pretzels for a total of $ 9.47 in an Hudson News at the John F. Kennedy International Airport. The water bottle cost $ 4.99 and the Pretzels cost $ 3.99.
In comparison, the 7-11 in its neighborhood in Queens sold the same water bottle for $ 3.29 and the Pretzel options ranged from $ 1.69 for the store brand to $ 3.69, although it was not the exact pretzels that it bought at the JFK airport.
The rules regarding prices vary from the airport to the airport, and there are no national regulations on how airport suppliers establish their prices, but in general, many airports mark their prices to counteract other costs.
“To compensate for the highest operating costs, many airports add a margin of 10% to 15% in local street prices, which reflects the highest costs of operating in high -traffic safe environments,” the Port Authority to USA Today in a statement told the Port Authority.
Operating costs include rental, security, public and personal services, which is more complex and expectation than in smaller airports of properties outside the airport, as well as guaranteed increased increases in cost of living for its explained property. Workers, the agency.
“To help companies administer the growing operating costs, the Port Authority also reviewed its Concessions Street Price Policy, which allows suppliers to charge up to 15% above the prices of local streets for comparable products, together with an optional program program.
The rise position is known as “Plus Street Prices”, which can be confusing, particularly when local regulations do not specify what “street prices” consults.
“If the language is vague, that gives a lot of maneuver in the interpretation of a supplier to decide what is comparable. They need to establish strict standards of what they mean by comparable prices,” said Alex Jacquez, head of policy and defense.
The New York Port Authority said that the prices of its suppliers are based on audits and annual Deloitte market analysis, which allegedly compares prices at the airport with prices of similar items in locations around the metropolitan area. The prices are monitored and approved by the agency managers.
While the Port Authority is only an example of this price marking, as an important airport operator, the way they operate is similar to many other facilities and airports throughout the country.
However, the defenders of the most transparent prices argue that thesis operators “are not dumb” and are aware that it is difficult to obtain food and casores conforms to the security of the airport, so passengers must obtain their solution to these airport suppliers.
“They know exactly what son of the environment they have established at the airport,” Jacquez explained. “There is no competition in space. That gives the place a considerable amount of pricing power.”
Jacquez shared that the strict street price used at Portland International Airport in Oregon is a price model that believes that it works well.
Portland airport does not allow its suppliers to load more than rates out of the air, and local vendors “are scratching to enter the airport.”
In addition, a Portland port spokesman told the USA Today that this rule also makes the airport feel like a part of the city.
“When focusing on local stores and restaurants, and make these companies charge the same thing they want the airport, travelers get an authentic experience of what our region has to sacrifice,” said the airport operator.
“In addition, we have such that when people do not feel that the price is torn, they are willing to spend more.”
Most of the time, travelers are not really an option to pay more than they would be out of the airport, but there are usaticular offers to hook.
According to the Port Authority in New York, its suppliers must offer at least some essential goods with a discount.
“Concessionaires are required to sacrifice affordable options, such as bottled water of $ 2 and value meals, as part of the program ‘We value you’,” said the agency in a statement.
