The reasons for high prices of airport food and drinks are due to high rents, extended operating hours, and limited competition.
Travelers are aware that airport food and drinks are expensive, with some items priced at more than double their street cost. For example, a chocolate bar may be marked up by 120 percent and a burger priced 46 percent higher than its downtown equivalent, according to Business Insider’s analysis.
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, adding restaurants and amenities to attract travelers and locals.
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 led to cheaper fares and more fliers, while longer layovers in the 1980s created an opportunity to turn terminals into shopping malls.
Author's summary: Airport food is expensive due to high rents and limited competition.