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IIUC, virtually all of the crazy airport prices come from management companies like HMS Host, Sodexo, etc - which manage most of the restaurants and stores in a
by onlyrealcuzzo 2y ago
IIUC, virtually all of the crazy airport prices come from management companies like HMS Host, Sodexo, etc - which manage most of the restaurants and stores in airports.
Their business model is - they big up the price of all the available spots such that no one can make money unless they charge exorbitant prices. After they capture the majority of the market, they're free to charge a ton of money.
How they haven't been charged for collusion and price fixing is beyond me.
Anyway, typically, if you find a huge brand like Starbucks or McDonald's - or a brand that owns all its locations (not franchised) like Chipotle, the prices will not be extreme.
- sgerenser 2y agoThe Starbucks in airports are usually still franchised (which otherwise is rare for Starbucks), and at least a few I’ve encountered are definitely operated by HMS Host.
- onlyrealcuzzo 2y agoYes, but if you're Starbucks, you'll make an agreement with HMS not to overcharge too much. It looks bad for you to be a >$100B company and trying to price gouge your loyal customers at the airport.
- mrgoldenbrown 2y agoI was pleasantly shocked to find a 7-11 in an airport that charged their normal price for coffee.
- PaulHoule 2y agoCertain airports (Salt Lake City, NY metro airports) make a choice to enforce pricing that is representative of outside pricing because the perception of gouging is so bad.
- seanmcdirmid 2y agoPortland (PDX) had really good prices last time I was there. Seatac is OK, they have affordable fast food options and their starbucks is only slightly more expensive than on the outside. European airports are worse. I never spent so much on a coffee than at Zurich's airport. It was swiss markup over the usual swiss markup.
- BeetleB 2y agoThe last time I flew JFK - pre-pandemic, the prices were insane. $16 for a sub sandwich (not Subway). Tasted terrible. I've never been to NYC, so I don't know if this is what they charged outside. Portland, as another commenter said, tends to have the same price in the airport as their restaurants outside.
- onlyrealcuzzo 2y ago> $16 for a sub sandwich (not Subway). Tasted terrible. I've never been to NYC, so I don't know if this is what they charged outside. Definitely not normal. In most of Manhattan, you can get a quite good sandwich for less $14 or less. The rest of NYC is going to be cheaper.
- wkat4242 2y agoThe McDonald's in Barcelona airport used to have normal prices but recently they've started ripping off too :(
- jdminhbg 2y ago> How they haven't been charged for collusion and price fixing is beyond me. I'm pretty sure it's because they're cutting the (govt-owned/operated) airports in on the action.
- SllX 2y agoUsually local government-owned. That shouldn’t be a factor with the Feds.
- jdminhbg 2y agoI think most investigations of operators on that level are done by state attorneys general.
- SllX 2y agoThey can be, but based off the description of events higher up the thread, I could see the Feds getting involved if this is accurate.
- jldugger 2y agoIf you buy up all the retail space in one airport, I don't imagine that triggers interstate commerce law that would allow the feds to step in.