Are high airport food prices worth it?

(NLDO) – How do people in the F&B industry view the sky-high prices of airport food and drinks?

Food and beverage (F&B) industry expert Do Duy Thanh, Director of FnB Director Consulting Company and Horeca Business School, had an interview with a reporter from Nguoi Lao Dong Newspaper about the high prices of food and beverage services at Vietnamese airports, beyond the affordability of many people.

Is airport food expensive?

*Reporter: For many years, airline passengers have complained that food and drinks at the airport are too expensive. What do you think, according to industry insiders?

- Mr. DO DUY THANH: I look at this story from both sides. On the negative side, it is true that some items in Vietnam airports have a significant price gap compared to outside, especially when compared to popular or street food.

But on the positive side, it needs to be put into context: the airport is a unique environment with a series of factors that push up costs, from rental space, logistics through security, long-shift personnel costs, service standards, to franchise fees for management units.

Even within the same brand, prices at suburban kiosks, mall stores and airport stores are always significantly different, reflecting differences in operating costs and location.

If we directly compare airport prices with street-side restaurants where the origin of ingredients, invoices, and food safety standards are not guaranteed, then that is an unfair comparison.

A food store at Noi Bai airport ( Hanoi )

Airport food prices are high because of the location?

*People say that the rental fee at the airport is high so the selling price is high. Do you think this reason is convincing?

-High rental costs are true but cannot be the only explanation. Airport prices are also affected by supply chain operating costs (delivery through security control areas, limited delivery times, high storage standards), personnel costs (shifts, required skills and professionalism), and brand positioning.

Airport food is positioned in a high segment.

In addition, airfare also has an indirect impact. When the ticket price is high, customers often assume that the accompanying services are also in a higher segment, causing the service price level in the airport to be "anchored" at a higher level than normal.

The core is not only in rental fees but also in the ability to manage the supply chain, optimize operations and design a reasonable product range to meet many customer segments.

What are the airports in the area like?

*Do you have any memorable personal experiences with food and drinks at the airport and how does it compare to foreign airports?

- From personal experience, compared to Bangkok Suvarnabhumi Airport (Thailand), Changi Airport (Singapore) and Kuala Lumpur International Airport (Malaysia), I think the prices in Vietnam are not high. On average, a meal at these international airports ranges from 10-15 USD, a drink is about 5 USD, equivalent to or much higher than the service counters at Tan Son Nhat and Noi Bai in Vietnam. Even when compared to the price of food on the plane (hot meals are 8-12 USD), the cost of food at Vietnamese airports is not more expensive.

Same brand, but the location of the shop at the airport has a higher price - In the picture is Highlands Coffee at Tan Son Nhat airport

However, for most middle-income customers in Vietnam, this is still a higher spending level than daily habits, so it easily creates a feeling of "expensive".

The biggest difference between Vietnam and airports like Changi or Bangkok is not the price, but the experience and the way the options are organized. Changi has many dishes under 10 SGD; Bangkok has Magic Food Point, a food court with prices comparable to street restaurants, imbued with the identity of Thai street food, creating a strong impression.

Vietnam still has many dishes under $10, or even cheaper, but the affordable options are scattered, lacking a culinary destination with a local cultural imprint. Therefore, the lack of highlights combined with a few high-end counter locations easily makes customers only remember the feeling of high prices, even though the price level does not exceed international standards.

How to improve?

*Customers feel "ripped off" at the airport. What solution do you think is needed to harmonize the interests of all parties?

- In my opinion, it is necessary to synchronize solutions at three levels:

First, airport management, applying price ceilings by product group, requires each supplier to maintain a low-cost segment in parallel with the high-end segment. Learn from the model of Bangkok's Magic Food Point and Changi's low-cost area - both satisfying budget customers and keeping high-end options for customers willing to pay.

Second, for businesses, optimize the supply chain and operations to reduce costs, ensure consistent quality at all points of sale, and avoid the mentality of "taking advantage" thanks to exclusive positions. At the same time, invest in local culinary experiences and stories to create a competitive advantage.

Third, customers are also provided with transparent and accessible price information. From there, they understand that the price difference compared to outside comes not only from the monopoly position, but also from the cost of compliance, safety assurance and service standards in the specific environment.

If done well, Vietnamese airports can both maintain profits for businesses, create a sense of fair choice, and at the same time enhance the civilized and friendly image of the aviation and tourism industry.

Source: https://nld.com.vn/gia-do-an-san-bay-co-thuc-su-tren-troi-chuyen-gia-am-thuc-tiet-lo-dieu-bat-ngo-196250804144101562.htm