Originally Posted by
ijgordon
Yes, because the airport teriminal prices are just
soooo reasonable.
Captive audience in both places (on board and in terminal). And I belive most of the airport concessions are owned by the same company within a given airport/terminal/concourse, so there really isn't much true competition to keep prices down despite the multitude of options. For example, pretty much the only places where a Starbucks is not owned/operated by Starbucks Corp. are in airports (and Targets/grocery stores).
Many airport have rules that stipulate vendors must charge the same at the airport as they do within the metro area around the airport. I believe EWR has this rule, but not sure about IAH - but both airports have a plethora of affordable food choices allowing you to eat far more quantity for the same cost as BoB, or to eat the same quantity for less money. CO does not restrict you from bringing your own food and non-alcoholic beverages on board if you prefer to feed yourself.
The penny-pinching money grab from CO leadership is just in poor taste - and again, shows a total lack of innovative thinking from the product side.
If I was in charge of product, I've have discounted pre-paid vouchers, combination pricing, and enhanced ELR pricing to include food and TV.
I can understand a company coming up with ways to earn more revenue - but just raising prices in the absence of any innovation is just being lazy.
We're still armchair quarterbacking, though - for all we know, CO sent out surveys or conducted focus groups where Joe Shmos were interviewed on their price elasticity in regards to BoB, and the new prices reflect the fruits of that research.