Smarter Pricing for Essentials in Airport Retail Shops ✈️
Operating a small business in an airport presents unique challenges, especially with pricing. Many assume they have a captive market—passengers in a hurry, willing to pay inflated prices because they forgot essentials. But is this retail essentials pricing strategy actually driving customers away?
>Download Now: Free PDF How To Drive Pricing Strategy To Accelerate Sales & EBIT Growth
Is the ‘Captive Audience Trap’ Influencing Food and Essentials Pricing in Airports?
Many small businesses believe airport customers accept high prices because they have no other choice. The logic seems simple—airport locations come with higher operating costs, so you can justify markups. But consider this: what if those high prices are pushing customers away?
Take Brisbane’s domestic terminal, for example. A bottle of water costs $5.99 at the airport, while it’s just $3 at a supermarket. A box of Panadol Rapid goes for $15.99, more than double the supermarket price. For travellers, these prices often feel like exploitation. They might buy the water or pain relief out of necessity, but they won’t walk away feeling good about it. Worse, they may actively avoid your store the next time.
Assuming you can rely on a captive market only works in the short term. Customers who feel overcharged are less likely to spend freely. Eventually, they’ll bring their own snacks or medicines, avoiding purchases at airport shops altogether. In this case, is your pricing strategy really working?
Emotional Respons from Customers to Airport Retail Shops’ Essentials Pricing
When travellers arrive at the airport, they’re often excited about a vacation or focused on a work trip. They expect convenience but don’t want to feel ripped off. Picture a family of four, ready for a holiday. They stop for snacks—water, chips, soft drinks—and the bill is nearly $50. Suddenly, their excitement fades, replaced with frustration. That emotional shift is powerful.
Customers who feel overcharged not only buy less, but they also lose trust in your business. In today’s world, a negative review on social media can reach hundreds of potential customers, damaging your reputation.
The Pitfalls of Short-Term Thinking in Essentials Pricing
Many airport businesses equate higher prices with higher profits. But the long-term impact can be harmful. If fewer passengers buy from you because they’ve heard about inflated prices, you lose out. Moreover, customers might skip purchasing altogether, knowing airport prices are unreasonable.
The issue stems from viewing pricing as a way to exploit limited competition. But customer trust is the real key to long-term success. Overcharging passengers only drives them away, reducing your business’s profitability over time.
Rethinking Your Essentials Pricing Strategy
The solution? Shift toward value-based pricing that builds customer satisfaction. Fair pricing doesn’t mean losing money; it means fostering trust and long-term loyalty. Customers will appreciate feeling like they’re getting a reasonable deal, even in an airport.
Most travellers expect high prices at airports. But this presents an opportunity for your business to stand out. Imagine how surprised customers would be to find reasonably priced items in your store. Word spreads quickly when travellers feel like they’re getting a fair deal. Your business becomes known as the place to shop in the airport, setting you apart from the competition.
Airport Small Retail Business Pricing Development
Here’s how you can start rethinking your pricing approach:
Evaluate Your Current Prices: Review your product pricing. Are there items that can be adjusted to reflect what customers expect to pay outside the airport?
Introduce Value Bundles: Pair complementary items at a small discount. This not only increases perceived value but encourages customers to buy more.
Focus on Customer Experience: Train staff to create positive customer interactions. A friendly exchange can enhance value perception, even if prices are slightly higher than outside.
Be Transparent: Let customers know why airport prices are higher. For instance, posting on social media explaining rent and operational costs helps ease frustration and builds trust.
>>> Setup A Meeting With An Expert <<<
A New Approach to Pricing for Essentials in Airport Retail Shops
As a small business owner, you can build long-term success by adopting a value-based pricing strategy. Fair prices and trust are key to encouraging repeat business and helping your store thrive. Travellers appreciate transparency, and it fosters lasting relationships beyond a quick sale. If you’re ready to explore a fresh approach to pricing, reach out! We understand your unique challenges and are here to help your business grow.
For a comprehensive view of ensuring the continuous growth of your business, Download a complimentary brochure on How To Drive Pricing Strategy To Accelerate Sales & EBIT Growth.
Are you a small or medium-sized business in need of help aligning your pricing strategy, people and operations to deliver an immediate impact on profit?
If so, please call (+61) 2 8607 7001.
You can also email us at team@valueculture.com if you have any further questions.
