BOSTON — Travelers through Boston’s Logan International Airport should expect to pay more for everyday items on the other side of TSA security, but a
Boston 25 News investigation into retail pricing at the airport found some vendors are charging more than the 15% markup allowed by Massport.
Following our findings, Massport and its concessions manager, MarketPlace, say they initiated a spot check to ensure retailers are complying with the airport’s pricing policy.
Massport mandates concessionaires at Logan operate under a “street pricing” plus 15% policy, meaning prices should not exceed 15% more than the average cost of the same item outside the airport.
MarketPlace tells Boston 25 it bases its street pricing data on prices found in Downtown Boston, Seaport, Copley Square and Newbury Street, which are among the city’s more expensive commercial districts.
“The question of what is comparable is always an ambiguous or amorphous idea,” says travel expert Gary Leff, a long-time business traveler who now runs the “View from the Wing” blog and website.
Leff says airports can be moneymakers.
“The foot traffic is incredible,” Leff says. “It’s a captive audience that needs many of the same things over and over.”
Boston 25’s investigation, conducted over two months across several terminals, documented multiple instances of prices exceeding the 15% limit based on comparable prices found in the Boston neighborhoods surveyed by MarketPlace.
Examples included a Chick-fil-A sandwich in Terminal A that cost $6.99. In Copley Square, Boston 25 found it listed online at $5.76. While the airport’s price was only $1.23 more, it was also 21% higher. A medium Diet Coke was $3.59 versus $2.65, a 35% difference.
Similarly, a butter croissant at Logan was priced at $4.65, only a dollar more -- but 27% higher -- than the $3.65 charged at several downtown Starbucks locations.
Boston 25 found some of the largest price disparities at a Hudson store in Terminal C. A 20-ounce Dasani water costs $4.19 at Hudson, 62% more than the $2.59 it costs at the downtown Target across from City Hall. We found Diet Coke priced at $4.39 versus $3.19 at the CVS downtown, a 52% difference. A travel-size Tylenol with 24 capsules was listed at $10.29 versus $7.29 at the downtown CVS, a 34% difference.
Boston 25 reached out to Hudson for comment but did not get a response.
Starbucks says many factors go into pricing decisions, including operating costs and occupancy expenses.
Chik-fil-A told us its airport location licensees are allowed to mark up prices to help sustain their business “within reason.”
In addition to Logan Airport, Boston 25 teamed up with its sister-stations across the country to review airport prices in eight other cities, including Atlanta, Orlando, and Charlotte. Reporters in those cities also found higher prices, though local rules varied on how much more retailers and restaurants can charge.
At Logan, Boston 25 did find businesses following the rules. Legal Seafood’s famous clam chowder and fish sandwich passed our test, as did a donut and coffee at Dunkin’. And while a Starbucks croissant may have missed the mark, we did find Starbucks’ coffee was within the 15% price cap, proving sometimes it’s an individual item and not an entire store that’s over the limit.
The cost of doing business at an airport is the primary driver for higher prices, Leff told Boston 25.
“It is expensive to operate in an airport,” Leff said. “Rent is usually very expensive. It’s one of the most expensive places that you can rent space to sell anything.”
Massport reiterated the cost in a statement to Boston 25, pointing specifically to the added financial burden of increased security, construction, and labor costs for its concessionaires.
Massport says MarketPlace is responsible for regularly checking prices on products to verify businesses in the airport comply with the street pricing +15% policy. Massport said it also performs spot checks to ensure compliance, and “is committed to maintaining fair and transparent pricing.” Boston 25 has filed a public records request with Massport asking for the dates of the last round of spot checks and the results.
Leff says it’s important for passengers who suspect they’re being overcharged to raise the issue with airport officials, because it may be the only way to force concessionaires to follow the rules.
“When there are enough complaints, or when an airport authority is embarrassed by failing to enforce those rules, then they may crack down,” Leff said. “But even then, they may only crack down briefly.”
After Boston 25 shared our price data with Massport, a spokesperson said a new round of spot checks was underway and that businesses found to be over the 15% limit would be asked to lower their prices.
Boston 25 intends to check again in the near future.
This is a developing story. Check back for updates as more information becomes available.
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