Effect of Street-Pricing Deregulation in U.S. Airports on Customer Satisfaction

This study investigates the impact of pricing policies and food and beverage (F&B) strategies on traveler satisfaction in the dynamic airport environment, with a focus on Phoenix airport in comparison with two other (undisclosed) major U.S. airports. Using a mixed-methods approach that integrates unstructured observations and social media analytics, the research provides a comprehensive understanding of passenger behavior, satisfaction, and spending patterns in airside F&B outlets. Key findings reveal that traveler satisfaction is driven by factors such as service quality, timeliness, perceived value, and emotional engagement, with price sensitivity playing a relatively minor role. Phoenix International Airport exemplifies a successful premiumization model, leveraging deregulated pricing to offer upscale experiences through tech-enabled services and luxury branding. Conversely, Airport 1's adherence to street pricing highlights the challenges of balancing affordability with service innovation, while Airport 2 demonstrates a balanced approach, emphasizing health-conscious and regional offerings. The study’s strengths lie in its novel methodological framework and focus on underexplored aspects of airport F&B management, such as the effects of street pricing policies. However, limitations include its exclusive focus on U.S. airports and the absence of longitudinal sales data, which restrict broader generalizability and long-term impact assessment. The findings offer actionable implications for airport operators and F&B managers, emphasizing the importance of aligning offerings with traveler demographics, investing in regional branding, and adopting hybrid pricing models to balance affordability with premium experiences. Opportunities for future research include expanding the geographical scope to international contexts, examining demographic-specific preferences, and integrating additional data sources such as passenger interviews and real-time sales metrics. By addressing these areas, this study contributes to a deeper understanding of the critical role that strategic F&B management plays in enhancing traveler satisfaction and optimizing airport revenue.