Why is Airport Food is More Expensive Than Outside? Here Are Five Reasons - News18 (2024)

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Last Updated: January 25, 2022, 09:47 IST

From cooked items to packed items, the prices are twice or thrice the regular prices in the market, but why does this happen?

While the facilities and standards at the airport may vary from place to place, there's one unifying trend globally –how expensive airport food is! From cooked items to packed items, the prices are twice or thrice the regular prices in the market, but why does this happen? Well, there are several key reasons for it, including the fact that air travellers are usually from the higher-earning segment of society and have better buying capacity. However, it's not the only reason behind this exuberant pricing.

Here we try to decode as to why even your regular coffee or just the packed water bottle has a heavy price tag.

Because there's demand!

The first rule of determining the price is how much demand is there for the product. Since airports are high-security zones, many outside food items aren't allowed inside. So, when travellers need to eat or drink something, they have no other option than to go for the high priced food inside the airport premises. The supply to these airport stores is limited due to security reasons and various other factors. This creates a gap between the supply and demand and that takes the product prices higher.

Operating Cost

Running an airport store is an expensive affair. Retailers have to pay higher rent and added costs for their operation. To cover this cost and make their business profitable, store owners have to resort to increment in the prices of the products.

Expensive Human Resource

Airports are located at some distance from the centre to the city. So, to get the workforce to the airport, businesses have to cover part of their daily travel and offer more pay than the usual stores. Additionally, the workforce has to undergo special training programmes to be ready to service the demand efficiently. The airport employees have to go through daily pass background checks and be trained in security measures as well. All this adds up to the operational cost of the business and results in the product price surge.

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Limited inventory

As we mentioned, airports are high-security zone and the process of getting the inventory to the store is a multi-level process. Retailers also have to invest in an off-airport warehouse and delivery channel to get the product to the counter. This complexity takes the cost of the product higher and hence, customers have to pay inflated prices.

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Limited Competition

The airport has limited space. So there's a limit to how many stores it can accommodate and that gives retailers an advantage of less competition. They may charge inflated prices and yet buyers will have to purchase items from them because there's no other option.

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first published:January 24, 2022, 16:00 IST

last updated:January 25, 2022, 09:47 IST

Why is Airport Food is More Expensive Than Outside? Here Are Five Reasons - News18 (2024)

FAQs

Why is Airport Food is More Expensive Than Outside? Here Are Five Reasons - News18? ›

The supply to these airport stores is limited due to security reasons and various other factors. This creates a gap between the supply and demand and that takes the product prices higher. Running an airport store is an expensive affair. Retailers have to pay higher rent and added costs for their operation.

Why is food more expensive at the airport? ›

A perceived monopoly isn't the only reason for high food prices at airports. High-priced commercial space rent, supplier price-gouging, staff turnover, and employee parking also play a role. So, we recommend you pack dry snacks with you, see if you have access to lounges, and park at The Parking Spot when you travel.

Why is water so expensive at airport? ›

The real reason airport bottled water can be two or even three times the cost of what you would pay at a grocery store is customer demand. You can't pass through airport security with liquids larger than three ounces, which means most travelers buy bottled water on the other side.

Why are some airports more expensive? ›

Why? Again, because of supply and demand. But the supply of flights (or lack thereof) can also play out in smaller ways – especially from smaller airports. Some airports just don't have that many flights, and that's likely to hurt travelers looking for a good deal.

Is Mcdonald's more expensive in airports? ›

The prices in the airport are 5% higher than what the chain's menu usually offers and are 50% lower than the gap allowed under the terms of the tender. These prices stem from the high rent at the airport, the cost of operating the premises for 24 hours a day, and the cost of shuttling the employees."

Why are food prices higher? ›

That's more than 50 percentage points higher than any other category. But there is no immediate fix for policymakers. Grocery prices remain elevated due to a mixture of labor shortages tied to the pandemic, ongoing supply chain disruptions, droughts, avian flu and other factors far beyond the administration's control.

Why are food prices getting so expensive? ›

Why is food so expensive? Food prices have risen steadily since 2020 thanks to a combination of factors, including inflation, labor costs, the supply chain and the war in Ukraine. These challenges won't be resolved in 2024 but the economic outlook and overall inflation are improving.

Is water free in airport? ›

Yes, most airports, including Chhatrapati Shivaji Maharaj International Airport (CSIA) in Mumbai, typically have facilities where you can find drinking water. Airports are equipped with water fountains or water dispensers that provide safe and potable water for passengers.

Why is water illegal in airports? ›

The ban was put in place after British authorities thwarted a plan to blow up a U.S.-bound plane with liquid explosives. There is now technology to send that ban down the drain. Airports across the U.S. are now using X-ray scanners that use CT technology to give guards a 3-D image of your carry-on.

Is water free on flights? ›

Free Bottled Water

You probably know you can (almost) always ask for a cup of water on an airplane, but did you know some airlines will give you a whole (or half) bottle if you ask for one? Whether or not you'll get one largely depends on availability, but it's always worth inquiring.

Why are flights so expensive today? ›

For starters, there are simply not enough seats to provide for how many people want to fly. Henry Harteveldt, travel industry analyst at Atmosphere Research Group, tells Select that while travel demand has come roaring back, seat capacity is still down 6% compared to pre-pandemic numbers.

Where is it cheapest to fly out of? ›

St. Pete Clearwater International Airport in Florida is the cheapest U.S. airport to travel out of, according to the report. It has an average flight cost of $147. The airport serves the Tampa Bay area and is a destination for low-cost carriers like Las Vegas-based airline Allegiant Air.

Where is the cheapest place to fly in the US? ›

The Cheapest Places to Fly in the US
  • Denver, Colorado.
  • Orlando, Florida.
  • Las Vegas, Nevada.
  • Chicago, Illinois.
  • Washington, DC.
  • New York metropolitan area, New York.
  • Miami/Fort Lauderdale, Florida.
  • San Francisco Bay Area, California.
Dec 12, 2023

Who owns an airport? ›

In the US, almost all major airports are government-owned – usually by the local federal or city government. In New York, for example, JFK and La Guardia airports are owned by the City of New York.

Is Starbucks more expensive in airport? ›

Starbucks can be pricey as it is, but when you throw in airport mark-ups, a cup of the chain's gourmet coffee can seem downright ludicrous. Starbucks' prices can vary by location, and with the higher rent inside airports, it's possible that you could end up paying more for your cup of joe.

Is Disney McDonald's more expensive? ›

McDonald's at Walt Disney World – Higher Prices

Even with the discount prices were 10-15% higher than a regular McDonald's. Still, it's the only drive-through on property. Besides the convenience of the drive-through, it is easily accessed.

How can I save money on food at the airport? ›

Bring Your Own Snacks

Try to focus on high-protein options to keep your energy up over long travel days. Small packs of nuts, nutrition bars, and string cheese are all easy, no-mess options. If you're feeling really motivated, make sandwiches and wrap them carefully so they don't get smashed in your bag.

What is the markup on airport food? ›

Under the new rules, vendors aren't supposed to charge more than 10 percent over “street prices” — meaning what you'd be charged at a supposedly comparable place outside the airport — and they're required to offer lower-priced food and beverage options overall.

Why does airport food taste different? ›

Because the atmosphere is different. The air is thinner on a plane as it's the equivalent air pressure of 8,000 feet up, and there's less moisture in it. This interferes with your senses of smell and taste. Airline chefs know this and put more seasoning in airline meals.

Do you pay extra for food on a plane? ›

Yes, typically you do have to pay for food on a plane. Most airlines offer a variety of food and beverage options for purchase during the flight. Some may also offer complimentary snacks or meals, but this varies by airline and flight duration.

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