When you plan your travel and grab cheap tickets to India from USA, airport dining can often leave a dent in your wallet. But why is airport food so expensive? Many factors contribute to the high prices you experience at airport restaurants. Gaining insight into the factors that contribute to the high expenses of airport meals will help you make better decisions when it comes to restricted alternatives, operating costs, convenience fees, and quality issues. Let’s explore Tripbeam to learn the factors that make airport dining a pricey affair.
What are the causes behind airport meals being so expensive?
There are many reasons behind the expensive airport dining. Let’s have a look at them one by one:-
Increased Operating Expenses
Travellers on their last minute flights to India from USA believe that airport food prices are marked up by 200-300% because they have no choice but to purchase what is available at any price. However, the reasons behind the high costs are more complex. Firstly, airport products are often shipped in small quantities during off-hours, requiring extensive security screenings. These factors increase labour and shipping costs, contributing to the overall price hike.
Hefty Rents
Retailers at airports incur significantly higher costs for the limited space they occupy. Beyond this, their rent is often not fixed; instead, they pay a percentage of their total sales to airport authorities. This means that as their revenue increases, so does the amount they owe to the airport. To maintain profitability, retailers raise the prices of food items. Moreover, airport authorities are aware of these practices and their lack of intervention allows retailers to continue this pricing strategy.
Supply & Demand
Due to stringent security measures and baggage restrictions, passengers can only carry limited food items through airports. This restriction elevates the demand for airport food, leaving travellers with few alternatives. Additionally, the limited resources and logistical constraints at airports affect the food supply. Consequently, when demand significantly exceeds supply, prices naturally increase. You can learn more by exploring The Truth About In-Flight Meals.
Labor Cost
Airport staff must commute daily, pay for parking, and navigate stringent security measures, all of which contribute to the higher cost of food at airports. Essentially, a portion of the labour costs is passed on to consumers when they purchase items like chips, samosas, or dosas.
Monopoly
Access to the airport retail market is restricted and competitive, leading to limited competition among those who secure a spot. As a result, these retailers hold significant pricing power, making decisions without much external challenge.
Minimal Storage Areas
Airport eateries operate with limited space, necessitating additional storage facilities. Transporting products from these storage locations to the airport outlets involves numerous security screenings, significantly increasing the retailer’s costs.
To sum up, the higher prices that you pay at the airport are the result of:
Airport eateries face higher rents, elevated construction and remodelling costs, and steep security, handling, and logistical expenses, all of which contribute to their elevated prices. Labour costs further drive up the cost of food. So, the next time when you purchase cheapest business class flights to India from USA, either pack some snacks in your cabin bag or pay the extra with a lighter heart, knowing the reasons behind the high prices.