
Why is foodâa basic necessityâso extravagantly priced at airports? Whether itâs a âč350 sandwich or a âč120 bottle of water, airport travelers across India are met with prices that often feel like daylight robbery. But these arenât arbitrary numbers. They're the output of a tightly wound systemâgovernment policy, vendor constraints, airport authority rules, and the psychology of the traveler all colliding in a closed-loop economy. Letâs break it down.
Government and Regulatory Perspective
- High GST Rates: Food in airports is typically taxed at 18% GST, higher than many restaurants outside.
- Airport Development Fee: Added to vendor costs, trickling down into pricing.
- Security & Hygiene Compliance: Vendors undergo heavy licensing and checks via BCAS, raising entry costs.
Airport Authorities Perspective
- High Rents: Airport terminals charge vendors a premium for space.
- Utilities & Maintenance: Higher costs for electricity, water, and wasteâespecially with tight safety requirements.
- Security Overheads: Operational costs rise due to airport-level safety protocols.
Vendor Perspective
- Limited Competition: Fewer vendors lead to monopolistic pricing.
- Logistics & Storage: Small storage + high delivery costs due to security checks = inflated overhead.
- Spoilage Risk: Perishable goods raise pricing buffer to account for waste.
- Staffing: Wages may be higher due to background checks and city-based operations.
Passenger Perspective
- Convenience Premium: Youâre not going to leave the airport for cheaper options mid-journey.
- Time vs. Money: Youâre paying for speed, not value.
- Limited Options: In smaller airports, itâs take-it-or-leave-it. And youâre probably hungry.
đš So, Is It Price Gouging?
Not exactlyâbut itâs close. Itâs not predatory behavior as much as it is **passive entrapment**. The ecosystem is designed such that every cost layerâregulatory, operational, logisticalâfunnels upward into your overpriced samosa.
đ A Final Thought
Airport food isn't a luxuryâit only feels like one because of how the system works. And unless transparency improves and airport authorities lower barriers for vendors, passengers will continue to pay steep premiumsânot for taste, but for the trap.