Hunger at the airport may be expensive. We’ve all drooled over the most basic foods due of their excessive costs. Even a box of chips appears to hurt the heart, owing to airports’ promotion of quadruple the rates.
Demand and Supply
The food that may be brought into the airport is limited due to rigorous security concerns and airport luggage limits. This raises the demand for meals at the airport, leaving passengers with little choice. On the other hand, the airport’s resources are restricted, which impacts the supply of the same. And, as the saying goes, when demand exceeds supply, prices are certain to skyrocket.
Exorbitant Rents
The shops must pay a substantially greater premium for their little space at the airport. Furthermore, the fee they pay to the airport authority is not fixed. Airports account for a percentage of overall sales, thus the more the shop earns, the more he must pay to the government. As a result, in order to maximize profits, they raise food prices. They are also able to do so because the authorities are fully aware of the inner workings, and their lack of response allows the shops to continue.
Increased Operating Costs
While many people believe that airport costs are 300% higher simply because individuals are stranded at the airport with no other option than to eat and drink at whatever price they are offered, the causes are a little more complicated. To begin with, the items at airports are delivered in small amounts at unusual hours and must pass through extensive security procedures. This includes labor and frequent shipping charges.
Corporation
Not everyone is capable of entering the airport domain. And those who do face minimal competition. When this happens, it is up to the merchants to make the final judgment, which no one may contest.
Storage Spaces Are Limited
s it stands, airport eateries have little room. To keep merchandise, they must have another location for storage, and the travel from there to the outlet is exhausting, with several security checkpoints. This adds to the retailer’s expenses.
To summarize, the increased fees you pay at the airport are a result of-
- Rent increases
- Costlier construction and renovations
- Costly security, handling, and logistics
- Labor expenses