Why Is a Samosa Pricier at the Airport?

A samosa from a street stall might cost 15 or 20 rupees. The same snack at an airport can cost 150 rupees or more. Is the airport vendor simply greedy?

Reason 1: Very high rents

Airports charge shops and restaurants high rents or a share of their revenue for space. Space inside terminals is limited and valuable, and airports use it as a major source of income. High rents push up prices.

Reason 2: Higher operating costs

Airport businesses face extra costs: security checks for staff and supplies, longer operating hours, and higher wages to attract workers to distant locations.

Reason 3: Limited competition

Airports control how many vendors can operate, often granting exclusive or limited contracts. Fewer competitors means less pressure to cut prices.

Reason 4: Captive customers

After security, travellers cannot leave to find cheaper food. Many are hungry, have time to kill, and are less price-sensitive while travelling. This gives vendors pricing power.

Policy responses

Complaints about airport prices led India’s civil aviation authorities to push for affordable options. In December 2024, the government launched the first Udan Yatri Cafe at Kolkata airport, offering tea and snacks at low prices, and later opened more at other airports.

The same logic elsewhere

• Railway stations and highway food courts.
• Stadiums and concert venues.
• Hotel minibars.

Where customers are captive and competition is limited, prices tend to be higher.

A lesson in rent

Economists would say much of the high price reflects economic rent: the value of a scarce location. The airport captures much of this rent through high charges to vendors.