6 in 10 airline passengers find food and beverages sold at airports excessively priced; Confirm paying over 200% more than at restaurants, organized retail and railway stations in many cases

November 12, 2024, New Delhi: Rapid expansion of airports in the country has seen expansion of eateries and stores offering a range of snacks, savories, fast foods and Indian meals, etc. However, unlike in the past, most of the items on sale, particularly fresh products that are cooked or reheated at the food outlet are generally very highly priced, according to feedback from airline passengers.

For instance, a samosa or patty may cost upward of INR 200, a thali meal costing more than INR 500. A coffee or tea or a cold beverage may easily cost INR 200-300 and two to three times of what one would pay at a food outlet at the mall.

So far complaints on social media, consumer forums and to the Airports Authority of India (AAI) have had little or no impact. A couple of years back AAI is reported to have suggested that passengers could pre-book their meal and get it delivered at the airport, but this option is either not there or passengers do know about it. Currently, while some airports are managed by AAI, quite a few are managed by private operators. The result is most let out their space at a premium to those renting and wanting to set up food outlets. Media reports state that a part of vendor or franchisee’s revenue has to be shared with the airport operators. The share can be as high as 25-30% depending on the airport location.

Interestingly, the prices go up further after the security gates inside. The scenario is unlike at the railway stations, particularly the big ones in Delhi and Mumbai where travelers have a choice between small food stalls /outlets, small vendors and big franchise outlets. The result of only highly priced edibles being available at most airports is resulting in many passengers thinking twice before spending on food at airports and in some cases even carrying their own snacks or meals, though it is cumbersome with the security and weight restrictions along with the underlying risk of spillage.

With over a thousand complaints received in the last 12 months about excessively high food and beverage prices, LocalCircles conducted a comprehensive national survey to find out what passengers paid for edibles sold at the airports in comparison to prices in organized retail outlets and railway stations. The survey received over 28,000 responses from over 16,000 unique airline passengers located in 309 districts of India. 61% respondents were men while 39% respondents were women. 43% respondents were from tier 1, 30% from tier 2 and 27% respondents were from tier 3, 4, 5 and rural districts.

58% airline passengers surveyed say they were charged 100-200% more for food and beverages at airports as compared to organised retail and restaurants in cities

The survey first asked air travelers, “How much premium/ extra do you believe you have paid in prices of food and beverages at Indian airports in the last 12 months (as compared to organized retail prices)?” Out of 14,841 air travelers who responded to the question, 18% stated “20-50% more”; 22% of respondents stated “50-100% more”; 10% of respondents stated “100-150% more”; 20% of respondents stated “150-200% more”; 28% of respondents stated “over 200% more” and 2% of respondents stated “have not purchased food or beverages at airports in the last 12 months”. To sum up, 58% airline passengers surveyed say they were charged 100-200% more for food and beverages at airports as compared to organized retail and restaurants in cities.

60% airline passengers surveyed say they were charged 100-200% more for food and beverages at airports as compared to railway stations

The survey next asked air travelers, “How much premium /extra do you believe you have paid in the prices of food and beverages at Indian airports in the last 12 months (as compared to prices at railway stations)?” Out of 13,595 air travelers who responded to the question 10% stated “20-50% more”; 25% of respondents stated “100-150% more”; 15% of respondents stated “100-150% more”; 8% of respondents stated “150-200% more”; 37% of respondents stated “over 200% more”; 3% of respondents stated “have not purchased food or beverages at airports in the last 12 months” and 2% of respondents did not give a clear answer. To sum up, 60% airline passengers surveyed say they were charged 100-200% more for food and beverages at airports as compared to railway stations.

In summary, it is unfortunate that air passengers are being charged excessively for buying something to eat at the airports. As many as 58% of airline passengers surveyed say they were charged 100-200% more for food and beverages at airports as compared to organized retail and restaurants in cities. When compared to the railway stations, many of which have been upgraded to have food courts and well-known restaurants, 60% of airline passengers surveyed say they were charged 100-200% more for food and beverages at airports as compared to railway stations. The pain of the passenger gets aggravated during times of delays due to fog or other reasons and they wait for many hours to board flights without any affordable food in sight.

With the Government’s ambition of making flying more affordable and 70% of total traffic being on low-cost carriers, it is critical that lower cost food options are made available at airports. The price and volume equation needs to be re-worked such that food stalls run on higher volumes lower prices instead of high prices and lower volumes.

LocalCircles will escalate the findings of the survey to Ministry of Civil Aviation and Airports Authority of India for their review and action.

Survey Demographics

The survey received over 28,000 responses from airline passengers located in 309 districts of India. 61% respondents were men while 39% respondents were women. 43% respondents were from tier 1, 30% from tier 2 and 27% respondents were from tier 3, 4, 5 and rural districts. The survey was conducted via LocalCircles platform, and all participants were validated citizens who had to be registered with LocalCircles to participate in this survey.