Why food and beverage price in airports in China is extremely high?

Why food and beverage price in airports in China is extremely high?

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Price of a Chinese herbal drink in the airport is RMB 20 (normal price is RMB 3.5)

 

Since the entry into business in 2004, the commodity prices Guangzhou Baiyun International Airport use had been repeatedly referred as “sky high”. Although the airport had pledged to take measures to control price for several time such as setting up the so called price control system based on star rating of the service providers, the food and beverage prices are still artificially high according to the recent media report. For example, bottled water is restricted as RMB 10 for 3-star restaurant but 15 seems to be the normal price of bottled water found in most 3-star restaurants. The star price control system issued by the airport which is the direct benefactor of the high pricing is obviously self-contradictory and ridiculous.

 

As a matter of fact, high food and beverage price is common around most airports in China. The reasons behind such unreasonable phenomenon are many. On one hand, the rental is high. “Airports collect rent based on the increase in annual passenger number.” A coffee shop owner told the reporters that his store’s coffee products have been priced very cheap, “the rent of 200 square meters area is between 700 and 800 thousand in the airport while normal rent of similar shop in most streets should be 400 thousand”, the owner said. Secondly, most customers are getting used such unequal treatments; obviously they are not using their rights sufficiently as consumers. Last but not least, monopoly in the aviation industry probably is the root reason which rationalizes the unusual high price in most airports in China.

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