Could Qantas wine offer duty free?

[bussyboy]

Would there be a case for Qantas Wine to enhance their footprint with duty free click and collect onboard international flights - and would you use such a service??

Duty free options are pretty much monopolised at the airport duty free stores, limiting choice and competition - I think it could be interesting if this were available. I understand that KrisShop make purchases available on board, and presume this is duty free (happy to be corrected)

 

[Princess Fiona]

Would there be a case for Qantas Wine to enhance their footprint with duty free click and collect onboard international flights - and would you use such a service??

Duty free options are pretty much monopolised at the airport duty free stores, limiting choice and competition - I think it could be interesting if this were available. I understand that KrisShop make purchases available on board, and presume this is duty free (happy to be corrected)

QF had duty free for years onboard and got rid of it. Presumably because it wasn’t profitable.
Don’t see them bringing it back any time soon.

 

[SYD]

If you could get the booze fully “Tax free” (including WET), I could imagine that there would be some interest in some of the higher end wines. But the logistics of arranging for a bottle here and a bottle or two there wouldn’t make it worthwhile.

I’ve never understood why so called DF wine departing Oz is really really poor value but spirits are generally ok (compared to local retail prices).

 

[bussyboy]

This thought came to me while challenged to find some Ruinart Blanc de blancs for a friend - available from Heinmann at SYD but unfortunately landing back in aus at MEL and this doesn't seem available there on arrival. Noted lack of competition being the first time I really considered duty free purchases.
Lugging around bottles on holiday in the tropics is not really practical.

 

[SYD]

This thought came to me while challenged to find some Ruinart Blanc de blancs for a friend - available from Heinmann at SYD but unfortunately landing back in aus at MEL and this doesn't seem available there on arrival. Noted lack of competition being the first time I really considered duty free purchases.
Lugging around bottles on holiday in the tropics is not really practical.

You can preorder for collection on return. But wine usually isn’t worth it.

 

[DejaBrew]

But wine usually isn’t worth it.

I remember flying out pre-Covid from SYD and paying close attention to the Penfolds prices at Heinemann. Was specifically looking for the Penfolds 2017 Bin 389 Cab Shiraz (which I'd only just tried a few weeks earlier at their Adelaide Hills cellar door) to take as a gift for a friend I was visiting. I happened to have a photo of the Penfolds price list on my phone which explicitly showed RRP $100.

Lo and behold, Heinemann wanted >$100 duty free!! I asked the staffer what the DF price was and they said it's what's on the ticket. Showed them my photo and asked how it could possibly be a DF price when it was higher than Penfolds' own RRP? They just shrugged and said "...it is what it is." For obvious reasons I never bought it.

Then again, managed to pick up a Penfolds Great Grandfather Tawny on my last trip (from Heinemann SYD) that was a full $100 cheaper than anywhere else I'd been able to find it in Sydney. I just don't understand the deal with the random exorbitant DF prices?

 

[oz_mark]

I’ve never understood why so called DF wine departing Oz is really really poor value but spirits are generally ok (compared to local retail prices).

I would think the alcohol excise (which is now over $100 per litre of alcohol) would have more of an effect on spirit prices than wine prices.

 

[SYD]

I would think the alcohol excise (which is now over $100 per litre of alcohol) would have more of an effect on spirit prices than wine prices.

It does but they seem to remove some or most of that on spirits.

Spirits are generally significantly cheaper DF than retail prices (although there are some who claim otherwise).

 

[oz_mark]

It does but they seem to remove some or most of that on spirits.

Spirits are generally significantly cheaper DF than retail prices (although there are some who claim otherwise).

Yes, but I suspect that is because of the alcohol excise being removed. That would affect spirits far more than most wines.

 

[Warragul]

Yes, but I suspect that is because of the alcohol excise being removed. That would affect spirits far more than most wines.

Indeed, Spirits (and beer) is taxed based on alcoholic content, wine is taxed on wholesale value. So on 'cheaper' wines there is less tax to be deducted to be duty free.

 

[Daver6]

I would think the alcohol excise (which is now over $100 per litre of alcohol) would have more of an effect on spirit prices than wine prices.

Wine has WET which is 30% and then GST on top of that. Removing both taxes, wine should be a lot cheaper duty free. It's generally not even competitive with Dan's.

 

[elanshin]

My generalisation is that DF shops in Aus is not worthwhile to even look at. I assume they just slapped a huge markup for unknowning tourists.

It always hurts to see people pick up a pack of tim tams for $6.

Meanwhile overseas duty free shops are actually what you'd expect. RRP prices minus the likely tax.

 

[oz_mark]

My generalisation is that DF shops in Aus is not worthwhile to even look at. I assume they just slapped a huge markup for unknowning tourists.

It always hurts to see people pick up a pack of tim tams for $6.

Meanwhile overseas duty free shops are actually what you'd expect. RRP prices minus the likely tax.

Largely true in Aust as well, just that in a lot of cases shops don't sell at RRP. Dan's certainly don't.

 

[DejaBrew]

My generalisation is that DF shops in Aus is not worthwhile to even look at. I assume they just slapped a huge markup for unknowning tourists.

Yep, when buying locally, you're much better off trying to time DF purchase for when you get it on sale or via discounted GCs within the 60 day departure window. Easier said than done though of course.

 

[SYD]

Yep, when buying locally, you're much better off trying to time DF purchase for when you get it on sale or via discounted GCs within the 60 day departure window. Easier said than done though of course.

Yes, TRS is the way to go for anything you buy before you fly and can readily take it out of the country with you.

My generalisation is that DF shops in Aus is not worthwhile to even look at. I assume they just slapped a huge markup for unknowning tourists.

Not everything. Most spirits will be cheaper than RRP and usually better than sale prices. Easy to compare 1L bottles of stuff online.

 

[oz_mark]

Yes, TRS is the way to go for anything you buy before you fly and can readily take it out of the country with you.

Not everything. Most spirits will be cheaper than RRP and usually better than sale prices. Easy to compare 1L bottles of stuff online.

Certainly the buy two for $xx offers can be quite good on DF spirits

 

[Warragul]

Wine has WET which is 30% and then GST on top of that. Removing both taxes, wine should be a lot cheaper duty free. It's generally not even competitive with Dan's.

There is the 'Producer Rebate' on WET available for some which can eliminate a fair bit of it.

 

[Blackswan]

In my experience, given Qantas Wine can't seem to properly deliver wine to normal addresses - they shouldn't try an expand their offerings to duty free pick up.

Even though I stated on here "never again", I gave them another shot for a Champagne order for Christmas just gone. After weeks of no progress, ended up requesting a refund (which took multiple calls over multiple hours). Their offshore call center is woeful.

Never again (until next year).

YMMV

 

[Andyc]

To return us to the original question....

I actually think it's a great idea.
Certainly very customer-friendly and could be quite profitable.

If Qantas installed parcel lockers (similar to Amazon & AusPost offerings in other settings) in the international arrivals area, they could fulfil orders in a pretty cost effective way.

The bigger issue is that the duty free retailers likely have exclusivity clauses in their leases.
The parcel locker concept may also be enough (maybe with orders must be placed X days in advance) to get around the exclusivity clauses that the duty free operatiors likely have in their leases. But if not, I'm sure Qantas could start seeing the concept with the airport operators (or even pay the duty free operators to host the lockers).