Duty Free booze - why is it still a thing???

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Max Samuels

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I have been wondering this for ages now..... why do people continue to buy alcohol in Duty Free shops in Australian airports?

Up until last year I would travel to NZ 6x a year for nearly 10 years, and every time I would compare the prices of Champagne with both NZ & Australian Duty Free, against Dan Murphy's. Every time Dan's would be cheaper. Every time. How is this possible? The only explanation is that the Duty Free shops are ripping us off (or Dan's makes terrible losses....)

When in the US..... any local supermarket sells pretty much any spirit you want for a fraction of the cost of duty free. I regularly buy a 2 liter plastic bottle of Tito's Vodka and stick in my luggage. I think it costs about US $25....

In Tokyo the other day, the 7-Eleven sold Chivas Regal for about $15.

I understand that to some people the convenience of the Duty Free store on arrival is an attraction, but I wonder: do many leisure travelers actually believe that Duty Free will automatically be cheaper? I feel like this is based on 30yo facts...
 
Depends where you go or come back from and generally what you buy. Spirits are often half price so well worth it. Great deals can also be had ordering online and collecting on the way home.
 
On the rare occasion I buy alcohol much easier to pick up on the return flight back into Aust
I don't have to pack it , therefore no issues with alcohol soaked clothes (mind you Frankfurt to Hong Kong a smashed bottle of vodka does evaporate in checked luggage )
I just have to get home with it and not fuss about carrying it around the world
For me the possible price difference is far outweighed by the convenience
 
I’m with the OP. It’s a largely pointless exercise.

The only case where I see a benefit is where you spot something collectible or rare and not widely available back home.

But most of the punters you see are dragging around 2x1L bottles of generic swill like Jim Beam or JW Red.

The will wear the hassle of dragging these bottles through airports, flights, with the associated risks of breakages or confiscation, all to save a few lousy bucks off an everyday Dan Murphy’s price.


And as you say, retail grog is super cheap at most destinations like Japan, US, even mainland Europe (ie: not the Nordics!)

I don’t get it.
 
But most of the punters you see are dragging around 2x1L bottles of generic swill like Jim Beam or JW Red.
I don’t get it.
The people buying it don't regard it as swill and for many of them a "few lousy bucks" are very important . Many people are not regular travellers and many of them still see the opportunity to save a few important bucks & buy a bottle of duty free (at their home airport) to give to someone who has done something helpful for them while they were on holidays.
 
Depends where you go or come back from and generally what you buy. Spirits are often half price so well worth it. Great deals can also be had ordering online and collecting on the way home.
I suppose if you are coming back from somewhere that doesn't sell alcohol in its supermarkets at reasonable rates.

Would explain why Duty Free is almost non-existent in the US - I really only see it Hawaii - and aimed at Asian tourists.
 
I agree wine and Champagne tend not to be a great deal at duty free stores.

However there can be significant savings on spirits.

We will use our allowance on the way home for 4 bottles of single malt whisky at Changi every time. The Changi dollars also help the equation.

For example Glenfiddich IPA cask $78 in SIN vs $125 at Dan Murphy's is a significant cost difference.
 
I just had quick lookie-loo online..... the dirty ole Dan's in Melbourne City has Veuve for $61 - cheaper in a set of six... you can buy as much as you like.

MEL Duty Free has a special offer of $75 for the same product.... and you can only get 2 of them so can't get a bulk discount.

I suppose I'm what you'd call "some dumb" - I don't claim to be a scientician or anything important like that, but the economics to me, in this scenario, do not appear to add up.

I suppose I should have posed my original questions as this:

"Some 25 odd years ago when I first went on an OS trip, everyone went on and on and on about Duty Free - there were Duty Free shops everywhere. And I just assumed that Duty Free always meant cheap. Jump forward to now, and I have noticed for at least the past 10 years that Duty Free is generally not cheap. And therefore I wonder the following:

1) Do you think Duty Free stores rely on the myth that they are cheaper to continually draw customers?
2) Was there ever a time when Duty Free was actually cheaper?

As mentioned above, some 25 years ago I assumed it was cheaper but was too young to actually know - does anyone older and wiser have an idea? :)
 

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We will use our allowance on the way home for 4 bottles of single malt whisky at Changi every time. The Changi dollars also help the equation.

For example Glenfiddich IPA cask $78 in SIN vs $125 at Dan Murphy's is a significant cost difference.
Yes Changi is cheap but I did limit the discussion to Aussie Duty Free stores though....
 
This is a good read..... the mind boggles at the inconsistencies!
 
For us, because they sometimes have special editions/display boxes/sizes that arent available elsewhere.

Ive got a few bottles that have appreciated in value (and have sold some). The $39.95 bottles we bought many years ago are now valued approx $500-$800 and we've got 6 of the limited batch. Sold a Wild Turkey limited in display box for 4 times what we paid for it. For a guy with a themed man cave, some will pay plenty. As we dont drink alcohol, they're referred to as my pretty bottles.
 
Who buys wine at duty free stores? Just for the convenience, or so you can imbibe on board? Always only ever entertained spirits etc.

It's not just wine, a few months ago we looked at the ipad price at MEL departure DF - it was about $30 more than what Apple or Officeworks were charging, and with Apple and Officeworks you can claim GST back, so nett about $80 more at DF. What the?
 
Finally... a quote that makes sense (although from England):

“The point about duty free, which people tend to forget, is that the retailer is not obliged to pass on the savings to the customer. Normally it pitches prices just below high street levels and, because no taxes and duty are payable, it enjoys a much higher profit margin.

"Essentially it is airport shops who benefit from duty-free status far more than their customers. As a result, it is perfectly possible to find special offers on the high street which are cheaper than airport 'duty-free' shops. It's time for more transparency so that consumers can see what is really happening to prices at the airport."

 
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Australian airport retail rents are expensive,

Like anything knowing what you are buying and what is a fair price makes all the difference.

A local example 2x 1L Jameson at Perth Duty free store for $65 total, Dan Murphy's it will cost $120 for 2x 1L bottles.
 
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