Buying duty free proves to be pricier
Comparison site shows it’s often cheaper to buy products online
Duty-free stores are often more expensive than regular shopping, according to new research. A study from price comparison website PriceSpy shows the 2.9 million Kiwi travellers heading abroad might be making a mistake in hoping to get a good price on many items.
Buying perfume duty free at a New Zealand airport works out to cost $30 more than buying the same product online. Mobile phones are more expensive bought at duty free, PriceSpy found.
PriceSpy compared the price of 54 products including electronics, fragrances, smartphones, watches and cameras from airport retailers JR/Duty-Free, Aelia and The Loop located at Auckland and Wellington International Airports.
Just nine of the 54 products were found to be cheaper bought duty free at the airport.
iPads and Fitbits were found to be cheaper bought duty free while the latest iPhone, MacBook Pros, highend Canon cameras, Beats by Dr Dre headphones, Samsung Galaxies and perfumes are more expensive.
PriceSpy New Zealand country manager Liisa Matinvesi-Bassett said e-commerce had trumped the savings that duty free had historically offered.
“It’s a long-held belief that duty-free shopping is where the best bargains can be found. Clearly, e-commerce has put a firm stop to that,” MatinvesiBassett said. “With stores competing more and more on price, online sites and marketplaces tend to offer the most competitive prices.”
Matinvesi-Bassett said hidden fees such as entry charges and payable GST for large purchases were often an additional cost to duty-free prices.
A Samsung Galaxy S8 Plus 64GB retailing for $1299 at JR Duty-Free comes to a total of $1442 once GST and entry charges are added, making the smartphone $640 more expensive than the advertised price of $803 online.
“For those looking to splurge out on big-ticket items at the airport, PriceSpy encourages passengers to familiarise themselves with the rules and regulations around GST and entry fees, as once these costs are applied on top of the duty free price quoted in the shops, the end price can end up considerably more,” if purchased Matinvesi-Bassett said.
Auckland Airport retail and commercial general manager Richard Barker said liquor and cosmetics offered the best discounts at the airport.
“The biggest selling categories are spirits and cosmetics which offer the best savings — because they have no duty on them,” Barker said.
“Competition for electronics has increased significantly with frequent discounting by electronic retailers and the impact of online shopping.”
He did not address questions of how duty-free shopping could work out to be more expensive than buying the same product online.
Tom Byrne, general manager of Irish-owned duty-free retailer The Loop Duty Free, operating at Auckland International Airport, said savings were only part of what consumers want when shopping duty free.
“Competitive pricing is always important but customers also want choice and exclusive product,” Byrne said.
“One of the challenges for us is for travellers to understand that many of the products offered duty free can’t be purchased elsewhere.”