Everyone asks…what's the logic behind airport duty-free sales?

We’re sorry, this feature is currently unavailable. We’re working to restore it. Please try again later.

Advertisement

This was published 6 years ago

Everyone asks…what's the logic behind airport duty-free sales?

By Michael Gebicki



A study by consumer group Choice found that electronics, confectionary and beauty products bought from airport duty-free outlets were more expensive than the same goods bought from regular retailers. Despite that fact, the combination of a free hour or more pre-flight plus the lure of so-called "bargains" proves irresistible. Travellers are routinely seduced, and rent from duty-free outlets is a lucrative income stream for airports the world over. Psychology has come to play an important role in the duty-free area of the terminal. Rather than retail outlets side-by-side, as in Singapore's Changi Airport, a more effective arrangement is the chicane-style layout that forces travellers to walk in a winding path between them, as experienced in Sydney International Airport. A study by aviation consulting group InterVistas found that duty-free shops arranged in a serpentine configuration achieve sales up to 60 per cent higher than those in a more conventional pattern. Ikea has been using the same principle for years, and who walks out of an Ikea shop with just the item they came in intending to buy?

Sign up for the Traveller newsletter

The latest travel news, tips and inspiration delivered to your inbox. Sign up now.

Most viewed on Traveller

Loading