Saturday, September 21, 2019

New Research Reveals What Is Worth Shopping For Duty-Free And What Can Be Found Cheaper Elsewhere.

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New research from Finder reveals what is worth shopping for duty-free and what can be found cheaper elsewhere. We found that items were up to 163% more expensive duty-free compared to non duty-free retail stores. 

Chocoholic travelers who prefer to snack and travel with a 500g Snickers Mini Pouch could end up encountering a 163% markup by waiting to buy the sweet treats duty-free for $14.50 instead of at a Target for $5.69. Forgetful packers who like to smell their best will find they’ll pay up to 90% on average more buying their perfume duty-free.

Research also suggests that skincare products are better value purchased at a retailer store – on average it was found to be 29% more expensive duty-free, with certain products being marked up almost 58%. However, Finder’s research found travelers looking to shop can find significant savings buying spirits duty free. On average spirits were 18% cheaper, with Absolut Blue Vodka 1L 80P 29% cheaper duty free than non-duty-free retailers.

Duty-free time pieces can also result in decent savings, with watches analyzed being an average of 17% cheaper than other retailers. Our research found that you could save 40% by buying the Fossil Virginia Watch duty-free at $105.00 instead of at the retail price of $175.00. 

Sunglasses and makeup were found to be almost neutral with sunglasses costing the same amount whether you choose to buy duty-free or not and makeup coming in as a close second with only a 4% markup. 

We compared duty-free prices, from two retailers: Duty Free Americas and Shop Duty Free, using two of the largest airports in America by passenger volume for our locations (Atlanta Hartsfield-Jackson and Chicago O’Hare international). We then compared prices of these items to matching, non-duty-free items from retail stores using the Atlanta and Chicago zip codes: 30301 and 60601. When a physical storefront was unavailable, we used the online price with the relevant zip code. Some items may have been on sale during the analysis period and sale prices were not taken into consideration to reflect overall general value of items. We recommend comparing current prices and check for items on sale before buying them duty free. Research found the best items to purchase duty-free are cigarettes, spirits, and watches, and recommends leaving perfume, chocolate, skincare and wine to other retail stores. 

You can find a full overview of the research, along with graphics, here: https://www.finder.com/sky-high-prices-duty-free

Commentary from CEO of US Finder.com, Jon Brodsky:
“Duty free stores are a bit like the gift shops at theme parks like Disney -- you’re often forced to walk through them in airports, most of it is filled with expensive stuff that you don’t want or need, and if you really do want it, you can literally whip out your phone and buy it less expensively on the internet. I remember the first time I came back from Australia to the US, and I wanted to buy some Tim Tams for the office (Tim Tams are a chocolate-covered cookie). The duty-free store at the airport was charging three times what it had cost me to buy them at a grocery store! I whipped out my Amazon Prime and just ordered some for the office instead.

The secret to saving while duty-free shopping is definitely preparation before purchase. There are some deals in duty free stores, and doing a little research in advance can help. When my wife and I went on our honeymoon, we stocked up on alcohol at the duty free in Los Angeles before heading overseas because we knew that buying liquor in a hotel was going to be prohibitively expensive; we also didn’t want to put spirits in our luggage on the off-chance that they would break. In that instance -- and for a lot of liquor purchase -- duty free is a solid deal at 18% cheaper than average. I’ve also been to countries where giving cigarettes to locals is a more accepted way to tip people (Russia being the most obvious), and in those places, buying a carton for 17% off retail is essentially giving yourself some free money for tipping. 

“By looking at Finder’s research, you can see that buying small items, such as chocolates, duty-free can often cost you a significant amount more money – up to 163% more than you’d spend elsewhere. Make a list of everything you want to buy. After, look to see if the airport you’re flying out of lists their duty-free items online and compare the prices to retail figures so you know what will and won’t be worth waiting to buy at the airport. Or, even better, just buy chocolate at a grocery store or online and ship it. 

Try never to buy gifts at duty free: items like perfume, chocolate and skincare are usually far overpriced and are often the worldwide brands. The fun of traveling is discovering new things, so go spend your money in a local boutique instead! When you’re doing that, just remember to get yourself the best rate on the local currency, either through comparing money transfer services if you’re spending cash or by getting a credit card or debit card with no foreign transaction fees”.  

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