What is Duty Free?

People use this phrase a lot but how many know what it stands for and where did it come from?.... Let us take a look....


Duty Free goods historically are free of duty and any local, national taxes (e.g. sales tax, VAT, excise duties) with the obligation that the goods are exported. However, times have moved on now we are faced with Duty Free Zones (DFZ), bonded warehouses areas used to store goods until re-export or duty paid on them to release onto the local market - and also Duty / Tax Free countries.

The origins of Duty Free lie in Shannon Airport (Ireland) in 1947 where the first Duty Free Shops were established specifically on the back of the growth of Transatlantic traffic to the USA with a legislation allowing to sell without taxes. This duty free shopping concept became the model for other airports, followed by cruise ships, port terminals, border crossing points and airlines.

One notable change came in 1999 in the European Union (EU) with the abolition of duty free shopping sales between member states. To this day there is a lot of confusion at airports as the Duty Free Shops have dual prices - one for people traveling within the EU and one for outside the EU.

Duty Free Shopping trends for the future?

With Duty Free shopping sales at €44 billion for 2011 and double digit percentage increases over the next four years it is estimated that it will reach €64 billion in 2015 - far out stripping domestic market increases throughout the world. While it is expected there will be duty free operator consolidation there are few areas which will move to the front of discussion -

• Arrival Duty Free Shops - an increasing number of countries have passed legislation to include arrival duty free outlets including the latest addition of Switzerland in 2011.
• Internet Retailing - with this becoming an increasing force in overall retailing it is inevitable that the Travel Retailers will have to take this phenomenon more seriously. With the special nature of duty free retailing it will take a lot more thought to tap into this market but the rewards are there for those who are successful.

Please leave your thoughts or ideas........

Travel Agents to sell Duty Free online?

For the first time travel agents are looking at the concept of selling duty free goods online through the pre-order method. Traditionally, Duty Free has not been sold online, nor on arrival, but the market has started moving in this direction with Operators launching their pre-order websites. Australia and New Zealand have been the leaders in this new and innovative sector of the business, but until now it seems that nobody has linked the business to major travel agents.

All Duty Free purchasers need to buy a ticket first, so this could become a new added value revenue stream for the travel industry.

With the Canadian Government now taking a serious look at the introduction of Arrivals Duty Free airports and operators are looking at ways to deal with this potential new market. At last The Travel Industry appears to have woken up to this opportunity and exploratory discussions have opened.

http://arrivalsdutyfree.com/

Ryanair inflight mobile/cell phones.

This could just be the beginning, as it won't be long before there are inflight shopping channels on the seat-back screens. All this lends itself to the pre-order of goods for arrival.

War of Words over Duty Free in Europe.

A war of words seems to have unfolded between the European Airports Council and Ryanair over the on-board baggage issue and the carrying of "Duty Free". Mr McNamara of Ryanair has pointed out that Ryanair only fly to 5% of locations that are legally able to sell Duty Free goods, those that are outside the EU area. Whilst Mr Jankovec, the ACI spokesman, appears to be discussing the overall concept of airport shopping, sometimes known in Europe as "Travel Value".

Of course, many people buy goods in EU airports thinking they are "Duty Free", but often they are just cheaper due to low duties in those countries, like liquors and tobaccos in Spain and Portugal.

It seems that this debate will now run and run and it will be interesting to see how it evolves, but as the debate runs, the concept of delivering "Duty Free" goods on arrival at the airports gains credibility. Buying on arrival means that passengers do not have to worry about whether their purchases will fit within the carry-on baggage allowance.

Australian Duty Free on Arrival expands to Chinese and Japanese markets.

The Australian Duty Free retailer in Sydney also continues the expansion of the Duty Free on Arrival concept by launching their online pre-order service in various Far Eastern languages.

Who will be the next Country to expand into the Arrivals Duty Free and online purchase market, Switzerland or Canada?


Where can you buy on arrival...check with

http://www.dutyfreeonarrival.com/
http://www.arrivalstravelretail.com