Don’t Assume Duty Free is Cheaper

May 27
11:43

2011

Steve Robinson

Steve Robinson

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Travelers who are determined to get the most out of their travel dollars by flying on cheap airplane tickets and staying at discount hotel rooms or purchasing cheap vacation packages, are often naïve when it comes to purchasing from duty free shops.

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Experts caution that customers should not assume that duty free shops offer better values than can be found at passengers’ U.S. destinations.  Overall there are not many savings to be had.  Duty free shops are in business to make a profit and only by knowing the cost of the items you would have to pay if you purchased them in your hometown can you know if you are looking at a value.

Luxury items such as watches,Don’t Assume Duty Free is Cheaper Articles jewelry and other products considered precious is often, though not necessarily, cheaper at a duty free shops.  Savings can also sometimes be realized purchasing liquor, perfume and tobacco items.

Electronic items, such as high end cameras, are often priced lower at a local American discounter or online.

Duty free and travel retail sales totaled $39 billion in 2010.  Duty free bargains are most associated with alcohol and cigarettes, which respective made up only 16 percent and 7 percent of total duty free sales.  Their largest selling categories come from luxury goods at 36 percent and perfumes and cosmetics at 30 percent.

Anyone considering purchasing alcohol at an overseas duty free shop and returning to the U.S. should only do so, if first the savings are meaningful, and even more importantly, if your first destination in the U.S. is your final U.S. destination. 

If you have a connecting flight in America you will have to place your bottles in your checked luggage, exposing them to possible breakage and possibly pay an additional fee for another checked bag.