Buying your travel size toiletries online makes even more sense according to the latest study by Kelkoo. Online goods were found to be 12% cheaper than high street stores and are even 6% cheaper than the so called tax free shops in Europe’s 10 busiest airports.
With the summer holiday season underway, many UK travellers will be taking advantage of tax free shopping at the airport. More than half of UK consumers believe that tax free airport shops offer average savings of 20% or more compared to recommended retail prices on the high street, but a new report released by shopping comparison website Kelkoo, reveals that airport shops may not be offering the bargains you expect.
Contrary to popular belief, tax free goods in European airports are on average just 6.2% cheaper than those in local high street stores, with Heathrow Airport offering the worst overall discounts out of any major European airport (3.1%).
Tax free shopping across Europe is big business, with consumers spending over €2.8 billion last year alone, making savings of 6.2% (€185 million) compared to standard high street prices. However, by shopping online for the same goods, consumers could have saved a further 6.1% (€171 million) which would have equated to a total saving of 12% (€355 million) over high street stores.
The report, commissioned by Kelkoo, and produced by the Centre for Retail Research, examines the difference in prices between high street stores, tax free shops in airports and online retailers across Europe.
Save more on health and beauty products
Health & beauty (39%) along with luxury, fashion & electricals (31%) account for 70% of all tax free retail sales in Europe. While Europe’s airport tax free outlets offer savings against high street prices in these categories ranging from 6% to 10%, online discounts are typically higher at 12% and 13% respectively. In fact, Europe’s online retailers offer consistently higher savings on all categories except for tobacco!
Although prices in airport tax free shops still compare favourably to the local high street, with discounts varying from 3.1% to 11.9%, online savings on the same goods are much higher, ranging from 9.1% to 15.4% with the UK offering the best overall savings for online shopping over high street stores.
Europe’s most expensive airports
For people who like to shop before they fly, the discounts on offer across European airports vary widely. London Heathrow offers the lowest average tax free savings in Europe at just 3.1%, followed by Berlin Schoenefeld at 4.6%. Interestingly enough, Spanish airport stores have the highest prices for health and beauty products, and wines and spirits are dearest in French airports!
Bruce Fair, Managing Director of Kelkoo UK, comments: “… eleven years on from the end of duty-free there is still the perception that tax free shopping offers the best deals. In reality, higher overheads, decreased competition and less choice means that tax free shops are not always the hunting ground for bargains that people think they are. In fact, airside retailers simply cannot compete with online retail for the best prices… Our advice to travellers who want the best deal is to shop online before they fly.”
Is airport shopping really tax free anyway ?
Using the high street prices in each country as the basis for comparison, the report reveals that European airports offer tax free savings of 6.2% on average. However, taking the average standard rate of VAT in Europe, if airport tax free stores were passing on a full tax rebate on the high street cost of goods to European travellers, they would instead be offering average price reductions of 17.4%. Airport shopping retailers argue that this discrepancy is due to higher overheads, including steep rental charges and higher staff salaries, compared to those of high street stores.
Buy before you fly for the best prices !
Almost 6 in 10 consumers in the UK believe that tax free airport stores offer average savings of 20% or more on recommended retail prices and one in five passengers intentionally wait to shop at the airport before travelling.
Almost one in ten also mistakenly think that airport shops are cheaper than online retailers, and over two thirds of UK shoppers often buy themselves something at the airport even if they don’t need it! Impulse shopping at its most expensive!
Buy before you fly really makes sense when it comes to your travel size toiletries and mini fragrances when airport tax free shops are more expensive than shopping online.
