Are Airport Duty-Free Stores Still a Bargain?

USA Today

Duty-free shops were once a hidden gem in airports, with the best deals a country could offer.

Today, folks who enter the shops to buy merchandise that isn’t taxed would be wise to be familiar with prices in other retail shops.

“Duty-free is almost never a deal for the casual shopper out to get a bargain,” says Jason Clampet, a senior editor for travel guidebook publisher Frommers.com. “You can save significant amounts if you’re a smoker who lives in a state with high taxes, but you’ll find that electronic goods, beauty products and luxury items such as designer purses usually cost less at home or online.”

Despite better prices elsewhere — and the recession’s effect on sales — shoppers worldwide spent $39 billion last year on duty-free items, says Michael Payne, executive director of the International Association of Airport Duty Free Stores.

About 60% of the sales are in airports. The rest were on airplanes and boats and at other shops.

Clampet advises duty-free shoppers to research products and prices before they arrive at an airport. Most duty-free operations have online catalogs that allow you to compare prices, he says.

Travelers should be aware of U.S. Customs regulations that exempt them from paying taxes on purchases of up to $800, Clampet says. Customs also allows each traveler to return home with 200 cigarettes and 1 liter of alcohol without paying taxes.

2 Comments

  • TomBane

    Land border duty free stores do offer savings – sometimes huge. If you are crossing the border from Canada you can check out the levels of savings on the Duty Free Canada website on the “tax savings checker”. The level of savings depends on the province/state and it varies from category to category.