Airport shopping is a popular way of passing time when waiting for a flight at the airport. As we know, passengers are usually required to be at the airport 2-3 hours before a flight. Checking in and going through security does take a significant amount of time. However, there is generally a lot of opportunity for shopping before boarding the flight. As a result, many airports have a significant number of shops as well as restaurants with enough time available for people to have a restaurant meal as well as do shopping afterwards.
Duty-Free Shopping
In addition, governments around the world have relaxed taxation on goods sold in airports, allowing many to sell goods at a cheaper price for passengers in what is commonly known as duty-free shopping. The advantage of duty-free shopping is that it generally means that a sales tax (or in the case of the United Kingdom VAT) does not need to be paid on the items bought.
There is however a limit to how much will count as tax-free shopping. In the United Kingdom for example, the total amount of duty-free airport shopping or goods bought abroad in a year which has to either be for personal use or for gifting to others can be no more than £12,570 for most people. Nevertheless, this is a significant allowance for most people who would not spend this much in a year and as a result, the majority of travellers would not need to pay anything at all. This means that duty-free services provide many opportunities for shoppers and more business for airport retailers and airports alike.
Airport Offerings
The most popular airport offerings include those provided at the United Kingdom’s London Heathrow Airport, which is Europe’s largest airport. It has many duty free shops and includes selling luxury brands in its Terminal 5. It is also reputed to be one of the best airports in the world for watch buying.
In the Middle East, Hamad International Airport in Qatar’s capital Doha is an award-winning airport. It has luxury pop-up shops excellent dining, and some of the world’s best airport shopping. Dubai International Airport in the United Arab Emirates offers a variety of shopping experiences. This includes authentic top Arabian gifts, fragrances and fashion brands.
In the Far East, Singapore’s Changi Airport is described as a shoppers’ haven. It provides a diverse retail experience. Hong Kong International Airport focuses on Lunar New Year gourmet food sets, rare wine collections and duty-free liquor. South Korea’s Incheon Nation Airport, serving its capital Seoul features a range of stores for cosmetics. These include the brands Beauty Travel, Olive Young, and TonyMoly.
High-End Products
As one can see airports around the world are taking advantage of the opportunity to enhance the airport shopping experience for customers. In particular, they do appear to be focusing on luxury products more than before. This is particularly the case in Europe. Airports in Rome, Italy and Paris France are increasing their offering of luxury retail shopping following the examples set in Asia as well as Dubai.
Amsterdam’s Schiphol Airport, in the Netherlands, is upgrading part of its airport to what it calls elevating the airport journey drastically. At the centre of the enhancement is a dedication to luxury travel retail and premium food providers. In designing the new layout, it is rethinking the traveller experience altogether.
The high-end airport shopping experience is also being enhanced through digital marketing. Advertisements on large screens as well as interactive digital experiences help to enhance the customer experience. In addition, ad hoc services such as the ability for passengers to receive orders at their departure gate or at their homes are also being provided by airports such as Hong Kong International Airport.
One can see that as a result of the reduced expense of duty-free shopping, many retailers and airports alike have taken advantage of the business opportunities this offers to improve the experience of passengers waiting for flights. There is also a growing interest in selling more high-end products to no doubt target those passengers who can spend more.
All of this may provide a disincentive for airports to reduce wait times as this may mean less time for airport shopping. On a positive note, the improvement in the airport shopping experience may be beneficial for all passengers. We have to wait to see how this progresses.
