Sydney Airport to get a new duty free provider.

[markis10]

Nuance has lost the contract and a new operator will start early next year according to Jamie Freed in the Sydney Morning Herald. In case you’re wondering, duty free contributed to 13% Of Sydney Airports revenue

http://www.theage.com.au/business/g...y-airport-20140904-10cihp.html?skin=text-only

 

[N860CR]

Interesting that we can't have more than one duty free provider...

 

[sweens]

With statements from SYD airport such as " Sydney Airport said retail revenues were expected to be higher in 2015 due to the re-tender and a reconfiguration of the duty-free space to implement Heinemann's shop design" must mean the unrealistic prices currently charged will increase to make retail revenues higher!

 

[YQY]

Nuance have lost the contract and a new operator will start early next year according to Jamie Freed in the SMH.

Good riddance. Nuance in Australia were hopeless. I rang SYD duty free last week (at 5pm) to get a price check on an Omega watch, I was greeted with a message that the call centre was closed at 3pm every day! I assumed wrongly, that I would be able to speak to someone in duty free during airport opening hours, go figure!

Furthermore, after i rang them the next day,and it took them another day and half after my second call to get back to me.

FWIW Japan is the cheapest place to buy an Omega watch.

 

[SeatBackForward]

Dick Smith is apparently going to setup shop across SYD terminals also.

 

[markis10]

Dick Smith is apparently going to setup shop across SYD terminals also.

That is mentioned in the linked article, they will be providing the electronics side if the duty free op.

 

[burmans]

Interesting that we can't have more than one duty free provider...

We can! Its just that Sydney Airports feel they can get more (commercially) out of an operator if they offer an exclusive deal, this may not necessarily be the case in the future.

 

[sweens]

We can! Its just that Sydney Airports feel they can get more (commercially) out of an operator if they offer an exclusive deal, this may not necessarily be the case in the future.

Yes its better for the punter to have competition but for SYD Airports, no doubt offering an exclusive deal means more commercially for them.

 

[RooFlyer]

Interesting that we can't have more than one duty free provider...

Sorry, O/T, but reminds me of the eternal question: Why is there only one 'Monopolies/Competition Commission'?

 

[samh004]

The premise of duty free is cheaper than outside of the airport. If I can go to Dan Murphy's and get it cheaper, they're doing it wrong!

 

[RooFlyer]

The premise of duty free is cheaper than outside of the airport. If I can go to Dan Murphy's and get it cheaper, they're doing it wrong!

I think we'd mostly agree that 'airport duty free' is a bit of an anachronism and except where leaving a low duty country to go to a high duty country, its mainly morphed into an excuse to indulge oneself or family/friends in a (often) high-end item or get something that you were going to buy anyway, may as well get a few bucks off it.

The only thing I've bought duty free in the past 5 years is an iPad, as a family members gift. The saving really wasn't worth having to cart and look after it around overseas, but of saving a bit worked for me (I would never want to stop to faff about picking it up on return ...).

Mind you, the proliferation of D/F shops worldwide appears to show that I'm in the tiny minority!

 

[NM]

Yes its better for the punter to have competition but for SYD Airports, no doubt offering an exclusive deal means more commercially for them.

And the reason for having DF and other retail outlets within the airport is not for the benefit of the punters (passengers)!

 

[burmans]

Mind you, the proliferation of D/F shops worldwide appears to show that I'm in the tiny minority!

Yes, I was going to note that while I rarely buy from the SYD duty free shop mtself (except for recent Amex promos) they seem to be doing a pretty good business every time I walk through them.

 

[Bolthead]

What is duty free these days.... Since GST I have always been told it is just GST removed which in the scheme of things is not a lot. Are there other taxes/tariffs/duties that are also removed? I assume it varies depending on the product.

As for the topic at hand I always found the service at SYD airport pretty good despite that I usually only purchase grog. I like the fact that we can pick it up on the way back and rarely have I been held up waiting to be served at the pick up counter.

 

[markis10]

What is duty free these days.... Since GST I have always been told it is just GST removed which in the scheme of things is not a lot. Are there other taxes/tariffs/duties that are also removed? I assume it varies depending on the product.

As for the topic at hand I always found the service at SYD airport pretty good despite that I usually only purchase grog. I like the fact that we can pick it up on the way back and rarely have I been held up waiting to be served at the pick up counter.

Duty Free is exactly that, while GST is a common tax thats removed, there are still a large range of Duties applicable, and of course there is the varying alcohol taxes.

 

[marks]

GST removed most tarrifs. (ie. perfume) but the excise on alcohol and tobacco stayed. Duty Free is supposed to remove GST & tarrifs from the purchase, but excessive margins at the shop front erode that.

While spirits are usually (I use that word sparely) cheaper in DF stores, wine & beers is more expensive simply because of the margins imposed.

It has been discussed before... but when I can get Bundy rum 1125mL bottle on a NZ duty free store cheaper than BNE/SYD surely we are being gouged.

And customs have fuelled this, with the liquid restrictions from some ports (ie. BKK) so that the market is further limited for AU travellers.


Phew. Glad I got that rant out. I won't kick the dog now.

 

[JohnK]

Interesting that we can't have more than one duty free provider...

Out of interest do many airports have multiple duty free providers?

I don't pay too much attention anywhere except BKK where most stores appear to be King Power even if they have different store names.

 

[jsoprano]

Out of interest do many airports have multiple duty free providers?

I don't pay too much attention anywhere except BKK where most stores appear to be King Power even if they have different store names.

Note sure about duty free, but I think it is the norm these days that at least at the major international airports you have one operator in the background who controls all shops in their category.

They are often not even branded the same like King Power at BKK. As an example from the airport F&B industry: at a mid-sized airport there may be 6-10 F&B outlets in the Departures area: McDonalds, Boost Juice, a local restaurant, a Gloria Jean's cafe, a local cafe, another "healthy burger" joint, and so on... Looks like a lot of choice for the travel (which it truly is) and a healthy competition - which it isn't because most if not all outlets are operated by the same company which takes out franchises for brands like McDonalds and Boost, then adds a few no-name outlets to the mix, and voila! Cairns Domestic is a good example that I know of, most if not all F&B outlets are operated by HMS Host.

Pretty sure it's similar with Duty Free and other retailers.

 

[smit0847]

Thank god. SYD doesnt have enough duty free!

 

[burmans]

Out of interest do many airports have multiple duty free providers?

NZ does in some airports, possibly why NZ duty free is so much cheaper than Australia.