why are Airports duty/tax free shops never cheaper than regular shops outside the airport?
In: Economics
For one, the overhead of operating in an airport is quite high. Airports charge a premium for rent. Also, the logistics of doing business in a “secure zone” is costly. Just getting stuff delivered to the airport means everything has to be security screened.
For two, the businesses that operate there know they have a captive audience. People can’t easily just leave the airport to get stuff then come back. Also, items you would often buy from duty free, like alcohol, must be purchased once you are past the security checkpoint (there are limits on the types of things you can carry through security.)
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