Business monthly November 07
 
EDITOR'S NOTE COVER STORY EXECUTIVE LIFE
VIEWPOINT IN PERSON SUBSCRIPTION FORM
IN BRIEF MARKET WATCH ADVERTISING RATES
IN DEPTH CORPORATE CLINIC THE CHAMBER
 

THE EXECUTIVE LIFE
DINING OUT BUY BEFORE YOU FLY

BY OMAR KHALIFA & KARIM EL-SENUSSI

Tighter airport security has changed the way we travel: more time is spent clearing passport control, leaving less time for duty-free shopping. Fortunately, duty-free stores have evolved too. New websites let travelers shop around and pre-order their duty-free purchases, so the goods are ready and waiting at the store in the airport. Some agents even ship to your home.

You might be happy to pay $109 for a casual sporty watch at Los Angeles Airport knowing that it’s cheaper than the same product would cost in Egypt. But you’d probably feel shortchanged if after purchasing it you discovered during your layover in Amsterdam that the same watch costs just $89 there. While we all expect duty-free goods to be a bargain, just because they’re exempt from national taxes doesn’t mean they’re priced the same at all duty-free outlets around the world. Huge variations exist, and savvy travelers save money by browsing prices online before they fly.

But even if saving money isn’t important to you, saving time probably is. Security measures in place at airports since September 11, 2001 have made it more difficult for travelers to shop. Passengers must now spend more time in airport security screenings, and restrictions have been imposed on traveling with liquids.

Having noticed that security procedures were cutting into the time passengers usually spent duty-free shopping, private operator Duty Free Stores New Zealand (DSNZ) launched a convenient online shopping service in 2003 for its duty-free outlet in New Zealand’s Wellington Airport. Unlike earlier online services, which simply displayed catalogues of duty-free goods, DSNZ’s “pre-flight ordering” service lets travelers place advance orders for cigarettes, perfumes, liquor, electronics or luxury gifts to be picked up during their trip. Payments can be made online via credit card, or when the order is picked up at Wellington Airport upon arrival, departure or transit.

The success of DSNZ’s online duty-free service in Wellington encouraged the company to replicate the model at its other branches in New Zealand and Australia. Other duty-free shop operators around the world now provide similar services for Sheremetyevo Airport (Moscow), JFK Airport (New York), and Schiphol Airport (Amsterdam). Most require proof of travel and that orders be placed at least 48 hours prior to collection at the airport.

Closer to home, a few duty-free shops have picked up on this trend. Bahrain Duty Free, located in Manama’s Bahrain International Airport, was among the first airports in the region to offer pre-flight ordering online. Qatar Duty Free in Doha International Airport offers a similar service, though the company’s website is currently down for renovation. And Beirut Duty Free, which operates outlets in Beirut’s Rafic Hariri International Airport, has yet to put its catalogue online, so the only option for its overhyped pre-ordering service is to call their hotline and inquire about prices and selection.

Surprisingly, duty-free shops in the UAE have lagged behind. The heralded Dubai Duty Free, which operates outlets in Dubai International Airport and reported the third highest sales turnover of all airport duty-free shops worldwide, has yet to put its product catalogue online. Abu Dhabi Duty Free maintains a small website without a product catalogue, while Dufry, the Swiss duty-free chain that operates outlets in Sharjah International Airport and on Air Arabia flights, is keeping mum about its prices and stock.

In Egypt, duty-free shopping still has an element of surprise – as only one of the country’s duty-free store chains maintains a website and availability is always a question. Egypt Free Shops, which operates 17 duty-free stores in Egypt, has put its price list online, but is not equipped for e-payment. The company does, however, allow customers to order and pay for duty-free goods at one of its city branches, then receive the goods at any of its border or airport outlets upon leaving the country.

For some airports worldwide, brokers have set up websites where customers can pre-purchase duty-free goods from the stores they represent. Log on to the broker’s site, browse their catalogue and select your goods. The broker will then search for the product among its suppliers and have your order ready for you to pick up at one of its affiliated airport outlets. Customers can pay by credit card online, or with cash or plastic at the store. While most brokers are legitimate businesses, it’s a good idea to make payment upon receipt of goods to avoid any confusion over the payment or terms.

Duty Free Express, the largest online broker, lets travelers pre-order goods from airports in Chicago and New York. Foreign embassy staff, meanwhile, can flash their diplomatic franchise to use Diplomatic Supply Service, a Spanish broker that specializes in shipping duty-free goods – everything from pressure cookers to oversized bottles of liquor to recliner armchairs – to European capitals. The company can also ship goods to Egypt, but customers must foot the bill for freight, packing and insurance fees. Even still, this can be a bargain.

Airlines have for years offered in-flight duty-free service, but have only recently begun adding the option to pre-purchase goods online. Those that do let passengers select duty-free items on their website that are either delivered to their seat upon boarding the aircraft, or shipped to their homes upon arrival. Be aware delivery fees may apply – and they’re usually pretty steep. British Airways, Turkish Airlines and Kenyan Airlines are among the airlines currently offering pre-ordering services for travel to Cairo. EgyptAir does not provide any online duty-free services.

Once again, technology is empowering consumers. Duty-free shops may offer significant savings and selection over local stores, but with online duty-free services you can shop around to make sure you’re getting the best possible price. And just to sweeten the deal, many online services offer exclusive discounts or benefits that make pre-flight ordering not only more convenient, but cheaper than shopping at the physical outlet.

Now if only someone would offer pre-flight passport control...


Submit your comment

Top

   
         Site Developed and Maintained by the Business Information Center of AmCham Egypt
Copyright©2007 American Chamber of Commerce in Egypt