Reports in The Independent indicate that Airport retailers demand boarding cards from travel-shoppers to avoid paying 20 per cent VAT on everything they sell to passengers travelling outside the EU, as there is no purchase tax due on such goods.
Research by The Independent also suggests most of these stores don’t pass the savings on to customers.
Apart from the inevitable damage caused to retailer brand equity, and possible questions from the authorities re inappropriate VAT collection, the real issue has to be the knock-on effect of most airline passengers refusing to submit what is a valuable source of shopper insight at checkout...
In other words, think about the value of knowing name, destination, flight class and frequent-flyer details of every travel-shopper making a purchase...especially if linked with loyalty-data to optimise shopper marketing strategies in some of the world's most expensive retail real-estate...especially if it can be shared with the airline...
Think also about the fragility of shopper-retailer relationships, in a world where passengers held overlong in the security security-process, already suspicious that the indirect route to the plane is deliberately designed to encourage shopping, are known to 'punish' the airport by refusing to enter, let alone buy from airport shops...
Time for a grand gesture - and some overdue damage limitation - via VAT discounts at the checkout?
Research by The Independent also suggests most of these stores don’t pass the savings on to customers.
Apart from the inevitable damage caused to retailer brand equity, and possible questions from the authorities re inappropriate VAT collection, the real issue has to be the knock-on effect of most airline passengers refusing to submit what is a valuable source of shopper insight at checkout...
In other words, think about the value of knowing name, destination, flight class and frequent-flyer details of every travel-shopper making a purchase...especially if linked with loyalty-data to optimise shopper marketing strategies in some of the world's most expensive retail real-estate...especially if it can be shared with the airline...
Think also about the fragility of shopper-retailer relationships, in a world where passengers held overlong in the security security-process, already suspicious that the indirect route to the plane is deliberately designed to encourage shopping, are known to 'punish' the airport by refusing to enter, let alone buy from airport shops...
Time for a grand gesture - and some overdue damage limitation - via VAT discounts at the checkout?
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