In Madagascar Tourists Spend Over 10 Times The Countries Average Income

In most cities and top tourist destinations areas have emerged selling variety of wares to tourists.

A boom in tourism can change the fate of local populations.

Chinese travellers spent a¬†record $165 billion USD abroad in 2014 ‚Äď an exceptional 27%¬†increase over 2013 ($36 billion USD). Second are US travellers who spent a total of $111 billion USD abroad in 2014.

Which countries benefit the most from tourist spending?

Methodology

Every year the UN World Tourism Organisation publishes a report titled ‚ÄúTourism Highlights“. For this post I used the 2015 version (data reported is for 2013). The report contains tourism statistics for 217 countries, including inbound tourist arrivals and receipts.

In 2013 Gallup posted data on median incomes for countries which I used to compare against tourism receipts.

Similarly, the World Bank publishes yearly data on GDP by country (I used data from 2014).

Analysis

Receipts total per tourist

revenue per tourist usd map

Full size map.

Some countries, as expected, make very little per tourist. Take the Democratic Republic of Congo which earns on average $5.24 USD per international tourist. Others, strangely, make a very large amount per tourist. International tourists in Belarus, using UNWTO figures, spend over $5,700 USD each during their trip!

Did you know? The countries that earn the most per international tourist are: 1. Belarus ($5,773 USD), 2. Luxembourg ($5,131 USD), 3. Australia ($4,897 USD).

Did you know? The countries that earn the least per international tourist are: 168. Lesotho ($121.88 USD), 169. Swaziland ($13.43 USD), 170. Democratic Republic of Congo ($5.24 USD).

Full rankings.

Yearly incomes

median per capita income worldwide usd map

Full size map.

Did you know? The countries with the highest median salaries per capita are: 1. Norway ($19,308 USD), 2. Sweden ($18,632 USD), 3. Luxembourg ($18,418 USD).

Did you know? The countries with the lowest median salaries per capita are: 128. Mali ($165 USD), 129. Burundi ($129 USD), 130. Liberia ($118 USD).

Full rankings.

Income vs. tourist receipts

median income per capita income per tourist

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Most countries (83) have higher median salaries compared to the average a tourist would spend in the country, unsurprisingly. However, in 31 countries receipts per tourist actually exceed median incomes. In 7 of these 31 countries receipts per tourist exceed median income per capita by over $1,000 USD, and 2 by over $2,000 USD (India and Madagascar).

10 countries with biggest difference in median income and tourist revenue

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rank Destination Revenue p/tourist (USD) Median Income p/Capita (USD) Median Income – Tourist revenue (USD) Per Tourist Revenue as % of Median Income
1 Madagascar 2,928.57 205 (2,723.57) 1428.57%
2 Mali 1,253.52 165 (1,088.52) 759.71%
3 Tanzania 1,768.58 384 (1,384.58) 460.57%
4 India 2,640.21 616 (2,024.21) 428.61%
5 Burkina Faso 701.83 168 (533.83) 417.76%
6 Benin 818.18 237 (581.18) 345.22%
7 Uganda 978.44 296 (682.44) 330.55%
8 Sierra Leone 728.40 233 (495.40) 312.62%
9 Angola 1,898.46 720 (1,178.46) 263.68%
10 Yemen, Rep. 949.49 400 (549.49) 237.37%

Full table.

Madagascar receives a staggering 1428.57% more from tourists than the median income of its residents — in dollar terms a difference of $2,732.57 USD.

GDP figures

gdp per capita map

Full size map.

Did you know? The countries with the highest GDP per capita are: 1. Luxembourg ($113,727 USD), 2. Norway ($102,832 USD), 3. Qatar ($96,077 USD)

Did you know? The countries with the lowest GDP per capita are: 185. Central African Republic ($326 USD), 186. Burundi ($259 USD), 187. Malawi ($240 USD).

Full rankings.

GDP vs. tourist receipts

gdp per capita income per tourist

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As with income, most countries have a positive difference between GDP per capita and income per tourist. However, 10 countries have a negative difference — that is, tourists spend more than the countries GDP per capita.

10 countries with biggest difference in gdp and tourist revenue

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rank Destination Revenue p/tourist (USD) GDP p/Capita (USD) GDP – Tourist revenue (USD) Per tourist Revenue as % of GDP
1 Madagascar 2,928.57 462.97 (2,465.60) 632.56%
2 Tanzania 1,768.58 910.38 (858.20) 194.27%
3 Mali 1,253.52 659.52 (594.00) 190.07%
4 India 2,640.21 1,455.10 (1,185.11) 181.45%
5 Ethiopia 911.89 503.90 (407.99) 180.97%
6 Haiti 1,352.38 810.33 (542.05) 166.89%
7 Uganda 978.44 674.34 (304.10) 145.10%
8 Solomon Islands 2,541.67 1,889.99 (651.67) 134.48%
9 Niger 471.54 418.49 (53.05) 112.68%
10 Moldova 2,354.17 2,243.98 (110.19) 104.91%

Full table.

These are the 10 countries that receive more per tourist than their GDP per capita. Comparing tourism revenue as a percentage of GDP per capita Madagascar comes out with a difference of 632.56%!

Improvements

I realise that using median income against tourism receipts is not a truly representative metric. Many countries have significant poverty and large gaps between incomes, all of which would be hugely beneficial context to add into the comparison.

tl;dr

In 2013, Madagascar welcomed 198,000 tourists¬†who spent on average $2,928.57 USD each. That’s 633% more than their GDP per capita and 1429% more than the median income of their residents.

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  1. Data sources + data used in this post.

The Price of A Big Mac Is Just $1.57 In Ukraine — 75% Cheaper Than In Switzerland

McDonalds has a huge global footprint. How many countries have you visited without one?

Economists have even created¬†the Golden Arches Theory of Conflict Prevention — that is: no two countries that have McDonalds have ever gone to war (the theory has since been disproved).

The Economist has gone so far as creating a Big Mac Index, comparing the price of a Big Mac hamburger around the world.

But which country sells the cheapest Big Mac?

Methodology

For Big Mac pricing I used The Economists Big Mac Index dataset (1986 Р2016). This includes local cost, exchange rates, dollar price and dollar purchasing-power parity.

Results

Current Big Mac Index (July 2016) – Cheapest vs. Most expensive

Big Mac Index (July 2016)

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Rank Country USD Price (Jul 2016)
56 Ukraine 1.57
55 Malaysia 1.99
54 Russia 2.05
3 Sweden 5.23
2 Norway 5.51
1 Switzerland 6.59

Full list.

There’s almost $5 USD difference between the cheapest Big Mac found in Ukraine ($1.57 USD) and the most expensive in Switzerland ($6.59 USD).

The mean average for a Big Mac in July 2016 is $3.61 USD — about the same price of a Big Mac in Pakistan ($3.58 USD, ranked 28/56).

Big Mac Index 1 Year Change (2015 – 2016)

2015 - 2016 Big Mac Index Change

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Rank act Rank pc Country 1y actual change USD 15-16 1y % change 15-16
55 56 Mexico -0.74 -31.01%
56 55 Philippines -0.79 -27.88%
52 54 Taiwan -0.40 -18.37%
3 3 India 0.58 24.09%
2 2 Sri Lanka 1.02 28.00%
1 1 Venezuela 2.71 80.20%

Full list.

Venezuela saw a¬†dramatic rise in the price of a Big Mac between 2015 – 2016 ($0.67 – $3.38 respectively) — although I¬†suspect this may be an error in the raw data.

Mexico and the Philippines saw a dramatic fall in the cost of a Big Mac in dollar terms, a drop of around 30% in both countries.

Big Mac Index 10 Year Change (2006 – 2016)

2006 - 2016 Big Mac Index Change

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Rank act Rank pc Country 10y actual 06 – 16 10y % 06 – 16
41 41 Norway -1.54 -27.88%
38 40 Taiwan -0.18 -8.32%
39 39 Mexico -0.19 -8.08%
9 3 China 1.48 53.03%
6 2 Thailand 1.84 54.14%
1 1 Uruguay 2.31 56.66%

Full list.

15 countries did not have data for a 10 year comparison (only 41 displayed). For those considered, Norway has seen the largest Big Mac price reduction by dollar value. Uruguay, Thailand, and China have seen the price of a Big Mac increase by over 50% in dollar terms.

Big Mac Index 30 Year Change (1986 – 2016)

1986 - 2016 Big Mac Index Change

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Rank act Rank pc Country 30y actual 86 – 16 30y pc 86 – 16
13.00 13.00 Japan 1.07 30.77%
10.00 12.00 France 2.04 45.28%
11.00 11.00 Spain 1.90 49.39%
3.00 3.00 Canada 3.24 70.47%
4.00 2.00 Australia 3.23 75.14%
1.00 1.00 Brazil 4.60 96.24%

Full list.

Over 30 years the Big Mac dollar price has almost doubled in Brazil. In all 13 countries considered the Big Mac has increased in dollar terms. Inflation over this period in the US was 120.2% meaning Big Mac are actually getting cheaper in real terms (in the US anyway).

Big Mac Index PPP (July 2016)

It is important to point out that¬†I used a simple USD price converted from local currency to compare prices in the last three charts. This does not necessarily mean the price of a Big Mac “increased” in local currency. For example, a Big Mac might cost me ¬£1 GBP in 1986 and 2016, but because of fluctuations¬†in exchange rate values the dollar value of the same burgers might vary significantly (e.g $2 in 1986 vs. $6 in 2016).

Calculating purchasing-power parity can show if the Big Mac is undervalued or overvalued compared to the USD (in USA).

Big Mac July 2016 Dollar Valuation

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Rank Country Jul2016_dollar_price Jul2016_ppp Jul2016_dollar_valuation
56 Ukraine 1.57 7.7 -68.8
55 Malaysia 1.99 1.6 -60.58
54 Russia 2.05 25.8 -59.32
3 Sweden 5.23 8.9 3.74
2 Norway 5.51 9.3 9.33
1 Switzerland 6.59 1.3 30.79

Full list.

In many countries the Big Mac is undervalued. As an example, anyone travelling from the USA with a pocket full of USD would pay 68.8% less for a Big Mac in Ukraine when compared to home (USA).

In only 4 countries out of 55, is the Big Mac overvalued compared to the USD (USA) — Finland, Sweden, Norway and Switzerland. In Switzerland the Big Mac is over 30% more expensive.

Improvements

In the interests of fairness, comparing fast-food retailer prices around the world in the same way could make for interesting reading. Does McDonalds huge logistic networks mean they can better compete on price?

tl;dr

The cheapest Big Mac is found in Ukraine ($1.57 USD) — that’s 69% cheaper than buying in the USA.

Footnotes

  1. Data sources + data used in this post.

1 Litre of Beer Costs Just 1 USD in Slovakia

Economists use a range of goods to gauge consumer prices in different countries around the world.

Beer is one consumable that can be used for such purposes, although not often omitted.

I believe this is because unlike a bottle of Coca-Cola, the local varieties of beer can result in significant price differences. Which left me wondering; where can you visit to find the cheapest beer?

Methodology

I used GoEuro’s Beer Price Index (2015 and 2016) for beer costs around the world. This index includes both supermarket and bar costs for a 33cl beer. GoEuro’s data¬†also calculates a mean average beer price¬†using the calculation (supermarket cost + bar cost) / 2.

Results

Cost of beer around the world 2016

Overall Average Price for Beer in USD 2016 Histogram

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A 33cl beer will cost you anywhere between $1.14 and $6.59, on average. Lausanne, Switzerland is the most expensive where a beer at a bar will cost you $12.20. That’s over 6 times more expensive than the cheapest city for a beer at a bar, Kiev ($1.82).

Cheapest beers 2016

Beer Price Index 2016 map

Interactive map.

Overall rank (overall ave) City Country Average Price for 33cl Beer (Supermarket) in USD Average Price for 33cl Beer (Bar) in USD Overall Average Price in USD Bar – supermarket diff Bar – supermarket diff pc
1 Bratislava Slovakia 0.35 1.93 1.14 1.58 451.43%
2 Kiev Ukraine 0.47 1.82 1.15 1.35 287.23%
3 Cape Town South Africa 0.46 2.12 1.29 1.66 360.87%
4 Krakow Poland 0.57 2.02 1.30 1.45 254.39%
5 Mexico City Mexico 0.46 2.48 1.47 2.02 439.13%
6 Belgrade Serbia 0.30 2.73 1.52 2.43 810.00%
7 Cairo Egypt 0.69 2.61 1.65 1.92 278.26%
8 Warsaw Poland 0.60 2.79 1.70 2.19 365.00%
8 Ljubljana Slovenia 0.75 2.64 1.70 1.89 252.00%
10 Budapest Hungary 0.28 3.13 1.71 2.85 1017.86%

Full list.

Most of the cities in the top 10 (7) are all found in Eastern Europe. In Bratislava, Slovakia a 33cl beer can be bought for $0.35. At a bar in Bratislava the same beer might cost you $1.58 — a 451% increase! In Budapest the difference between supermarket ($0.28) and bar ($3.13) is 1018% (Paris is the worst — a 1270% increase).

Year-on-year beer price changes

2015 - 2016 beer price change

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Price change rank City Country Overall Average Price % Change 15/16
1 Rio de Janeiro Brazil -43.27%
2 Geneva Switzerland -42.80%
3 Munich Germany -42.05%
4 Cape Town South Africa -39.72%
5 Bucharest Romania -37.81%
6 Ljubljana Slovenia -37.34%
7 Tel Aviv Israel -37.10%
8 Dublin Ireland -34.32%
9 San Francisco United States -34.01%
10 Barcelona Spain -33.90%

Full list.

GoEuro’s price index records beer prices falling in 63 of 64 cities between 2015 and 2016! Only Malaga in Spain saw beer prices increase, by 23% — sorry packaged holiday makers.

The fall in beer prices was actually fairly significant with an average price decrease of 24%. The top 10 cities ranked by falling beer price all saw price decreases of over 30%. In Rio De Janeiro, Geneva, and Munich average beer prices fell by over 40%! Oktoberfest is looking cheap in 2017!

Beer consumption 2016

Beer consumption 2016 map

Interactive map.

Did you know? Out of the 70 countries considered in GoEuro’s Beer Price Index, the top beer consumers in 2016 were: 1) Czech Republic (144 litres person / year), 2) Poland (127), 3) Serbia (119).

Biggest spenders on beer 2016

Average spend on beer consumption 2016

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Av spend rank City Country Av. Annual Consumption Per Capita (litres) Av. annual spend per capita (Supermarket only) Av. annual spend per capita (Bar only) Av. annual spend per capita (average)
1 Lausanne Switzerland 56 166.30 2,070.30 1,118.30
2 Helsinki Finland 105 381.82 1,753.18 1,067.50
3 Sydney Australia 99 540.00 1,398.00 969.00
4 New York United States 85 265.30 1,645.91 955.61
5 Miami United States 85 182.88 1,602.12 892.50
6 Toronto Canada 116 376.12 1,395.52 885.82
7 Prague Czech Republic 144 318.55 1,444.36 881.45
8 Venice Italy 106 212.00 1,532.18 872.09
9 Moscow Russia 106 395.09 1,323.39 859.24
10 Frankfurt Germany 107 220.48 1,420.18 820.33

Full list.

Whilst Czech Republic, Poland, and Serbia have the highest beer consumption per capita, the relatively cheap price of beer means that they don’t spend as much ($881 per year, $652 and $546 respectively).

Unsurprisingly Lausanne, Switzerland Рwhere a beer at a bar can cost you more than $12 Рcomes out top for most spent per person on beer each year at $1,118 (even though consumption is relatively low at only 56 litres p/person p/year).

Improvements

GoEuros dataset has aggregated beer prices. Having access to the raw dataset with prices by brand would be particularly useful in comparing like-for-like differences in prices around the world.

tl;dr

33cl of beer is cheapest in Bratislava, Slovakia at an average cost of $1.14 ($0.35 in a supermarket or $1.93 in a bar).

Footnotes

  1. Data sources + data used in this post.

Checked Bag Prices On Budget Carriers Are Too Cheap

Budget¬†travellers¬†have come to expect the added costs associated with checked bag prices — and are¬†likely to have developed the ability to pack one-weeks worth of clothes into a single carry-on bag.

Though with cabin baggage allowances regularly being reduced, it’s getting harder. Perhaps so-much-so you start wondering how much it would cost to ship some items by courier to your destination.

The concept is nothing new. Over the past few years a number of companies have set out to do just this. Airlines have also entered the space.

How do budget airlines compare with shipping your bag with a courier?

Methodology

Checked bagged costs on European budget carriers were obtained via TravelSupermarket (sourced in March 2016). 16 different products from 11 budget airlines were reported (some airlines offer different price bands based on checked bag weight).

Checked baggage minimum and maximum charges at booking Mar 2016

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Europe’s budget airlines are imposing ever more complex prices¬†for placing a bag in the hold. Where flat fees¬†were once the norm, carriers now charge¬†by an array of variables including time of year. Depending on when you¬†fly,¬†Norwegian has the cheapest possible checked bag cost per flight¬†(¬£7 GBP / 20kg)¬†, whilst Ryanair has most expensive (¬£45 GBP / 20kg)¬†— that’s ¬£90 GBP for a round-trip!

Given this analysis considers European budget airlines I then drew up a list of European cities to use as destinations for comparison. Cities were selected based on popularity and wether or not they were served by at least one of the budget airlines I collected prices for.

Full list.

Using¬†MyParcelDelivery¬†I then calculated the cost of shipping a suitcase of dimensions¬†76cm x 48cm x 29cm (a “large” case) with shipping weights of 15kg, 20kg and 25kg on 1, 2 and 3-5 day services from London, UK to this list of destinations.

Results

1 day services from London

Cost to ship 20kg cheapest hold courier 1 day March 2016

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Courier companies are arguably more price sensitive to the distance your bag travels — they are not receiving additional revenue for carrying passengers.

That said, couriering a bag from London to the Netherlands (£80.17 GBP / 378.89km) is slightly more expensive than shipping it to Ireland (£79.68 GBP / 589.28km), a country further away by straight-line distance to each countries central point (210.39km).

Bulgaria or Romania, are the most expensive destinations to courier a 20kg bag from London. Using UPS International Express Saver service¬†(1 day) this would cost you ¬£147.30 GBP. Checking this bag at the most expensive Ryanair price would only cost you ¬£45 GBP — a difference of ¬£102.30 GBP.

Out of the 21 courier routes researched, only 5 cost less than £140 GBP to courier a bag in 1 day.

Therefore, airlines could be missing a significant amount of¬†potential revenue by checking your bag instead of using the space to take time-sensitive cargo — you’re actually getting a great deal in comparison.

2 day services from London

Cost to ship 20kg cheapest hold courier 2 day

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2 day services using MPD International Export are slightly cheaper than 1 day services as you would expect. However, they are still all more expensive than even the highest price for checking a bag on a budget airline (Ryanair / £45 GPB).

Croatia is the most expensive destination for 2 day services at £135 GBP, only £10 GBP cheaper then a 1 day service (£145.81 GBP).

This time the Netherlands is the cheapest destination to ship to via courier (£82.19 GBP).

Strangely, to ship to Ireland via courier on 2 day services from London will¬†cost ¬£108.47 GBP — more expensive than most central European countries.

3-5 day services from London

Cost to ship 20kg cheapest hold courier 3-5 day

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3-5 day courier services are the only ones that compete on price with checking a bag.

Even so, the cheapest checked bag prices on most budget airlines (7) are still lower than the 25 courier routes researched.

Rank Service 3-5 cost courier / checked airline 20kg cheapest GBP
1 Norwegian (20kg) 7.00
2 Jet2 (22kg) 11.00
3 Germanwings (20kg) 11.60
4 Wizzair (23kg) 12.00
4 Aer Lingus EU (20kg) 12.00
6 easyJet (20kg) 13.00
7 Monarch (20kg) 15.00
8 London-France 16.79
9 London-Austria 17.40
10 London-Belgium 17.99
11 Flybe (20kg) 19.00
12 London-Denmark 19.19
12 London-Germany 19.19
12 London-Ireland 19.19
15 London-Poland 20.39
16 London-Netherlands 21.59
16 London-Portugal 21.59
16 London-Spain 21.59
19 Thomson (20kg) 22.00
19 Thomas Cook (20kg) 22.00
21 London-Sweden 22.20
22 London-Hungary 23.99
23 Ryanair (20kg) 25.00
24 London-Switzerland 30.76
25 London-Norway 31.47
26 London-Finland 38.39
27 London-Estonia 43.19
27 London-Latvia 43.19
27 London-Lithuania 43.19
30 London-Croatia 44.27
31 London-Romania 45.49
32 London-Greece 46.79
33 London-Bulgaria 52.79
34 London-Malta 103.19
35 London-Italy 142.86
36 London-Czech Republic 145.81

Full list.

All services

Average cost by service ave courier ave hold

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Many argue¬†that checked bag prices are too rigid. On Easyjet you have to pay for a 20kg bag (minimum price ¬£13 GBP), even if your bag weighs less. Though in Europe all courier services I analysed also charged a flat fee to ship¬†15 – 20 kg from London. Therefore, you won’t¬†make any savings by choosing a courier if your bag weighs slightly less than the max allowance either.

Improvements

The aforementioned door-to-door luggage services offered by some premium and long-haul airlines would not only give both a wider geographic view, but also a comparison between budget and premium airline charges.

tl;dr

  • Checked bag prices are much cheaper than courier companies one or two day shipping services.
  • If¬†you’re prepared to ship your luggage 3-5¬†days in advance it might be cheaper to use a courier, but¬†most¬†budget airlines will still be cheaper!

Acknowledgements

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The Duty-Free Market Is Growing, Discounts Not So Much

The global duty-free market is expected to reach £47.7 billion by 2019 according to some reports.

As a child I remember my father bringing back bags of duty-free from business trips to America — a tradition I have failed to uphold. In fact I can’t remember the last thing I bought at a duty-free shop, only the hours spent wandering around seemingly indifferent shops¬†the world over.

With the growth of ecommerce, surely duty-free shops have lost their competitive advantage of price. But with the market growing, perhaps not.

Are savings still to be had at duty-free shops in Europe?

Methodology

I first identified two sources for duty-free purchases — airport duty-free shops and inflight duty-free shops.

Many airlines publish inflight magazines with price lists for products available onboard. I found 5 budget airlines that operate from European airports that publish such magazines: Ryanair, WizzAir, Easyjet, Thomas Cook, Flybe and 2 premium carriers: British Airways and Qatar. The infight magazines used were dated within the first quarter of 2016 (Jan – Mar).

I drew up an itemised list of all perfumes (113 in total) and prices (Male and Female) from these magazines. Perfumes were chosen as a product for comparison because they are a standard offering to compare across all retail channels.

My initial assumption was that, each class of carrier (budget and premium) would each carry an almost identical inventory of perfumes. In fact, all airlines carry an almost unique range of perfumes available for purchase onboard.

Out of the 113 perfumes I analysed sold by these airlines, only 1 was sold by both premium and budget airlines¬†— Marc Jacobs Daisy Dream 50ml (Female).¬†21 perfumes were sold across multiple airlines¬†in the same class. 92 were available on only one airline.

Full list.

The largest¬†duty-free shop operator in UK airports is World Duty Free. Their website publishes prices available in aiports. I used prices availbale in London Heathrow Terminal 2 for perfumes found in the in-flight magazines — but prices seem fairly static UK wide, it is only range of products that differs.

In addition, I also collected prices of these perfumes from Amazon UK for comparison. Prices from Amazon include delivery fees, if applicable (I did not consider Amazon Prime as a delivery option). I used Amazon for its range of products and its ecommerce market share in the UK.

Analysis

Amazon – airline prices

Histogram of Amazon less ave airline price all classes GBP Mar 2016

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Onboard 46 perfumes are cheaper at an airlines duty-free store (average price on all classes) than Amazon (67 that are more expensive).

Overall perfume prices are on average £3.54 GBP cheaper on Amazon compared to buying onboard at an airlines duty-free store.

68 of the 111 perfumes have very little price difference (between -£10 GBP and £10 GBP). At each end of the distribution 2 perfumes are over £35 GBP cheaper on Amazon, 2 are £20 GBP more cheaper on airlines..

Splitting out by carrier type, budget carriers have more perfumes that are cheaper onboard (34) than expensive (22). Conversely, of the 58 perfumes carried on premium carriers, 12 are cheaper onboard compared to 46 that are more expensive.

Amazon - airline prices GBP Mar 2016

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The best airline for discounted perfume is Ryanair with average savings of about £5.36 GBP. Compare that with the worst, Qatar, where you are likely to pay £11.97 GBP more for perfume onboard. All premium carriers considered, British Airways and Qatar, are both more expensive than Amazon, on average.

Amazon РWorld Duty Free prices

Histogram of Amazon - World Duty Free Price GBP Mar 2016

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Again, Amazon comes out slightly better for price when compared to World Duty Free shops. 22 perfumes are cheaper to purchase at World Duty Free shops versus 39 that are more expensive.

Amazon – average all duty-free retailers prices

Histogram of Amazon - All Duty Free Price GBP Mar 2016

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When considering the average price of perfumes across all duty-free outlets (airlines and shops) 47 are cheaper on duty-free, 66 are cheaper on Amazon.

Clearly if your flying on one airline you won’t have the luxury of being able to compare prices, but duty-free does still offer a number¬†discounts — something I was not expecting. Savings are still relativly small though, with the average

Duty-free rank Perfume Size (ml) Gender AMZ – Ave. Duty-free Price GBP Mar16
1 Gucci Oud Intense 90 Male £22.10
2 Ajmal Aurum 75 Female £20.00
3 Jimmy Choo Illicit 60 Female £19.40
4 Acqua di Parma Colonia Oud 100 Male £19.37
5 Mont Blanc Lady Emblem 50 Female £18.75
6 Lacoste Love Of Pink 90 Female £17.52
7 Viktor & Rolf Spicebomb Extreme 50 Male £16.94
8 Gucci Guilty Studs 50 Female £15.50
9 Dolce & Gabanna L’imperatrice No. 3 100 Female ¬£10.36
10 Taylor Swift Wonderstruck Enchanted 50 Female £9.62

Full list.

The 3 best perfumes to buy at duty-free retailers are: 1) Gucci Oud Intense 90ml РMale (savings of: £22.10 GBP), 2) Ajmal Aurum 75ml РFemale (£20.00 GBP), 3) Jimmy Choo Illicit 60ml РFemale (£19.40 GBP).

World Duty Free prices – Airlines

Histogram of World Duty Free - Ave Airline Price GBP Mar 2016

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There is also a normal distribution of price differences between the two duty-free channels, airlines and airport shops. In summary, 24 perfumes are cheaper at World Duty Free stores when compared to the average price you’d pay onboard a plane. 2 perfumes have no price difference, whereas 35 are more expensive at World Duty Free stores.

Improvements

Overall this¬†is a fairly trivial analysis. One of the biggest issues with this analysis is Amazon’s product pricing which can change many times per day. Given this is our single source for non-duty free pricing, daily variations may be skewed.¬†The addition of more retailers would add more stability to price calculations.

tl;dr

  • Perfume¬†prices are typically¬†more expensive at duty-free retailers¬†when compared to buying on Amazon.
  • Most savings are less than ¬£10 GBP between duty-free retailers and Amazon.
  • The 3 best perfumes to buy at duty-free retailers are: 1) Gucci Oud Intense 90ml – Male (savings of: ¬£22.10 GBP), 2) Ajmal Aurum 75ml – Female (¬£20.00 GBP), 3)¬†Jimmy Choo Illicit 60ml – Female (¬£19.40 GBP).

Acknowledgements

  • All the retailers¬†used in this post for publishing thier products for sale online.
  • And finally… XE.com for exchange rates.

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