Roberta Aguirre
Many people have wondered why jewelry stores are present in airports, assuming that sales would be low. However, there are a few reasons why these stores may be successful. Firstly, taxes at international airports are calculated differently, which can make the sale of luxury items more profitable. Additionally, travelers may purchase jewelry as last-minute gifts for their significant others or as souvenirs. While some may prefer to buy jewelry online, having physical stores in airports provides a convenient option for those who want to purchase a gift on their way to their destination.
| Characteristics | Values |
|---|---|
| Reason for jewelry stores in airports | People may buy jewelry as last-minute gifts for their significant others, or as souvenirs. |
| Sales | Sales may be low, but due to the high price of each product, they do not need many sales to be economically viable. |
| Taxes | Taxes are calculated differently at international airports, so the sale of luxurious items is artificially inflated. |
| Customers | Tourists who want to take gifts back home are potential customers. |
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What You'll Learn
Airports and taxes
Airports levy taxes on passengers for passing through an airport or using its services. These taxes are generally included in the price of an airline ticket. The Internal Revenue Service (IRS) classifies airport taxes as user fees, as the funds collected are used for the operation, maintenance, and administration of the airport and airway systems, and do not flow back to the US Treasury. The revenue generated from airport taxes is used for facility maintenance and to pay for services such as screeners and equipment.
The taxes that airports charge vary depending on the popularity of the airport, with congested airports charging premium prices due to higher demand. The fees charged by the airports are usually for landing, which includes check-in facilities and gate use. Some airports charge a single fee for these services, while others charge a lower fee for landing and then additional fees for the use of gates and check-in facilities. The amount of tax levied on a passenger also depends on whether the flight is domestic or international.
In the US, airport taxes include a passenger ticket tax, a flight segment tax, a frequent flyer tax, an international departure tax, an international arrival tax, a jet fuel tax, and a passenger facility charge. The US arrival tax is $13.40 for any international air transportation ending in the US, with some exceptions. There is also a US departure tax of $13.40 for any international air transportation commencing in the US, with certain exemptions. Additionally, there is a $7.00 fee collected for travel from any international point into the US, Puerto Rico, Guam, and the US Virgin Islands.
The presence of jewellery stores in airports can be attributed to the different calculation of taxes at international airports, which artificially inflates the sale of luxurious items. The high expense of these items means that only a few sales are needed to be economically viable.
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Last-minute gifts
If you're in a hurry and need a last-minute gift from the airport, there are plenty of options to choose from. Many airports have put together gift guides highlighting unique items for sale in their terminals. For example, at Nashville International Airport, you can find Yazoo beer to go, or a bottle of wine from any of the Vino Volo airport locations. Seattle Chocolates, which has been in business since 1991, also has an outlet at the Seattle airport, selling chocolate truffle bars, handmade caramels, and other unique local gifts.
For those with a sweet tooth, Vosges Haut-Chocolat in Chicago's O'Hare International Airport offers a range of chocolates, or you could pick up some of the city's iconic Garrett Popcorn. If you're in Portland, Moonstruck Chocolate's dark chocolate bar honouring the airport carpet is a fun choice.
If you're looking for something more luxurious, taxes are calculated differently at international airports, so the sale of luxurious items is artificially inflated. For example, London Heathrow, Charles-de-Gaulle Airport, and Hong Kong International Airport have Tiffany & Co. Alternatively, you could opt for cosmetics, which often have exclusive deals at duty-free shops.
For a more unique gift, CIBO Express Gourmet Markets in George Bush Intercontinental Airport offer locally-sourced gifts, including men's Dopp kits and women's cosmetic cases. At Phoenix Sky Harbor International Airport, you can find Arizona Gourmet Doggie treats, or dog-themed refrigerator magnets.
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Swarovski's viability
Swarovski is a leading jewelry and accessories brand, known for its mastery of crystal cutting and innovative designs. Founded in 1895 by Daniel Swarovski, the company has since expanded globally, including a presence in airports.
The viability of Swarovski's airport stores can be questioned, as some may assume that sales would be low, and customers can easily order their products online. However, there are several factors that contribute to Swarovski's viability in airports:
Target Market:
Swarovski's products, including jewelry, watches, and crystal figurines, can appeal to travelers looking for last-minute gifts or souvenirs. As mentioned in a Reddit comment, some people might forget special occasions like anniversaries and need a quick gift, while others might want to purchase a memorable gift for a significant other they are meeting during their travels.
Tax Benefits:
International airports have different tax calculations, which can artificially inflate the sale of luxurious items. Swarovski's products tend to be expensive, so they don't rely on high sales volume to be economically viable. Even a few sales of their high-priced items can be profitable due to the tax benefits at international airports.
Tourist Appeal:
Swarovski's products, particularly their crystal creations, have a broad tourist appeal. Tourists may be inclined to purchase items that remind them of their trip or as gifts to take back home. Even if Swarovski products are available in their home countries, tourists might view these purchases as unique souvenirs associated with their travel memories.
Brand Recognition:
Swarovski is a well-known brand with a strong reputation for quality and craftsmanship. The brand recognition can attract customers who trust and value the Swarovski name, especially those who are already familiar with their products.
Product Variety:
Swarovski offers a diverse range of products, from jewelry and watches to crystal decorations and figurines. This variety can attract different types of customers with varying interests. Additionally, their products cater to different price points, making them accessible to a wider range of travelers.
In conclusion, Swarovski's viability in airports is supported by a combination of factors, including their ability to target specific customer needs, take advantage of tax benefits, appeal to tourists, leverage brand recognition, and offer a diverse product range. While some may question the sales potential, the unique nature of airport shopping and Swarovski's brand strength contribute to their viability in this context.
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Tourists and souvenirs
Tourists love bringing souvenirs home from their travels abroad. These can be small and inexpensive items or more luxurious purchases. While some may be bought as gifts for others, many souvenirs are bought as mementos of the trip, to remind the buyer of their travels once they return home.
Airports are a common place for tourists to buy souvenirs, as they are often the last place travellers visit before returning home. Small, easily-forgotten gifts like keyrings, magnets, and miniature landmarks are popular last-minute purchases. Some tourists may also buy local specialities like coloured sand from a beach as a memento.
Airports also tend to sell luxury items like jewellery and crystal figurines. These may be purchased as gifts for a significant other or as a more high-end souvenir. The fact that taxes are calculated differently at international airports can make these items more appealing to travellers. As these items are very expensive, only a few sales are needed for the business to be economically viable.
Some tourists may prefer to buy something they like at the airport, even if it is available where they live, as a souvenir. For example, a t-shirt with the name of the place they visited on it, or a postcard, can be more meaningful than a generic item like a keychain.
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Boredom and luxury
Take, for example, the traveller who has forgotten a special occasion and needs to quickly buy a gift for their significant other. A jewellery store in the airport provides the perfect solution, allowing them to make a spontaneous purchase that might otherwise be unavailable at their destination. Similarly, for those meeting a partner overseas, what better way to express affection than with a sparkling token of their affection, conveniently purchased at the airport?
The allure of airport jewellery extends beyond convenience, however. For some travellers, buying luxury items like jewellery becomes a way to alleviate the monotony of waiting for flights or layovers. The prospect of owning a beautiful piece of jewellery, especially one that holds the allure of a foreign brand, can be irresistible. It offers a sense of indulgence and the promise of transforming an otherwise mundane travel experience into something extraordinary.
Additionally, the unique tax structure of international airports plays a role in the sales of luxury items. With taxes calculated differently, the prices of luxurious products can be artificially inflated, making them seem more exclusive and desirable. The high price point of each piece also means that only a few sales are needed to turn a profit, ensuring the viability of these airport jewellery stores.
In conclusion, the presence of jewellery stores in airports speaks to the intriguing interplay between boredom and luxury. Travellers seeking convenience, indulgence, or a unique souvenir may find themselves drawn to these stores, transforming an otherwise tedious travel experience into one that sparkles with a touch of luxury.
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Frequently asked questions
It may seem surprising given that sales may seem low, but taxes are calculated differently at international airports, so the sale of luxurious items is artificially inflated. As each product is expensive, only a few sales are needed to be economically viable.
Jewelry at the airport may be purchased by people who forgot their anniversaries or need a last-minute gift or souvenir for their significant other. Tourists may also buy jewelry as a memento of their trip.
Luxury jewelry brands like Swarovski have stores in some airports.
Some people may prefer to buy jewelry in person, even if the brand ships to their location.
