Strategic reactions to the abolition of duty free:: Examples from the European airport sector

The abolition of duty free and tax free sales to intra-EU passengers on June 30 1999 curtailed the opportunity for airport authorities to generate retail related income. Prior to abolition, approximately 40 per cent of all duty free sales were between European Union countries. Since the abolition, airport authorities have had to identify alternative ways in which revenue could be generated.The paper is based upon interviews conducted with key decision-makers in the European airport industry. It details the strategies pursued by the industry prior to abolition and highlights the range of initiatives undertaken by the industry since July 1999. Finally a series of conclusions are drawn as to the future of the duty free industry within Europe.