Originally Posted by
emma69
Ultimately this is likely to hurt the consumer though, isn't it? Company doesn't get the £X savings through the taxes, so higher prices are passed along through regular store pricing (either at airports, or company wide).
That depends on the extent to which prices are set on the basis of willingness to pay.
Airport shops enjoy some market power so they can premium price. They must do, otherwise competitive forces would have pushed the prices down already.