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Planet Money

The Land of the Duty Free (classic)

15 Jan 2025

Description

(Note: This episode originally ran in 2018.)Is it really cheaper to shop at an airport Duty Free store? And why are so many of them alike?In the 1940s, if you were flying from New York City to London or Paris you would find yourself making a pit stop for fuel on the western coast of Ireland. The Shannon airport at the time wasn't much to look at, but the passengers arriving there were movie stars and celebrities, basically the super rich. And the people of Shannon realized pretty quickly that they needed to upgrade the local amenities for their wealthy clientele. They hired a man named Brendan O'Regan to make it happen. Being the quick-thinking entrepreneur that he was, O'Regan convinced the Irish government to create a tax loophole. And thus, duty free stores were born. Today on the show, we follow the surprising origin of duty free, and try to answer the question: Are they really saving you any money?Help support Planet Money and hear our bonus episodes by subscribing to Planet Money+ in Apple Podcasts or at plus.npr.org/planetmoney.Learn more about sponsor message choices: podcastchoices.com/adchoicesNPR Privacy Policy

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Transcription

Full Episode

0.666 - 7.63 Jessie Baker

This episode originally ran in 2018, and it is likely to save you money and make you giggle in 2025.

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8.81 - 10.831 Robert Smith

This is Planet Money from NPR.

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20.933 - 42.711 Narrator

Hey, I'm just leaving a voice memo for myself. I'm in the Shannon Airport in Shannon, Ireland, on my way back to the United States, to New York. There is this picture wall, giant pictures of all the famous people who have come through here. So, you know, they have, like, John F. Kennedy, and there's Fidel Castro and Boris Yeltsin. And there is one photo that was sort of amazing.

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42.831 - 59.705 Narrator

There's a picture of the president of Ireland, and next to him is someone called Dr. Brendan O'Regan. And he's sort of out of focus. You can see he's wearing a natty suit. He's got a nice little pocket square. And it says that Dr. O'Regan was the person responsible for this airport, for basically developing the Shannon International Airport.

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59.925 - 88.908 Narrator

And most importantly, he created the world's first airport duty-free shop. You know, the duty-free shop, the place where you get the perfume and the chocolates and all the liquor. First one was here. And before I get on the flight, I just wanted to rush quickly over and take a look at what was the world's first duty-free. A lot of scarves, a little jewelry. Where's the perfume? Hello, darling.

89.128 - 101.697 Narrator

How's it going? This is Jessie Baker. I'm buying sheep. Oh, they're adorable. Cliche, but my children don't judge. I think duty-free shops are supported on people who forgot to get gifts for their children.

101.757 - 103.499 Jessie Baker

I didn't forget. I've just been busy.

105.447 - 111.05 Narrator

You getting them at the duty-free shop. Hey, no shame here. I bought chocolates for my kids.

111.07 - 114.872 Jessie Baker

You want 206 to New York?

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