Page 97 - North American & Caribbean Cruise Traveller

Industry Insider:
North American & Caribbean Cruise Duty & Tax Free Retail 2015
6.2.1.5 UP-TRADE OPPORTUNITIES: ON-BOARD
Just over 2 in 5 of those purchasing their main Duty / Tax Free item on-board the ship trade up to a more expensive variant than they usually purchase at home. This illustrates the potential to drive revenue increases at on-board stores through driving sales of more premium variants.
Figure 25: Purchase Behaviour: Up-trade Opportunities On-board
Up-trading most common among males
Never bought item kind before 11%
Cheaper brand 3%
Usual brand 43%
Traded up 43%
To encourage travellers to trade-up, offer a wide range of leading brands with the option to trade up within each, i.e. ensure Johnnie Walker Platinum is available alongside Johnnie Walker Black, and that premium Armani Jeans are located alongside the less premium offering. Support this using in-store signage to highlight the price advantage of buying in Duty / Tax Free stores compared to at home and the perception of “affordable luxury”.
The extent to which travellers trade up is fairly consistent across the different categories, from 40% in Souvenirs to 52% in Confectionery.
Extended cruise travellers more likely to trade up
Up-trading more prominent among younger buyers
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