Page 136 - European Cruise Traveller Duty & Tax Free Retail

Industry Insider:
European Cruise Duty & Tax Free Retail 2016
7 CATEGORIES & PRODUCTS
In this section, we analyse the performance of each of the core Duty & Tax Free categories within the European cruise Duty & Tax Free retail channel, covering aspects such as category browsing, purchasing and spend levels, as well as category perceptions, leading sub- categories and brands, and purchasing behaviour.
The Souvenir category leads overall purchasing with approximately a third of those making a purchase buying from the category. The Beauty and Alcohol categories are also key to overall channel purchasing, with 29% and 28% of buyers purchasing from these categories respectively. This being said, the relatively high purchase rates apparent across the majority of categories illustrates an openness to a wide range of product types and illustrates the extent to which retailers should look to provide an offer capable of meeting the needs of various shoppers.
In terms of spend levels, as we have highlighted in our other cruise research, average category spend may appear high to some readers when compared to airport Duty Free shopping. However, cruise
travellers are exposed to a high
number of available purchasing opportunities throughout the duration of their trip as opposed to other Duty / Tax Free channels, such as airport stores. This leads to high levels of multiple item purchasing thus driving higher average spend levels than potentially seen elsewhere.
Europeans are generally have a lower spend levels compared to those cruising in other regions, with a European Alcohol buyers overall Duty & Tax Free Alcohol trip spend, for example, standing at US$101 compared to US$141 for American and US$170 for Asian Alcohol buyers. This being said, current spend levels do illustrate the clear potential for the European cruise channel as a key revenue driver.
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