Page 15 - European Cruise Traveller Duty & Tax Free Retail
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We have identified three key factors making the European cruise industry an area of interest for Duty & Tax Free retailers and brands alike. These include the high levels of passenger traffic, the average duration of cruise services and the high levels of repeat cruising:
Passenger traffic: According to the CLIA, the European region accounted for 30% of global cruise bed days in 2015, the equivalent to approximately 6.6 million passengers. Furthermore, despite the majority of these passengers being sourced from the European region, predominantly Germany and UK, European cruises attract various non-European travellers, such as Americans, illustrating the potential for brands to extend their reach to non- regional shoppers through European cruise services.
Length of Cruise: According to our research findings, European cruise travellers are most likely to travel on longer duration cruises than travellers in other regions, such as Asia and the Americas. With this being the case, on-board cruise retailers in the European region have a captive audience to target with advertising and promotions for a prolonged period of time compared to other global regions. This provides retailers and brands with the opportunity to interact with travellers through both in-store and out of store activities to not only drive sales, but also promote brand loyalty and brand recruitment. The longer length of cruises also drives a high level of port visits and therefore presents significant potential for on-land retail; in 2014 the European region amassed 29 million passenger visits across 250 port cities.
Repeat cruising: Our research highlights high levels of repeat cruising in the European region. Repeat cruising not only illustrates overall positive perceptions of the cruise offering among European travellers, but also the opportunity for retailers and brands to implement loyalty based sales strategies, such as frequent traveller discounts.
Industry Insider:
European Cruise Duty & Tax Free Retail 2015
1.3.2 KEY MARKET OPPORTUNITIES
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