Page 178 - European Cruise Traveller Duty & Tax Free Retail

Industry Insider:
European Cruise Duty & Tax Free Retail 2016
9.1.2 CHANNEL DIFFERENTIATION
As with all our Industry Insider cruise research, we assess the on-board and on-land Duty / Tax Free retail channels separately due to each driving different shopper experiences and shopper behaviour:
 The shopper has a much greater period of time available to browse the on-board offering compared to on-land stores; furthermore, with longer term cruises being the most prominent cruise duration, the European traveller has a longer period on- board the cruise compared to travellers in other global regions
 Treating being a more prominent purchase driver on-board (22% vs. 14% on-land)
 Impulse purchasing being more prominent on-board than on- land (54% on-board vs 48% on-land)
 A higher incidence of non-regular brand purchasing being apparent on-board compared to on-land (53% on-board vs. 47% on-land); trading up to more expensive variants is also more prominent at on-board stores (33% on-board vs. 24% on-land)
Store operators should look to drive differentiation between the on- board offer and other Travel Retail opportunities the traveller may encounter during their trip, such as those on-land or at an airport while travelling internationally. Although operators should look to drive this through more traditional strategies, such as exclusive in-store promotional activity, e.g. price discounting, it is key for operators to position the on-board retail offering as a key on-board activity through initiatives such as speciality shopping based events.
The on-board channel drives a higher level of impulse and non- regular brand purchasing compared to the on- land channel
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