Page 88 - European Cruise Traveller Duty & Tax Free Retail

Industry Insider:
European Cruise Duty & Tax Free Retail 2016
6.2.1.4 REASON FOR PURCHASE: ON-BOARD
In our cruise reporting, we define the main item as the item the buyer considers to be their most important Duty & Tax Free purchase. Of those purchasing their main item on-board the cruise liner, the majority purchase for themselves, with 27% buying for a gift or on request. Although this is a much higher rate than we have seen in other our previous cruise research on Asian travellers, where main item purchasing for self-usage was far more prominent, this is very much in line with the on-board self-purchase rate we experienced in the Americas.
Despite the prominence of self-purchasing on European cruises, our findings do suggest a high level of multiple purchasing. With this being the case, gifting is likely to play a more significant role in overall purchasing than that illustrated from our main item findings although self-buyers should still be prioritised due to purchasing priority being given to purchases for personal use.
Table 18: Reason for On-board Duty / Tax Free Purchases
Category
Purchase Type
Self
Gift / Request
TOTAL ON-BOARD
73%
27%
Alcohol
83%
17%
Tobacco
82%
18%
Beauty
79%
21%
Fashion & Accessories
76%
24%
Watches & Jewellery
62%
38%
Souvenirs
49%
51%
Confectionery*
89%
11%
Travel & Accessories*
88%
12%
*Caution Low Base (<25)
Table 19: Reason for Purchase: Proposed Actions
Proposed Actions
 Drive self-purchasing through competitive pricing, promotional activities, Duty Free exclusives and limited edition items. Support this by offering indulgent shopping experiences and store merchandising strategies such as ‘look building’ (merchandising products based on what can be worn together) in the Beauty category
 Drive gifting through offering wide range of gifting solutions and support services, such as gift wrapping. Focus on promotional activity and cruise liner based souvenirs when driving gift purchasing.
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