Page 94 - European Cruise Traveller Duty & Tax Free Retail

Industry Insider:
European Cruise Duty & Tax Free Retail 2016
6.2.1.5 UP-TRADE OPPORTUNITIES: ON-BOARD
A third of European cruise travellers purchasing their main Duty & Tax Free item on-board the ship trade up to a more expensive variant compared to what they would usually purchase at home. This illustrates a clear opportunity for operators and brands to drive increased revenue through driving more premium shopping behaviour among cruise travellers.
Figure 25: Purchase Behaviour: Up-trade Opportunities On-board
Up-trading most common Italian buyers
Cheaper
price 13%
Never bought item kind before
Traded up 33%
range 5%
Usual price range 49%
Opportunities to trade up to more expensive variants should therefore be provided wherever possible, for example, in the Alcohol category, ensure Chivas 12 year old is merchandised alongside Chivas 18 year old and 25 year old, and in the Watches & Jewellery category ensure Tag Heuer watches are available across various price points but emphasise the benefits of the more premium models.
Support this through prioritising premium offerings in advertising and in-store signage and through promotional activity, such as exclusive GWPs when buying more premium brand variants.
Travellers on Mediterranean cruises more likely to trade up
Up-trading significantly more prominent among younger buyers and females
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