A few years ago, it was a necessity in airports. Duty Free stores, with their many products, such as perfumes, cigarettes and chocolates sold without any tax, were full. But since the end of Covid’s health crisis, sales have collapsed.
Although air traffic has almost found the 2019 level, “the COVID crisis suddenly interrupted a decade of strong and regular growth (+9% per year) in the retail market in the travel sector”, it can be read in a study* by the Kearney firm published with the occasion of the World Tax Free Association.
Specifically, the study observes an average expenditure per traveler that fell 29% in 2022 for one year, or $ 17 per traveler and established at $ 15 in 2024 against 24 dollars in 2019. In value, global sales reached 74.1 billion dollars last year, decreasing 13% compared to the Prepaandic peak.
In addition, only 5 to 10% of travelers buy in a tax free store against 40 to 60% in conventional shopping centers.
The prices considered high and a disappointing experience
There are many explanations with prices and the offer first. 64% of passengers declare themselves dissatisfied with prices (50%) or the supply of products of tax free stores. The price issue is significant because consumers have been beaten by two phenomena: the general inflation that began their purchasing power and the specific inflation that affected the tickets of the plane.
Therefore, there are arbitrations that have been applied. And that also affect the available time: more and more passengers, especially the youngest, prefer to dedicate the waiting time at airports to digital uses in particular.
This objective (generations and z) that represent a growing part of travelers also has different expectations in terms of commercial offers, the study underlines.
“For 77% of these generations, the purchase experience is what prevails mostly for a possible tax free purchase, far ahead of the price issue. Actors in the sector must imperatively renew their mode of operation if they want to return to the attention of travelers and collectively restore airports the attraction of an attractive commercial center for all travelers,” you can read.
More experience and technology
As? “In addition to advantageous prices and special promotions, travelers want to have a wide range of products, personalized interaction, custom -made purchase experience and primary services,” they recommend to the authors.
Therefore, according to the Kearney survey, 37% of respondents would buy more at airports if exclusive products were offered, 17% if delivery were available. In general, 32% cites the experience as a key purchase factor and 69% perceive their waiting time at the airport as a conducive time to buy if it is well valued.
“Retail players have all the interest in strengthening their cooperation thanks to the collaboration of data between airports, distributors, brands and transporters and digital partners. Only a real questioning of the current operation and collective consciousness will allow the trade trade, in particular, European, to find an impulse that makes sense for future generations,” advises the study.
*: Kearney conducted its in -depth study with 3,500 clients in 10 countries, as well as interviews with more than 40 senior leaders in global airports, airlines, travel retailers and brands.
Source: BFM TV
