Swiss research agency m1nd-set has released its latest shopper behaviour report revealing mixed prospects for the European travel retail sector, as the region continues battling the Coronavirus (Covid-19) pandemic.

The report was finalised this week following news that Manchester Airport is to once again close Terminal 2 from 2 September.

Despite the unprecedented traffic declines across Europe during the second quarter and uncertain times ahead, the news is not all negative, according to m1nd-set.

Research undertaken among European passengers who have travelled internationally in the past 12 months, reveals a number of encouraging findings on the intent of Europeans to travel internationally again. The report also highlights equally positive insights on how European travellers will behave in DF&TR stores once international travel resumes.

The report commences with an overview of the devastating impact of Covid-19 on departing passenger numbers across the continent, citing declines between Q2 2019 and the same period in 2020 across major European hubs.

HEAVY PASSENGER DECREASES

According to the International Air Transport Association, London Heathrow, Amsterdam Schiphol and Paris Charles de Gaulle were the top three airports for departing passengers in Q2 2019. M1nd-set’s Business 1ntelligence Service (B1S) traffic tool reveals that these airports all lost between 94% and 96% of passengers in Q2 2020 compared to the same period last year.

Similar shifts in rankings for departure traffic are apparent among the leading airport countries, with the UK falling from first to second place between Q2 2019 and the same period this year.

Although 72% of Europeans say Covid-19 has impacted their intended travel frequency, this is still lower than the global average (81%) and the lowest among all other world regions, according to m1nd-set.

Less than one fifth of European travellers say their travel (business and leisure combined) will be reduced as a result of the global pandemic. Business travel will be the least affected for Europeans with less than one in 10 travellers planning to reduce their work-related international travel.

Covid-19 will have a greater impact on leisure travel as 45% of Europeans say their leisure travel plans will be affected, compared to a global average of 30%. According to m1nd-set, 21% of Asia Pacific travellers and 25% of travellers from the Americas also believe their leisure travel plans will be impacted.

A significant percentage of Europeans say they will not change their behaviour across certain key categories. Seventy percent of European travellers indicate they do not plan on changing their purchasing behaviour for spirits. This is significantly higher than the global average of 56%.

Regarding gifts and souvenirs, 74% of Europeans say they will not change their behaviour, compared to just over half of all travellers globally (53%).

Despite the positive news on intentions to purchase, spend levels are likely to be impacted among European travellers on future international flights.

Those European travellers who will shop or spend less in duty free shops are most likely to divert their spend to physical stores at home, online and downtown duty free shops.

ONLINE SHIFT

Peter Mohn, CEO & Owner, m1nd-set stressed the need for retailers to rethink their digital marketing and e-commerce activities: “As we have underlined several times in the past, the current trends and shift to online spending are a major call to action for the travel retail sector to upgrade its online strategy.

“This is essential for both the e-commerce offer and digital marketing activities to prospective customers — passengers and consumers while they are in the process of booking or searching for travel.”

Ensuring the airport shopping experience is front-of-mind and part of their planned shopping during future international trips is vital, according to m1nd-set.

M1nd-set, however, says there must be significant changes to the way stakeholders market to consumers in order to achieve this.

Mohn added: “While data-sharing has been a taboo among travel retail stakeholders until now, the Coronavirus has forced all companies across the industry into a corner. The current pandemic may be the catalyst to a more collaborative approach and real partnership model where airlines and airports — and more importantly, their commercial partners — finally start working together to drive travel retail revenues, where all parties benefit.”