According to a new study by Swiss research agency, m1nd-set, currently only three out of ten shoppers will consult duty free retailer websites, while twice as many check brand websites and five out of ten browse websites from domestic retailers.

 

The report also reveals that global travellers are equipped with up to two or three devices – whether a smartphone, laptop or tablet – when travelling and nine out of ten of them are accessing the Internet while at the airport.

 

M1nd-set concludes that the new study reveals an ‘alarmingly significant communications gap and missed opportunity with technology and travel retail’.

 

“When combining all the non-shoppers together, our study shows that only a very small amount of travellers visit DF&TR retailer websites and we think this is a clear missed opportunity,” m1nd-set CEO, Peter Mohn told TRBusiness exclusively.

 

“In our global segmentation studies we have identified a segment called the ‘Executive Pre-planners’. It is customers from this segment who say they would love to take a look at the websites and plan their shopping accordingly.

 

“Customers from this segment also tend to have a high income and prefer efficient shopping methods, to stock-up and/or to buy presents for their partner and children. Imagine the possibility of being able to share what is available at the airport with your partner, friends and colleagues before a trip. It would clearly increase the amount of planned purchasing, and possibly some impulse purchases while in the shop.”

 

Unfortunately, not all airports currently offer Wi-Fi and others provide weak or slow connections. “Some airports are doing enough and offer great Wi-Fi, but unfortunately most airports still have a long way to go in this regard,” adds Mohn.

 

“Long loading times are frustrating for travellers and shoppers and will put them off. Recent focus groups have shown that some men would love to interact with their partners while shopping in the beauty and clothing category, just to make sure they buy the right items.”

 

Often travellers go straight to the lounge to log on to reliable Wi-Fi networks, thereby making online DF&TR promotions futile. Mohn disagrees: “Most go to the lounge because of various reasons, primarily to sit comfortably, work, read and eat.

 

“Our research shows that around 20-25% of the lounge visitors would leave the lounge earlier to do some last minute shopping if DF&TR promotions appealed to them while presented in the lounge. This is quite significant, since lounge users typically are frequent travellers and have deeper pockets.”

 

TRBusiness asked Mohn if he thinks airlines in particular would be interested by the new research, as (collectively) they have direct contact with all travellers before and during trips. Just recently Jean-Marcel Rouff, CEO of Inflight Sales Group, told TRBusiness that airlines could do much more to promote DF&TR on their own apps/websites.

 

“We certainly hope more airlines will be encouraged to make inflight retail promotions more of a priority, since we are showing with this survey what the modern traveller expects today regarding technology and shopping while travelling,” says Mohn. “It will, however, be important to do it in an attractive and appealing way to be able to catch the attention and to meet the needs of potential shoppers.”

 

According to m1nd-set, travellers from the Americas are least likely to use their devices for DF&TR shopping information, whereas those from the Middle East are the most frequent users.

 

M1nd-set says that travellers who do express an interest in online duty free shopping services, are most interested in pre-order for either home delivery (37%) or pick up on arrival services (33%). “It is also clear that Europeans will pose the biggest challenge as they are the most unconvinced by these services,” adds m1nd-set.

Social media is another area where the report illustrates the relative apathy of travelling consumers when it comes to telling their friends about the experience.

 

Only 18% of shoppers say they post about the travel retail shopping experience on social media, which is much lower compared shopping in other channels. In this regard as well, travellers from the Middle East are the most active (22%), while Europeans are the least (10%).

 

“80% of those surveyed have a social media profile, and out of these 55% use it daily,” Mohn told TRBusiness. “The most popular one is clearly Facebook, followed by linkedIn, Wechat, Instagram, Twitter.”

 

TRBusiness asked Mohn which social media channel presents the best opportunities through which DF&TR retailers could communicate with travellers. “Facebook and Twitter would be the most effective, but it should be related to travel and in an appealing and interesting way, clearly differentiating from the domestic market. Also YouTube has huge potential as a communications and advertising platform for travellers.”

 

According to m1nd-set Travel Retail Research Director Clara Perez (left), “the situation today in travel retail is quite alarming. Nine out of ten travellers are carrying devices allowing the retailers to communicate with them in real time, but only a fraction of the travelling consumers are actually engaging and being engaged with in the travel retail shopping environment.

 

“Retailer staff and brand ambassadors don’t ignore the customers in their shops at the till or while they are browsing; the shopping experience would be poorly perceived if that were the case.

 

“However retailer and brand management – the vast majority at least – are ignoring the customer through what is today a vitally important communications tool. The industry needs to hear the wake-up call and start engaging with their customers and potential customers online and on the mobile, both to talk with the consumers and to get consumers to talk about the experience.”

 

“Billions of investment dollars are pouring into travel-related services such as travel booking or hotel booking services with holistic services and solutions to communicate with travellers at every stage of their trip.

 

“New services are looking to include connectivity with travellers even while they are staying at the hotel with mobile communication through smartphone and tablet device apps.

 

 

“Whether for mobile check-in, maps and guides or even online ordering for room service through the mobile phone, the travel service providers are leaving no stone unturned when it comes to solid opportunities for communication, upselling and loyalty.

 

“The travel retail sector has a long way to go to adapt and rethink how it approaches technology before it can hope to service the travelling consumer in this holistic manner.“

 

Perez mentions that mobile presents a real future opportunity for travel retail; with 25% of North Americans now booking their travel via the mobile phone, there are significant opportunities to reach travellers on the move in real time.

 

“Beacon technology will increasingly enable retailers in airports and other travel retail environments to reach consumers with adapted offers and enticing information,” adds Perez. “Travel retail lends itself to these new opportunities – the industry just needs to be ready to take the step.”

 

Mohn concludes: “Our newest research shows significant differences in the behaviour between the domestic and the DFTR channel. The ways people get information and are influenced have clearly changed. We are moving from an audience to a networked culture.

 

“Today’s and tomorrow’s travellers are co-owners of brands – especially online. We should stop telling shoppers we are amazing – instead spend more time doing things in DF&TR that inspire people to tell each other how amazing we are! Let’s move to talking with DF&TR shoppers instead of to them, to take the DFTR channel to the next level.”

 

For more information on this technology in travel retail research, please contact [email protected] .or [email protected].