European travellers are increasing their focus on marketing messages and brand communications, according to latest insights from the second quarterly European Travel Retail Confederation (ETRC) recovery monitor.

The recovery monitor, which is published for the ETRC by Swiss research agency m1nd-set, reveals that the percentage of European travellers noticing brand communications had declined consistently over the previous few years, from 20% in 2017 to just 14% in 2020.

In 2021, however, more than half (53%) of passengers say they notice touch-points about shopping information. Billboards in home countries have experienced the highest growth in impact with 37% of passengers paying attention to this media compared to only 18% on average over previous years. This is 20 points higher than the global average.

The impact of online advertising is also growing with 37% of European travellers noticing marketing messages in 2021. This is 15% more than the previous four years in Europe (22%) and 28 points higher than the global average (9%).

Twenty six percent of Europeans also notice the website and shops’ apps in their home markets, which is 12% higher than in previous years and almost three-times more than the global average (9%).

SALES STAFF ‘SIGNIFICANTLY MORE IMPACTFUL’

Sales staff are also proving to be significantly more impactful in 2021 than in previous years, according to the monitor. Sixty three percent of European passengers said they interacted with sales staff, 20% more than in 2020 and in previous years. This is lower than the global average, however, of 72%.

Seventy eight percent of European travellers say the interaction with sales staff positively influenced their purchase decision. This is 31% higher than in 2020. Globally, 80% of passengers said the staff interaction was positive compared to 44% the previous year.

In terms of shopper preferences, perfumes in particular are experiencing increased interest among European travellers so far in 2021. Forty four percent say they have purchased perfumes compared to 31% on average between 2017 and 2020.

Twenty five percent of Europeans say they have purchased tobacco products from duty free shops compared to only 11% over the previous four years.

Confectionery and souvenir/gift items have both experienced a decline in popularity in 2021 among Europeans. Thirty once percent of travellers from the region interviewed say they have purchased confectionery products so far in 2021 compared to 44% in previous years; 15% have purchased souvenir/gift items compared to 23% over the previous four years.

As with other world regions, traffic growth projections for 2021 are less bullish than initially forecast in Q1 this year. After a 73% decline in outbound traffic from 868 million passengers to 233 million in 2020, international traffic in Europe is projected to grow by only 11% in 2021 — down from the 55% growth forecast in Q1 this year — to reach 259 million passengers. This is instead of the 361 million initially predicted.

The revival is expected to be significantly healthier in 2022 however. International traffic is set to more than double in 2022 with a 103% increase from 259 million international passengers in 2021 to 526 million in 2022.

While Europe’s traffic growth has been consistently below the global average over the past 12 months in Europe, traffic in Europe over the last quarter grew almost four-fold from 21 million international passengers in Q1 to 78 million in Q2. This outperforms the global growth in Q2; although still robust, global passenger growth was less dynamic, increasing nearly threefold from 55 million to 158 million.

FLATTER GROWTH CURVE

In the longer-term, the growth curve for Central and Eastern European countries is more dynamic than in Western Europe. The international Air Transport Association is forecasting a 3.7% annual growth rate for Central and Eastern Europe. This is among the highest globally after Asia Pacific and Africa & the Middle East.

Western Europe on the other hand will experience a flatter growth curve with an annual growth rate of 2.3% between 2025 and 2030, the second lowest of all world regions after North America.

Anna Marchesini, Head of Business Development, m1nd-set commented: “The most marked change in European traveller shopper behaviour this year compared to previous years is clearly the impact of touch points across all channels: web, out-of-home media and in-store interaction.

“This demonstrates a higher than usual potential for brands to reap greater returns on their media spend. It’s also a clear sign that brands and retailers need to place greater importance on training brand ambassadors and sales staff.”

She added: “When we break down into the detail of the data by customer segment, we are able to determine which customer segments are more or less responsive to staff interaction.

“It is important to understand the high potential segments for staff to approach and interact with, as well as those where greater effort is needed.”

ETRC Secretary General Julie Lassaigne said: “The quarterly monitor reports are proving invaluable as a means for ETRC members to obtain a clearer picture of how shopper behaviour is evolving in the post-Covid era.

“The insights are particularly useful in providing greater understanding of the fluctuations in consumer interest in specific categories from the pre to post-Covid environment.

“We see how traffic forecasts are evolving from one quarter to the next in the monitor also, due to the continued lockdowns in many parts of Europe that have suppressed the revival of international traffic. This this enables members to plan ahead with greater clarity.”