Value for money remains the most important satisfaction driver for international travellers visiting duty free shops, followed by ‘uniqueness and differentiation, according to the latest Q1 m1nd-set survey for the Duty Free World Council Key Performing Indicator Monitor.

 

The value for money message continues to consistently resonate around the globe as one of the most useful to learn from the excellent survey work produced by m1nd-set, ACI and other bodies in recent years, DFWC is quick to point out that ’uniqueness and differentiation’ factors also show an important inherent desire amongst some other travellers to try something different.

 

According to this latest research, the mixture of existing products that can be price referenced with domestic, along with new and different offerings indicates a need for both DF&TR retailers and brands to innovate and rethink both their product mixes and merchandising strategies.

 

Yet another new entry noted as ‘a key finding’ within this first quarter into the top five criteria impacting on overall satisfaction with the duty free shopping experience is the presence of more travel related items.

 

DATA SHOWS IMPROVEMENT IN THREE AREAS

 

Commenting on these findings, DFWC President Frank O’Connell said: “The good news is that the Monitor shows the industry is improving in the three areas that are emerging as key satisfaction drivers.

 

“”The percentage of travellers who agree with each of the statements that Duty Free is ‘a truly different experience’ (30% agree), a ‘great place to try new brands’ (27% agree) and a place to find ‘exclusive and unique products’ (25% agree) has increased consistently over the past four quarters.

 

“There is still room for further improvement however, as the survey also reveals that 43% of global travellers state they are ‘more motivated to buy duty free exclusives’ – further underlining the importance of a differentiated product offer.”

 

 

OVERALL SATISFACTION UP BY ONE POINT…

As such, the DFWC adds that the overall satisfaction index has improved by one point for the global average (62) as well as regionally across Asia (64), Europe (59) and South America (61). However, it has remained unchanged this quarter in the Middle East (62) and North America (61).

 

Very interestingly and new to this quarter’s Monitor is research into why travellers choose not to visit duty free shops and the reasons given for not buying by those who do enter the shops. The main reason given for not visiting shops is an unwillingness to carry more items.

 

Contrastingly, prices compared to domestic market, lack of motivating promotions and lack of affordable products also feature among reasons given for not visiting.

 

The DFWC suggests this indicates a need for more effective communication on promotions and the actual value that is added to travel exclusive products if the industry is attract more travellers into the stores.

PROMOTIONS AND PRICING NEED ATTENTION…

M1nd-set’s CEO Peter Mohn adds: “Among the reasons for not shopping even after entering the stores, the importance of price perception and unique and exclusive products is again clearly underlined.

 

“Lack of promotions and high prices compared to home and destination markets feature among these key reasons.

 

“Similarly, the lack of duty free exclusives, suitable gifting products, new and interesting products and suitable souvenirs are all key reasons cited for not purchasing.”

 

The Duty Free World Council adds that this report was compiled from interviews with more than 4,000 travellers at airports across all major world regions during Q1 2017.

 

More detailed data on the regional disparities for each aspect studied in the Monitor is available from m1nd-set upon request by email: [email protected]