Personalisation is one way Starboard is increasing purchasing in its onboard shops.

A new cruise consumer study from Pi Insight, on behalf of the Tax Free World Association (TFWA), has identified six key actions that brands and retailers can focus on to capitalise on the booming cruise channel.

Called the Global Cruise Duty Free Buyer Understanding Study 2025, the report was in the spotlight on Monday at a live webinar moderated by Nicole Daniells, TFWA’s Member Services Manager.

Analysis presented by Pi Insight’s Managing Director, Stephen Hillam, highlighted a range of interesting trends and behaviours across shopper profiles, product categories, and purchasing dynamics that present some obvious opportunities for leveraging duty-free sales.

Based on a survey of 3,035 cruise passengers across six nationalities – American, Australian, British, Chinese, German, and Taiwanese who had cruised in the past six months – there were some sometimes surprising findings.

Firstly, cruise travel is sticky; four in five will go on another cruise soon. Furthermore, half of guests are under 40. The research also shows that 56% of passengers visit the onboard duty-free shop, far higher than airport penetration rates.

Of the 56% who visit the shops, 73% buy, though conversion rates vary sharply by nationality. For example, 88% of Germans visit, but only 57% transact, whereas only 45% of Australians visit, but 82% make a purchase.

The top five categories bought were alcohol (22%), souvenirs and toys (17%), beauty (15%), confectionery (15%, and jewellery (14%). Americans stood out for significantly over-indexing in buying alcohol, confectionery, souvenirs/toys, fashion accessories and ready-to-wear fashion.

The average spend per head is $206 on 2.6 items (across 2,100 of the survey sample who bought something), and self-treating is the top reason to buy at 45% – only 28% said they were looking for gifts for others. Two in five onboard duty-free buyers plan their purchases, with 16% choosing brands they had never tried before.

The study drilled down more deeply into these various buyer behaviours, as well as identifying how staff interactions are vital to passenger decision-making, and also looking at the role of impulse purchasing.

An opportunity to drive penetration

In an interview conducted by Nadine Heubel, SVP Operations – One World Alliance at Sodexo Live!, and Lisa Bauer, President and CEO of Starboard Group, Bauer commented: “The research was excellent. I absolutely believe there is an opportunity on penetration. Some people don’t even know there are stores on cruise ships, especially if they are not visible on a major promenade or walkway. You also don’t see retail talked about on the cruise websites, which is something we are really trying to get them to think about.”

She added: “There are things we, as retailers, can do, like activations, retailtainment, and gamification, that give a buzz to the shopping experience and draw people in. We have to be more engaging. Store staff are our secret sauce. In the higher-priced categories, they spend a lot more time with guests and really develop relationships with them – to the point that those guests seek them out the next time they travel. We have an average of seven days to spend with guests to develop meaningful interactions.”

There are also misconceptions about cruise. Bauer said: “There’s such an opportunity for brands to get into the channel, but part of it is overcoming the idea that cruise is for the newlywed, overfed, and nearly dead. We need to overcome that perception, and this research helps. After all, something like 35 million people will sail next year, and this is an incredible audience for brands.”

Six routes to drive cruise shopping

In a call to action, and based on the survey findings, Hillam outlined six areas where proactive steps can be taken to lift cruise sales:

– Drive pre-trip purchase intent

– Increase footfall, convert first-time visits, and create reasons to return

– Develop the gifting occasion

– Provide and communicate range differentiation

– Use staff as a key purchase influencer and experience enhancers

– Overcome key conversion barriers.

The Pi Insight MD said: “In travel retail, the cruise sector was probably the hardest hit during the pandemic. However, the cruise industry is now back, bringing with it a whole range of new opportunities to attract a captive audience.”

The extensive new study goes into significant detail on cruise buyer behaviour to reveal exactly where these opportunities lie. It will be available soon on the TFWA website and will be free for members to download.

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