EUROPE. The Central & Eastern European Travel Retail Association (CEETRA) held its second biannual Forum on 7 October, which it said delivered some key findings that would aid its mission to “protect, promote and facilitate” the region’s duty free & travel retail channel.
A guest presentation by Rachel Bulford, Chair of the UK Travel Retail Forum and Retail Director at Gatwick Airport, provided a UK perspective and particular focus on the impact of Brexit on Eastern and Central European airports.
Travel between the UK and Central & Eastern Europe had been very strong pre-pandemic, and Bulford reported on some important indicators of recovery: “Some UKTRF members have reported 80% load factors to Eastern Europe in recent weeks and there had been a significant jump in August; more than doubling in some cases,” she said.
Bulford explained that the reintroduction of duty free pricing (on liquor & tobacco) to EU destinations could have had a significant benefit to airports in the region that have strong flows to the UK. For British airports this effect has been “severely diluted” with the UK’s removal of VAT-free shopping from airside locations. Bulford said that this has “had a big impact on the industry, including the decision of Dixon’s Travel to exit the category completely.”
Arrivals duty free in focus
In another key session, European Travel Retail Confederation (ETRC) Secretary General Julie Lassaigne advised on progress at EU level towards a possible introduction of arrivals duty free.
Lassaigne reported that “steady progress” has been achieved with the European Commission, in particular via a supportive letter being received from DG MOVE, the department responsible for transport. She noted that this is a change from the “absolute refusal to even consider arrivals duty free ten years ago”. Lassaigne called on participants to continue their efforts at national level to ask Member States to request the European Commission to consider arrivals duty free as part of the sustainable recovery measures to support the aviation sector.
In another session, m1nd-set Research Head of Business Development Anna Marchesini presented the results of a consumer survey at large regional airports.
Key take-outs were:
- Based on a poll of international travellers at larger airports in Central & Eastern Europe, m1nd-set found shoppers “are less likely to visit the duty free shops, but when they do it is more likely that they will convert into buyers”. Supporting this assertion Marchesini suggested that store visitation (footfall) was down by as much as -37% [compared to pre-pandemic levels], but said that conversion is up +59%.
- Post-pandemic, nearly 90% of customers “expect more digitalisation and technology offers” was another finding.
- Regional travellers appear to be focusing more on buying pre-planned products for themselves (up +40%), while gifting has taken the strongest hit – down -31% versus pre-crisis levels, according to the survey.
- Value and sustainability [in the offer] have gained significant importance among CEE travellers post-pandemic, said the survey.
A members-only meeting of CEETRA will take place at the Majestic Hotel during Tax Free World Exhibition in Cannes next week (0830 on 26 October).
