INTERNATIONAL. Travellers perceive duty free shops to be ideal locations to find new products, according to the latest Duty Free World Council (DFWC) KPI Monitor.
The novelty factor in duty free shops has seen +8% growth in passenger satisfaction over the past 12 months, according to the research, and a +3% increase since the Q1 2018.
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The quarterly KPI Monitor is produced by Swiss research and consultancy agency m1nd-set. It aggregates satisfaction scores on all aspects of the consumer visit to duty free shops, weighting them according to their impact on overall satisfaction. The Q2 monitor was compiled through interviews with over 4,000 international travellers across all world regions during June.
The DFWC said Asia Pacific and North America were the only regions which saw an increase in the overall satisfaction index. The Middle East declined by one percentage point. The overall satisfaction level in Asia Pacific stands five points above both the Middle East and the global average, the organisation noted, which remains stable compared to Q1. Europe and South America also saw no movement compared to Q1.
International traffic was up +8% year-on-year, to 831 million, according to the KPI Monitor’s IATA air traffic benchmark, DFWC said. Asia Pacific saw a +11% increase, compared to +6% for Europe, +5% for Latin America, +4% for Africa and +2% for both North America and the Middle East.
Shopping as ‘part of the overall travel experience’ remains the most popular satisfaction driver among global passenger perceptions of duty free shopping, the research showed. Some 47% of travellers agreed with the statement, up one point from the previous quarter.
The motivation to purchase duty free exclusives, product variety and great gifting opportunities are jointly the second highest rated perceptions, with 42% of travellers agreeing. Finding new products ranks next, having seen the strongest growth among satisfaction drivers.
Price advantage and value for money in duty free remain the top two reasons for purchasing in duty free shops. The two criteria which have the most impact on passenger satisfaction are value for money followed by uniqueness of products and services, DFWC said.
The Q2 non-shopper analysis again highlights the importance of price advantage and value for money, with high prices and the lack of motivating promotions being two main reasons travellers cite for not purchasing from duty free shops during their last trip. Three of the top six reasons for not visiting shops also reflect the negative price perception of the duty free offer, the KPI Monitor showed.
