Driving the Evolution of Duty-Free Retailing for an European Airport

The airport retail landscape has changed significantly in the last years, with a growing importance of luxury. Having seen an increase in American investments in the country, the airport of one of the most vibrant European capital wanted to understand behavior and requirements of travelers from the United States to better cater their needs.

SIS International Research conducted an 8-week research to uncover the motivations, needs, and triggers that drive American international passengers to make purchases during business and leisure trips – with a focus on the purchases that travelers make in airports, including food, cultural items, and duty free products.

Two groups of consumers were compared: a) true shoppers – those who intended to purchase goods at the airport for use or consumption elsewhere. This includes items such as perfumes, cosmetics, jewelry, gifts and souvenirs, and alcohol for consumption away from the airport, and b) incidental shoppers – those who purchased goods at the airport to consume right away, or to consume during their journey.

SIS conducted two focus group discussions in two major US cities – New York City and Philadelphia – in order to survey American international passengers. The sample included only consumers who had travelled on a flight to Europe from a city on the East Coast of the United States in the past six months.

The key intelligence topics were as follows:

• Types of Consumers – SIS evaluation of two distinct groups of consumer buying behavior in airports
• Consumer Behavior  – SIS comparison of the buying habits of these two groups in airports

Consumer Preferences – SIS identification of international consumer preferences.

• SIS was able to uncover international passengers’ expectations for travel retail with regards to value and price ranges of goods in the mass and luxury segments
• SIS was able to report international passengers’ perceptions regarding customer service in airports.
• SIS delivered insights regarding international consumer preferences of the origin and quality of goods purchased at the airport
• SIS evaluated ways that airports could create memorable experiences for international passengers
• SIS identified goods that passengers were much more likely to take note of and purchase that will remind them of their time in a particular location
• SIS found that the impact of value messages were the most effective drivers for international passengers to make purchases.