The rising prosperity of the travel and tourism industry is one of the main factor augmenting the development of the global duty-free and travel retail market
Arizton’s recent market research report on the global duty-free and travel retail market provides comprehensive industry analysis, trend forecasts, and competitive analysis. The research study segments the market by industry sectors (consumer goods and retail, AFF and energy, medical and healthcare, business services, machinery, IT, electronics, and telecommunications, and others) and offers detailed competitive analysis.
The global duty-free and travel retail market is estimated to reach revenues of around $112 billion by 2023, growing at a CAGR of approximately 8% during 2018-2023.
The increase in disposable income, digitalization of travel retail, and superior customer service are some of the key factors attributing to the growth of the global duty-free and travel retail market. The rising number of LCC airlines is attributing to the growing number of international tourist thereby, boosting the demands of the global market.
The top 3 drivers and trends attributing to the evolution of the global duty-free and travel retail market are discussed below:
Booming Travel and Tourism Industry
The rising prosperity of the travel and tourism industry is one of the main factor augmenting the development of the global duty-free and travel retail market. The growth of the tourism and travel retail industry is creating jobs, driving exports, fueling retail business, and generating prosperity in the global market. According to World Travel & Tourism Council (WTTC), T&T (Travel and Tourism) accounted for around 10% of the global GDP and provided about 313 million jobs approximately 10% of the total employment, in 2017. The rise in global passenger traffic will contribute to the growing demand in the global market. The increase in international departures is directly impacting the growth of the global duty-free and travel retail market. Over the past two decades, the number of international travel departures across the globe has doubled from roughly 600 million in 1996 to 1.4 billion in 2016. Numerous travelers from emerging economies are traveling across the borders for the very first time, thus pumping billions of dollars of new growth into the travel economy and helping the industry outpace global GDP. Such increase in the number of passenger traveling will help vendors tap the opportunity in the global duty-free and travel retail market.
Growing Digitalization in Travel Retail
The exponential proliferation of digital technology and integration of these solutions will propel the development of the global duty-free and travel retail market. The implementation of digital technology is driving marginal efficiency to an enabler of fundamental innovation and disruption in the global market. The leading companies are leveraging digital commerce and big data analytics to develop sophisticated retail strategies that will contribute to the growing revenues in the global duty-free and travel retail market. The rising popularity of virtual shopping platform is encouraging airlines to leverage these systems to gain a larger market share and reach a maximum number of consumers. The companies are using passengers or customer’s data activity using NFC, Wi-Fi, Bluetooth, and other related geo-technologies to drive consumers of the duty-free stores in the global market. With the use of digitalization, companies are personalizing connectivity using Bluetooth beacons and sending push notifications about the offers and new products available in the global market. These individualized services will boost sales in the global duty-free and travel retail market.
The addition of value-added benefits and services will propel the growth of the global duty-free and travel retail market during the forecast period. The retailers are improving their customer service, introducing loyalty programs, digitalizing of staff and store, and festivals are some of the primary factors attributing to the development of the global market. The development of the individuality and tailor-made offers is helping companies attract a large group of consumers in the global market. The use of digital signage technology to enhance them in-store communications and introduction of added benefits such as lounge access, free parking, and fast-track privilege will boost sales and revenues in the global duty-free and travel retail market over the next few years. Furthermore, the launch of the digital assistant hologram is a “virtual assistant”, which can interact with travelers in different languages and reinforces the stores’ marketing communications via video content that highlights specific promotional items is expected to transform the global market.
The leading vendors in the global duty-free and travel retail market are Dufry AG, Gebr. Heinemann, Lotte, and Lagardère Travel Retail Group.
The complete overview of the latest market research report on global duty-free and travel retail market by Arizton is now available.
The report also offers a detailed study of major trends, drivers, challenges, and also provides the market size and forecast for major geographical regions and key countries.
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