Imagine strolling through bustling airports, train stations, or cruise ship terminals, surrounded by a myriad of luxury brands, enticing fragrances, and delectable treats. This is the exciting realm of travel retail. It presents an unparalleled opportunity to discover sought-after items, often at tax-free prices, making every purchase an indulgence worth savoring.
Let us explore this enchanting and vibrant world that caters to the desires of travelers worldwide and understand innovations that are captivating the attention of jet-setters.
Are you ready to take a flight to the luxurious world of travel retail? Let’s go!
What is Travel Retail?
Travel retail refers to sales in travel environments where buyers require proof of travel to gain access to commercial areas, subject to taxes and duties.
Some of these stores are duty-free, meaning customers have the privilege of no taxes and duties, and to complete a transaction, shops only require the customer’s travel proof, such as a boarding pass.
These shops are not only available at airports, but they have also covered the space at border crossings, international railway stations, downtown places, and even in airplanes with in-flight shopping.
Significance of Travel Retail
Travel retail has become a great selling platform and source of revenue for airports. However, billions of travelers arrive through airports, and travel retail offers branding opportunities for most consumer brands.
Some countries restrict the sale of certain types of products at their borders, such as alcohol and beverages, but these products can be purchased from duty-free shops. This leads to increased sales of such products when passengers arrive at these airports. These products include perfumes, cosmetics, tobacco, food and beverages, confectionary items, electronics, accessories like bags, eyewear, and so on.
Here’s an instance of its substantial impact on the beauty industry. L’Oréal Travel Retail offers beauty products to global travelers at airports due to budget airlines and rising middle-class affluence. As a result, there has been remarkable growth in retail spaces at airports, with L’Oréal now exclusively offering certain products at these “aeromalls”.
Isn’t it profitable for businesses and reasonably priced for jet-setters at the same time? You got it, right?
Innovations Elevating Travel Experience with Unforgettable Shopping
The travel retail industry is adapting to changing customer expectations and desires, focusing on time, space, and convenience. Hospitality entities can benefit from these innovations, ensuring a seamless transition into the future.
Get ready to take a ride. Here you go!
● AR and VR
The travel retail industry is leveraging augmented and virtual reality centers to entertain customers by enabling them to explore new places or engaging and lifelike experiences. Moreover, the hospitality industry can use VR to showcase local attractions and activities available to travelers.
● Sensory Spots
Travelers enjoy exploring fresh new experiences, and sensory pop-ups are the best solution for it. One such stunning installation is at the Schiphol and Auckland airports, where Bombay Sapphire created a glasshouse showcasing the plants used in their gin production. Interestingly, this sensory atmosphere for customers is not limited to just the hotel industry but extends to other sectors as well.
● Duty-Free VIP Memberships
Customers always seek a personalized way of accessing duty-free items. Travel trails with VIP programs can provide customers with exclusive opportunities to see and purchase expensive duty-free products. This strategy has benefited shoppers at Lotte Duty-Free in South Korea with their specialized environment and assistance.
● Digital Offers
As the world goes digital, most people use apps on smartphones or alternate devices for online purchasing. Providing digital offers is an effective way to attract customers. These apps offer personalized assistance and location guidance for more visibility, convenience, and engagement.
● Interactive Guides and Efficient Check-outs
Interactive stations in travel retail can serve as digital concierges, providing guests with local dining and activity suggestions. These screens, like those used by TripAdvisor at Toronto Pearson International Airport, guide customers in the right direction.
Customers from different countries usually face language and currency difficulties, but retailers accommodate currency and language barriers, ensuring a speedy checkout process.
Jet, Set, Shop
Travel retail is a captivating world that combines the thrill of travel with the excitement of shopping. It offers a unique opportunity for travelers to buy exclusive products from around the globe, often at tax-free prices. Bustling airports, train stations, and cruise ship terminals become a spot for luxury brands, enticing fragrances, and delectable treats.
Travel retail offers more than just a shopping experience. It is a gateway to a world where travelers can find unique treasures and create lasting memories.