Publication Month: Feb 2020 | Report Code: TIPRE00008786 | No. of Pages: 191 | Category: Technology, Media and Telecommunications | Status: Published
Constant development in the travel & tourism industry, coupled with the integration of several segments including hospitality & infrastructure with government initiatives, enhance the travel & tourism industry, resulting in the growth of the duty-free retailing market. According to the World Travel and Tourism Council (WTTC), the global travel & tourism sector is witnessing a significant growth with a surpassing global GDP in 2018 for the eighth year consecutively. The industry grew at 3.9% YoY and accounted for US$ 8.8 Trillion in 2018.
The high growth in the travel & tourism industry is attributed to the rising middle-class population worldwide coupled with low-budget travel packages offered by several travel package providers.
The growth in the travel & tourism industry is also resulting in the construction of new airports and ports worldwide. For instance, in 2020, GMR Airports Ltd signed a contract to build duty-free shops at Kannur international airport in Kerala, India. Also, several airport expansion projects are underway in North America and the European region. Moreover, several developing nations are investing in building new airports to handle the increasing passenger traffic. The capacity within terminals enables specific brand outlets to create their individual retail space, and for larger duty-free shops to build branded spaces within a larger store, supporting higher-value sales. Furthermore, several cruise lines are also opening duty-free stores. For instance, in 2018, Carnival Cruise Line, an international cruise line, and Heinemann introduced a duty-free shopping experience for its customers’ onboard Carnival Liberty. Also, Heinemann’s APAC arm also announced the opening of its duty-free store onboard vessel Carnival Spirit based in Sydney. According to Cruise Lines International Association (CLIA), the number of cruise tourists increased globally from 17.8 Mn passengers in 2009 to an anticipated 30 Mn in 2019. The association also expects that the cruise industry will witness further growth owing to the expansion of new destinations. The growth in the construction of new airports, as well as the cruise industry, is anticipated to drive the overall growth of the travel & tourism industry, thus boosting the duty-free retailing market
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The notable trend is being witnessed among customers moving from a traditional desktop system to mobile, voice, and Chabot’s. The retail sector is witnessing a rise in mobile e-commerce, due to which there is rapid adoption of simple and enhanced processes which makes product selection, booking, and payment instantaneous.
With the advancement in technology, voice assistants are getting better at understanding the human voice. Besides voice, digital travel assistance such as Chabot’s are significantly enhancing customer’s experience. Introduction of AI in technologies are anticipating traveler’s needs in real-time. With the implementation of advanced technologies and application based shopping, the duty-free retailing is expected to witness significant demand during the forecast period.
Based on product type, the duty-free retailing market is segmented into cosmetics and personal care; alcohol, wine and spirits; tobacco and cigarettes; fashion and accessories; confectionery and food stuff; and others. The others segment consists of electronics, health supplements, toys, watches, books, and fine writings. The opportunity to purchase the products at a much lesser cost is catalyzing the trend, which is impacting positively on the growth of the duty-free retailing market. Additionally, airlines always lookout for impressive services to enhance passenger flying experience, and onboard shopping and pre-boarding shopping is one of the new services rolled out by airlines, which is, in turn, driving the growth of the duty free retailing market.
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Based on Application, the duty-free retailing market is segmented into Airports, Onboard Aircraft, Seaports, and Others. Airports segment holds the largest market share, followed by others, seaport, and on-board segment. The airport duty-free retailing facility offers a pre-booking of duty-free products, which allows the customers to choose the product delivery at the airport or on-board. This facility allows passengers to carry less luggage, which further reduces the risk of incurring excess baggage fees.
|Market Size Value in||US$ 77.87 Billion in 2018|
|Market Size Value by||US$ 155.30 Billion by 2027|
|Growth rate||CAGR of 8.44% from 2019-2027|
|No. of Pages||191|
|No. of Tables||83|
|No. of Charts & Figures||80|
|Historical data available||Yes|
|Segments covered||Product Type ; Application|
|Regional scope||North America, Europe, Asia Pacific, Middle East & Africa, South & Central America|
|Country scope||US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina|
|Report coverage||Revenue forecast, company ranking, competitive landscape, growth factors, and trends|
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The players operating in the enterprise content management market focus on strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:
The List of Companies - Global Duty Free Retailing Market