How Does the Development of World Tourism Affect Travel Retail?
Tourism is a fast-growing sector. We are seeing this more in recent years as we reach record numbers of visitors and tourism flow, and it is projected that this upward trend will continue.
The increase in tourists who are traveling more frequently has also resulted in a change in consumption habits, and in turn, the development of the tourism industry is in full swing and some major transformations have been affecting the entire tourism industry. A good example of this are the new developments that were shown last week at the International Tourism Fair in Spain (Fitur). But, how do all of these changes affect the retail industry?
The relationship between tourism and retail has also gone through a period of growth and diversification which in recent years has revolutionized what we call Travel Retail. In order to address the market's transformation, today we spoke with 3 Travel Retail experts: Patricia Rodríguez Mediano, Key Account Director at HMY, Pere Ruiz Fausto, Commercial Director of HMY and Pedro Solà, Sales & Business Development Manager of Bespoke Solutions at HMY.
As Pere Ruiz says, in order to understand how changes to the tourism industry might affect Travel Retail, we must first identify the main features that set the sector apart and analyze how the climate of travel has been transformed.
What Factors in the Transformation of Tourism Influence Travel Retail?
Pere explains that in order to identify the keys to success in Travel Retail, we need to combine data with the unique characteristics of the sector, which is known to be a growing market, with fast and impulsive transactions which occur in commercial spaces that are traditionally expensive.
If we focus on shopping areas in airports, all of the changes in tourism have led to the creation of spaces that are more and more adapted to the needs of customers who travel in search of experiences at every moment. Therefore, terminals now look for concepts that are more comfortable than functional, managed by private companies that take advantage of commercial and service profits more efficiently.
A Growing Industry
According to Patricia Rodríguez, travel has become increasingly accessible and attracts previously non-existent crowds who are exposed to this distribution channel.
Transformation of Retail Space Concepts
Concepts for retail spaces, which are now key to offering pleasant travel experiences, have undergone a complete transformation. Supplies and services have not only diversified, but there has also been a great effort to create memorable spaces thanks to brand presence. In creating spaces for airports and other transport terminals, there is a quest for differentiation and the creation of an experience.
The Evolution of Passengers
As we said at the beginning, tourism is growing internationally, due to factors such as improvement in the economy or air travel being more accessible, which facilitates international travel. All of this not only leads to there being more tourists, but that they form are a more heterogeneous group whose needs are very different from those of tourists years ago.
The Use of Technology in Commercial Spaces
Technology and communication also play a critical role in these new spaces and have made the purchasing process feel more like an experience than a mere acquisition. This has been shown to be in line with the wishes of tourist customers who, beyond wanting to purchase a product, also want to enjoy an experience and make memories to take back home.
The Keys to Facing the Challenges of Travel Retail in 2018
With these key points about the evolution of the tourism industry and the ways that commercial spaces are changing in airports, we can identify some key factors in the future of the Travel Retail sector.
Patricia Rodríguez Mediano, Key Account Director at HMY Retail Solutions, insists that the differentiation versus other distribution channels and geographical areas will be key to boost sales; differentiation based not only on product offer, but also on payment methods (Click & Collect) and customer purchasing experiences, which are is critical to success.
For their part, Pere Ruiz Fausto and Pedro Solà, Sales & Business Development Manager at HMY Group Bespoke Solutions, agree on some essential ideas for successful commercial areas in terminals:
- Expressing the idea of a travel experience in your offer: this new model of tourism means that there is a different way to travel, in which tourists are more immersed in the local culture, while still having access to global supply. As Pere Ruiz Fausto breaks it down: "Travel Retail = Local Values + Global Supply"
- Focusing on the passenger-customer: While movement through a terminal used to be seen as the tedious part of travel, now we are trying to turn passengers into customers who enjoy these spaces and feel comfortable in them. The new design of open spaces in terminals invites the concept of a "Walk Through."
- Creating shopping experiences through differentiation: purchases must be perceived as a set of unique experiences, in which the products offered are shown as something unique, which cannot be found elsewhere or by other means.
- Using technology: Completing a purchase must be easier and faster. To achieve this, we need to use the most advanced technology and accept new payment methods, such as Click & Collect, or create spaces where customers can interact with products and enjoy a unique experience.
The Importance Of Storytelling In Retail 19/06/2018
In retail, brand success is offering customers unique and appealing experiences. But often brands don’t know how to create these experiences or how to establish them. To do this, an ess
Keeping the glass half full at point of purchase for drinks brands14/06/2018
In a consumer culture that’s forever changing, it can be difficult for brands to make their mark with new customers and maintain relationships with existing ones. We are now a nation
The Evolution Of Low Cost Retail: From Pricing Strategy to Shopping Experiences11/06/2018
Nowadays, to survive and be successful in the retail sector, points of sale experiences are critical. In fact, someone already coined the term, “Experience Economy&rdq
Is Your Brand Prepared For the World Cup? 06/06/2018
As part of our series of articles about soccer’s World Cup and the greater sales opportunities it represents, today we are going to talk about how you should tackle these events.
How can the retail sector exploit the greater influx of passengers during Soccer’s World Cup? 29/05/2018
Soccer’s World Cup has traditionally had an enormous impact on sports and business. It’s an excellent economic opportunity for the host country, as well as for the nume
New Fleg 7 Furniture: an Innovative Design that Adds Value to the Fruits and Vegetables Section. 26/05/2018
At HMY we are committed to innovation as a way to offer the best solutions to our clients. We are also always paying attention to trends in the retail world, taking into acco
How Can Brands Take Advantage of the Soccer World Cup to Connect with Customers? 21/05/2018
Soccer’s World Cup is an event that attracts hundreds of millions of people every four years. During the month-long competition, it seems like nothing else exists, and
What are Customers Looking for at Points of Sale?14/05/2018
The retail sector is going through a period of great change. For years, with the growth of online commerce, retail establishments are no longer seen as places to be visited.
The World Cup, a Unique Opportunity to Boost Retail Sales07/05/2018
The Football World Cup is one of the most viewed sporting events worldwide and therefore it has a huge economic impact. As an event that brings together the best players of th
HMY's Factory in Spain Reinforces its Commitment to the Environment, Society and Quality03/05/2018
At HMY we continually commit ourselves to sustainability whether that be environmental, social or in terms of the total satisfaction of our clients thanks to our quality standards. One ex