Tourism growth expected to drive the rise of European travel retail market
Travel retail has shown steady growth in recent years in the world. Europe is the second-largest travel retail market after Asia-pacific and the UK is the highest contributor to the European travel retail market.
Travel retail is a major component of aviation and maritime financing and has become an integral part of traveling experience owing to Europe’s stronger base of luxury brands. The European region holds headquarter of one of the largest luxuries and fashion brands in travel retail such as LVHM from France, H&M from Sweden.
Growth in travel & tourism due to a rise in disposable income and rapid growth in urbanization, the shift in consumer lifestyles is expected to drive the rise of the European travel retail market. Continuous development in the travel and tourism industry along with hospitality sector infrastructure, advancements in booking through the online channel will further add to the development of the travel retail industry in Europe.
The travel and tourism industry are one of the largest growing sectors across the world. Increased passenger traffic has led the infrastructure development in the travel- retail market such as larger retail experiences which include shops, restaurants, bars and other forms of retail. Wealthy tourists from the Middle East, China, the U.S., and Russia continue to contribute a significant part in the market
It is estimated that every year, over 1 billion people travel internationally; that is approximately 15 percent of the global population and this number is expected to increase in coming future, thus supporting the travel retail market developments. However, low consumer interest in shopping at travel points. Limited time for vacations and relaxation for many travelers compels them to focus on traveling rather than spending time and money on related activities such as retail shopping. On the contrary, steps taken to develop the travel & tourism industry of the region is expected to create opportunities in the near future.
Key Market Trends
– Fragrance & Cosmetics Segment Share is Dominating the Travel Retail Market in Europe
– Airport Retailing is Generating Higher Revenues than other Channels in Europe Travel Retail Market
The European travel retail market is highly competitive, with several international as well as domestic brands present in the market which include Dufry AG, Daa Plc., Autogrill S.p.A., Flemingo International Ltd., Lagardère SCA, Heinemann SE & Co. KG, RegStaer, LVMH Group, TRE, WH Smith PL, and others. The leading brands are opening exclusive stores for special products. The companies are also promoting, differentiating and selling limited editions to increase their visibility and brand awareness in the market.