What Is Travel Retail?
The Global Duty Free and Travel Retail Revenue, A Tax-Free Channel for International Travel, The Global Travel Retail Market, Duty-free and Travel Retail Market: Forecasts and more about what is travel retail.. Get more data about what is travel retail.
The Global Duty Free and Travel Retail Revenue
The global industry of duty free and travel retail generated US$ 68.6 billion in sales in the year of 2017, and includes the sale of goods to international travellers. Duty free shops are usually exempt from paying taxes and duties if the goods are only sold to travelers who will leave the country. Duty free and travel retail is a vital revenue source for the travel and tourism industries.
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A Tax-Free Channel for International Travel
International travelers can either directly purchase tax-free goods or reserve them for pickup after customs at the airport. The channel is aimed at addressing the trend of duty-free shopping in the Asia-Pacific region.
The Global Travel Retail Market
The global travel retail market is expected to reach 145.0 billion by the year of 2028, with a CAGR of 14.9%. The demand for travel retail services is fostered by the development of the travel and tourism sector. Increased travel and tourism has led to increased demand for apparels, cosmetics, food items, and electronic retail in the travel retail market.
The travel retail market is expected to grow due to the increase in urbanization and changes in lifestyle. The market is majorly driven by rise in disposable income among middle-income groups and improvement in economic conditions. The market growth is boosted by factors such as technological advancement.
The growth of the travel retail market will be hampered by the regulations pertaining to airport retailing. The travel retail market is categorized on the basis of product, channel, and region. The market is divided into perfumes & cosmetics, wine & spirits, tobacco, electronics, luxury goods, food & confectionery, and catering & others.
The emerging markets have high growth potential for the luxury goods segment, and is anticipated to witness steady growth in the developed regions. The market is driven by factors such as rise in disposable income, exposure to social media, and preference toward investments on personal luxury goods. The market is divided into airports, cruise liners, railway stations, and border.
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Duty-free and Travel Retail Market: Forecasts
The duty-free and travel retail market is expected to register a CAGR of more than 7.5% during the forecast period, due to the growing demand for retail chains that offer luxury and premium brands of various products.
Retail Travel Agents
Retail travel agents offer advice to the public. They give travellers with travel literature, compute fare costs and make reservations, and sell tours developed by the wholesale travel organizations. Travel agents in larger agencies may specialize in specific geographic areas, while smaller agencies may have a broader range of responsibilities.
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Travel agents are the most important. They act as sales outlets for suppliers and they get commission for any sales made. They act as travel counselors, advising people on when, where, and how to travel, as well as selling travel and making reservations in response to customer requests.
The retail travel agencies have grown in recent years. 14,804 agencies accounted for 19.4 million industry sales in 1978, an average of 1.31 million per agency. In 1987, 29,584 agencies were responsible for 64,237,000 in revenue.
Retail travel agents are not as strict as before the deregulation of airlines, but they still face a variety of regulations to stay in business. The other appointments are usually issued once the ARC appointment is secured. Agencies are regulated as to the amount of ticket stock they have on hand the procedures for handling it when they are a business.
It is like a blank check and requires security. Agencies can't change ownership without meeting conference regulations. Customer protection.
The agents are held responsible for their actions. Booking agents are more interested in being travel counselors. They can be held responsible for the quality of their advice.
Business Travel Management
Unlike leisure trips, which are usually planned and booked by end consumers using their choice of tools, business travel often involves a travel management company. Travel managers negotiate with suppliers to ensure that the trip components are cost effective and comply with the policies of the organization. Functions performed by provincial ministries are critical tourism operators and communities, as are the functions of similar departments at the federal level.
Business travel managers and providers of travel services must be aware of price sensitivity. Many tourism services organizations rely on memberships, donations, grants, and government funding to survive. As the economic climate becomes strained and budgets are tightened, all groups are forced to demonstrate return on investment to stakeholders.
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Enhanced Customer Experience in Travel Retailers
Travel retailers are focusing on providing an enhanced customer experience in different distribution channels. Enhancement of industry processes can help boost profits for retailers. Passengers can use digital technology to carry out their boarding and check-in process.
A travel agency is a private retailer or public service that provides travel and tourism-related services to the general public on behalf of accommodation or travel suppliers to offer different kinds of travelling packages for each destination. Travel agencies can provide a variety of services, including airlines, car rentals, hotels, railways, travel insurance, package tours, insurance, guide books, and airport lounge access. Travel agencies can also sell general sales for airlines that don't have offices in a specific region.
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