Duty Free Liquor : A Travellers Favourite

Published: 13th April 2010
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Travellers can find a range of high quality branded products at duty free stores located within the many international airports around the world. Although the availability of high-end jewellery, sunglasses, luggage and perfumes are always in high demand, remaining one of the most popular duty free items is liquor, whether it is wine, beer or spirits. This is due in large, to the fact that these items represent some of the best savings that can be achieved when purchasing duty free items, as they traditionally carry high duties and taxes outside of the duty free environment.

However, it is imperative that you keep in mind the liquor limits that each country imposes upon incoming travellers. When visiting New Zealand, it is worth noting that the country has one of the most generous liquor allowances, with each individual being over the age of 18 being able to bring six bottles of wine, port or sherry which does not exceed 4.5 litres in total or 12 cans of beer. Additionally, the allowance caters for three bottles of spirits or liqueurs, each containing no more than 1125ml in volume.

The popularity of liquor within the duty free retail environment has been illustrated with recent research conducted by the Generation Group, termed the TREND Beverage Index, which measures actual sales through the cash registers, found that global duty free and travel retail sales of liquor have advanced 0.9 percent in comparison to the same time last year. The report also noted that there will be an increase in demand for healthier, lighter, whiter and mixed drinks as consumer preferences of the younger market, and the increasing female drinking market, are felt through duty free sales.

Concerns that duty free sales of liquor would flatten due to the heightened security at airports which led to liquids being banned on many international flights has been short lived. According to Phil Humphreys, the Managing Director of Diageo Global Travel, liquor sales in the travel retail channel can be doubled in value over the next five years. He further stated that in response to the downturn in global travel, duty free sales have experienced growth. The continued expansion of the market will require innovation, imagination and investment to sustain these increases in consumer preference for duty free liquor.

In response to these issues, much research has been conducted with respect to consumer behaviour within the unique environments of duty free retail airport retail facilities. This research points to the fact that many travellers experience feelings of anxiety, stress and excitement which make them react in unusual ways. Therefore, the environments differ from those experienced on a day to day level, or simply when not travelling. As a result, it is suggested that retailers approach to capturing the consumer's attention and desire to buy in such environments, must also be altered. With evidence that there is much impulse buying in the duty free surroundings, developing a retail strategy based on these consumer biases will increase performance. Most importantly, it has been suggested that retailers must actively create a shopping environment that minimised stress, increases excitement and appeals to a travellers desire to be impulsive in their decision to purchase. With the blend of impulsive consumer behaviour, increasing popularity of duty free liquor sales, and leading brands being stocked in duty free stores, this is a relationship that is set to continue flourishing.

Duty Free Liquor

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