This article was initially published in the February issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
A great deal of research has been conducted to understand why travellers buy alcohol brands in the global travel retail channel. Traditionally, this research has focused mainly on key purchase drivers such as promotions, price, gifting, self-treat, etc.
In order to satisfy consumer needs – and unlock growth for brand owners and retailers – it’s important to understand traveller behaviour at a deeper level and recognise the occasions they are purchasing wine and spirits for. I’ve identified seven ‘occasions’ – they will likely vary in importance depending upon location and nationalities – all of which are important to consider and develop a greater understanding of.
To consume while away
Travellers buying for this occasion will be doing so from their departure location, for example in the airport store, onboard a flight or in a ferry shop. Some purchases may also be made at the destination airports’ arrival stores.
The type of products they buy will depend on the reason for travel, the destination and the length of the trip. Convenience plays an important role here, with some travellers looking to buy ready-to-drink cocktails they can enjoy as soon as they arrive. The rising number of travellers enjoying self-catering holidays means this occasion is growing. For some, this may mean purchasing a more special bottle than they would at home, to treat themselves while they are away.
This isn’t limited to leisure travellers: business travellers who don’t have the luxury of expensing alcohol to their companies also make purchases to drink while they’re away. For shorter trips, for example, smaller-size bottles such as 50cl have a role to play.
To top up the home bar
‘Pantry stuffing’ has become more sophisticated as more consumers have home bars and retain their appetite for experimenting with cocktail-making. When a traveller knows they’re running low on a favourite brand at home, they may purchase it in travel retail thanks to the price saving, a promotion or simply because it’s available in a 1-litre size bottle.
This occasion is likely to be one of the reasons a traveller makes their purchase on the return trip home.
To expand the home bar range
The continued strength of the trends towards home consumption and cocktail experimentation worldwide have resulted in travellers willing to seek out products in GTR that will broaden their spirits range that they have in their home bars. This means there’s a great opportunity to introduce travellers to categories they haven’t considered before. Examples I can immediately think of are premium rum, tequila and mezcal.
These travellers may also be looking for liqueurs or other cocktail ingredients. Local brands to the country they’ve just visited also play a role here, with travellers wanting to take home the spirit they enjoyed while away.
To add to the collection
Some travellers are looking for special bottles, such as GTR-exclusives or limited editions. They may want to add to their collection of expressions from a specific brand or find a rare bottle of single malt whisky or Cognac.
It’s important, then, that these ‘collectible’ bottles are prominent, to highlight what’s available for this occasion.
To share with the host
Those travelling to visit friends and family may have a need to buy a bottle of alcohol to share at their destination. In the opposite direction, travellers returning home after a trip may wish to buy a bottle for a ‘slides-showing’ event they are hosting. To meet these needs, these travellers may be looking for local brands or special bottles that give them the opportunity to share something with a point of difference.
To show appreciation
Gifting to others is an important reason why travellers buy alcohol in GTR. The need might be to mark a special occasion or to say thank you. Shoppers buying gifts generally play it safe, preferring brands that either they or the recipient knows and likes.
To do a friend a favour
Some travellers may have been given a shopping list by a friend or family member. In high duty and tax markets, this could be a request for a brand that’s more affordable in GTR. It could also be a request to buy a channel-exclusive expression they have seen advertised.
Hopefully, these seven occasions provide food for thought when identifying why consumers make their alcohol choices in GTR. But, this is just a starting point – no doubt further research will uncover more.
Doing so has the potential to unlock growth in GTR and ensure brand owners and channel operators are giving travellers what they’re looking for.
This article was initially published in the February issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
