Updated: Nov 28, 2022
In this blog I talk about what to expect when you plan your summer travel and a some tips and trends the travel retailers you encounter could begin to think about to better serve their customers needs!
Are you thinking about flying this summer? You’re not alone—and you might face some delays. As travelers are ready to put aside the last 2 years and get back time lost.
Americans are looking forward to summer vacation this year, with nearly three-quarters (73%) reporting they have trips planned — it's a pandemic high and a 20-percentage-point increase from last year.
All signs are pointing to a summer travel boom. The major travel retail brands are doubling down on their efforts to get back to a "normal" operating standard. As travel retailers in the airports are still struggling with supply chain issues, staffing vacancies, and the pressure from airports to pay their full contractual obligations in terms of rent and overhead though many especially in the Duty Free and International Only retailers have yet to recover 100%.
But the surge in pent-up demand for flights will likely have consequences. Despite record-high ticket prices around the globe, airfare inventory is low across the entire industry.
Airlines are dealing with pilot and staff shortages, unpredictable fuel prices could cause airfares to increase even double, and with the lifting of most Covid-19 related restrictions and the huge crowds that are expected there is an uneasy feeling we could be right back to where we were.
Travel Retail operators across the globe including airports, cruise ports and tourist destinations are struggling with staffing, supply chain shortages, and a more demanding consumer whom expects omni channel solutions, a fast check out process with little human interaction and almost 60% of passengers are now looking at the items they want to purchase before they get to the location. They are more savvy on pricing and expect more for their money then every before.
Travel retailers like their Big Box Ground Store family members are going to have to adapt to stay relevant with the "new" consumer.
Here are 4 "Trends" that need to be considered:
They will need to embrace the consumers new shopping trends and adapt assortments and product offerings to a new wave of intelligent shoppers.
Consumers expect a "shopping experience" and surveys have shown that they are willing to spend more for it. But with staff shortages these consumers will get anything but a great time.
Shoppers want a fast check-in and checkout! The days where a retailer thought having one cashier was the answer is long gone. And both International and Domestic travelers won't wait when they can buy their items online anywhere or purchase when they get to their destination.
Shoppers expect to have the products they want on the shelves. Inventory programs and data driven supply chain are going to be keys to any travel retail company that wants to move into the future and see 2023.
If you would like help putting a business plan together or opening up a new retail location I would be happy to discuss how we can help. Get in touch with me here!
We help food and beverage retailers experience significant profit growth, with a clear roadmap to increase sales by 25% and improve customer service from worst to first with my "Passion for Profits" system. We will reduce operating expenses, improve your customer service standards and help develop your teams for long term growth.
If you would like to find out how we can help you check out my LinkedIn Page Here!
Thank you and I hope wherever your travels take you this summer it is enjoyable and you make memories that will last a lifetime!
Chris Berthelson Founder and Consultant Wise Precision Business Consulting www.wiseconsulting.biz firstname.lastname@example.org 954 540 5864 Schedule your Free Consultation with Me Here!