INTERNATIONAL. The Duty Free World Council’s (DFWC) KPI Monitor for the first quarter of 2018 shows Asia Pacific leads the way among all global regions in the overall satisfaction index.
The quarterly KPI Monitor is produced by Swiss research and consultancy agency m1nd-set. It monitors global passengers’ satisfaction with the duty free offer across various criteria.
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Asia Pacific scored 67%, which is +4% above the global average and the same score as it recorded in Q4 2017. The Middle East was the only region to increase its score, with a +1% higher rating this time. The global average has slipped -1% to 63%, which DFWC said was the result of declining scores in both Europe and South America.
The monitor integrates the air traffic benchmark, with traffic data from the International Air Transport Association (IATA). The year-on-year growth index for Q1 2018 versus Q1 2017 puts Asia Pacific once again in lead position in terms of growth, at +9%. This is slower than in the previous quarter, when the region recorded +12% year-on-year growth.
Europe, the largest region for international traffic, and Africa have the second highest growth rate, at 8%, in line with the global average. Both North and Latin American traffic grew +7% in Q1 while the Middle East showed the least dynamic growth, at +2%.
Enhancing the experience
The KPI Monitor shows that the key satisfaction driver among travellers’ perception of duty free is as “a place to try and buy new products”. This was expressed by 32% of shoppers, up +2% on the previous quarter.
The only other satisfaction driver to increase in Q1 over the previous quarter is the differentiation criteria; duty free as a place to have a “truly different experience”. The percentage of shoppers who agree with the statement has increased for the past two quarters.
All other satisfaction drivers either stagnated or declined in Q1 this year, including the perception that duty free prices are cheaper. Agreement with this statement has fallen to below 25% of passengers. “This is a cause for concern, as value for money is the number one aspect for passenger satisfaction with the duty free shopping experience,” DFWC noted.
Despite this, the price advantage and value for money in duty free are the top two reasons for purchasing in duty free shops. The notion of unique or different products and convenience are equal third most common reasons for purchasing, according to the report.
The KPI Monitor also analyses the thoughts of non-shoppers. The main reasons cited by international travellers for not purchasing from the duty free shops during their last trip were the lack of motivating promotions and high prices. The third highest-cited reason is the lack of new and interesting products.
The report is compiled from over 4,000 face-to-face interviews with travellers at airports across all major world regions during Q1 2018, with the fieldwork and analysis undertaken in March.
