Nordic seminar tracks consumer changes

Lorna Strickland

4-May-2006

The annual Nordic Travel Retail Seminar, held earlier today, unveiled the findings of a study into consumer behaviour at some of Scandinavia's key airports

Over 100 members of the Scandinavian industry gathered for the Nordic Travel Retail Seminar today. Delegates were flown to Spain from Copenhagen on a specially-chartered MyTravel Airways Northern Europe flight, and heard from a number of the region's top executives.
 
Among the highlights of the event was a presentation by research consultancy Kairos Future on how are consumers are becoming more aspirational as they live longer. Also tracking consumer attitudes was a survey conducted by Kjaer and Schmeltzer, commissioned by the Nordic Travel Retail Group to conduct extensive consumer research among 2,500 travellers at Oslo International, Copenhagen Kastrup, Stockholm Arlanda and Helsinki Vantaa.
 
The survey suggested that Oslo's retail environment is the best-received by travellers, followed by Copenhagen, Helsinki and Arlanda. Kjaer and Schmeltzer identified four key traveller groups: those that love to shop and arrive early at the airport; those who are "shop-resistant", arriving late at the airport; convenience shoppers who buy only what they need; and price-focused shoppers looking for bargains.
 
A strong retailer panel comprising representatives from the airport, ferry and airline businesses charted how the Nordic industry has responded to the two waves of intra-EU duty-free abolition. Travel Retail Norway managing director Pål Wibe revealed how arrivals duty-free had boosted the market in Oslo, and cited the success of the operation as the perfect counter to the accusations of overbidding that greeted his company's entry into the market.
 
Scandlines' Henrik Tornager revealed how abolition forced the ferry operator to change its business model, prompting it to open a border store on the Danish-German frontier at Puttgarten. The store offers prices that are lower than Scandlines' onboard offer, causing some to query its strategy. "If you don't find a way to adapt, someone else will," argued Tornager, who pointed to the opening of a big Netto outlet near Copenhagen port as evidence of the threat posed by domestic retailers.
 
MyTravel Northern Europe purchasing manager Lars Hjartbo told delegates how lowering prices by as much as 50% on some tobacco products had resulted in a rise in spend across different categories, as passengers showed a willingness to spend the money they had saved.
 
More details on the event will appear in DFNI May 15, out next week.
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