This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
New rules threaten travel retailing
The draconian restrictions on carrying liquids and gels onboard flights that were implemented in the aftermath of the summer liquid explosive terror play may have receded.
But the European Travel Retail Council (ETRC) has issued a stark warning that the confusion that continues to surround the new regime could yet decimate the $27 billion global duty free and travel business. Latest figures suggest that upwards of 1,200 litres of alcohol are being confiscated each day – leaving consumers enraged.
ETRC president Frank O’Connell has issued a stark warning that long-term confusion could undermine consumer confidence to such an extent that the impact could rival the devastation wrought on the industry by 9/11 and SARS. The industry celebrated a minor victory when the ‘sealed bag initiative’ was approved in October.
However the latest legislation – implemented by the EU on November 6 – is causing havoc for passengers transiting through Europe. ‘Sealed bag’ has allowed travel retailers in Europe to resume selling liquor, but those who make a purchase (of more than 100ml) elsewhere then transit through the continent are having their goods confiscated.
Making a direct plea to travel retailers to take painful steps in order to protect the long-term future of the business, O’Connell commented: “I know that it’s very difficult for retailers everywhere to tell somebody ‘please don’t buy this’. But in the long run for the future of airport retailing I think it’s crucial that we do this and we don’t have customers who have expensive products taken off them. Otherwise they’ll just say ‘to hell with this, I’m not buying at any [airport] shops anymore.’â€
The global duty free and travel retail liquor trade is worth $4.76bn, and – as well as generating significant sales – the channel represents an excellent environment for building brands. Confusion over entitlements remains the biggest threat to the trade, as demonstrated by the chaos that followed the fragmented response to the abolition of intra-EU duty free sales in 1999.