Asia Pacific air traffic returns to pre-COVID levels according to DFWC
International passenger departures in Asia Pacific have finally grown back to pre-COVID 2019 levels, according to the Duty Free World Council’s quarterly KPI Monitor for the fourth quarter of 2024, with 129 million international departures in the quarter.
The monitor, produced by leading industry research agency m1nd-set, shows global departures at 110% of the 2019 levels in Q4 2024 with 515 million international departures during the period of October – December. Air traffic in Europe was on a par with the global growth average at 110% compared to the same period in 2019, totaling 230 million passengers. North and South America both saw above-average growth at 119% for the quarter, with North America posting 57 million departures and South America 33 million.
The leading region for Q4 2024 in terms of traffic growth was the Middle East & Africa, at 121% compared to the same period in 2019 with 66 million international departures.
European airports dominate the top ten rankings for international departures in Q4 2024 with five airports in the top ten rankings; Asia Pacific follows with four top ten airports.
Dubai leads the rankings with 12.3 million passengers, followed closely by London Heathrow in second place with 12.1 million. Singapore Changi Airport completes the top 3 in Q4 2024 with 10.4 million international departures. Seoul Incheon had 10 million international departures during the period, and Amsterdam, 9.4 million. The other top ten airports for Q4 2024, from sixth to tenth position were Paris Charles De Gaulle (9.3 million); Frankfurt (8.1 million); Hong Kong (8.0 million); Istanbul (7.4 million) and Bangkok (6.6 million).
Looking at shopper behaviors, the key drivers to purchase remain stable between Q3 and Q4 2024, with the leading purchase driver – “good value for money” – increasing moderately in importance among global shoppers, from 25% in Q3 to 27% in Q4. Convenience as a purchase driver dropped from 19% to 18% over the two quarters. Self-indulgence increased over the period as both “suitability as a self-treat” and “to indulge myself” as reasons to purchase in Duty Free both increased by 1% between Q3 and Q4.
While value for money remains the leading purchase driver, the influence of price has declined significantly in recent years.
Dr. Peter Mohn, owner and CEO of m1nd-set, commented, “We are witnessing a clear shift in shoppers’ perception of price in Duty Free. Price advantage is becoming less of a determining factor, while the in-store experience is becoming more important.
“Over the past few years,” Mohn continued “the percentage of global Duty Free shoppers who view price advantage as a key purchase driver has dropped sharply from 30% to just 13%. In terms of net drivers, promotions and value for money now rank second at 44%, while in-store experiences have overtaken price as a purchase driver, with 45% of shoppers citing the overall experience as a primary influence on their purchasing decisions.”
Despite this, higher prices are cited by non-shoppers as the main reason not to purchase in Duty Free. 17% of travelers who did not purchase in Q4 2024 said that “higher prices than at home” deterred them from purchasing from Duty Free shops, and 15% of respondents cited “higher prices than at their destination”, up from 14% in Q3, as a reason not to purchase.
At least 15% also said they “had no intention of purchasing anything”, 14% cited the “lack of interesting promotions”, and the same percentage claimed they did not purchase because they were “unwilling to carry more items”. 12% of non-shoppers said it was because they “purchased elsewhere”.
In line with the insights on purchase drivers, purchases for self increased moderately between Q3 and Q4 2024, rising from 53% to 55%, while gifting purchases declined from 24% to 22%. Purchases made to share, and on-request purchases, saw minimal change between the two quarters, with sharing purchases decreasing from 17% to 16%, and on-request purchases increasing from 6% to 7%.
The drop in shoppers planning their purchases, from 29% to 27% between Q3 and Q4, can be attributed to reduced exposure to key touchpoints. In Q4, only 30% of shoppers reported noticing information about Duty Free offerings, down from 34% in Q3. Online searches were the primary source of information, with shoppers turning to general internet searches, specific shopping sites, brand websites, social media, and retailers’ own websites.
Another vital touch point – the instore sales staff – also declined in importance and impact between Q3 and Q4 2024. Only 45% of shoppers interacted with the sales staff during their last visit to the Duty Free shops in Q4, down from 49% in Q3. Of those who interacted, 72% said they were positively influenced by the advice they received, down 4% from Q3.
DFWC President, Sarah Branquinho, emphasized that the quarterly KPI Monitor aims to highlight emerging trends, noting that the latest findings indicate areas needing attention. “To stay competitive retailers must prioritize enhancing the in-store experience, as it’s now the key driver of purchasing decisions. This means among other offering interactive displays, personalized services, and exclusive, premium products.
“Transparent pricing strategies and stronger online engagement are also essential,” Branquinho continued, “as many shoppers research the duty free offer before they arrive at the airport. In-store staff training should also focus on providing personalized service, as customer interaction remains a key factor in influencing purchases.
Finally, a stronger emphasis on tailored, time-sensitive promotions and loyalty programs will appeal to both value-driven and experience-focused shoppers, ensuring they feel rewarded for their purchases and encouraged to return,” Branquinho concluded.
