Gen Z Shoppers Fuel Latin America & Caribbean Travel Retail

Gen Z Shoppers Fuel Latin America & Caribbean Travel Retail
Gen Z Shoppers Fuel Latin America & Caribbean Travel Retail
Written by Harry Johnson

The research on Latin American and Caribbean travelers reveals that the appeal of the duty-free shopping experience lies in factors such as killing time, convenience, lower prices, variety of choice, and product authenticity.

The latest detailed analysis of shopper behavior and air traffic patterns indicates that the younger demographic from Latin America and the Caribbean are the top spenders in travel retail.

Generation Z leads the pack, spending an average of $135, despite lower foot traffic and conversion rates within this age group. Millennials come in second, spending $129 across various categories in travel retail.

While Millennials have foot traffic in line with the global average, they tend to make more purchases than the global average specifically in Latin America and the Caribbean region.

Based on the study, business travelers are identified as one of the higher spending consumer groups, with an average spend of $129. Despite having an above-average footfall, the conversion rate among business travelers is below average.

The study also indicates that there are slight variations in spending based on nationality.

Colombians are the biggest spenders at $126, followed by Brazilians at $119. American travelers spend $120, Mexicans spend $110, and Canadians spend $101 when shopping in Latin America and the Caribbean.

When it comes to footfall and conversion rates by nationality, Mexicans and Colombians tend to visit shops less frequently but make purchases more often than average. On the other hand, travelers from Brazil, the US, and Canada visit shops more frequently than average but have a below-average conversion rate.

According to the study, shoppers from the region have distinct preferences when it comes to their purchases. The top three categories favored by these shoppers are Chocolate & Confectionery, Alcohol and Perfumes. Interestingly, the proportions of these purchases differ significantly from the global average. A notable 35% of shoppers from the region purchased Confectionery, which is 6 points higher than the global average. Additionally, 27% of shoppers from the region bought Alcohol, compared to 24% globally. The third most popular category, Perfumes, was purchased by 22% of Latin American and Caribbean shoppers, which is 6% below the global average.

The research on Latin American and Caribbean travelers reveals that the appeal of the duty-free shopping experience lies in factors such as killing time, convenience, lower prices, variety of choice, and product authenticity. When considering the main drivers for purchases, the in-store experience surpasses ‘value’, with 50% of shoppers from the region citing ‘experience’ as their primary motivation, which is 7 points higher than ‘value’ at 43%. Suitability is the third most important driver, mentioned by 38% of Latin American and Caribbean shoppers. Individually, the top purchase driver is good value for money (25%), followed by convenience (23%), brand loyalty (19%), sufficient dwell time (17%), and the suitability of the shopping experience for self-indulgence (15%).

Latin American and Caribbean shoppers prioritize various influencing factors when making purchase decisions. These factors include the distinctiveness of products and promotions, as well as interactions with staff members. Promotions, exclusives, and novel products play a significant role in influencing their decisions. A majority of shoppers from the region, 52%, have bought products on promotion, 56% have purchased duty-free exclusives, and 61% have bought products they had never tried before.

The in-store sales staff also plays a crucial role in influencing shoppers in travel retail. Regardless of the passenger’s region or nationality, these sales staff members are highly influential. The research agency highlights that shoppers from Latin America and the Caribbean have a higher tendency to interact with sales staff compared to the global average (54% vs 48%). However, the impact of this interaction is less effective among regional shoppers. Just under two-thirds of Latin American and Caribbean shoppers reported a positive impact from the interaction, which is slightly lower than the global average of 71%. This indicates a specific area for improvement to enhance the shopping basket.

The study also placed emphasis on the examination of air traffic performance throughout the region and highlights the noteworthy fact that in 2024, international departures will exceed the pre-pandemic level of 2019 for the second consecutive year, reaching a total of 128 million passenger trips. This figure represents an 8% increase compared to the 2019 level, which is five percentage points higher than the global average of 103% compared to 2019. Furthermore, this achievement places the region ahead of all other world regions, with the exception of the Middle East & Africa.

About the author

Harry Johnson

Harry Johnson has been the assignment editor for eTurboNews for mroe than 20 years. He lives in Honolulu, Hawaii, and is originally from Europe. He enjoys writing and covering the news.

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