International Shoppers Show Growing Demand to Travel Again
December 02 2020 - 6:07AM
Business Wire
- Global Blue’s latest research shows that 66% of
international shoppers are willing to travel in the next month if
border restrictions ease, up from 50% in June
- Affluent1 and Frequent2 shoppers are the most likely to
travel again soon, with 72% showing a desire to travel in the next
month, versus 53% of Infrequent3 shoppers
- Stores across Asia could see faster post-pandemic spend
recovery from Chinese4 and South-East Asian5 shoppers, due to new
travel corridors and Asian destinations being considered ‘safer’
than those in Europe
- American and Russian shoppers are likely to be first to
return to Europe as they consider, for 65% and 50% respectively,
these destinations safe to visit
In its latest quarterly Observatory report, leading Tax Free
Shopping provider Global Blue has found that international shoppers
are increasingly eager to return to overseas travel.
In an October survey of 16,000 international shoppers from the
top spending nationalities, China, South East Asia, GCC6, Russia,
and the USA, 66% of those asked said they were ready to travel as
soon as border restrictions ease, up from 60% in July 2020 and 50%
in June 2020.
Affluent and Frequent international shoppers are most
inclined to travel soon
For a second consecutive quarter, Affluent and Frequent
international shoppers have shown the strongest desire to return to
travel, with 72% stating they would travel when quarantines are
lifted, an increase of +5pts from July.
This grew to 73% amongst Affluent and Frequent shoppers from
China, 92% amongst those from the GCC and almost 100% amongst those
from Russia; good news for retailers looking to target these
valuable shopper nationalities.
Chinese and South East Asian spend could recover fastest in
Asia
Asian destinations could see a faster recovery of spend amongst
Chinese and South East Asian shoppers, thanks to a lower
concentration of Covid-19 cases in the region and the easing of
travel restrictions:
- 50% of Chinese shoppers and 66% of South East Asian shoppers
feel Asian destinations are safe to visit, compared with just 15%
and 25% respectively for Europe
- Borders are being softened thanks to new reciprocal travel
agreements, for example, leisure visitors from mainland China and
Hong Kong may now visit Singapore without quarantine7
Chinese shoppers’ readiness to travel regionally within Asia
could be preluded by the recovery of domestic air travel in China,
which has been back at 2019 levels since August 20208.
Meanwhile, American and Russian shoppers are likely to be
first to return to Europe
Conversely, Europe’s international shopping recovery is likely
to be fuelled initially by American and Russian shoppers.
- 65% of American shoppers say they feel safe visiting European
destinations; a positive indicator when border restrictions ease on
the continent, as American desire to travel remains high. This is
exemplified by the level of arrivals to Latin America – mostly to
Mexico - from USA which, thanks to soft border restrictions,
reached almost 80% of 2019 levels in October 20209
- 50% of Russian shoppers feel safe visiting Europe. Indeed,
Russian shoppers’ appetite to visit European destinations is
highlighted by the +5.2% year-on-year increase in flight bookings
to Turkey in early August 202010, just after the Turkey-Russia
travel corridor was established
Mathieu Grac, VP Intelligence at Global Blue: “It is highly
encouraging to see a strong desire to travel amongst international
shoppers. Although we are still amid the Covid-19 crisis, we hope
that these findings along with the news of an effective vaccine and
the opening of travel corridors, particularly in Asia Pacific,
signal a healthy restart to the international shopping industry in
2021.
“With Affluent and Frequent shoppers set to return to store
first, it is important that retailers are ready to welcome these
valuable shoppers and can accommodate a particular set of needs
that have emerged from the pandemic. Online-to-offline solutions,
limited social interaction and exceptional hygiene are key.”
ABOUT GLOBAL BLUE
Global Blue pioneered the concept of Tax Free Shopping 40 years
ago. Through continuous innovation, it has become the leading
strategic technology and payments partner, empowering merchants to
capture the growth of international shoppers.
The Group connects all stakeholders involved in the
international shopping ecosystem, helping:
- More than 29 million international shoppers receive a seamless
and personalised shopping experience, enabling them to claim back
the VAT on their eligible purchases when they shop abroad and to
pay in their home currency at a guaranteed best rate,
- More than 300,000 points of sale, including leading department
stores and luxury brands, identify growth opportunities through
smart data and intelligence solutions, increase footfall through
data-driven marketing solutions and convert traffic into merchant
revenue through innovative in-store technologies,
- More than 50 acquirers, at around 130,000 points of
interaction, benefit from additional revenue streams and offer
merchants and travellers Dynamic Currency Conversion options and
other Added-Value Payment Solutions,
- Customs & authorities in more than 40 countries increase
country attractiveness and ensure a secure and compliant Tax Free
Shopping scheme.
In the financial year ending 31 March 2020, Global Blue
processed 35 million Tax Free Shopping transactions with a total
value of €18.5 billion sales in store, and 31 million Added-Value
Payment Solutions transactions with a total value of €4.4 billion
sales in store.
Global Blue has over 2,000 employees in more than 50
countries.
For more information, visit
http://www.globalblue.com/corporate/
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1 Individual international shoppers who have spent more
than 40,000€ over the past 24 months 2 International
shoppers who have made more than 3 trips over the past 24 months
3 International shoppers travelling at least once a year
4 Continental China, Taiwan, Hong Kong, Macao 5
Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore,
Thailand, Vietnam 6 Saudi Arabia, Kuwait, UAE, Qatar
7 Source: CNBC and South China Morning Post 8 Source:
Forward Keys 2020 9 Source: Forward Keys 2020 10
Source: Forward Keys 2020
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version on businesswire.com: https://www.businesswire.com/news/home/20201202005484/en/
MEDIA CONTACT Domitille Pinta, VP Communications +33 6 11
07 52 90 - dpinta@globalblue.com
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