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Travel Retail - UK - June 2016

OVERVIEW
What you need to know
Areas covered in this Report
EXECUTIVE SUMMARY
The market
Holiday taking on the rise
Figure 1: Holiday review – Estimated overseas and domestic holiday market volumes, 2010-16
Rail travel continues to grow in popularity
Figure 2: Average number of trips taken per person per year, by car/van and surface rail, 1995-2014
More vehicles and heavier flows on the UK’s motorway network
Figure 3: Number of licensed vehicles in Great Britain, 2010-15
Air passenger travel bouncing back
Figure 4: Total passenger numbers at reporting UK airports, 2005-15
The consumer
Railway stations most visited
Figure 5: Reasons for travel hub visitation, April 2016
Foodservice outlets most visited
Figure 6: Outlets purchased from in travel hubs, April 2016
Food-to-go the primary reason for purchasing
Figure 7: Reasons for buying in travel hubs, April 2016
Retail purchasing concentrated on outlets than can serve food-to-go needs
Figure 8: Retail outlets purchased from, by travel hub, April 2016
Pricing a concern for many visitors
Figure 9: Satisfaction with factors relating to purchasing in travel hubs, April 2016
Travellers acknowledge the development of travel retail, but want more
Figure 10: Attitudes towards retailers within travel hubs, April 2016
Shedding the baggage
Figure 11: Attitudes towards online shopping and home delivery in travel hubs, April 2016
What we think
ISSUES AND INSIGHTS
MSAs: Variety the spice of life?
The facts
The implications
Railway stations – Getting click-and-collect in perspective
The facts
The implications
Airport terminals – Will a rise in city breaks affect trading?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Real incomes rising leaving more disposable income
Overseas holidays growing faster than domestic holidays
Car travel remains key but railway travel growing
Dwell times low in railway stations
Airport terminals welcome a record number of passengers
MARKET DRIVERS
Real incomes growing
Figure 12: Real wages growth – Wages growth vs inflation, 2011-16
Domestic holiday market recovering, but overseas growing stronger
Figure 13: Holiday Review: estimated overseas and domestic holiday market volumes, 2010-16
Trip distance per year by type
Figure 14: Trip distance per person per year, by main mode and purpose, 2014
Increasing railway use
Figure 15: Average number of trips taken per person per year, by car/van and surface rail, 1995-2014
Figure 16: Average distance travelled by car/van and surface rail, 1995-2014
Railway stations – Dwell times crucial
Figure 17: Footfall breakdown for selected national rail stations, 2015
Number of vehicles continues to rise on UK roads…
Figure 18: Number of licensed vehicles in Great Britain, by type, 2010-15
…causing increased flow on the motorway network
Figure 19: Average daily motor vehicle flow for major sections of the motorway network, 2015
Air passenger traffic bouncing back
Figure 20: Total passenger numbers at reporting UK airports, 2005-15
Figure 21: Air passengers at selected leading UK airports, 2011-15
KEY PLAYERS– WHAT YOU NEED TO KNOW
MSAs
A concentrated field…
…and a concentrated offering
Railway stations
A diverse network
A more even split of foodservice and retail
Airport terminals
Five airports account for 69% of all passengers
Offering geared more to retail
INNOVATION
Airports
Produced on-site
Figure 22: The Nicholas Culpeper distillery Gatwick Airport, April 2016
Figure 23: JetBlue farm, JFK Airport, 2015
Happy meals
Appealing to whisky fans
Figure 24: Heathrow Airport exclusive whisky stones designed by Giles Deacon, April 2016
Monetising and removing the hassle of travelling with luggage
Figure 25: Example of an Orion Mobile Luggage advertisement, 2015
Airport cheat sheets
Figure 26: Flio application, 2015
Surfing at 20,000 feet
MSAs
New dining concepts from Moto
Figure 27: Arlo’s Pantry & Kitchen, Chieveley Services 2015
Roadchef signs up Spar
Electric charging points ramp up
Fuel prices to be advertised
Railway stations
Big box, little box
Figure 28: M&S Waterloo, order point, June 2015
Figure 29: Waitrose King’s Cross, collection point, March 2016
Birmingham Grand Central cleans up its look
Figure 30: Birmingham Grand Central shopping centre, September 2015
High-speed shopping
Selfie stick library
Figure 31: Southeastern selfie stick, August 2015
Adult colouring books
Fresh to you
TRAVEL POINT OPERATORS – MSAS
Figure 32: Summary of the leading UK MSA operators, 2016
MSA operators – Key financials
Figure 33: Revenues of the leading MSA operators, 2011-15
Figure 34: Operating profits of the leading MSA operators, 2011-15
Moto Group
Figure 35: Moto: Breakdown of non-fuel revenues, 2015
Roadchef
Westmorland
TRAVEL POINT OPERATORS – RAILWAY STATIONS
Figure 36: Stations operated by train operating companies in the UK, 2014/15
Network Rail – Key statistics
Figure 37: Network Rail financial performance, 2011-15
Strong growth from retail
Figure 38: Like-for-like retail sales performance at Network Rail managed stations vs British Retail Consortium high street figures, 2012/13-2014/15
A correlation between dwell times and station size
Figure 39: Area and dwell times of select National Rail managed stations, 2015
Further development of the rail network
TRAVEL POINT OPERATORS – AIRPORT TERMINALS
Figure 40: The UK’s five largest airports, by passenger numbers, 2015
Heathrow Airport
Gatwick Airport
Manchester Airport Group
Airport operators – Key financials
Figure 41: Leading airport operators’ revenues, 2011-15
Figure 42: Leading airport groups’ operating profits, 2011-15
Breakdown of revenues
Figure 43: Leading airport groups’ breakdown of revenues, 2014/15
Retail revenue breakdown
Figure 44: Breakdown of Heathrow’s retail revenues, 2015
Figure 45: Breakdown of Gatwick’s retail revenues, 2014/15
OUTLETS IN TRAVEL HUBS
Figure 46: Leading travel hubs, mix of foodservice and retail outlets, 2016
Uniqueness of offering within travel hubs
Figure 47: Total number of unique outlets within analysed travel hubs, 2016
Figure 48: Total number of unique outlets within analysed travel hubs, by foodservice and retail outlets, 2016
Breakdown of foodservice
Figure 49: Breakdown of foodservice offering within travel hubs, 2016
Breakdown of retail
Figure 50: Breakdown of the retail offering within travel hubs, 2016
Leading brands within travel hubs
Figure 51: Leading foodservice and retail outlets, by total number of outlets within the analysed travel hubs, 2016
Methodology
THE CONSUMER – WHAT YOU NEED TO KNOW
Stations most popular in terms of visitation
Airports show the highest level of retail purchasing
Food the driver of retail purchasing
Pricing a sticking point
Consumers acknowledge the development of retail within travel hubs, but want more
Carry me home…
TRAVEL HUB VISITATION AND REASONS FOR VISITING
Stations most popular
Figure 52: Travel hub visitation, 2015 and 2016
Visitation skews younger
Figure 53: Travel hub visitation, by age, April 2016
Reasons for visiting
Figure 54: Reasons for travel hub visitation, April 2016
WHERE THEY BUY IN TRAVEL HUBS
Airports show the highest levels of retail purchasing
Figure 55: Outlets purchased from in travel hubs, April 2016
Purchase attach rate in travel hubs
Figure 56: Purchase attach rate in travel hubs, April 2016
Outlets used by reason for visit
Figure 57: Outlets purchased from in travel hubs, by reason for visiting, April 2016
Foodservice outlets used
Figure 58: Foodservice/drink outlets purchased from, by travel hub, April 2016
Figure 59: Coffee shop and fast food outlet usage, by age and travel hub visited, March 2016
Retail outlets used
Figure 60: Retail outlets purchased from, by travel hub, April 2016
Figure 61: Retail outlets most purchased from in travel hubs, by travel hub and age, April 2016
Repertoire of travel hub outlet usage
Figure 62: Repertoire analysis of outlets used in travel hubs, April 2016
REASONS FOR BUYING AND NOT BUYING IN TRAVEL HUBS
Figure 63: Reasons for buying in travel hubs, April 2016
Figure 64: Reasons for buying in travel hubs, by travel hub visited, April 2016
Reasons for not buying
Figure 65: Reasons for not purchasing items in a retail outlet whilst in a travel hub, April 2016
SATISFACTION WITH TRAVEL HUBS
Figure 66: Satisfaction with factors relating to purchasing in travel hubs, April 2016
Key driver analysis – Railway station
Figure 67: Key drivers of overall satisfaction with most recently visited railway station, April 2016
Figure 68: Overall satisfaction with most recently visited railway station – Key driver output, April 2016
Key driver analysis – Motorway service area
Figure 69: Key drivers of overall satisfaction with most recently visited motorway service area, April 2016
Figure 70: Overall satisfaction with most recently visited motorway service area – Key driver output, April 2016
Key driver analysis – Airports
Figure 71: Key drivers of overall satisfaction with most recently visited airport terminal, April 2016
Figure 72: Overall satisfaction with most recently visited airport terminal – Key driver output, April 2016
How the hubs compare
Figure 73: Overall satisfaction with travel hubs, April 2016
Satisfaction with range, quality and price
Figure 74: Satisfaction with factors in travel hubs, by travel hub, April 2016
Satisfaction with other factors in travel hubs
Figure 75: Satisfaction with other factors in travel hubs, by travel hub, April 2016
ATTITUDES TOWARDS BUYING IN TRAVEL HUBS
Attitudes towards retailers and buying in travel hubs
Figure 76: Attitudes towards retailers within travel hubs, April 2016
Figure 77: Agreement with statements around retailers within travel hubs, by age, April 2016
Figure 78: Agreement with the statement ‘Unfamiliar stores are more appealing to me in travel hubs’, by reason for visiting and hub visited, April 2016
Attitudes towards online retailing and home delivery
Figure 79: Attitudes towards online shopping and home delivery in travel hubs, April 2016
Figure 80: Agreement with statements regarding online shopping and travel hubs, by travel hub, April 2016
Time savers in travel hubs
Figure 81: Attitudes towards online shopping and home delivery in travel hubs, April 2016
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
Financial definitions
Abbreviations
Consumer research
Methodology
Key driver analysis – Airport terminals
Figure 82: Overall satisfaction with most recently visited airport terminal – key driver output, April 2016
Figure 83: Satisfaction with most recently visited airport terminal, April 2016
Key driver analysis – MSAs
Figure 84: Overall satisfaction with most recently visited motorway service area – key driver output, April 2016
Figure 85: Satisfaction with most recently visited motorway service area, April 2016
Key driver analysis – Railway Stations
Figure 86: Overall satisfaction with most recently visited railway station – key driver output, April 2016
Figure 87: Satisfaction with most recently visited motorway service area, April 2016

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