A good indication of the importance of travel retail today: brands have started measuring sales by nationality rather than by region! There are many reasons or motives for seniors to go on vacation. Above all, there are social reasons such as social integration (Teaff, 1985) and time spent with family and friends (Tourism Queensland, n.d.) that lead to happiness and satisfaction (Teaff, 1985). Second, health is an important motive. “About three-quarters (76%) of seniors believe travel is important to maintaining their overall health and well-being” (Tourism Queensland, n.d., p. 1). In addition, seniors want to get out of their daily lives and travel to places they have always wanted to visit (Tourism Queensland, n.d.). In grey market trading, trading is binding, but can only be settled with the start of official trading. This can result in non-compliance with trade by an unscrupulous party. Because of this risk, some institutional investors, such as pension funds and mutual funds, may forgo grey market trading. But travelers` behavior has also changed.
In addition to attractive prices, travelers enjoy the pleasure of shopping while traveling. They expect different levels of service, comfort and recognition, as well as high-end product merchandising. They`re looking for the luxury experience – and that`s what duty-free retailers are trying to take into account. Ten years ago, luxury purchases by Chinese consumers in mainland China were split 50/50 between purchases in mainland China and retail travel purchases. Last year, up to 75% of luxury purchases came from abroad, combining travel retail and grey market (structured agencies, called Daigou in China, as well as purchases made by Chinese consumers in China on international e-commerce sites). DOI link for UK `grey` market holiday experience This article is about grey tourism in Australia. First, definitions, facts and figures on grey tourism and seniors` travel motivation are presented. Second, various forms and activities of grey tourism in Australia are identified. Next, the paper analyzes the growing grey tourism market and illustrates the factors that influence senior travelers. In addition, grey tourism considerations are examined.
The paper will argue that recreation managers need to take into account that grey tourism is gaining ground in their industry and that special measures need to be taken to serve this growing market segment. For a while, brands might have their cake and eat it too. While their international markets were still in their infancy, they could afford to turn a blind eye to unauthorized wholesaling and lost profits from travel retail. After all, the products sold were not counterfeits and would ultimately yield a profit. Of course, some individuals, companies and even mafia organizations understood very quickly how much they could profit from exploiting the price difference between European and emerging markets. At this point, a humble B2C channel has become a B2B2C channel. And the phenomenon has swelled with the number of Asian tourists and the growing purchasing power of Chinese consumers in particular. Some grey markets are considerable in size. Doing business outside of official channels poses challenges for merchandise manufacturers. In addition to the loss of revenue that a company can directly record, the grey market carries a risk to brand value and harms relationships in the formal distribution channel of wholesalers, distributors and retailers whose exclusivity for desirable products is weakened. The term “grey market” also refers to the importation and sale of goods by unauthorized traders; In this case too, such activity is not official, but is not illegal. Travelers noticed the price gap in Europe and Japan, Hong Kong and Taiwan – and took advantage of this gap when traveling abroad.
“Australians are living longer, retiring earlier and healthier than ever in their old age” (Barnes, 2002, p.169). In addition, the majority of retirees are financially more financially secure than previous generations (Barnes, 2002) and tend to spend a higher proportion of their income on travel than younger people (Tourism Queensland, n.d.). Therefore, older people usually meet the necessary conditions – time, health and money – to look for interesting destinations for a longer off-season vacation. Grey tourism is a niche market in the tourism sector, referring to the seniors` travel market (Economic Development Committee, 2010). However, there are different definitions of seniors. In the following, Tourism Queensland`s definition will serve as a basis, as this definition is also used in other publications and is consistent with the general assumption that people have in mind when thinking of older people: “The term senior is generally used to refer to a person aged 60 years or older” (Tourism Queensland, n.d., 1). Today, luxury brands are aware that there are many channels available to consumers to buy their products. Travel retail takes many forms: residents and foreigners can shop duty-free in duty-free shops; in tax-free markets or in cities like Hong Kong; and in flagship stores or customs-cleared department stores. Today`s savvy consumers benefit from lower local prices, currency fluctuations, and tax refund procedures. This confirms the fact that e-commerce will become a driving force for change in the development of travel retail and could even pose a threat to traditional travel retailers unless they can integrate certain online elements into their traditional offerings. Although it is not always the only driver of the development of travel retail, the price element remains the main factor of the grey market. If international retail prices of luxury and fashion brands were more aligned, there would be less space for tourists and grey market operators.
Customers who purchase such products at a discounted price may encounter problems in the future and need to ensure that they meet local safety and certification standards. After-sales service and support is another important issue, as authorized dealers may not be willing to service goods purchased on the grey market. The grey market for goods thrives when there is a large price gap for a popular product in different countries. In many countries, there is a significant gray market for popular consumer appliances and electronics, as they can easily be purchased online and shipped anywhere. Other popular grey market products include luxury cars, high-end clothing, handbags and shoes, cigarettes, pharmaceuticals and cosmetics. Unauthorized retailers can import these items in bulk and sell them at a price still well below the local cost, despite a healthy profit margin. Introduction This chapter focuses on research into the overseas package travel experience for older consumers in the UK, defined here as those over 50 and forming the so-called `grey` or older market.
