During the recent webinar on the TFWA Global Cruise Duty Free Buyer Understanding Study 2025, organized by the TFWA (Tax Free World Association), a detailed analysis of the cruise retail sector was presented. The event featured two major interventions: Stephen Hillam, CEO of Pi Insight, who unveiled the findings of his study on cruise passenger behavior, and Lisa Bauer, CEO of Starboard, who shared her insights on how brands can adapt to this evolving sector.

A Revelatory Study on Cruise Passengers’ Behavior

Stephen Hillam presented the results of an in-depth study conducted by Pi Insight, focusing on purchasing behavior among cruise passengers from six different nationalities. The findings are clear: cruise passengers are high-potential consumers, with shopping habits that differ significantly from traditional travelers. While cruise passengers may be similar to airport customers in some ways, they display a unique combination of spontaneity and thoughtfulness—a factor that retailers can leverage to target this audience more effectively.

Among the most striking results, it was revealed that 56% of cruise passengers make purchases onboard, a much higher percentage than the 40% seen in airports. Additionally, 46% of shoppers visit duty-free shops multiple times during a cruise. These numbers indicate that cruise retail is not just bouncing back from the pandemic; it is undergoing a complete transformation in the shopping experience.

An Unexpected Consumer Profile

The data also reveals an unexpected consumer profile. Cruise passengers are typically in their forties, with an equal male-to-female split. They are not casual buyers but rather frequent travelers, with 60% of them having taken at least three cruises in the last three years. This presents a significant opportunity for customer retention and repeated engagement.

One of the most notable aspects of cruise retail is the dominance of impulse buying: 60% of purchases are spontaneous, while only 36% of consumers remain loyal to familiar brands, compared to 50% in airports. This suggests that cruise retail serves as a discovery channel for brands, with 16% of purchases representing a first-time brand experience, double the rate observed in airports.

In terms of product categories, alcohol ranks at the top, followed by souvenirs, jewelry, and beauty products. However, preferences vary significantly by nationality. American and Chinese travelers tend to prioritize alcohol and confectionery, while Taiwanese and British passengers show a stronger interest in beauty products.

The Crucial Role of Human Interaction

The study also highlights the importance of interactions with staff. 52% of customers interact with crew members, and 60% of those interactions positively influence their purchasing decisions. This represents a key opportunity for retailers to focus on staff training and to create more personalized and engaging experiences for customers.

Key Strategies for Cruise Retail

The study suggests six essential strategies for retailers to maximize their impact at sea:

1. Pre-cruise communication to capture cruise passengers’ attention even before they board.
2. Converting new visitors by optimizing the shopping experience for passengers who are less familiar with onboard shops.
3. Enhancing gift options, an underdeveloped area despite the fact that many passengers celebrate events on board.
4. Highlighting unique products to differentiate brands from the competition.
5. Empowering staff to ensure a more engaging approach.
6. Removing purchase barriers by making products more accessible and reducing hesitation from customers.

Lisa Bauer’s Insights: Rethinking the Shopping Experience

During a Q&A session led by Nadine Huebel, travel retail expert, Lisa Bauer emphasized the need for a radical rethinking of the onboard shopping experience. She stated that brands should treat each cruise line as if it were their only customer, moving away from the “peanut butter strategy” of applying the same business formula to all cruise lines and ships.

Bauer pointed out that many brands still underestimate the differences between cruise lines, whether in terms of itineraries or passenger profiles, and warned that a standardized approach is no longer relevant. Instead, brands should develop tailored experiences for each cruise line, creating unique concepts and experiences that reflect the identity of the ship.

Referring to Pi Insight’s study, which revealed that despite the increase in passenger numbers, 44% of the most loyal customers never visit the shops onboard, Bauer noted that cruise retail is missing out on a massive market penetration opportunity. On average, a cruise passenger takes five cruises before fully understanding the onboard offerings, with many unaware that a shop even exists on the ship. Cruise line websites typically don’t mention onboard retail either. Bauer stressed: “We need to be more engaging from the start.”

Underutilized Opportunities and Challenges

Bauer also pointed out the under-exploited gifting sector. Although nearly 50% of customers celebrate an event on board, only 19% of purchases are gifts. She believes there is a huge, untapped potential for gift purchases, especially through personalization.

Regarding pricing, Bauer acknowledged that customers often perceive onboard prices as higher. The solution, she says, lies in differentiating the offer: “The opportunity lies in exclusivity and unique offers, moving beyond the price debate. Offering a gift with every purchase can make all the difference. We also need to be proactive, as customers expect everything to be discounted on the last day.”

Bauer also encouraged brands to rethink their assumptions about what works at sea. Some categories, once considered unsuitable, are now seeing significant success. She cited the example of vintage handbags, which are selling very well: “We need to identify the brands that truly want to appeal to cruise passengers.” This year, Starboard introduced 65 new brands to the cruise market.

A Call to Action for Brands Interested in Cruise Retail

In her call to action for brands looking to enter the cruise retail market, Bauer advised them to begin by exploring the cruise retailers’ websites and visiting the “Become a Supplier” section of Starboard. “Nothing happens without dialogue,” she said. “Learn about the membership conditions… We welcome all types of clients, from iconic international brands to emerging startups,” she concluded.

Conclusion: The Future of Cruise Retail

Cruise retail is a sector in transformation. While the post-pandemic recovery has brought about significant changes, the study shows there is still much to be done to optimize the customer experience onboard. By adapting their strategies, brands can not only attract new customers but also retain loyal cruise passengers, a high-potential market.

Lisa Bauer concluded with an important call to action: “Start engaging with cruise retail today and learn what it takes to succeed in this dynamic environment.”

With a well-adapted strategy and a focus on customer experience, cruise retail has a bright future ahead.