Revolutionising Travel Retail
The global travel retail industry stands at a pivotal crossroads. While air travel is rebounding strongly, with global passenger traffic projected to surpass 2019 levels by 2025 and nearly double by 2042, the retail opportunity within airports is lagging behind.
Despite an increase in foot traffic, travel retail sales have declined sharply. The market contracted from $86 billion in 2019 to $72 billion in 2023, with average spend per traveler dropping 15%. This $9 billion value gap signals a clear disconnect between passenger growth and retail performance.
At the heart of this challenge is the experience gap. Airport retail environments fall short of delivering the emotional, personalized experiences travelers expect, particularly when compared to domestic boutiques, where exceptional experiences are 78% more common. With travelers essentially captive for hours at airports, the potential to engage and convert remains largely untapped.
Yet, some operators are disrupting this status quo. World-class examples—from Singapore’s Changi Airport blending retail with entertainment, to Heathrow’s Terminal 5 redefining luxury shopping with pre-booked personal stylists and flagship-quality boutiques—prove that exceptional airport experiences drive both loyalty and sales.
