CANNES, France — The travel retail industry is confronting significant challenges. Despite an increase in traveler footfall—estimated at 9.8 billion passengers in 2025—individual spending per passenger has decreased. Sarah Branquinho, president of TFWA World Exhibition & Conference, highlighted that retail revenue per passenger has dropped by over 20% since before the pandemic.
Several factors contribute to this decline, including changing passenger behaviors, the growing influence of online shopping platforms like Amazon, and increased digital distractions. The focus is no longer just on competing with high street prices but also with global e-commerce platforms.
Branquinho emphasized the need for travel retail to reinvent itself and create compelling shopping experiences to attract younger consumers, who are projected to make up 50% to 60% of travelers by 2035. Currently, interest in purchasing beauty products among these younger cohorts, such as Gen Z and Millennials, is notably lower than that of older generations.
Nevertheless, opportunities abound. The travel retail sector currently generates about $76 billion, and there’s potential for growth, especially as only 1.4 billion out of 8.3 billion people globally have passports. Increased travel from emerging markets, particularly India and a resurgence of Chinese consumers, presents further prospects.
Branquinho pointed out that the focus should shift from merely increasing passenger numbers to providing those travelers with exciting reasons to shop. The urgency to engage younger demographics cannot be overstated, as experiences are becoming more crucial than simple product offerings.
Innovative strategies, such as localized offerings, unique product launches, and immersive experiences, are already being tested in various airports. Brands are beginning to think outside traditional retail norms to cater to the changing desires of the consumer base.
Considering the momentum and adaptability within the travel retail sector, executives remain optimistic about future growth. They recognize the essential blend of personalization, emotional connection, and technological integration to redefine the travel retail experience. The sentiment is clear: the future is promising for a sector willing to innovate and evolve.
