{"id":365,"date":"2026-09-10T13:34:03","date_gmt":"2026-09-10T05:34:03","guid":{"rendered":"https:\/\/ditoc.hk\/news\/the-new-face-of-airport-retail-how-younger-travelers-are-reshaping-the-channel\/"},"modified":"2026-09-15T16:33:46","modified_gmt":"2026-09-15T08:33:46","slug":"the-new-face-of-airport-retail-how-younger-travelers-are-reshaping-the-channel","status":"publish","type":"post","link":"https:\/\/ditoc.hk\/news\/the-new-face-of-airport-retail-how-younger-travelers-are-reshaping-the-channel\/","title":{"rendered":"The New Face of Airport Retail: How Younger Travelers Are Reshaping the Channel"},"content":{"rendered":"
\n

The New Face of Airport Retail: How Younger Travelers Are Reshaping the Channel<\/h1>\n
\n

The person browsing the duty-free aisle has changed \u2014 and with them, the entire economics of airport retail. A major new study from ACI Asia-Pacific & Middle East, spanning 36 airports across 21 countries, finds that passenger behaviour, not passenger volume, now drives travel retail performance. And the biggest behavioural shift is generational.<\/p>\n

Gen Z and Millennials have overtaken older travellers as the biggest spenders at airports, spending 3.5 times more<\/strong> per visit when compared with Boomers. It is not a marginal change. It is a fundamental reordering of who the channel serves and what it must sell.<\/p>\n

\n

Younger Travellers Buy Different Things<\/h2>\n

The old assumption was that airport shoppers were mostly older, price-conscious travellers picking up familiar categories. The study paints a different picture.<\/p>\n

    \n
  • Gen Z is 4x more likely<\/strong> than Boomers to buy electronics.<\/li>\n
  • Gen Z is 2.5x more likely<\/strong> to buy luxury products.<\/li>\n
  • Boomers, meanwhile, remain 2.5x more likely to buy alcohol and 1.4x more likely to buy confectionery.<\/li>\n<\/ul>\n

    Millennials are the single highest-spending generation, followed closely by Gen Z. Together they now make up more than half of all travellers<\/strong> \u2014 and an even greater share of the revenue generated.<\/p>\n

    For brands whose channel strategy still leans on the “routine” categories favoured by older shoppers, the risk of being left behind is real.<\/p>\n

    \n

    What Actually Drives a Purchase<\/h2>\n

    Here is a surprising finding. Even though younger travellers are digital natives, they are not buying through their phones.<\/p>\n

      \n
    • 70% of airport purchases are still impulse decisions made in-store.<\/strong><\/li>\n
    • Digital channels drive only 2%<\/strong> of additional sales.<\/li>\n
    • Product choice (39%)<\/strong> and pricing and promotions (29%)<\/strong> together account for most purchase decisions.<\/li>\n<\/ul>\n

      The implication is clear: the store itself \u2014 its product mix, pricing and display, and how easy it is to buy \u2014 matters more than digital engagement. As the study’s lead put it: “Investing heavily in digital alone will not compensate for weaknesses in product mix, pricing or in-store experience.”<\/em><\/p>\n

      \n

      Experience and Authenticity Outweigh Price<\/h2>\n

      This is the generational difference that matters most.<\/p>\n

      Older shoppers are more price-sensitive and tend to stick to familiar categories. Younger shoppers are the opposite. For them, discovery matters more than price<\/strong>, and they respond to store experience, engagement and authenticity.<\/p>\n

      They are also more drawn to locally relevant products<\/strong> that feel connected to the destination, supported by storytelling. A generic shelf display no longer meets the expectation. Younger travellers want to feel they have found something unique.<\/p>\n

      Travel behaviour is shifting in tandem. Gen Z (22%) and Millennials (25%) are far more likely than Gen X (15%) or Boomers (4%) to blend work and leisure trips \u2014 meaning more time in the terminal, and more time in stores.<\/p>\n

      \n

      Where the Money Is Now<\/h2>\n

      The study identifies the biggest-spending nationalities today:<\/p>\n

        \n
      • China<\/strong> \u2014 leads the recovery, spending twice the regional average on luxury goods<\/li>\n
      • India<\/strong> \u2014 massive growth in international and duty-free spending, driven by brand aspiration and tax advantage<\/li>\n
      • UAE and Saudi Arabia<\/strong> \u2014 top outbound spenders with high disposable income and a strong gifting culture<\/li>\n<\/ul>\n

        Luxury goods and perfumes & cosmetics are the top two performing categories across both regions, reinforcing airports as trusted destinations for premium, duty-free and gifting purchases. Electronics rank third, supported by price advantages and last-minute convenience. Beyond the top tier, local products perform strongly in Asia-Pacific, while confectionery and impulse gifting lead in the Middle East.<\/p>\n

        \n

        Duty-Free’s Growing Weight<\/h2>\n

        Duty-free has become the financial backbone of airports across the two regions. In the Middle East, its share of total sales is consistently high \u2014 31% in Saudi Arabia, 34% in Bahrain, 36% in the UAE, 38% in Qatar and 31% in Oman \u2014 with revenue dependence even higher, reaching around 60% in Saudi Arabia and Qatar and over 50% across the UAE, Bahrain and Oman.<\/p>\n

        Regional baskets differ: Middle East duty-free favours confectionery and perfumes, while Asia-Pacific and Oceania hubs are more premium and alcohol-driven.<\/p>\n

        \n

        The Regional Picture<\/h2>\n

        In Asia-Pacific<\/strong>, a modest 2% rise in domestic traffic translated into a strong 13% increase in passenger spend (sales per passenger) in 2025 compared with 2019 \u2014 a clear reflection of changing consumer behaviour and higher-value purchases. Luxury goods (+9%) and local products (+7%) led the growth.<\/p>\n

        In the Middle East<\/strong>, electronics spend climbed 14% as passengers leveraged tax advantages and sought out airport-exclusive collections unavailable in shopping malls \u2014 a shift towards more deliberate, value-driven purchasing.<\/p>\n

        \n

        The Sustainability Gap<\/h2>\n

        One of the most striking findings is a disconnect between passenger expectations and airport strategy.<\/p>\n

        65% of Gen Z travellers say they are willing to pay more for sustainable products<\/strong> \u2014 yet only 20% of airports<\/strong> currently treat sustainability as a core factor shaping retail decisions. For brands that can demonstrate genuine sustainability credentials, the gap represents a clear opening in a channel where few competitors have yet responded.<\/p>\n

        \n

        Outlook<\/h2>\n

        Airport retail has changed. The customer at the point of sale is younger, more curious, less price-driven and more interested in experience and authenticity than the shopper of a decade ago \u2014 and is spending more than the generations before. For brands across luxury, beauty and electronics, the fundamentals of growth in the channel remain strong, particularly in the Middle East. Success, however, now depends less on volume and more on understanding passenger behaviour, generational change and experience-led retail.<\/p>\n

        As the study’s authors conclude, the old assumption that commercial performance scales automatically with passenger numbers is no longer reliable. For brand owners and airport operators alike, the winners will be those who match their offer to who is actually travelling \u2014 and what they want to discover once they are there.<\/p>\n

        \n

        Based on the ACI Asia-Pacific & Middle East Travel Retail Study in the Post-Pandemic Era (February 2026).<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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