The future of travel retail within the fast-approaching travel boom 

Global Travel is on the rise and the tourism and travel sectors need to prepare. We found the following intel; “By 2025, revenue is estimated to reach US$955.90bn and is projected to grow annually at a rate of 3.90%, resulting in a market volume of US$1,114.00bn by 2029.” (Source)

In terms of demographics, the younger Gen Z’s and Millennials are the highest spenders when they travel. Calling themselves ‘flashpackers’, they spend around about $3,500 (£2800) per trip and $60 (£48) a day. (Source) 

Gen Z now accounts for 40% of consumers! In 2025, they’re aged between 13 and 28 as they were born between 1997 and 2012. When combined with Millennials, these two generations account for over half the population. And in terms of days on holiday, Millennials take their full 35 days of holiday per year, followed by Gen Z taking 29 days. They’re heavily connected consumer groups are pushing the following trends, which we know travel and retail brands need to be prepared for:

1- Wellness and Beauty – the driving force behind this consumer’s globally prioritising health, wellbeing and therefore beauty more. Despite moving from a global health crisis to a cost-of-living crisis; looking after ourselves is more justifiable and brands and retailers are responding to that. The sector has exploded with more brands, more retailers and more entry points to capture the whole of market. We’re seeing Sephora (US retailer) opening stores across the UK as well as Charlotte Tilbury opening sites in travel hubs and as well as a large flagship recently opened in Covent Garden London. Heathrow was awarded the Best Airport for Wellness last year, because they have a number of quiet zones, spa services, express hair bars, along with healthy food options. 

2- Luxury Goods- the growth in the demand and possession of luxury goods we believe is down to a number of factors. Such as; earnings and wages increasing, consumers seek out luxury because of a perceived higher quality, and because of trying to enhance social perception with the help of social media. In recent years luxury goods have increased their prices to make them even more obtainable, but that has actually made a stronger case for exclusivity, and therefore desirability. 

3- Sustainable products – consumers are doing more research into products, packaging and brands and therefore brands who are considerate of environmental issues, are succeeding. In terms of travel; most people travel with a stainless steel drinks bottle, drinking sustainable coffee in the airport and choose athleisure brands that use recycled materials or eco-friendly materials. 

4- Personalisation – this trend is still building momentum. Consumers are asked to create personalised jewellery, monogram small leather goods and create their own labels for champagne bottles. In some airports, creating bespoke perfumes is also something that has been tried in airports. Outside of travel, the most popular personalisation is designing trainers – will this catch on some time soon? 

5- Experiential retail – it’s a major strategy where a brand can differentiate itself. In the travel or transport sector- the examples span interactive displays, pop-up shops, personalisation, customisation, AR, tastings, VR, games, performances and live demonstrations – it’s about making a lasting impression, and its also a good way to test a product. A brand needs to stick to their brand values, and provide experiential retail in a meaningful way that is understanding of a travelling person’s shopper journey. Some people are in a hurry, some have too much time to dwell! 

When thinking about Heathrow Airport’s being the Best Airport for Wellness, the overwhelming luxury from Dubai, Singapore and China airports and Generation Z’s need for sustainability – it can get very confusing. For the duty free retailers and travel brands we work with, we find that thinking about the target audiences, their shopping motivations and the brand’s purpose helps to ground the strategy. Knowing the buying personas, shopping behaviours and motivations for shopping while travelling through air or rail hubs- gives us the information needed to help personalise an experience for your shoppers. 

If you’d like to know more about how we work with travel retail brands and design successful environments, contact us at studio@barberdesign.co.uk