what is a travel retail industry

• Travel Retail Market

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Travel Retail Market Size, Share & COVID-19 Impact Analysis, By Product Type (Cosmetic & Fragrances, Wines & Spirit, Confectionery & Fine Foods, Tobacco Products, Fashion & Accessories, and Others), Sector (Duty Free and Duty Paid), Sales Channel (Airport & Airline Shops, Seaport & Cruise line Shops, Border Downtown Hotel Shops, and Others) and Regional Forecasts, 2023-2030

Region : Global | Format: PDF | Report ID: FBI104620

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KEY MARKET INSIGHTS

The global travel retail market size was valued at USD 55.74 billion in 2022 and is projected to grow from USD 60.72 billion in 2023 to USD 117.18 billion by 2030, exhibiting a CAGR of 9.85% during the forecast period.  

A growing number of millennial and middle-income traveler groups are offering immense opportunities to grow international retailing businesses. Nowadays, retail businesses keep food stations, bookshops, bars, and conference spaces decorated to maintain their shops attractive. Additionally, they maintain high-quality merchandising displays to capture travelers' attention towards buying their products. In November 2021, Bentley Leathers Inc., a Canada-based travel accessories manufacturer, launched a travel-focused retail store concept targeting airports and other travel platforms to offer a wide range of travel items, including travel bags, luggage etc. The store was initially opened in Montreal-Pierre Elliot Trudeau International Airport and aimed to expand in Canada and beyond. In this respect, key retail store innovation concepts will increase the global travel retail market share in the forthcoming years.

LATEST TRENDS of TRAVEL RETAIL MARKET 

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Sustainable Duty-Free Shopping Trend  to Boost Market Development

Nowadays, travelers prefer buying sustainably made duty free products to avoid the environmental impacts due to the usage of non-biodegradable items. This key trend has pushed airport retailers to adopt sustainable business practices such as waste recycling & reduction, biodegradable packaging, and ethical raw material sourcing activities. This factor will create newer avenues for market growth. As per the recent study by the Tax-Free World Association (TFWA) in July 2020, 70 % of the 2,456 consumer participants worldwide were influenced by sustainability practices while purchasing a product during travel. 

In addition to the factors mentioned earlier, retailers are implementing a customer-driven approach to sell their products and services online and increase their sales revenues. For instance, In July 2021, 3Sixty Digital Ltd. partnered with Virgin Atlantic Airways Ltd. to rollout Omneveo, an Omni-Channel retail platform that helps retailers uplift their customers' online shopping experience. Through such a digital shopping portal, passengers can better shop for products as per their requirements while doing in-flight and onboard activities, positively influencing market trends.

DRIVING FACTORS

Rising Number of International Travelers  to Drive Market Growth

The increasing number of domestic and international travelers will increase the product demand, driving the market growth over the forecast period. As per the report 'Indian Tourism and Hospitality Industry Analysis, ' published by the Indian Brand Equity Foundation (IBEF), in 2019, there were 10.89 million foreign tourist arrivals in India, a 3.2% up over the previous year. Nowadays, retailers offer personalized loyalty programs & deals to meet changing shopping habits of air passengers. This factor helps retailers build their revenues from Duty Free products thus fueling market growth.

Besides, rising millennial populations' spending on travel and tourism will upsurge the product revenues. Besides, rising millennial populations' spending on travel and tourism will upsurge the product revenues. For instance, as per the World Travel and Tourism Council (WTTC) data in November 2021, the French travel and tourism sector has surged by 34.9 % in 2021.

Continual Provision of Duty-Free Campaigns by Retailers  to Upsurge Product Demand

Nowadays, key companies launch promotional campaigns to encourage consumers to buy Duty Free products. Additionally, they continuously offer high-quality, privately labeled products and services to delight higher-income airport traveler groups. These factors will support the airport retail shops' product revenues. For instance, in November 2021, Mumbai Duty Free partnered with Flemingo and Adani Airport Holdings to unveil a fully digitalized flagship campaign, 'Mumbai Duty Free is Now Free Campaign.' India. This campaign was re-launched to make use of a new digital approach of barcode scanning for vouchers and ensure customers with safe and contactless access to products.

RESTRAINING FACTORS

High Product Pricing to Hinder Market Augmentation 

The majority of the products sold by retailers are high-quality & branded. This factor enables retailers to sell travel goods at higher prices, thereby limiting the product demand among lower disposable income level traveler groups. Additionally, limited customer awareness regarding new product launches and upgrades create a barrier in purchasing commodities, restricting the travel retail industry growth.

TRAVEL RETAIL MARKET SEGMENTATION

By product type analysis.

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Cosmetic & Fragrances Segment to Hold a Dominant Share Due to Surging Demand from Females

By product type, the global market is segmented into cosmetic & fragrances, wines & spirits, confectionery & fine foods, tobacco products, fashion & accessories, and others. The cosmetics segment holds a major market share due to the growing interest of females and millennials in internationally acclaimed brands that are difficult to find in their native locations. Also, the tax-free pricing of perfumes and high fashioned apparel ensures their purchase as a gifting accessory without import prices, thus surging the segment expansion.

The retailers showcase multiple collections and brands under one roof, making it easy to purchase for travelers. The branded cosmetics and fragrances companies appeal to a broader consumer base with their customer-friendly business policies. Also, retailers offer customer-friendly policies for all kinds of products merchandised in their shops.

In the case of wines & spirits, the industry has an estimated progressive growth as travelers passionate about international liquor brands. They usually purchase luxurious Duty-Free liquor brands from wine retailers to kill waiting time in airports. Nowadays, international liquor brands such as 'Macallan (The Macallan Global Boutiques), Dalmore (Dalmore Store), etc. mainly focus on selling their products through airport shops and cruise lines to increase travelers' accessibility. Such a factor is further supporting the product revenues from the wines & spirits segment.

Fashion & accessories segment is likely to achieve substantial growth during the forecast timeline, as fashion products are notably popular among celebrities and sportspersons. Fashion retailers focus on specializing in the niche marketing approach to attract an array of customers with similarities in purchasing behavior related to sports kits, musical equipment, and beauty cosmetics.

The growing popularity of innovative e-cigarettes of different sizes and shapes will increase consumer demand for such products at airports and cruises, driving segmental revenues for tobacco products. However, airlines and maritime stores' smoking-related prohibitory rules will limit the tobacco product demand among travelers, thereby declining the tobacco products' segmental growth.

Confectionery & fine food products are among the fastest-selling categories of food products that have gained transaction among youngsters and millennials. The bright and attractive displays of cartoon characters are a great way to cater to customers at the door. The stickers and fun displays with customizable wall arts create lucrative demand from youngsters. Chocolates and other confectionery retailers try to raise their presentation and create innovative ways to enlighten the mindsets of youngsters, bringing new growth opportunities for the segment.

The others segment includes watches, jewelry , fine arts, electronic items, and gift items, which are also expected to witness noticeable demand during the forecast period. These items are purchased by travelers through unique online applications to earn rewards and points, which raises the customers' thirst to acquire more products from such deals.

By Sector Analysis

Duty Free Shopping to Gain Significant Momentum Due to VAT Benefits

By sector, the global market is segmented into duty free and duty paid. The Duty Free segment holds a major share due to its value-added tax benefits over its counterpart. Nowadays, cosmetic companies such as L'Oréal, Estee Lauder Inc., and others increasingly focus on selling their products through Duty Free shops to boost sales. Such a factor will fuel the Duty Free segmental growth. Additionally, the rising number of international travelers and their demand for Duty Free products will accelerate segmental revenues. As per the data presented by the Centre for Asia-Pacific Aviation (CAPA), in 2021, the total gross Duty Free spending at Indian airports will reach USD 1.6 million by 2021.

The duty paid sector is also likely to witness growth in demand as the duty-paid retailers are taking multi-channel strategies and customer-driven solutions to sell their products. The retailers are focused on catering to a wider consumer base by launching apps to gather online information to create a curated shopping experience based on specific interests. Through expansions and tie-ups with domestic airports, selling high-quality and high-priced products will allow the retailers to upgrade their services and establish a competitive edge in the global industry.

By Sales Channel Analysis

Rising Number of Airport & Airline Shops to Augment Segment Growth

According to sales channel, the market is arrayed into airport & airline shops, seaport & cruise line shops, border downtown hotel shops, and others.

The airport & airline shops' segment holds a major share owing to the continual provision of customer-centric cosmetic and beverage products by airport retailers. This factor results in significant revenue generation from the airport segment. Furthermore, the in-flight Wi-Fi experience offers a seamless online shopping experience to the air passengers, thereby surging the segmental revenues. According to the International Civil Aviation organization data, the number of departures internationally rose by 1.7% from 2018 and reached 38.3 million in 2019.

Recently, worldwide train transportation services witnessed a considerable surge in passenger bookings. This factor will increase the train passengers' demand for such products, thereby resulting in others' segments generating considerable product revenues. As per the statistics from Indian Railways, there is an increase of 113% in earnings from passenger segments during the second quarter of 2021 compared to the first quarter. Thus, greater passenger bookings across railway stations provide potential growth opportunities for train retail services to boost passenger traffic, favoring the global travel retail market growth.

Border downtown hotel shops are gaining neutral demand as these shops create revenue for small businesses to sustain in a competitive environment and create jobs for the locals. These retailers don't charge high taxes, and customers can access various products. However, these retail channels are key for the global market forecast as they typically witness a steady flow of shoppers yearly.

Seaports & cruise line ships have steadily witnessed footfall in retail and duty free outlets and are anticipated to grow considerably during the 2023-2030 period. The growing number of workers involved in shipping cargo through the marine routes has boosted the demand among seaport retailers. Also, the surging number of travelers following the sea routes is estimated to create opportunities for cruise line shops. As per the data from Cruise Lines International (CLIA), 28 million people traveled through the ships and cruises in 2018 and will likely cross the 30 million mark in 2019.

REGIONAL ANALYSIS of TRAVEL RETAIL MARKET

Asia Pacific Travel Retail Market Size, 2022 (USD Billion)

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The worldwide tourism retail sector is segregated into the North America, Europe, Asia Pacific, South America, and Middle East & Africa regions.

Asia Pacific market was valued at USD 28.32 billion in 2022. A significant number of domestic and international travelers spend on duty Free products in China, India, and South Korea, resulting in the Asia Pacific region dominating the global industry in Duty Free retail. The adoption of cheap travel tours by companies in the Asia Pacific region, including MakeMyTrip, Yatra, and others, has facilitated customer traffic rates in booking, generating new growth opportunities for the travel operators to expand their businesses. 

Nowadays, duty Free retailers establish partnerships with Asian domestic and international airports to expand their businesses in Asia. This factor will further increase the Asia Pacific region's market growth rate. For instance, in May 2019, King Power International Group signed an agreement with Suvarnabhumi Airport (Bangkok Airport) to increase its Duty Free retailing business in Thailand.

The Europe market will grow considerably due to growing travel & tourism-related infrastructural settings such as hotels & restaurants, amusement parks, etc. As per the estimated data published by the CBI Ministry of Foreign Affairs, the total European tourism comprising air, land, and sea travel out of Europe accounted for 496 million trips in 2019. Also, the region's tourism and travel trips generated 35% of the international tourism expenditure in a similar period. Additionally, the robust presence of luxury goods brands such as 'Dufry AG, Aer Rianta International, and Lagardere Group result in considerable product revenues in the region.

Increasing U.S. and Canadian spending on travel & tourism is mainly supporting the North America industry's growth. According to the statistical data presented by U.S. Travel Organisation, in 2019, U.S. domestic and international travelers' spending reached USD 1,127 million. Also, the increase in the purchasing capacity of individuals has boosted regional growth.

Saudi Arabia and UAE's rising middle-income population groups mainly support the Middle East & Africa retail sector. Nowadays, Brazilians prefer buying high-quality apparel and cosmetic goods at domestic duty-paid shops. Such a factor will provide an increase in the product demand among Brazilians. Furthermore, the growing number of airport retailers in Brazil and Chile will increase the number of air passengers driving regional growth.

COVID-19 IMPACT

Rising Popularity of Anxiety-Reducing Products Boosted Market Growth Amid COVID-19

To minimize coronavirus infection spread, governments worldwide imposed lockdown and other travel restrictions, most notably in 2020. This factor has significantly lowered the number of air and marine travelers, threatening the overall travel & tourism industry. As per the data published by International Airport Transport Association (IATA), from 2009 to 2019, international travels had fallen below the yearly rate of 5.5%.

Nowadays, passengers prefer wellness-related products to maintain their health during the pandemic. This factor will offer duty free retailers newer opportunities to offer personalized products. Rising consumer demand for personal protection equipment (PPE) and products such as sanitizers, face masks, gloves, and others amid the pandemic will create newer avenues for Duty Free retailers' business growth. Furthermore, the growing popularity of anxiety-reducing items among air passengers will accelerate the industry growth amid the COVID-19 pandemic. For instance, in 2020, Essence Corp, a Miami U.S.-based retail distributor for Bath & Body Works (BBW), reported a 41% jump in its retail sales from the bath and body works.

KEY INDUSTRY PLAYERS

Business Expansion through E-commerce is Key Strategy Fueling the Industry

Major key players such as Dufry AG, Shilla Duty Free shop, and others focus on capturing consumer buying behavior and offering personalized retailing goods to the customers to gain a competitive edge globally. Additionally, they continuously introduce sales promotional offers to attract buyers towards their products. For instance, in September 2020, Malaysia Airports Holdings Berhad introduced an e-commerce platform, 'shopMYaiports,' to facilitate revenue amid the disruptions caused due to the pandemic. The e-commerce platform also offers free delivery with a minimum order amount of USD 71.65 to elevate the digital purchase experience.

LIST OF KEY COMPANIES PROFILED:

• Lagardere Travel Retail (Lagardere Group) (France)
• DFS Group Ltd. (Hong Kong)
• Dufry AG (Switzerland)
• King Power International Group (Thailand)
• Aer Rianta International (Ireland)
• The Nuance Group AG (Switzerland)
• Lotte Duty Free (Lotte Hotel) (South Korea)
• Gebr. Heinemann SE & Co. KG (U.S.)
• Duty Free China Group Co. Ltd. (CDFG) (China)
• Samsung Group (South Korea)

KEY INDUSTRY DEVELOPMENTS:

• January 2023: Ritter Sport, a German chocolate bar brand, announced plans to expand its vegan product range with the launch of its Travel Retail Edition Vegan Tower 5x 100g set worldwide in March 2023. The new product is available in three ranges of non-dairy chocolate in a five-pack. The travel edition assortment flavors include Smooth Chocolate, Salted Caramel and the new Roasted Peanut.
• January 2023:  Lotte Duty Free, a South Korean company, opened a store for NONFICTION, a South Korea-based beauty brand. Marking the launch, the company offered consumers free goods offline and online when purchasing NONFICTION products.
• January 2023: Lagardère Travel Retail Belgium and Atos (a French IT service and consulting company) partnered to launch an automated Duty Free point of sales at Brussels Airport. The companies launched the automated POS to offer travelers a new and unique travelling experience.
• February 2021: Hudson Group, a Dufry AG-owned retailing company, launched Amazon One, a technology-enabled store at Dallas Love Field Airport (DAL), to offer users an enhanced in-store shopping experience.
• December 2021: Servy, a hospitality platform, partnered with Inflyter, a retail tech company, to develop an e-commerce platform that provides a digital shopping experience to airport travelers.

TRAVEL RETAIL MARKET REPORT COVERAGE

An Infographic Representation of Travel Retail Market

To get information on various segments, share your queries with us

The travel retail industry research report analyzes the market in-depth and highlights crucial aspects such as prominent companies, product types, sectors, sales channels, and regional areas. Besides this, the report provides market outlooks and insights into the latest trends and highlights significant industry developments. In addition to the aspects mentioned above, the report encompasses several factors contributing to the industry's growth over recent years.

TRAVEL RETAIL MARKET Report Scope & Segmentation

Frequently asked questions.

Fortune Business Insights says that the industry size was USD 55.74 billion in 2022 and is anticipated to reach USD 117.18 billion by 2030.

In 2022, the industry was valued at USD 55.74 billion.

Ascending at a CAGR of 9.85%, the market will exhibit steady growth over the forecast period (2023-2030).

The cosmetic & fragrances segment will dominate the market during the forecast period (2023-2030).

The rising number of international travelers accelerates the market growth.

Lagardere Travel Retail (Lagardere Group), DFS Group Ltd., Dufry AG are leading companies worldwide.

Asia Pacific dominated the market in 2022.

Rising adoption of eco-friendly business practices is one of the prominent industry trends.

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• PUBLISHED ON: Apr, 2023
• BASE YEAR: 2022
• HISTORICAL DATA: 2019-2021
• NO OF PAGES: 175

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A Guide on Travel Retail: Definition, Growth Factors, and Future Prospects

Travel retail industry is one of the major subsidiary yet standalone industries of the travel and tourism sector. Since the last few years, barring the pandemic period, this industry has seen a substantial rise in terms of its growth number. Though one of the obvious reasons behind the growth in travel retail industry is the growth in number of travelers, there are certain growth factors which are characteristic to the travel retail industry itself.

In the 1700s, there was a shift from primary economic activities like agriculture, mining, etc. to secondary sector constituting manufacturing, construction, etc. This shift was primarily facilitated by the Industrial Revolution which was kickstarted in the Great Britain. Consequently, on similar lines, the ICT revolution enabled a shift from secondary to tertiary sector which predominantly constituted of service-oriented economic activities. One of the biggest industries that emerged out of the tertiary sector was the travel and tourism industry.

What is Travel Retail and Why is it on the Rise Since the Last Few Years?

In the last few decades, especially after the opening of majority of the global economies post-1991, travel and tourism industry has grown like anything else. Some economists even consider it to be a separate economic sector altogether. On account of this growth, several subsidiary and standalone industries have propped up and thrived under the travel and tourism sector. One such standalone industry is the global travel retail industry. Travel retail pertains to creating, planning, and providing travel services, while at the same time, engaging in sales activities to cater to the shoppers’ demands while they are in transit.

The growth in the travel retail market is mainly attributed to four main factors which are discussed below:

• Boom in the Travel Industry on the Whole

Except the aberration witnessed in the last two years due to the Covid-19 pandemic, there has been a steady growth in the number of people travelling across the globe. Though the reasons for travel might be different for each individual, the travel retail industry has been able to fulfill their varied demands efficiently. Hence, a growth in the travel industry has been mirrored by the travel retail industry. Also, since people have been exploring countries and places that were previously not so often visited, the travel retail industry has found new ways and avenues to offer their services.

• Travelers Tend to Shop More

Studies by various behavioral economists have shown that travelers, especially the ones going out for vacations, tend to shop more. This shift from a thrift behavior, according to these experts, is due to the leisurely atmosphere and stress-free state of mind. Also, since travelers have a lot of free time at their disposal, they can shop for longer periods of time. Another interesting theory as to why people spend more at transit channels, such as airports , is that the infrastructure inside airports is built on the concept of open-plan setups. As a result, luxury shopping and casual shopping spaces are intertwined in each other, thus blurring the lines between the two.

• Accurate Data Insights

The retailers engaging in travel retail and sales activities have an added advantage of accurate information about their customers. Their travel and departure times, the type of aircrafts they are travelling, their destination, etc. helps the retailer in getting a brief idea as to what the traveler might be looking for. This helps these retailers to plan their sale strategy accordingly, which helps in maximizing their profits. Also, providing customer service to the passengers or people in transit becomes much easier due to these vital data points.

• Better Showcasing of Products

Since travelers tend to shop more products and spend more on luxury items during their travel, they tend to appreciate certain products more than in normal circumstances. This provides the companies and travel retailers to showcase their products and test whether the products are sellable. Hence, various international brands of different sectors tend to launch and market their unique products through the travel retail industry.

Future of Travel Retail Industry

Though the Covid-19 pandemic and the subsequent lockdowns put a strain on the travel and the travel retail industries, market analysts are confident that both these industries will register huge growth rates in the post-pandemic world. Also, digitization of financial services has improved the quality of shopping experience at the transit channels and has helped in reducing the complexities associated with foreign currency exchange. Moreover, the introduction of smart technologies has further improved data collection, which has helped travel retailers to improve their business strategies in a much better way. All these factors point toward a great future of the global retail travel industry.

About the Author(s)

Princy A. J

Princy holds a bachelor’s degree in Civil Engineering from the prestigious Tamil Nadu Dr. M.G.R. University at Chennai, India. After a successful academic record, she pursued her passion for writing. A thorough professional and enthusiastic writer, she enjoys writing on various categories and advancements in the global industries. She plays an instrumental role in writing about current updates, news, blogs, and trends.

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Retail & Trade

Duty free and travel retail industry - statistics & facts

How has the travel retail and duty free industry held up after the pandemic, the duty free market and retail sales of airports, key insights.

Detailed statistics

Leading global travel retailers in 2022, based on turnover

Airports with the most international air passenger traffic worldwide 2022

Avolta: revenue worldwide 2013-2023

Editor’s Picks Current statistics on this topic

Current statistics on this topic.

Travel retail: global forecast market size 2030

Shopping Behavior

Duty free shop customer conversion rate worldwide 2017-2022

UK: retail revenue of the Heathrow Airport Ltd. in 2022, by category

Related topics

Recommended.

• Tourism worldwide
• Online travel market
• Tourism industry in China
• Travel and tourism in the U.S.
• Travel and tourism in Europe

Recommended statistics

• Premium Statistic Airports with the most international air passenger traffic worldwide 2022
• Premium Statistic Global air traffic - scheduled passengers 2004-2022
• Premium Statistic World: duty free and travel retail sales 2010-2022
• Premium Statistic Global travel retail sales 2022, by region
• Premium Statistic Duty free shop customer conversion rate worldwide 2017-2022

Leading airports for international air passenger traffic in 2022 (in million international passengers)

Global air traffic - scheduled passengers 2004-2022

Number of scheduled passengers boarded by the global airline industry from 2004 to 2022 (in millions)

World: duty free and travel retail sales 2010-2022

Duty free and travel retail sales worldwide in 2010 to 2022 (in billion U.S. dollars)

Global travel retail sales 2022, by region

Duty free and travel retail sales worldwide in 2022, by region (in billion U.S. dollars)

Customer conversion rate of duty free shops worldwide from 2017 to 2022

Leading travel retailers

• Premium Statistic Leading global travel retailers in 2022, based on turnover
• Basic Statistic Avolta: revenue worldwide 2013-2023
• Premium Statistic Lotte Duty Free: global revenue 2013-2022
• Premium Statistic Turnover of The Shilla Duty Free worldwide 2013-2022
• Premium Statistic China Duty Free Group's global turnover from 2013 to 2022
• Premium Statistic Lagardère Travel Retail: sales worldwide 2014-2022
• Premium Statistic Turnover of DFS worldwide 2013-2022

Leading travel retailers worldwide in 2022, based on turnover (in million euros)

Revenue of Avolta (Dufry) worldwide from 2013 to 2023 (in million Swiss francs)

Lotte Duty Free: global revenue 2013-2022

Turnover of Lotte Duty Free worldwide from 2013 to 2022 (in million euros)

Turnover of The Shilla Duty Free worldwide 2013-2022

Turnover of The Shilla Duty Free worldwide from 2013 to 2022 (in million euros)

China Duty Free Group's global turnover from 2013 to 2022

Turnover of China Duty Free Group worldwide from 2013 to 2022 (in million euros)

Lagardère Travel Retail: sales worldwide 2014-2022

Sales of Lagardère Travel Retail worldwide from 2014 to 2022 (in million euros)

Turnover of DFS worldwide 2013-2022

Turnover of DFS Group worldwide from 2013 to 2022 (in million euros)

Retail revenues of leading airports

• Premium Statistic Changi Airport: concession sales 2017/18 to 2022/23
• Premium Statistic Los Angeles World Airports: duty free operating revenue 2016-2022
• Premium Statistic Revenue of HK International Airport 2023, by segment
• Premium Statistic Offshore duty-free sales value in Hainan, China 2012-2022
• Premium Statistic Sydney Airport revenue 2022, by type
• Premium Statistic UK: retail revenue of the Heathrow Airport Ltd. in 2022, by category
• Premium Statistic Revenue of Schiphol Group in the Netherlands by business area 2022

Changi Airport: concession sales 2017/18 to 2022/23

Value of concession sales of Changi Airport from financial year 2017/18 to financial year 2022/23 (in million Singapore dollars)

Los Angeles World Airports: duty free operating revenue 2016-2022

Duty free revenue of Los Angeles World Airports from FY 2016 to FY 2022 (in million U.S. dollars)

Revenue of HK International Airport 2023, by segment

Revenue of Hong Kong International Airport in FY2023, by segment (in billion Hong Kong dollars)

Offshore duty-free sales value in Hainan, China 2012-2022

Annual offshore duty-free sales value in China's Hainan island from 2012 to 2022 (in billion yuan)

Sydney Airport revenue 2022, by type

Revenue of Sydney airport in Australia in 2022, by type (in million Australian dollars)

Retail revenue of the Heathrow Airport Limited in the United Kingdom (UK) from 2019 to 2022 (in million GBP), by category

Revenue of Schiphol Group in the Netherlands by business area 2022

Distribution of revenue of Schiphol Group in the Netherlands in 2022, by business area

Consumer behavior

• Premium Statistic Duty-free shoppers average spend by category worldwide 2022
• Premium Statistic Duty-free shoppers conversion rate by category worldwide 2022
• Premium Statistic Duty-free shoppers average spend worldwide by age 2022-Q1 2023
• Premium Statistic Share of wallet duty free purchases worldwide Q2 2023
• Premium Statistic Leading categories duty free shoppers traveling with children visit 2023

Duty-free shoppers average spend by category worldwide 2022

Average spend of duty free shoppers in different categories 2022, by region (in U.S. dollars)

Duty-free shoppers conversion rate by category worldwide 2022

Share of duty free shoppers browsing and making a purchase in different categories 2022, by region

Duty-free shoppers average spend worldwide by age 2022-Q1 2023

Average spend of duty free shoppers worldwide in 2022 and 1st quarter 2023, by generation (in U.S. dollars)

Share of wallet duty free purchases worldwide Q2 2023

Duty free purchases of shoppers worldwide as of the 2nd quarter 2023, as a share of total spend

Leading categories duty free shoppers traveling with children visit 2023

Leading duty free categories shoppers traveling with children visited at international airports as of 2023

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Travel Retail

What is travel retail.

Travel retail is a term that describes retail outlets that sell products to end consumers in a travel environment.

Some of these shops are duty free, where customers are exempted from certain local taxes and duties, and in this case shops usually require proof of travel, such as a boarding pass, to complete the transaction.

Travel retail is a major source of revenue for airports, and provides a great sales channel and branding opportunity for consumer brands, as there are billions of international travelers that pass through airports each year. That’s why it is one of the main distribution channels in the beauty industry.

In some countries, certain types of products are not sold freely inside the country but are available at duty-free shops, such as alcoholic beverages, which drives the sales of these products upon arrival at these airports.

The market size of this segment has been steadily growing over the last few years, and is expected to reach $156.3 billion dollars by 2030, with a CAGR of 10.7% between 2023 to 2030.

Types of Travel Retail

• Airport shops
• Border shops
• Cruise & ferry shops
• Some shops at international railway stations
• Shopping onboard an aircraft
• Certain downtown stores that require proof of travel

Product Categories

The most common product categories include:

• Perfume & Cosmetics
• Confectionery
• Food & Beverage
• Electronics
• Accessories (Bags, watches, eyewear,..etc)

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Travel Retail Market Size, Share, Competitive Landscape and Trend Analysis Report by Product Type, by Distribution Channel : Global Opportunity Analysis and Industry Forecast, 2022-2031

CG : Travel & Luxury Travel

Report Code: A01281

Tables: 100

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Travel Retail Market Research, 2031

The global travel retail market size was valued at $52.7 billion in 2021, and is projected to reach $187.1 billion by 2031, growing at a CAGR of 9.6% from 2022 to 2031.

The travel retail industry refers to the sale of goods and services to travelers at locations such as airports, train stations, cruise terminals, and border shops. It is a unique segment of the retail industry that capitalizes on the spending power and leisure time of travelers. Travel retail encompasses a wide range of products including luxury items, fashion and accessories, cosmetics and skincare, electronics, confectionery, and alcohol.

The travel retail industry is projected to be fueled by growth in travel around the globe. As the number of passengers passing through airports and other transportation hubs continues to increase, so does the demand for goods & services at these locations. Moreover, growth in global travel has led to more diverse customer base for travel retail. With people from different cultures & countries passing through the same routes, there is increase in demand for products that cater to a range of tastes & preferences. In addition, ss disposable income continues to rise globally, more people are able to afford premium & luxury products such as apparels, luxury goods, premium fragrances, cosmetics. Travel retail has responded to this trend by stocking high-end products such as designer clothing, cosmetics, and electronics.

Moreover, many countries have relaxed their duty-free shopping regulations, allowing travelers to purchase goods tax-free. This has made travel retail more attractive to consumers looking for discounted prices. Retailers are investing in the design & layout of their stores to create a more engaging & immersive shopping experience for customers. This has helped to differentiate travel retail from traditional retail and attracted a wider range of customers.

In addition, development of infrastructure in emerging economies of Asia-Pacific and LAMEA is projected to supplement the growth of the global travel retail market. However, unorganized local market and stringent government regulations in airport retailing hamper the travel retail market growth.

Moreover, the expansion of duty-free shopping is a significant driver of the travel retail market. Duty-free shopping refers to the sale of goods to international travelers who are leaving a country, and are exempted from paying certain taxes or duties on those goods. By purchasing products without paying taxes or duties, travelers can save a significant amount of money on high-end items such as designer clothing, cosmetics, and electronics. This can make the products more accessible to a wider range of customers, and drive the travel retail market demand.

Moreover. the expansion of duty-free shopping has further helped to attract a broader customer base to travel retail. As more travelers become aware of the tax-free shopping opportunities available to them, they may be more likely to purchase goods in these locations. This can help to drive demand for a wider range of products in the travel retail market.

However, rise of e-commerce & online shopping has led to decrease in demand for traditional retail, including travel retail. As more consumers choose to shop online, they may be less likely to make purchases at travel retail locations. Further, various airlines have implemented restrictions on carry-on baggage, which can limit the number of goods that passengers are able to purchase at travel retail locations. This can reduce the demand for certain types of products in the travel retail market.

SEGMENTAL ANALYSIS 

The travel retail market forecast is segmented on the basis of product type, channel, and region. By product type, the market is divided into perfume & cosmetics; electronics; wine & spirits; food, confectionery, & catering; tobacco; luxury goods; and others. As per sales channel, the market is divided into airports; cruise liners; railway stations; and border, downtown, & hotel shops. Depending on region, the market is divided into North America, Europe, Asia-Pacific, and LAMEA.

BY PRODUCT TYPE

By product type, the market is divided into perfumes & cosmetics; wine & spirits; tobacco, electronics; luxury goods; food, confectionery, & catering; and others. Sustainability among the perfume & cosmetic products is attracting a large customer base at present as the customer wants various information regarding the products being purchased, such as if they are environment-friendly. Customers are now emphasizing over products made from natural ingredients.  In addition, this segment holds a strong customer base, therefore, leading companies, including L’Oréal and Estee Lauder are opening new outlets at several international airports with a wide range of perfumes & cosmetics, skin care products, and beauty products.

BY DISTRIBUTION CHANNEL

By distribution channel, the market is classified into airports; cruise liners; railway stations; and border, downtown, & hotel shops. The airports segment accounted for a major travel retail market share in the travel retail market in 2021 and is expected to grow at a significant CAGR during the forecast period. General retail shop concept is followed by the airports as it carries a diversity of items and further includes full range of product categories, such as perfumes & cosmetics, tobacco goods, wines & spirits, electronics, and food & confectionery. These retail shops at airports are located in central areas with high passenger flow, which attracts the customers to visit the stores. New outlets have been opened by L’Oreal and Estee Lauder at airports globally considering the high footfalls of the passenger. Hence, these factors increase the sales at airport retail shops, which drives the growth of the segment.

By region, Asia-Pacific is expected to dominate the global market during the analysis period, due to presence of a large number of retail companies in China, India, and Thailand. In addition, the market in Asia-Pacific is expected to grow at the fastest rate due to increase in the number of high-net-worth individuals and growth of the tourism industry.

COMPETITION LANDSCAPE

The report offers a comprehensive analysis of the key players such as DFS Group, Dufry, LS travel retail, Lotte Duty Free, King Power International Group, The Shilla Duty Free, Gebr, Heinemann, China Duty Free Group (CDFG), Aer Rianta International (ARI), and The Naunace Group.

Key strategic moves and developments:-

• In June 2021, LVMH formed a partnership with Canopy, a non-profit environmental organization to help in forest conservation.
• In February 2021, Durfy along with Hainan Development Holdings open first shop opens first at Haikou's Mova Mall In Hainan, China.
• In December 2020, Durfy completed its merger successfully with Hudson Ltd in order to expand its portfolio.
• In June 2020, Lotte Confectionery Co, a unit of South Korean conglomerate Lotte Group, launched snack subscription service dubbed “Monthly Snack,” the first of its kind in South Korea.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the travel retail market analysis from 2021 to 2031 to identify the prevailing travel retail market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the travel retail market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global travel retail market trends, key players, market segments, application areas, and market growth strategies.

  Travel Retail Market Report Highlights

Analyst Review

The global travel retail market has witnessed steady growth in recent years. Asia-Pacific and Europe are some of the largest travel markets around the globe. Travel & tourism includes leisure tourism, business tourism, and medical tourism. The factors that promote the trave retail market growth of the travel & tourism industry include changes in lifestyle, tourism promotion, and increase in accessibility of transport facilities, which in turn are expected to fuel the growth of the travel retail market.

CXO further added, the growth of the travel retail market is closely linked to increase in number of travelers passing through airports, train stations, and other transportation hubs. As more people travel for business and leisure, the potential customer base for travel retail expands. However, the border, downtown, & hotel shops are efficient ways of creating brand awareness among consumers as well as increase general sales, as they allow customers to view & purchase products without any hassle and inconvenience. Therefore, brands such as Prada, Gucci, and H&M are increasingly launching their hotel shops to make it easier for customers to view and purchase products, thereby making it the fastest growing channel in the global travel retail market.

• Travel Destinations
• Luxury Accommodations
• Travel Packages
• Travel Safety
• Luxury Travel Experiences
• Travel Planning
• Travel Retail

The global Travel retail market registered a CAGR of 9.6% from 2022 to 2031.

The Travel retail Market was valued for $54.7 billion in 2021 and is estimated to reach $187.1 billion by 2031, exhibiting a CAGR of 9.6% from 2022 to 2031.

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The forecast period in the Travel retail market report is from 2022 to 2031.

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Travel Retail Market

Global Opportunity Analysis and Industry Forecast, 2022-2031

What Is Travel Retail? A Comprehensive Guide

What Is Travel Retail?

Have you ever wondered why duty-free shops are so common in airports and other travel hubs? Or why some products seem to be so much cheaper when you buy them at the airport? If so, you’re not alone. Travel retail is a multi-billion dollar industry, and it’s growing rapidly. But what exactly is travel retail, and how does it work?

In this article, we’ll take a closer look at travel retail. We’ll discuss what it is, how it works, and why it’s so important to the global economy. We’ll also explore some of the challenges facing the travel retail industry today.

So, what is travel retail? Simply put, travel retail is the sale of goods to travelers. This can happen in a variety of settings, including airports, train stations, cruise ships, and border crossings. Travel retail is a global industry, and it’s estimated to be worth over \$50 billion per year.

Travel retail is important for a number of reasons. First, it helps to generate revenue for airports and other travel hubs. Second, it provides travelers with a convenient way to buy goods that they might not be able to find at home. Third, it helps to promote tourism.

However, the travel retail industry is facing a number of challenges today. These include rising costs, increased competition, and changing consumer preferences. Despite these challenges, the travel retail industry is still growing, and it’s expected to continue to grow in the years to come.

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What is Travel Retail?

Travel retail is the sale of goods to travelers in airports, seaports, train stations, and other points of departure and arrival. It is a global industry that generates billions of dollars in revenue each year.

Travel retail offers a unique shopping experience for travelers, who can find a wide variety of products that they may not be able to find at home. It also provides a convenient way for travelers to buy gifts for friends and family back home.

The travel retail industry is constantly evolving, as new technologies and trends emerge. In recent years, there has been a growing focus on sustainability and ethical sourcing. Travel retailers are also looking for new ways to engage with travelers and create memorable experiences.

History of Travel Retail

The history of travel retail can be traced back to the early days of commercial air travel. In the 1920s, airlines began selling duty-free goods to passengers on long-haul flights. This was done to offset the high cost of fuel and to make air travel more appealing to passengers.

Duty-free shopping quickly became a popular amenity for air travelers, and it soon spread to other modes of transportation, such as cruise ships and trains. In the 1960s, the first duty-free shops opened at airports. These shops offered a wider variety of products than the duty-free shops on airplanes, and they quickly became a popular destination for travelers.

In the 1970s, the travel retail industry began to grow rapidly. This was due to a number of factors, including the increase in air travel, the growth of the global economy, and the rise of tourism. By the end of the 1970s, the travel retail industry was a multi-billion dollar business.

The travel retail industry continued to grow in the 1980s and 1990s. This was due to the continued growth of air travel, the expansion of duty-free shopping into new markets, and the development of new technologies. By the end of the 1990s, the travel retail industry was a global phenomenon.

The travel retail industry has continued to grow in the 21st century. This is due to the continued growth of air travel, the expansion of duty-free shopping into new markets, and the development of new technologies. The travel retail industry is now a major part of the global economy.

Types of Travel Retail

There are a number of different types of travel retail outlets. These include:

• Airport duty-free shops: These shops are located in airports and sell a wide variety of duty-free goods, including alcohol, tobacco, perfume, cosmetics, and souvenirs.
• Border shops: These shops are located near international borders and sell a wide variety of duty-free goods, including alcohol, tobacco, perfume, cosmetics, and souvenirs.
• Train station shops: These shops are located in train stations and sell a wide variety of duty-free goods, including alcohol, tobacco, perfume, cosmetics, and souvenirs.
• Cruise ship shops: These shops are located on cruise ships and sell a wide variety of duty-free goods, including alcohol, tobacco, perfume, cosmetics, and souvenirs.
• Other travel retail outlets: These shops are located in other places where travelers gather, such as hotels, casinos, and tourist attractions. They sell a wide variety of duty-free goods, including alcohol, tobacco, perfume, cosmetics, and souvenirs.

The different types of travel retail outlets offer a variety of shopping experiences for travelers. Airport duty-free shops are typically large and offer a wide variety of products. Border shops are typically smaller and offer a more limited selection of products. Train station shops are typically located in high-traffic areas and offer a variety of convenience items. Cruise ship shops are typically located near the ship’s casino and offer a wide variety of luxury items. Other travel retail outlets offer a variety of shopping experiences, depending on the location and the type of products that are sold.

Travel retail is a global industry that offers a unique shopping experience for travelers. It is a major part of the global economy and is constantly evolving to meet the needs of travelers.

Benefits of Travel Retail

Travel retail offers a number of benefits to both retailers and consumers. For retailers, travel retail provides an opportunity to reach a wider customer base and generate additional sales. In addition, travel retail can be a more profitable channel than traditional retail, as retailers are able to charge higher prices for products due to the lack of competition.

For consumers, travel retail offers a number of benefits as well. First, travel retail provides access to a wider range of products than is typically available in traditional retail stores. This is because travel retailers are able to source products from a variety of countries and regions, which can give consumers the opportunity to find products that they would not be able to find otherwise. Second, travel retail can offer lower prices than traditional retail stores, as retailers are able to pass on some of the savings they earn from duty-free shopping to their customers. Finally, travel retail can offer a more convenient shopping experience than traditional retail stores, as consumers can often find travel retail stores located in airports and other transportation hubs.

In addition to the benefits listed above, travel retail can also provide a number of other benefits to both retailers and consumers. For retailers, travel retail can help to increase brand awareness and loyalty, as well as generate positive word-of-mouth advertising. For consumers, travel retail can provide a more enjoyable shopping experience, as well as the opportunity to find unique and hard-to-find products.

Challenges of Travel Retail

While travel retail offers a number of benefits, there are also a number of challenges associated with this channel. One of the biggest challenges is the high cost of doing business in travel retail. This is due to the fact that travel retailers typically have to pay rent and other fees that are much higher than those charged by traditional retail stores. In addition, travel retailers often have to deal with high levels of theft and fraud, which can further increase their costs.

Another challenge of travel retail is the fact that it is a seasonal business. This is because travel retail sales are typically highest during peak travel times, such as the summer and winter holidays. During off-peak times, travel retailers can experience significant drops in sales. This can make it difficult for travel retailers to maintain a consistent level of profitability.

Finally, travel retail can be a challenging channel to manage due to the fact that it is often subject to a variety of regulations and restrictions. These regulations can vary from country to country, and can make it difficult for travel retailers to operate in a consistent and efficient manner.

Despite the challenges, travel retail can be a profitable and successful channel for retailers and consumers. By understanding the benefits and challenges of travel retail, retailers can make informed decisions about whether or not this channel is right for them.

Travel retail is a growing industry that offers a number of benefits to both retailers and consumers. By understanding the benefits and challenges of travel retail, retailers can make informed decisions about whether or not this channel is right for them.

What is travel retail?

Travel retail is the sale of duty-free and other goods to travelers in airports, seaports, train stations, and other points of departure and arrival. It is a global industry that generates billions of dollars in revenue each year.

Why is travel retail so popular?

There are a few reasons why travel retail is so popular. First, travelers often have extra money to spend when they are on vacation. Second, travel retail stores offer a wide variety of products that travelers may not be able to find at home. Third, travel retail stores often offer duty-free prices, which can save travelers a lot of money.

What are some of the challenges facing the travel retail industry?

The travel retail industry faces a number of challenges, including:

• The growth of e-commerce
• The rising cost of travel
• The increasing security measures at airports and other points of departure and arrival

What is the future of travel retail?

The future of travel retail is uncertain. However, there are a number of factors that suggest that the industry will continue to grow in the coming years. These factors include:

• The continued growth of international travel
• The increasing demand for luxury goods
• The development of new technologies that will make it easier for travelers to shop

How can I get involved in the travel retail industry?

There are a number of ways to get involved in the travel retail industry. You can:

• Work for a travel retail company
• Start your own travel retail business
• Become a travel retail consultant
• Attend travel retail trade shows

Additional resources

• [The International Duty Free Association](https://www.idfa.aero/)
• [The Travel Retail Business](https://www.travelretailbusiness.com/)

For consumers, travel retail offers a convenient and affordable way to purchase a wide range of products, from luxury goods to everyday essentials. In addition, travel retail can often be a more tax-efficient way to shop than at home. For businesses, travel retail provides a valuable opportunity to reach new customers and grow their sales. By understanding the needs of the traveling consumer, businesses can develop strategies to reach this lucrative market.

As the travel industry continues to grow, so too will the travel retail industry. By understanding the unique challenges and opportunities of this industry, businesses can position themselves to succeed in the years to come.

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Travel Retail Market

Travel retail market size, share & trends analysis report by type (utility-scale, distributed generation, microgrids, surface suction, others), by end-user industry (commercial, industrial, residential), by product type (cosmetic & fragrances, wines & spirits, confectionery & fine foods, tobacco products, fashion & accessories, others), by sector (duty free, duty paid), by sales channel (airport & airline shops, seaport and cruise line shops, border downtown hotel shops, others) and by region(north america, europe, apac, middle east and africa, latam) forecasts, 2023-2031.

Market Dynamics

Regional analysis, report scope, segmental analysis.

• Recent Development

Top Key Players

• Report Overview
• Table of Content
• Segmentation

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Market overview.

The global travel retail market size was valued at USD 58.8 billion in 2022 . It is projected to reach  USD 122.5 billion by 2031 , growing with a  CAGR of 8.5%  during the forecast period (2023–2031).

Travel retail refers to sales made in travel environments where customers require proof of travel to access the commercial area and are subject to taxes and duties. Increased travel and tourism have increased the demand for garments, cosmetics, food products, and electronic goods in the travel retail business. In addition, an increase in urbanization and a shift in consumer lifestyles are predicted to be major development drivers for the market over the forecast period. In addition, a rise in the disposable income of middle-income groups and an improvement in economic conditions are significant market growth drivers. Duty-free and travel retail generates vital revenues for national aviation, travel, and tourism industries across the globe. The first duty-free and travel retail was launched in Shannon airport, Ireland, in 1947. Travel retail has witnessed significant growth in the last few years due to the number of international travelers. The Asia Pacific region is dominating the market. However, western region such as Europe and North America is growing at a moderate pace. In Europe, travel retail has become a key component of aviation and maritime financing and an integral part of the traveling experience.

What are the factors driving the market growth?

Increase in travel.

Increasing product demand due to a rise in the number of international and domestic passengers is projected to contribute to the expansion of the travel retail sector. The growing income levels and rising travel expenditures of the millennial generation are predicted to be significant industry growth drivers. The World Travel and Tourism Council presented data predicting a 34.9% increase in the French travel and tourism business in 2021. The development of promotional activities by major corporations to entice consumers to purchase duty-free goods is anticipated to increase product demand and promote travel retail.

Tourism is the primary driver of the travel retail business in Asia-Pacific, as several foreign investors visit Hong Kong and Malaysia for tax-free shopping. Diverse market participants are eager to increase their market position by establishing themselves in Asian marketplaces. Mitsui Outlet Park KLIA, a premium outlet mall, was inaugurated near the international airport in Kuala Lumpur. Mitsui Outlet Park KLIA is home to several luxury brand stores, including Bally, Guess, and Boss by Hugo Boss. In addition, Dior Homme, Jimmy Choo, Tiffany & Co, Roger Vivier, MCM, Roos, and Alexander Wang have opened boutiques in Thailand. China is one of the largest importers of cosmetics and clothing. This contributes to the expansion of the Asia-Pacific market. India, China, Japan, and South Korea are the frontrunners in the regional market. South Korea is emerging as the world’s largest travel retail market, accounting for around USD 12 billion in sales, followed by China and Japan. The regional’s market generates a significant amount of revenue through the fashion and accessories, fragrances and cosmetics, and wines and spirits segments.

Europe is projected to demonstrate tremendous growth in the future years. The rising infrastructural development for travel and tourism is likely to enhance the market growth in Europe. Moreover, the high presence of sumptuous cosmetics and other prominent duty-free brands is projected to boost the region’s market expansion. The European region is home to the headquarters of some of the major luxury and fashion brands in travel retail, like LVHM and H&M. The shift in consumer lifestyles is anticipated to drive the expansion of the European travel retail market, which will be fueled by a rise in travel & tourism due to an increase in disposable income and rapid urbanization. Continual growth in the travel and tourist business, as well as the infrastructure of the hospitality sector and advances in online booking, will contribute to the growth of the travel retail industry in Europe. Due to its stronger basis of luxury products and the presence of some major clothes and cosmetics companies, the United Kingdom market held the highest proportion, contributing more than one-fourth of the market. Nevertheless, the market in Germany is anticipated to exhibit the highest CAGR throughout the forecast period.

North America is expected to witness substantial growth over the forecast period. The rise in the travel and tourism industry has raised the demand for garments, cosmetics, food products, and electronic goods, as well as the rise in urbanization, lifestyle changes, and disposable income growth among North Americans. In the coming years in North America, the increase in the number of millennials, the growing emphasis on the digitalization of the retailing process, and the rise in demand for retail chains offering luxury and premium brands of a variety of products are anticipated to support the growth of the market. The travel and tourism sector is one of the fastest-growing industries in North America. Infrastructure growth in the travel-retail business, such as greater retail experiences, including stores, restaurants, bars, and other forms of retail, has been driven by increased passenger traffic. Rich tourists from other nations continue to play a key role in the North American economy. However, the rise of terrorism and criminality, as well as stringent government controls, notably for airport shopping, impede industry growth. On the other hand, greater attempts to expand the region's travel and tourist industry are projected to create lucrative opportunities soon.

Latin America is also a significant market for travel retail. Travel retail spending in Latin America and the Caribbean directly accounts for more than 50,000 jobs. People's living standards are rising due to increasing disposable earnings, an improvement in lifestyle, and an expansion of corporate culture. A rise in the dispersion of business entities in emerging nations has popularised the carrying expensive products mentality among consumers. This habit of owning premium goods has become a status symbol among consumers. The rise in the travel and tourism industry has raised the demand for garments, cosmetics, food products, and electronic goods, the urbanization and lifestyle shifts of Latin Americans, and the increase in their disposable income. The millennial population is rising in Latin American nations such as Brazil, Argentina, and Colombia. Consequently, the increasing focus on the digitalization of the retailing process and the rise in demand for retail chains that offer luxury and premium brands of various products are anticipated to moderate the expansion of the market in Latin America in the future. Due to the increasing demand for duty-free products across countries, the duty-free retail spaces at Dubai International Airport and Abu Dhabi International Airport also contribute significantly to travel retail. The Middle Eastern region's beneficial geography, which connects it to all four corners of the globe, is also assisting the market in increasing its revenue by attracting more shoppers.

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The market is segmented by product and channel.

The market is segmented by product into perfumes & cosmetics, wine & spirits, cigarettes, electronics, luxury goods, food & confectionary, and catering & others.

Due to the early adoption of a premium lifestyle, the luxury goods market category is expected to rise steadily in developed nations, where it is expected to see strong growth potential. Rise in disposable income, exposure to social media, urbanization, and preference toward investments in personal luxury goods are some of the reasons that further fuel the market expansion.

The market is segmented by distribution channel into airports, cruise ships, train stations, and border, downtown, and hotel shops.

The airport segment accounts for more than one-third of the market shares. This is because nowadays, most people use to travel by airway rather than ships and roadways. The aviation industry is booming, which in turn increases the sales of the market. As air travel becomes more accessible and affordable, more people are expected to make use of it, which is anticipated to contribute to the sector's expansion. Several airports' endeavors to increase the profitability of non-aeronautical resources have also contributed to the expansion of this market category. In the Americas, among major channels such as Aviation, maritime, and land, the major revenue generated was through the aviation channel.

The cruise line segment is also an important segment of the market. The trade of goods in bulk is majorly made by ships and waterways. In addition, the growing trend of cruising in Asians is expected to impact the market positively. Cruising is a relatively new travel experience for Asians, but it is growing in popularity. In comparison to more established cruise markets , Asians prefer cruises of shorter duration (e.g., 4 to 5 days) and to travel in larger party sizes that include extended family and multiple generations.

Market Size By Type

Recent developments.

• July 2022 - Dufry, the largest airport retailer in the world, is preparing to merge with global travel food and beverage (F&B) business Autogrill to establish a strong new entity in the travel retail channel with combined revenues of $6.7 billion in 2021.
• November 2022 - Beginning in 2023, the ownership of Marché International, with headquarters in Pfaffikon, Switzerland, will change hands. Lagardère Travel Retail International, based in Paris, will buy all of Marché International AG, the parent company for the Marché business.

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Travel Retail Market

Travel retail market report by product type (perfume and cosmetics, wine and spirit, electronics, luxury goods, food, confectionery and catering, tobacco, and others), sector (duty-free, duty paid), distribution channel (airports, cruise liner, railway station, border, downtown and hotel shop), and region 2024-2032.

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Market Overview:

The global travel retail market size reached US$ 61.0 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 109.8 Billion by 2032, exhibiting a growth rate (CAGR) of 6.55% during 2024-2032.

Travel retail refers to the sale of goods and services to international travelers during transit. The trade is usually conducted in travel environments, such as airports or seaports, where the buyer must present proof of nationality or travel to access the commercial area. The retail shops accept payments inclusive of local and national taxes and excise duties. Travel retail is also available at hotels, border ships, international aircrafts, ferries, cruises and other marine vessels on international waters. Some of the products commonly available through travel retail include beauty and personal care products, perfumes, premium alcohols, tobacco, food and beverages, fashion accessories and electronics.

Travel Retail Market Trends:

Significant growth in the travel and tourism industry across the globe is among the key factors creating a positive outlook for the market. Travel retail and duty-free stores are one of the major sources of non-aeronautical revenue for airports as there is an increasing preference among consumers to purchase premium and luxurious products while travelling. In line with this, the rising inclination for premium wines and spirits among international travelers is also providing a thrust to the market growth. Moreover, the advent of e-commerce travel retailing solutions is also favoring the growth of the market. Retailers are widely offering their products through websites and smartphone applications, enabling the consumers to pre-order products and conveniently collect them on arrival. Additionally, various technological advancements, such as the launch of touch screen and interactive retail kiosks, are acting as other growth-inducing factors. These self-service kiosks can engage with the passengers and provide a seamless ordering and payment solution. Other factors, including the increasing expenditure capacities of the consumers, along with the implementation of favorable government policies to promote international tourism, especially in the developing economies, are anticipated to drive the market toward growth.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global travel retail market report, along with forecasts at the global, regional and country level from 2024-2032. Our report has categorized the market based on product type, sector, and distribution channel.

Breakup by Product Type:

• Perfume and Cosmetics
• Wine and Spirit
• Electronics
• Luxury Goods
• Food, Confectionery and Catering
• Others  

Breakup by Sector:

• Duty Paid  

Breakup by Distribution Channel:

• Cruise Liner
• Railway Station
• Border, Downtown and Hotel Shop  

Breakup by Region:

United States

• South Korea

United Kingdom

• Middle East and Africa  

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players being Aer Rianta International, China Duty Free Group Co. Ltd., Dufry AG, Duty Free Americas Inc, Gebr. Heinemann SE & Co. KG, KING POWER International, Lagardère S.A, Lotte Hotels & Resorts (Lotte Corporation), LVMH Moët Hennessy Louis Vuitton and The Shilla Duty Free (Hotel Shilla Co. Ltd.).

Report Coverage:

Key questions answered in this report.

The global travel retail market was valued at US$ 61.0 Billion in 2023.

We expect the global travel retail market to exhibit a CAGR of 6.55% during 2024-2032.

The rising consumer preferences for purchasing premium and luxurious products while travelling, along with the widespread availability of pre-order products facility, are primarily driving the global travel retail market.

The sudden outbreak of the COVID-19 pandemic had led to the implementation of stringent lockdown regulations across several nations resulting in the temporary restrictions on intra- and inter-national travel activities, thereby limiting the overall demand for travel retail products and services.

Based on the product type, the global travel retail market can be segmented into perfume and cosmetics, wine and spirit, electronics, luxury goods, food, confectionery and catering, tobacco, and others. Currently, perfume and cosmetics hold the majority of the total market share.

Based on the sector, the global travel retail market has been divided into duty-free and duty paid, where duty-free currently exhibits a clear dominance in the market.

Based on the distribution channel, the global travel retail market can be categorized into airports, cruise liner, railway station, and border, downtown and hotel shop. Among these, airports account for the largest market share.

On a regional level, the market has been classified into North America, Asia-Pacific, Europe, Latin America, and Middle East and Africa, where Asia-Pacific currently dominates the global market.

Some of the major players in the global travel retail market include Aer Rianta International, China Duty Free Group Co. Ltd., Dufry AG, Duty Free Americas Inc, Gebr. Heinemann SE & Co. KG, KING POWER International, Lagardère S.A, Lotte Hotels & Resorts (Lotte Corporation), LVMH Moët Hennessy Louis Vuitton, and The Shilla Duty Free (Hotel Shilla Co. Ltd.).

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Ready for departure: How the travel retail sector can succeed in the post-Covid environment

By Gabriel Schillaci

Recommendations and case studies for airports and retailers

Like all aviation-related industries, the travel retail sector has been turned on its head by the Covid-19 pandemic. A change in the passenger mix at airports, as well as longer idle times due to Covid-related delays, are driving new trends and behaviors. Digital channels are becoming increasingly important, for example, and shoppers are buying more because shops are quieter. Travel retailers need to adapt to these changes, or risk being left behind. In this article we assess the transformation taking place in the sector and present a series of recommendations for airports and retailers on how they can not only adapt to the new challenges, but also thrive. We also offer two case studies outlining successful Roland Berger travel retail projects.

"Airports, retailers and the entire ecosystem must embrace the new market dynamics."

The Covid-19 pandemic has likely changed the air travel market for some time to come. Business travel has been decimated as workers switch to virtual mobility tools, one in five private travelers are choosing to fly domestically rather than internationally and passenger demand is set to remain well below pre-Covid forecasts for years to come, according to a recent Roland Berger study.

While airlines and airports have borne the brunt of the crisis, this reshuffled passenger mix has also had a profound impact on the travel retail sector. For example, fewer big-spending intercontinental passengers from Asia or Brazil mean fewer high-end sales, with retailers now having to adapt their offer to better suit the growing proportion of continental / domestic passengers, and especially low-cost passengers. On the other hand, less traffic and strong concerns over Covid-related delays at airports mean passengers are spending longer periods in airports, pushing up idle times available for shopping.

"Airports need to refocus their offer on their core passengers. They must adapt their product assortment and merchandizing to target the growing share of low-cost passengers."

New trends = new behaviors

This shift has accelerated several trends in travel retail, some that existed pre-Covid and some a result of the pandemic. First, the digital effect has become more pronounced. Retailers’ and brands’ omnichannel strategies are increasingly influencing clients, and e-commerce is driving up pricing transparency. Second, new forms of competition, such as social media use and music and video streaming are vying for passengers’ idle time. Third, the range of offers at some airports, which for years have been focused on either luxury or high-volume items, are becoming less attractive. Fourth, passengers now expect more than just traditional airport “shopping”, with demand growing for experience-based events, especially virtual ones. Finally, opportunities are growing to capture and exploit passenger data.

These trends and the reshuffled passenger mix are driving changes in buyer behavior. With less traffic in airports, passengers are buying more because the quieter environment makes it more appealing to spend time in airport shops. Increased idle times also mean they stay longer. In addition, better price transparency means that passengers can more easily compare duty free offers against online or Main Street prices, and dismiss offers that are not the bargain they purport to be.

Recommendations: How can travel retailers adapt?

The upshot is that travel retail players need to adapt to survive. In short, airports, retailers and the entire ecosystem must embrace the new market dynamics. To do this, we believe they need to focus on two key areas: revamping their traditional offer and reinventing their business models. Below we give our recommendations.

"Collaboration between airlines, airports and travel retailers is essential to realize the potential of new business models."

Revamp the offer

Refocus on core passengers: Travel retailers know that some passengers spend more than others. Their traditional offer has always included a premium element (designer stores, upmarket boutiques and restaurants, etc.) to cater to them. But this low volume/high value market has been badly hit by travel restrictions placed on some of its biggest spenders, such as Asian or Brazilian passengers. As a result, airports need to refocus their offer on their core passengers. They must adapt their product assortment and merchandizing to target the growing share of low-cost passengers, who while traveling low cost, do not necessarily have lower purchasing power at the airport.

Renew formats: To stay fresh, travel retailers need to frequently reinvent their formats. These might include pop-up stores, shop-in-shops, live performances and games. Integrating modularity into the design of commercial spaces helps with this.

Modernize concepts: A purely transactional approach to travel retail is no longer enough. Players must develop concepts such as retail-as-a-media, where capturing data points on passengers is more valuable than making a sale. This involves showcasing, for example, electronics, with customers able to try out new products provided they register first.

Offer experiences: Memorable events can improve brand awareness, customer relations and sales. With their captive audiences, airports provide a perfect platform for surprising, entertaining events, such as concerts, virtual reality experiences and selfie-worthy backdrops.

Leverage data and AI: Good use of data can help turbocharge a retailer. For example, ultra-personalization can help to cement client relationships and performance can be improved by closely monitoring datapoints and adapting to changes accordingly.

"Our expert teams have considerable knowledge of travel retail, and have supported airports, travel retailers, brands and airlines through a host of strategic and operational challenges."

Reinvent business models

Leverage cooperation and value sharing: Collaboration between airlines, airports and travel retailers is essential to realize the potential of new business models. This could include developing loyalty cards for a retailer or airline, or a branded payment card for a retailer.

Case studies: Roland Berger success stories

Our expert teams have considerable knowledge of travel retail, and have supported airports, travel retailers, brands and airlines through a host of strategic and operational challenges. The following case studies highlight two recent success stories. Feel free to get in touch for more information.

Case study 1: Airport

Project: A well-known European airport had a bottleneck in travel retail sales growth. Roland Berger was tasked with identifying the root cause and finding a transformation solution.

Approach: A comprehensive internal diagnosis identified declining sales per passenger as the root cause. Key factors behind this included passengers perceiving the retail offer to be expensive, an indifferent quality of assortment, insufficient consumer traction and a below-average commercial footprint.

Benchmarking against best practices at the airport’s leading competitors revealed it needed to step up to remain competitive. As such, we designed a commercial strategy with six key focus areas:

Case study 2: Duty-free retailer

Project: A leading Asian duty-free player wanted to win a concession in a major airport in Japan.

Approach: We conducted a thorough analysis of the retail RFP issued by the airport and compared it to the airport's specificities to determine the perfect requirements of its retail business. We identified three key needs, and proposed three corresponding KSFs:

Partial recovery: How three trends are changing long-distance travel

We calculated the impact of three trends on four key travel dimensions to determine the "recovery gap" between pre-crisis long-distance travel and the post-pandemic situation.

The future of long-distance mobility: How Covid jolted long-distance business travel

The outbreak of Covid-19 affected especially long-distance business traveling which is shown by a 66% globally decrease in air traffic last year.

The future of long-distance mobility: How Covid changed consumer appetites

The first part of our article series on long-haul mobility examines how private travel has forever changed, and why European demand might not return until 2025.

Transportation, Tourism & Logistics

Roland Berger supports the mobility and logistics industry in digitization along the entire value chain.

Smart Mobility

Smart Mobility contributes to a more sustainable and value-adding state of mobility. Find out more about new mobility scenarios for our society here.

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Travel Retail Market

Travel Retail Market Size by Product Type (Perfumes & Cosmetics, Wine & Spirit, Electronics, Luxury Goods, Food, Confectionery, & Catering, Tobacco and Others), Sector (Duty-Free and Duty Paid), Distribution Channel (Airport, Cruise Liner, Railway Station and Others), Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2023 to 2032

• Report ID: TBI-13814
• Published Date: Nov, 2023
• Category: Consumer Goods
• Format: PDF

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• Table of Content
• Market Segmentation

Methodology

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The global Travel Retail market generated USD 56.35 billion revenue in 2022 and is projected to grow at a CAGR of 9.48% from 2023 to 2032. The market is expected to reach USD 139.39 billion by 2032. The global travel retail market is experiencing growth driven by several factors, including the steady rise in disposable income due to increasing urbanization worldwide, the growth of leisure and business travel , and evolving consumer preferences favouring on-the-go shopping. Collaborative alliances between luxury and premium brands present a promising opportunity within the travel retail sector.

Market Introduction:

Travel retail is a specialized retail sector within transportation hubs, including airports, train stations, and cruise terminals. It caters to passengers during their journeys, providing various products such as luxury goods, cosmetics, fashion, electronics, and souvenirs. One of the defining features of travel retail is its tax-free or reduced-tax status, which allows travellers to acquire products at a more economical price compared to regular retail stores. Travel retail is designed to offer convenience and unique shopping experiences for travellers. It often showcases an assortment of globally recognized brands and exclusive products, enticing travellers with the allure of exceptional deals and unique items that may not be readily available in other retail settings. This segment of the retail industry has thrived due to the increasing global mobility of individuals and the rising number of international travellers. Travel retail creates a win-win situation for travellers and retailers, as travellers can enjoy savings on their purchases while retailers can tap into a captive and diverse customer base. Additionally, travellers can explore and discover new products and brands, making it a dynamic and engaging shopping environment. Travel retail remains a vital component of the retail landscape, offering a unique and enticing shopping experience for individuals on the move.

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Recent Development

• In October 2023: DFS Group, the travel retail division of the renowned French conglomerate LVMH, is strategically embarking on developing a substantial entertainment and shopping complex on the duty-free Hainan Island of China. This strategic move is aimed at seizing the burgeoning tourism market, which has demonstrated remarkable resilience even in the face of economic downturns.
• In July 2023: Lagardère Travel Retail and Inflyter are expanding their collaboration to advance the digitization of the Duty-Free shopping experience for a broader audience of travellers. This enhanced partnership aims to offer travellers increased opportunities for pre-travel browsing and purchasing, aligning with Lagardère Travel Retail's overarching digital approach to broaden the array of digital sales channels and create multiple customer touchpoints throughout their journey.
• In June 2023: Qatar Duty Free (QDF) is excited to introduce a fresh Coach Boutique at Hamad International Airport, enhancing its already impressive lineup of brands for travellers. This New York-based brand boutique presents a captivating range of products, including crossbody bags, totes, handbags, small leather goods like compact wallets and card holders, and clutches for both men and women. The newly unveiled boutique proudly showcases an exquisite selection of Coach's signature items, featuring highlights from the iconic shoulder bags, Tabby Collection, and the Willow Collection, renowned for its versatility in accommodating day-to-day essentials.

Market Dynamics:

Increasing Global Travel - The growth of the travel retail market is closely tied to the increasing number of global travellers. As more people travel internationally for business and leisure, the demand for duty-free shopping and travel retail services also rises.

Rising Disposable Income - Higher disposable income levels, especially among the middle class in emerging economies, have increased spending on luxury and premium products at travel retail outlets.

Duty-Free Shopping Incentives - The allure of duty-free shopping, where travellers can buy products without paying certain taxes and duties, is a major driver. These savings encourage travellers to purchase at airports, seaports, and border crossings.

Restraints:

Online Shopping Competitiveness - The rise of e-commerce platforms provides travellers alternatives to in-person travel retail, potentially diverting sales from physical stores.

Security Concerns - Heightened security measures and restrictions at airports and other travel hubs can affect the shopping experience and deter travellers from purchasing.

Opportunities:

E-commerce Integration - Integrating e-commerce and digital platforms into the travel retail sector provides an opportunity to reach travellers before their journeys, allowing for pre-ordering, personalized promotions, and seamless online-to-offline experiences.

Personalization - Using data analytics and technology, travel retailers can offer personalized shopping experiences, tailoring product recommendations and promotions to individual traveller preferences.

Exclusive Product Launches – Travel retail locations can be ideal platforms for launching exclusive products, limited editions, and collaborations with popular brands, attracting consumers looking for unique and exclusive items.

Challenges:

Economic Volatility - Fluctuations in the global economy can impact consumer spending, leading to reduced demand for travel retail products, particularly in times of economic downturns.

High Operational Costs - High operating costs at airports, including rent and labour expenses, can pressure retailers' margins and profitability.

Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific emerged as the most prominent global Travel Retail market, with a 46.13% market revenue share in 2022.

The Asia Pacific region has experienced considerable economic evolution over the past few decades, resulting in a growing middle class with higher disposable earnings. This factor has led to increased outbound travel from the region, contributing to higher sales in travel retail. In addition, Asia Pacific is home to some of the world's most populous countries and renowned tourist destinations. The region's rising tourism sector, driven by domestic and international travellers, creates a substantial customer base for travel retail. The region boasts major international travel hubs and gateways, including airports in Singapore, Hong Kong, Beijing, and Tokyo. These airports serve as crucial junctions for travellers and offer extensive retail options. The Asia Pacific region has a strong appetite for luxury and premium products, further fueled by its affluent consumers. Luxury brands have recognized this demand and established a significant presence in travel retail locations throughout the region. Besides, many countries in the Asia Pacific region offer attractive duty-free shopping incentives, allowing travellers to make tax-free purchases. This factor creates a strong incentive for travellers to shop in these locations. Europe is poised for considerable growth in the travel retail market over the forecast period due to several factors and trends. Europe is a top global destination for both domestic and international tourists. The continent's rich cultural heritage, historical landmarks, and diverse landscapes continue to attract many visitors, creating a robust customer base for travel retail. Additionally, Europe is home to numerous major international airports and is well-connected to worldwide destinations. The rising number of air travellers contributes to increased footfall in airport retail outlets. Travel retail businesses in Europe often collaborate with airlines, tourism boards, and local authorities to promote the shopping experience as an integral part of a tourist's journey, encouraging purchases. Furthermore, Europe hosts numerous international events, such as sports tournaments, festivals, and conventions. These events attract many visitors, presenting opportunities for travel retail businesses to capitalize on increased foot traffic.

Asia Pacific Region Travel Retail Market Share in 2022 - 46.13%

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Product Type Segment Analysis

The product type segment includes perfumes & cosmetics, wine & spirit, electronics, luxury goods, food, confectionery, & catering, tobacco and others. The perfumes & cosmetics segment dominated the market, with a share of 37.82% in 2022. Perfumes and cosmetics are associated with luxury and premium brands, making them highly sought after by travellers, especially those with higher disposable incomes. Travellers often view airports and travel hubs as ideal places to purchase high-end beauty products. In addition, perfumes and cosmetics have a universal appeal, transcending language and cultural barriers. These characteristics make them attractive to a broad spectrum of travellers, irrespective of their country of origin or destination. Additionally, many countries offer duty-free shopping at airports and border crossings, allowing travellers to purchase perfumes and cosmetics without paying certain taxes and duties. This factor provides a strong incentive for travellers to shop in these locations.

Sector Segment Analysis

The sector segment is classified into duty-free and duty paid. The duty-free segment dominated the market, with a share of around 64.75% in 2022. The primary advantage of the duty-free segment is the tax and duty benefits it offers travellers. Passengers can purchase products without paying certain local taxes, import duties, and other levies, making it an attractive shopping option for price-conscious consumers. In addition, travellers can often enjoy significant cost savings when they shop in duty-free stores, as the absence of taxes and duties results in lower prices than retail outlets in their home countries. This cost advantage encourages travellers to make purchases. Moreover, duty-free stores typically offer various products, including alcohol, tobacco, perfumes, cosmetics, electronics, fashion, and more. This extensive product variety caters to the diverse preferences and needs of travellers.

Distribution Channel Segment Analysis

The distribution channel segment is divided into airport, cruise liner, railway station and others. The airport segment dominated the market, with a share of around 44.68% in 2022. Airports are key travel hubs, serving millions of passengers daily. The substantial foot traffic at airports provides a vast customer base for travel retail businesses, making it a lucrative distribution channel. Major airports offer extensive global connectivity, attracting travellers from diverse regions and backgrounds. This international appeal ensures a broad and culturally diverse customer base. Besides, many airports offer duty-free shopping options, allowing travellers to purchase products without paying certain taxes and duties. This factor incentivizes travellers to shop at airports and drives sales.

Some of the Key Market Players:

• Aer Rianta International
• China Duty Free Group
• DFS Group (LVMH Group)
• Dubai Duty Free
• Duty Free Americas, Inc.
• Ever Rich Duty Free
• Gebr Heinemann
• Heinemann SE & Co. KG
• King Power International Group
• Lotte Duty Free
• Lagardere Travel Retail
• Qatar Duty Free
• Sinsegae Duty Free
• The Shilla Duty Free
• 3Sixty Duty Free

Report Description:

Frequesntly Asked Questions

What is the market size of the global travel retail market.

As per The Brainy Insights, the size of the travel retail market was valued at USD 56.35 billion in 2022 to USD 139.39 billion by 2032.

What is the market growth rate of the global travel retail market?

The global travel retail market is growing at a CAGR of 9.48% during the forecast period 2023-2032.

Which region dominates the global travel retail market?

The Asia Pacific region became the largest market for travel retail.

What is the significant driving factor for the travel retail market?

Rising disposable earnings and the rising number of global travellers influence the market's growth.

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This study forecasts revenue at global, regional, and country levels from 2019 to 2032. The Brainy Insights has segmented the global Travel Retail market based on below-mentioned segments:

Global Travel Retail Market by Product Type:

• Perfumes & Cosmetics   
• Wine & Spirit
• Electronics
• Luxury Goods
• Food, Confectionery, & Catering
• Others        

Global Travel Retail Market by Sector:

• Duty-Free  

Global Travel Retail Market by Distribution Channel:

• Airport 
• Cruise Liner
• Railway Station

Global Travel Retail Market by Region:

• South Africa

Research has its special purpose to undertake marketing efficiently. In this competitive scenario, businesses need information across all industry verticals; the information about customer wants, market demand, competition, industry trends, distribution channels etc. This information needs to be updated regularly because businesses operate in a dynamic environment. Our organization, The Brainy Insights incorporates scientific and systematic research procedures in order to get proper market insights and industry analysis for overall business success. The analysis consists of studying the market from a miniscule level wherein we implement statistical tools which helps us in examining the data with accuracy and precision. 

Our research reports feature both; quantitative and qualitative aspects for any market. Qualitative information for any market research process are fundamental because they reveal the customer needs and wants, usage and consumption for any product/service related to a specific industry. This in turn aids the marketers/investors in knowing certain perceptions of the customers. Qualitative research can enlighten about the different product concepts and designs along with unique service offering that in turn, helps define marketing problems and generate opportunities. On the other hand, quantitative research engages with the data collection process through interviews, e-mail interactions, surveys and pilot studies. Quantitative aspects for the market research are useful to validate the hypotheses generated during qualitative research method, explore empirical patterns in the data with the help of statistical tools, and finally make the market estimations.

The Brainy Insights offers comprehensive research and analysis, based on a wide assortment of factual insights gained through interviews with CXOs and global experts and secondary data from reliable sources. Our analysts and industry specialist assume vital roles in building up statistical tools and analysis models, which are used to analyse the data and arrive at accurate insights with exceedingly informative research discoveries. The data provided by our organization have proven precious to a diverse range of companies, facilitating them to address issues such as determining which products/services are the most appealing, whether or not customers use the product in the manner anticipated, the purchasing intentions of the market and many others.

Our research methodology encompasses an idyllic combination of primary and secondary initiatives. Key phases involved in this process are listed below:

MARKET RESEARCH PROCESS

Data Procurement:

The phase involves the gathering and collecting of market data and its related information with the help of different sources & research procedures.

The data procurement stage involves in data gathering and collecting through various data sources.

This stage involves in extensive research. These data sources includes:

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North America Travel Retail Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

North America Travel Retail Market is Segmented By Product Type (Fashion and Accessories, Jewelry and Watches, Wine & Spirits, Food & Confectionery, Fragrances and Cosmetics, Tobacco, Others (Stationery, Electronics, etc.)), By Distribution Channel (Airports, Airlines, Ferries, Other(Railway Stations, Border, Downtown)) and By Geography (United States and Canada).

• North America Travel Retail Market Size

Need a report that reflects how COVID-19 has impacted this market and its growth?

North America Travel Retail Market Analysis

The North America travel retail market is anticipated to rise at a considerable rate and register a CAGR less than 10% during the forecast period, 2021-2026.

COVID-19 has all but wiped out the travel industry and a bounce back is looking increasingly unlikely as passenger numbers continue to be affected by outright bans, onerous quarantine requirements or - in the odd locale where the freedom to travel still exists - fear. Lauder's latest results release (Q4 2020) acknowledges that consumer traffic continues to be impacted by travel bans in most travel retail locations. American Airlines has reduced October schedule by 55% and the International Air Transport Association has predicted losses of US$84 billion for its members over the year.

Travel retail also called as duty free is a sales procedure comprising of the commercialization of the goods relating to the various product categories. This sales channel comprises of the goods that have not had the taxation, excise applied on their sale price and for sales to customers that are travelers. travel retail is a retailing channel, providing products to international travelers. It is an important source of income and has several marketing prospects. The upsurge in the travel and tourism sector that has increased the demand for apparels, cosmetics, food items, and electronic retail, rise in the urbanization and change in the lifestyle and the growing of the disposable income amongst North Americans. The rise in the number of millennial populations, the growing attention on the digitalizing of the retailing procedure and the increase in the demand for retail chains that provide luxury and premium brands of different products are some of the factors estimated to cushion the growth of the travel retail market in the coming years in North America. The travel and tourism industry are one of the largest growing sectors across North America. Increased passenger traffic has led the infrastructure development in the travel- retail market such as larger retail experiences which include shops, restaurants, bars and other forms of retail. Wealthy tourists from the other countries continue to contribute a significant part in the North America market.

• North America Travel Retail Market Trends

This section covers the major market trends shaping the North America Travel Retail Market according to our research experts:

Airport Retailing is Generating Higher Revenues than other Channels in North America Travel Retail Market.

The world of airport retail is booming. As airports continue to implement tasks such as check-in and bag-drop remotely, there is more physical space which can be used to increase non-aviation revenue streams. Alongside increasing brick and mortar stores, airports are improving services through personalization and technology. Airport retailing has become an important channel for brands to promote and create awareness about products in the market. Airports are diversifying to nom- aeronautical segments such as retail, restaurant bars, cafeterias. It is expected that the airport size and passenger footfall will continue to rise which will positively impact the airport travel retail market in North America.

Fragrance & Cosmetics Segment Share is Dominating the Travel Retail Market in North America.

The fragrances and cosmetics segment had a higher share in the overall sales in North America travel retail which was nearly one-third of the total market. Improved consumer lifestyle toward premium fragrances, and cosmetics, increase in disposable income, and rapid growth in urbanization are the key factors that drive the growth of the segment in the North American travel retail market. However, the luxury retail segment is expected to grow fastest owing to a premium lifestyle and huge market opportunity in the luxury product segments.

North America Travel Retail Industry Overview

The report covers major international players operating in the North America Travel Retail Market. In terms of market share, few of the major players currently dominate the market. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping into new markets. The leading brands are opening exclusive stores for special products. The companies are also promoting, differentiating and selling limited editions to increase their visibility and brand awareness in the market.

North America Travel Retail Market Leaders

Duty Free Americas, Inc

Aer Rianta International North America

International Shoppes

*Disclaimer: Major Players sorted in no particular order

North America Travel Retail Market News

• June 2021- 3Sixty D uty Free has partnered with Global Crossing Airlines to allow travellers to purchase a range of travel retail products via their onboard inflight duty free programme.
• April 2021- Hudson Group has revealed its first-of-a-kind, multi-brand automated retail concept. Driven by the Dufry-owned company's ongoing commitment to enhancing the traveller experience and leveraging digital innovation, the new automated retail concept aims to create a contactless, 24/7 retailing destination.

North America Travel Retail Market Report - Table of Contents

1. INTRODUCTION

1.1 Study Deliverables

1.2 Study Assumptions

1.3 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS AND DYNAMICS

4.1 Market Overview

4.2 Market Drivers

4.3 Market Restraints

4.4 Value Chain / Supply Chain Analysis

4.5 Porters 5 Force Analysis

4.5.1 Threat of New Entrants

4.5.2 Bargaining Power of Buyers/Consumers

4.5.3 Bargaining Power of Suppliers

4.5.4 Threat of Substitute Products

4.5.5 Intensity of Competitive Rivalry

4.6 Insights on Trends in Passenger Traffic by Channels

4.7 Insights on Government Regulations and Initiatives Effecting the Market

4.8 Technology Innovations in the Market

4.9 Impact of Covid 19 on market

5. MARKET SEGMENTATION

5.1 Retail Activity Type

5.1.1 Fashion and Accessories

5.1.2 Jewellery and Watches

5.1.3 Wine & Spirits

5.1.4 Food & Confectionary

5.1.5 Fragnances and Cosmetics

5.1.6 Tobacco

5.1.7 Others (Stationery, Electronics, etc.)

5.2 Distribution Channel

5.2.1 Airports

5.2.2 Airlines

5.2.3 Ferries

5.2.4 Other(Railway Stations, Border, Downtown)

5.3 Geography

5.3.2 Canada

6. COMPETITIVE LANDSCAPE

6.1 Company Profiles

6.1.1 3Sixty

6.1.2 International Shoppes

6.1.3 Stellar Partners

6.1.4 Aer Rianta International North America

6.1.5 Duty Free Americas, Inc

6.1.6 Dufry

6.1.7 DFS Group

6.1.8 Heinemann Americas.

6.1.9 The Nuance Group (Canada) Inc.

6.1.10 ALFA Brands Inc.

• *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

8. DISCLAIMER

North America Travel Retail Industry Segmentation

'Travel retail' is a term that commonly refers to sales made in travel environments where customers require proof of travel to access the commercial area, but which are subject to taxes and duties.A complete background analysis of the North America carpet tile market, which includes an assessment of the emerging trends by segments and regional markets, significant changes in market dynamics, and market overview, is covered in the report. North America Travel Retail Market is Segmented By Product Type (Fashion and Accessories, Jewelry and Watches, Wine & Spirits, Food & Confectionery, Fragrances and Cosmetics, Tobacco, Others (Stationery, Electronics, etc.)), By Distribution Channel (Airports, Airlines, Ferries, Other(Railway Stations, Border, Downtown)) and By Geography (United States and Canada).

North America Travel Retail Market Research FAQs

What is the current north america travel retail market size.

The North America Travel Retail Market is projected to register a CAGR of less than 10% during the forecast period (2024-2029)

Who are the key players in North America Travel Retail Market?

Dufry, Duty Free Americas, Inc, Aer Rianta International North America, DFS Group and International Shoppes are the major companies operating in the North America Travel Retail Market.

What years does this North America Travel Retail Market cover?

The report covers the North America Travel Retail Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Travel Retail Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

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North America Travel Retail Industry Report

Statistics for the 2024 North America Travel Retail market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Travel Retail analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

North America Travel Retail Report Snapshots

• North America Travel Retail Market Share
• North America Travel Retail Companies

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• Consumer Goods and Services /
• Travel and Tourism

Travel Retail Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028

• Region: Global
• IMARC Group
• ID: 5820644
• Description

Table of Contents

Companies mentioned, methodology, related topics, related reports.

• Purchase Options
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Travel Retail Market Trends:

Key market segmentation:, breakup by product type:.

• Perfume and Cosmetics
• Wine and Spirit
• Electronics
• Luxury Goods
• Food, Confectionery and Catering

Breakup by Sector:

Breakup by distribution channel:.

• Cruise Liner
• Railway Station
• Border, Downtown and Hotel Shop

Breakup by Region:

North america.

• United States

Asia-Pacific

• South Korea
• United Kingdom

Latin America

Middle east and africa, competitive landscape:, key questions answered in this report:.

• What was the size of the global travel retail market in 2022?
• What is the expected growth rate of the global travel retail market during 2023-2028?
• What are the key factors driving the global travel retail market?
• What has been the impact of COVID-19 on the global travel retail market?
• What is the breakup of the global travel retail market based on the product type?
• What is the breakup of the global travel retail market based on the sector?
• What is the breakup of the global travel retail market based on distribution channel?
• What are the key regions in the global travel retail market?
• Who are the key players/companies in the global travel retail market?
• Aer Rianta International
• China Duty Free Group Co. Ltd.
• Duty Free Americas Inc
• Gebr. Heinemann SE & Co. KG
• KING POWER International
• Lagardère S.A
• Lotte Hotels & Resorts (Lotte Corporation)
• LVMH Moët Hennessy Louis Vuitton and The Shilla Duty Free (Hotel Shilla Co. Ltd.).

Table Information

• Travel And Tourism

Global Travel Retail Market (by Product Type, Sale Channel, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)

•  Report
• October 2023

Travel Retail Global Market Report 2024

• December 2023

Global Travel Retail Market by Product (Confectionary & Fine Food, Electronics, Fashion & Accessories), Purchase Type (Duty Free, Duty Paid), Channel - Forecast 2024-2030

Travel Retail Global Market Insights 2023, Analysis and Forecast to 2028, by Market Participants, Regions, Technology, Application, Product Type

Travel Accommodation Market by Type, Price Point, Mode of Booking, Application, and Region 2023-2028

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A travel boom is looming. But is the industry ready?

If things go well, we might be at the threshold of a new age of travel. Although COVID-19 variants may affect conditions, it seems only a matter of time before travelers in some parts of the world hit the road and take to the skies again, thanks to rising vaccination rates and manageable caseloads. Some countries have begun gingerly relaxing travel restrictions and reopening borders.

As the worst effects of the COVID-19 pandemic ebb, most indicators point to travel coming back—with a vengeance—as people look to reconnect, explore new destinations, or revisit reliable favorites. Many just want to get away from the confines of their homes. A McKinsey survey reveals traveling to be the second-most-desired activity among respondents (in first place: dining out). In the United States, air travel has hit two million daily passengers, closer to the prepandemic level of around 2.5 million than to the low of around 90,000, in April 2020. Hotel reservations and rental-car bookings are surging.

All these trends should taste sweet for the industry, but ill-prepared companies may find themselves facing the wrath of a cohort of leisure-focused vacationers who might already be struggling to keep up with new travel protocols. If the industry doesn’t work to increase capacity now, the ecosystem may buckle under the pressure, forcing travelers to endure long wait times and inflated prices.

This article projects two broad trajectories of how travel will likely bounce back, comparing countries that have near-zero caseloads with those that have more, but manageable, caseloads and higher vaccination rates. In both scenarios, travel companies that don’t prepare themselves for the forthcoming influx of travelers risk missing out on a valuable opportunity to recoup losses incurred during the height of the pandemic. On the flip side, we believe that by focusing on four key areas—building capacity, investing in digital innovation, revisiting commercial approaches, and learning from critical moments—travel companies can seize value as they exceed the needs and demands of their customers.

The tale of two travel recovery paths

Wherever in the world you look, you’ll see people itching to travel. Most high-income earners have not lost their jobs. In the United States, the savings rate  among this demographic is 10 to 20 percent higher now than before the pandemic, and such people are eager to spend their money on travel. Leisure trips are expected to lead the rebound, with corporate travel  trailing behind.

A recent survey of 4,700 respondents from 11 countries around the world, conducted by the International Air Transport Association (IATA), revealed that 57 percent of them expected to be traveling within two months of the pandemic’s containment, and 72 percent will do so as soon as they can meet friends and family. In our China travel survey, we see more and more respondents yearning for leisure trips further afield; 41 percent say they want their next trip to be outside China, the highest level we’ve seen, despite borders remaining sealed.

Yet it’s worth noting that despite the near-universal desire to travel, countries will likely manage their plans to reopen differently. Two main factors come into play here: current COVID-19 caseloads and vaccination rates. People living in countries with limited access to vaccines and uncontainable levels of cases—such as a number of countries in Africa and Southeast Asia—will continue to be bound by tight travel restrictions for some time to come.

Travel will take off in and between countries with manageable caseloads

We can expect a surge in travel in (and between) countries with manageable and moderate COVID-19 caseloads and vaccine access. These regions are willing to accept rising case levels as long as death and hospitalization rates stay low. In many European countries and the United States, a significant portion of the population has been inoculated. Such people feel safe enough to travel both domestically and internationally, especially with the introduction of safety measures such as the EU-issued digital health certificates given to people vaccinated against COVID-19. Despite fluctuating rates of new caseloads in these regions, the efficacy of the vaccine so far (to reduce the spread of the disease and avoid its worst effects) gives many people enough feeling of security to travel.

Countries in Europe that have gotten used to living with manageable caseloads of COVID-19 have begun to welcome visitors without asking them to quarantine: Iceland (March 2021), Cyprus (May 2021), and Malta (June 2021). In addition, Europe is open to vaccinated US travelers. After the US Centers for Disease Control and Prevention (CDC) started approving cruise vessels with conditional sailing certifications to enter the country, a Florida federal court ruled in June 2021 that CDC-issued regulations should serve only as nonbinding guidelines, further reducing restrictions on tourists.

If past instances serve as indicators, we’ll see travel demand soaring once travel restrictions are eased and freedom of mobility returns.

Domestic trips will lead the recovery of travel in near-zero countries

However, a slightly different picture is emerging for countries with near-zero caseloads. Countries in this group include Australia, China, New Zealand, and Singapore. Their governments face a difficult trade-off. They can open up national borders without quarantines—which will almost certainly lead to increased local transmissions of COVID-19 and an increase in new cases, especially in countries with low vaccination rates, such as Australia and New Zealand. Or, they can choose to continue imposing strict restrictions and quarantine measures until the pandemic has truly passed, which would deter all but the most determined of travelers. Unlike places that have adjusted to living with COVID-19, even a moderate increase of cases in countries with caseloads near zero would likely be unacceptable to the public.

That’s not to say there are no travel opportunities in these countries. First, we’ll likely see increased interest in domestic travel, especially for large countries with sizable home markets, such as Australia and China, which have traditionally been net exporters of tourists. With few international destinations open to visit, this group of travelers will likely seek out vacation experiences within their nations’ borders. China  has seen hordes of tourists flood many scenic destinations and tourist sites, especially during peak travel seasons.

Second, even though travel bubbles have had only limited success so far, it may soon be possible for territories with very low COVID-19 caseloads and no local transmissions to open up access to each other. Mainland China, for instance, has been allowing citizens to travel to and from Macau without quarantine requirements. Hong Kong and Singapore have also restarted negotiations on a potential travel bubble between the two cities. The key is establishing common standards and trust in the public-health protocols and testing regimes of the participants in the travel bubble.

Four actions travel players must consider

Despite these promising signs, the tourism industry will likely struggle to capitalize on the imminent spike in travel demand, especially in Europe and the United States. From airlines and car rentals to hotels and airport restaurants, the entire travel supply chain is already showing signs of strain. Wait times at security checkpoints are stretching into hours at some airports, while popular vacation destinations, including Arizona, Florida, and Hawaii, are facing rental-car shortages.

Needless to say, bad news travels fast, and a negative experience can quickly become fodder for a viral video and bad publicity, leading customers to look for alternatives more in their control, including nearby drives and rental properties.

While the process is daunting, clear-sighted travel leaders know that preparing their organizations for a surge of travelers is also an opportunity to redefine their value propositions and make their offerings distinctive. This will not only reinstill confidence in travel but also increase customer loyalty. Leaders and executives would be wise to focus on the following four areas.

1. Bring back capacity

The most pressing imperative for all companies across the travel supply chain is bringing back capacity or, at the very least, ensuring that they’re able to do so. Many contract and temporary workers in the restaurant industry who were laid off during the pandemic have found other employment and are reluctant to go back to their former jobs, resulting in a labor crunch. In the United Kingdom, more than one in ten workers left the hospitality sector last year. In the United States, there was still a shortfall in April of around two million leisure and hospitality jobs—far greater than before the pandemic. Global aviation capacity levels are still well below prepandemic levels as many planes remain in long-term storage and staff remain furloughed. We believe that even though reactivating airline pilots and cabin crews, preparing grounded aircraft for service, and rehiring and training service staff can be pricey, the cost of standing by and doing nothing would be higher.

2. Invest innovatively to improve the entire customer journey

While cash might continue to be in short supply, an area still worth considering for overinvestment is digital operations. Remember that the customer experience is shaped across the entire end-to-end journey, from booking to travel to the return home. Even seasoned travelers will have to adapt to new protocols, such as digital health certificates and safety measures. Travelers now need more, not less, assistance. Furthermore, certain critical journeys and moments—such as a family vacation, an important business trip, or a last-minute emergency—carry a disproportionate weight in consumers’ minds when they plan their next trip. The anticipated volume of traffic during the summer and peak holiday periods will only compound these issues and bring about greater inconvenience in the overall system.

In our work in this sector, we have found that if even one pain point in the customer journey is not satisfactorily resolved, the entire perception of a travel company can be degraded. The industry needs to make sure that processes are smooth for reopening and that adequate assistance is available for travelers to help them adapt to new ways of traveling. It is likely that international trips will need additional documentation for some time. These requirements will vary by country and potentially by transit hub. They may include proof of COVID-19 vaccination (when, as well as which vaccine) and testing requirements (type of test and recency).

As the long wait times at airport checkpoints attest, manually navigating these complexities at the check-in desk is highly inefficient and prone to human error. Some airports are testing camera-powered and AI-based digital technologies to monitor crowd densities and reduce time spent standing in line—which makes the airport experience more bearable for travelers and ensures safe physical distancing. Autonomous robots are also being deployed to maintain hygiene standards; some are equipped with UV-light cleaners to disinfect areas, and others are outfitted with body-temperature sensors to help minimize the risk of virus outbreaks.

3. Reimagine commercial approaches

Travel companies may rethink their commercial approaches. The profiles of airline passengers and hotel guests will be different: more leisure guests, later booking windows, and higher demand for flexible tickets. Historical booking curves are no longer a good indicator of current behavior. Travel companies need to use every source of insight they can to anticipate demand and optimize pricing . Flexible pricing models can also ease customer discomfort with today’s heightened levels of unpredictability. For example, EasyJet now offers a Protection Promise program that gives fliers free changes up to two hours before the flight.

Hotels will need to find new purposes for meeting and conference spaces, which will be slower to fill. Airlines  need to figure out how to fill intercontinental business class, likely with premium leisure promotions. For all travel companies, the boom may be higher in traveler numbers than in profits, as the most lucrative corporate business has been slow to return.

4. Learn from critical moments—and the wider ecosystem

Aside from streamlining processes and personalizing the customer experience, investing in digital analytics can allow companies to identify opportunities to differentiate their services. Companies would also be able to discern emerging trends and hiccups before they turn into nightmares. Industry players, such as online travel agents, may also be a trove of useful insights pertaining to how the external ecosystem is evolving; their experiences may be beneficial for hotels and airlines to explore potential partnerships with them.

The various parts of the travel industry have to work together as a whole to usher in a safe return of travel. Even as individual companies improve their internal operations, they should also keep a close eye on industry-wide developments, watching for collaboration opportunities. The industry and governments will have to reach consensus on safety standards and requirements. The IATA travel pass is a plug-in that could be used on airlines’ mobile apps, for example. Currently being tested by many airlines as a way to ensure passenger health, the app would allow travelers to manage verified certifications for COVID-19 vaccines and test results. Governments, in turn, could consider accepting and embedding the app into the flight check-in workflow.

It’s been a long time coming, but we see several factors aligning that could lead to a short-term travel boom, although not all countries and customer segments will boom at the same time. With continued perseverance, travel companies can ensure that travel is not just back but better.

Vik Krishnan is a partner in McKinsey’s San Francisco office; Darren Rivas is the director of capabilities, Global TLI, in the Atlanta office; and Steve Saxon is a partner in the Shenzhen office.

This article was edited by Jason Li, a senior editor in the Shanghai office.

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Why this expansion?

1. more people travel, 2. travelers are more prone to shop while en route.

• The open-plan setup: Airports are a democratic shopping spaces – much more so than malls and high streets. In airports the differentiation between luxury and casual brands becomes blurred. Travelers just need to enter the open-plan stores (as airport shops have no doors) to access brands and items they may not have visited in a more traditional setting.
• Free time to browse and buy: Long waits and demands to show up in advance provide passengers with a lot of time to spare in airports. As airports are constructed as shopping spaces, which encourage passengers to leisurely walk around and shop during their wait.
• Holiday atmosphere: After having passed check-ins and security controls, passengers traveling for leisure are left in the right condition to buy items – whether to indulge themselves, to start off or cap off their trip.

3. Retailers can use data insights to better cater for customers

4. products get even more visibility.

Retailers have realized that travel retail provides them with tremendous opportunities to create visibility for their products, increase customer loyalty and recruit new customers in different countries. Airports have become an area where brands test their possible success in new markets, basing on customers’ nationalities and flight destinations. Many brands also offer “travel retail exclusive”, special products which are only available to travelers to entice shoppers to buy appealing to their desire for exclusive items.   Travel retail is, in many ways, different from traditional retail spaces. Brands have managed to capitalize on the differences to tap into a very lucrative market. As travel retail is expected to grow steadily in the next few years, brands count on some of their success in airports to trickle down to their traditional stores, and possibly help open new, profitable markets.  

Don’t buy retail management software until you read this

4 Key Trends Influencing Travel Retail

As the world begins opening up for travel, the market for travel retail is booming as brands double down their efforts to make up for lost sales during the pandemic.

It is no surprise that the industry expects to grow, and according to business consulting firm Allied Market Research , it will reach $123B by 2023. Travel retail suffered a significant impact due to the COVID-19 pandemic and the ongoing lockdowns in various world regions.

Consumers are undoubtedly anxious to make up for trips lost during the global COVID-19 pandemic, with leisure travel reduced to almost zero and business travel substituted by Zoom meetings. However, the travel retail market is still full of challenges. 

Travel retail is a term that commonly refers to sales made in travel requirements. Duty-free and travel retail encompasses the sale of goods to international travelers.

Duty-free shops are exempt from paying certain local or national taxes and duties requiring travelers to take their purchases out of the country. Duty-free sales occur in highly regulated retail environments like airports, ports, ferries, cruise ships, and national customs authorities govern their operations. 

Unlike traditional retail environments, airport timetables dictate customers’ shopping habits

Clarity Business Partners reported that in 2013, the average amount of time spent in an airport globally was 150 minutes; this dropped to 133 minutes in 2016 and has continued to decrease in recent years. The average time spent shopping in an airport is 29 minutes–not much time to draw someone in and browse the stores. 

In addition to time constraints, there are ongoing issues around baggage allowances and product restrictions.

Often, customers can’t carry everything they might like to buy, forcing them to make difficult choices. These and other external challenges can make it hard to innovate in travel retail. But there are some innovative ways to overcome these travel constraints and present better buying experiences. 

Duty-free and travel retail generates vital revenues for national aviation, travel, and tourism industries.

Airports, in particular, incredibly rely on commercial revenues to fund the development of their infrastructure and help them keep fees as low as possible. At airports across the world, retail is now the most significant contributor to non-aeronautical income. 

Travel retailers can look forward to growing sales over the next few years

Global duty-free retail will grow 8.5% in 2021, with the number of international passengers increases as the world enters into the “new normal” following the pandemic, according to Technavio , a global market research firm.

However, retailers face challenges getting travels into the stores and enticing them to spend. Only 5-10% of travelers visit duty-free retail stores in the terminal.

Retailers in airports, ferry terminals, and train stations need ways to attract and engage passengers and deliver a unique and convenient shopping experience – no matter what currency their customers use or what language they speak.

Retailers have realized that travel retail provides them with tremendous opportunities to create visibility for their products, increases customer loyalty, and recruit new customers in different countries.

As consumers gear up for long-awaited travel adventures, here are four trends retailers can harness to improve their sales. 

Use tech for passenger convenience

Airports, airlines, and ferry terminals are hubs for passenger data because of the multiple digital touchpoints that enable efficient check-in and boarding. Retailers who embrace the desire for digital can provide a seamless shopping experience that entices passengers in the store and engages them before during, and after their trip.

• Partnering with travel operators can unlock access to the travel information needed to create personalized offers and recommendations, starting when a passager books their ticket and checks in for their trip.
• Using data collected from the moment passenger books their ticket to when they check-in for their trip can provide insights into ways to customers with social media. Placing targeted ads and tailored offered is an effective way to create tailored offers that encourage in-store buying. 
• Retailers can create loyalty programs with targeted offers that travelers can access easily on mobile devices, encouraging repeat customers and additional in-store buying.   

Embrace travelers’ changing shopping habits

Millennials now travel more than any other generation, and it is essential to recognize their different shopping habits.

According to data measurement firm Nielsen , 44 percent of millennials are motivated to buy gifts at the airport, 30 percent shop to treat themselves, and 28 percent make impulse purchases. 

The millennial travel shopper is unpredictable, and retailers need to understand their habits to deliver experiences that match their moods, interests, and personalities. Consider these tactics for connecting with the travel generation.

• Connect to travels using their chosen channels, from mobile apps and social media to digitized displays in stores.
• Personalized and location-based deals and recommendations tailed to their interest.
• Use flight info and airport timetables to tailor offers to the travel experience, including passengers’ destination at the time left before they embark. 

Checkout should be as fast as check-in

Travelers of all ages value a quick and easy check-in, baggage, and boarding processes, and they will expect the same when paying for their purchases.

There is a need to support different languages and currencies and the regulatory requirements of various destinations, and this can bring complexity and delays to the travel retail checkout.

It is vital that checkout is smooth and efficient, or it could turn customers away. Pay attention to these tactics that can encourage a seamless shopping experience.

• Provide a range of checkout options, including mobile apps, online, self-service kiosks, or mobile POS.
• Travels should be able to check prices in pay in any currency or combination of currencies they choose.
• Use digital tools to support as many languages as possible both throughout the store and at checkout. 

Leverage data to optimize inventory

Stocking a retail store with products that match travels tastes is a balancing act. There is limited time to capture customers’ interest, and retailers can’t afford to miss a sale by running out of stock.

The challenge is that there isn’t much room for excessive inventory in a busy terminal or on a ferry. It is for retailers to know what sells well to passengers in various locations to make intelligent decisions on inventory.

• To optimize inventory, use business intelligence tools to see where sales occur and understand shopping patterns. These tools can also provide insight into how passengers in different locations respond to promotions.
• The use of apps and loyalty programs combined with info gathered from customers’ online interactions can provide important insight into travelers’ tastes and interests.
• Integrate retail and supply chain systems for efficient orders and insights into supply and demand.  

As travel retail grows, retailers can make their stores part of a seamless travel experience by engaging with passengers with digital and physical channels.

Stay relevant to customers’ needs and interests while providing convenient experiences wherever travelers want to go offers ambitious retailers a profitable opportunity to be a part of customers’ next great adventure.  

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Elevating airport experiences: the boom of luxury travel retail.

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Duty-free in Singapore's Changi airport, which was voted world's best airport in 2023 at the World ... [+] Airport Awards.

With the post-pandemic travel boom ongoing, travel retail is set to surpass $117 billion in global sales by 2030, growing at nearly +10% annually from 2022. To meet rising traffic and enhance traveler experiences, airports are investing in their infrastructure, opening up a realm of opportunities for brands to expand their travel retail footprint. Increasingly, international airports are welcoming luxury brands as a way to elevate the overall airport experience and boost their appeal, contributing to a shift towards a more premium travel retail offering.

European Airports Bet High On Luxury Brands

Schipol Airport in Amsterdam - the fourth largest airport in Europe - is upgrading its Lounge 2, designing a new layout and rethinking the traveler experience altogether. At the heart of this enhancement is the dedication to luxury travel retail and premium food providers in order to elevate drastically the airport journey. This marks a transformation that can be witnessed across a range of international airports, which are benefiting from increased funding to rethink the airport offering and cater to travelers wishing to benefit from a pleasant airport experience before their flight.

“The renovation of Lounge 2 is part of a larger plan to make Schiphol attractive to passengers again: tastier and more sustainable food and beverages, great shops with an appealing range and an environment that emphasises Schiphol's standing as a home base for world travellers,” shared Arthur Reijnhart, executive director of Schiphol Commercial in a press release . “We're also improving our range of offerings in the luxury segment, with the first big step being the arrival of top brands Louis Vuitton and BVLGARI in Lounge 2. We'll be creating space for this renewed range in phases, and the opening of BVLGARI is a significant milestone.”

Schipol Airport is not the first to lead this increased focused on luxury travel retail: both Rome and Paris airports are gearing up their luxury retail offering following the examples set by airports in Dubai and Asia mainly. Indeed, as Isabelle Fourmentin, CEO of JCDecaux Airport Paris (a joint-venture between advertising JCDecaux and Paris Aéroport) explained for Luxury-Insights.com , luxury brands are the perfect fit for enhanced infrastructure and premium airport experiences. “The trend started in the main Asian hubs such as Shanghai or Singapore, along with the mega-airport at Dubai. European airports have since followed suit, with the major revamp of the Paris airports since 2005. Thanks to a gradual renewal of the infrastructure there, luxury brands now have more spacious stores, often with a highly desirable ceiling height – giving them plenty of room for inspiration.”

This has led Rome airport’s retail strategy to focus on luxury offerings, not just to elevate the airport experience, but also to go after a lucrative segment of the market. Gianluca Littarru, Rome airport’s general manager, shared in an article for Kering: “we particularly need luxury retail, which is one of the key drivers of growth in the retail business – combining a brand narrative and experience with the significant price advantages of the Duty-Free area.” He also added that “the spend per passenger for flights to China is five times that of other long-haul destinations”, explaining why many airports develop these high-end duty-free stores for passengers flying outside Europe.

Best High-Yield Savings Accounts Of 2024

Best 5% interest savings accounts of 2024, digitalization and experiences are key to high-end travel retail.

Thanks to a continuous improvement in infrastructure, luxury brands will have more of a playing field to engage with their audience in airports, both thanks to digital outlets and interactive shopping experiences. Brand activations are being reimagined to target affluent travelers and reinforce brands’ luxury credentials with beautiful displays and bespoke customer service, even outside retail stores. LVMH-owned brand Bulgari’s Rome airport footprint is a good example of this. The brand unveiled a new fragrance counter at the end of 2023. “In Bulgari’s new corners, travelers can indulge in a first-hand fragrance journey. To enhance the shopping experience, Bulgari’s highly trained advisors offer specialized services like custom gift-wrapping—a personal touch of Roman allure. Additionally, pop-up events, such as fragrance-flacon engraving and complimentary fashion illustrations, enrich the transportive ambiance of the spaces,” said the brand in a statement .

In addition to these type of visual and engaging brand interactions, highly digitalized marketing activations are helping deliver a premium feel to airport experiences. Luxury brand are investing in delivering innovative and desirable content displayed on screens, a tool that airports leverage heavily given the certain visibility generated by limited space and certain passenger traffic. Large screens help elevate the passenger experience, but digital experiences are expected to go further to meet expectations of luxury shoppers even within airports.

Last year, Hong Kong airport launched its digital luxury platform, allowing travellers to access a concierge service and make pre-flight purchases. Orders placed can be delivered to the gate or at the customer’s home thanks to free local and global delivery, a service that demonstrates how airports have the potential to become shopping destinations just like standalone luxury boutiques.

As Asian airports lead in luxury and digital experiences, other global airports are expected to follow suit, further expanding their luxury retail footprint and transforming airports into premium shopping destinations, giving brands a serious retail channel to dive into.

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Jump to 2024.  

Today, conversational AI statistics paint a different picture. Technology advancements enable bots to talk like humans and solve complex multi-step problems agentless. What happened and what more can happen in this exciting space is what we seek to answer in this article. 

As you plan your conversational AI investments and initiatives for the year, this carefully curated list of statistics and insights will give you a snapshot of trends, market opportunities and risks. Let’s start. 

Conversational AI market size and opportunity 

Conversational ai – industry-specific statistics , software development , travel & hospitality , user feedback about conversational ai tools , trust and transparency with conversational ai , conversational ai in customer service .

Research predicts a dramatic surge in the use of conversational AI bots. The AI industry, as a whole, was valued at USD 150.2 billion in 2023, solidifying its position as a catalyzer behind technological evolution and business transformation. It is poised to reach an impressive $32.62 billion by 2030 , indicating sustained growth and integration into various sectors, specifically retail, healthcare and finance. 

B2B companies stand to gain more in terms of investor trust than B2Cs by rolling out chatbots for customer service. The modern B2B customer perceives this as a sign of tech-savvy and customer-centricity. Speaking of demographics, millennials absolutely love chatbots for their instant response, round-the-clock availability and self-service options. 

It's an understatement to say that businesses are excited about chatbots. By 2025, the chatbot market will be worth more than $1 billion . The chatbot market is expected to grow at a CAGR of over 23% from 2023 to 2032.

Gartner predicts that enterprises will increasingly recognize the potential of chatbots, and around 50% will spend more on bots than on traditional mobile app development. Clearly, bots are poised to be the leading customer interface of the future. 

What’s more? 

Generative AI (GenAI) will be a part of 80% of conversational AI offerings in 2026, a significant increase from 20% in 2023.

Detect top contact drivers 

Create new intent 

Test new scenarios 

  Back to basics: Conversational AI vs. Generative AI: Core Differences  

Conversational AI solutions, bots particularly, are adept in situations that demand prompt, high-quality and personalized responses. However, conversational AI is also finding a place in narrower, industry-specific use cases. Let's see how. 

In the financial sector, conversational AI finds widespread applications in customer self-service , using voice bots and moderated communities to answer queries pertaining to borrowing rates and insurance claims.  

In 2022, 37% of the American population (98M people) interacted with a banking chatbot and this number is poised to grow to 110M by 2026, reports the Consumer Financial Protection Bureau . 

Banks save an average of $0.60 per chatbot interaction, as reported by Opus Research . 

JP Morgan utilized its COIN chatbot to analyze intricate back-end contracts, resulting in over 360,000 hours of labor saved, as noted by The Financial Brand . 

eMarketer reveals that 43% of digital banking users in the US favor using live chat or chatbots to resolve issues. 

Behind the curve?

Read our articles on:

Conversational AI in Banking

Conversational AI in Insurance

The world idealizes human interaction in shopping, but that’s far from the truth. Today, the world is embracing conversational AI-driven shopping, owing to its 24/7 availability and objective response. These statistics are a testament to the growing popularity of conversational commerce:  

According to Statista , 34% of retail customers feel comfortable conversing with customer service through an AI chatbot. They use chatbots for near-me store locators, deal of the day and order status checks. 

40% of U.S. consumers claim they used retail chatbots in 2019 for varied use cases, from customer support to personal shopping assistant. 

Chatbots can boost e-commerce revenue by 7%-25% for companies with perfect implementation.  

Conversational Commerce: Your Fast-Track to Retail Stardom

Brick-and-mortar stores have given way to virtual shopping assistants that wow the modern customer with event-driven automated responses that sound near-human, share personalized shopping recommendations and troubleshoot regular shopping queries.  If you’re new, start by exploring these use cases of conversational commerce, and then scale as you see revenue growth: 

Send welcome messages to first-time visitors 

Share order updates 

Touch base with customers after they leave your store 

Curate deals of the day based on browsing histories and wish lists.

Simplify refunds, exchanges etc. 

  Get the deets here: A-Z Guide on Conversational Commerce

Erstwhile thought to be a gray-matter-dominated space, software development is now gradually opening up to conversational AI, especially in code completion, testing, error diagnosis and debugging. Code translation and migration are also sometimes streamlined and optimized using chatbots. 

By 2028, 75% of software engineers will extensively use conversational AI coding assistants, a big leap from less than 10% at the beginning of 2023. 

50% of software engineer leading roles will explicitly demand generative AI oversight by 2025. 

White-collar workers interact with conversational platforms on a daily basis, indicating how important it is to be familiar with AI chatbots at work. From content management to customer service , conversational AI plays a vital role in cutting the effort of your workforce, enabling them to do more in less time. 

From 6 Clicks to 1 Request: How chatbots empower your workforce  

Nancy, your designer, wants to access a file stored on DropBox and mirror it on her desktop. Traditionally, she’d follow six steps to do this simple task. But with a chatbot equipped with natural language processing (NLP), she shoots just 1 verbal request, and the task is done! 

Travel and hospitality industries are already leveraging chatbots, with a fourth of companies utilizing them for customer queries and bookings.  

According to Drift , 33% of individuals are willing to utilize a chatbot for making hotel or restaurant reservations. 

Travel chatbots are deemed valuable by consumers. In a survey by Humley , two-thirds of respondents find them either useful (40%) or very useful (26%) for managing business and work travel arrangements. 

The same Humley survey indicates that 37% of users would opt for an intelligent chatbot when coordinating travel plans or comparing booking options. 

If a travel chatbot can save time and money, 87% of users express a willingness to engage with it. 

No two consumers are the same. And different audiences might have widely different reactions to conversational AI. 

However, the numbers indicate that most consumers see conversational AI in a positive light. It all depends on how smartly brands program their virtual customer assistants and automated support bots. As expected, bots aligned with a customer's preferences and expectations and those that can handle complex queries score well on customer satisfaction.  

Capterra's findings indicate that 58% of online shoppers are at least moderately interested in using conversational AI tools for online shopping, mainly for items like apparel, electronics and home goods.  

Only about 20% of the people surveyed by CDP found the experience of interacting with a chatbot irritating. However, 64% of people said they would rather have access to a live agent. 27% couldn't tell whether their last customer service interaction was with a real person or a chatbot. This showcases how seamlessly chatbots can be integrated into customer service processes. 

This indicates that marketers and customer service teams need to work harder on building sophisticated conversational AI chatbots that don't grate on customers' nerves. And ensure the chatbot experience complements what human agents can provide.   

💡Do you know? Modern chatbot software lets your contact center shift customers from disjointed IVR journeys to cost-effective, near-instant digital support channels. Because nearly 80% of digital interactions get automated, customers are left happier and more satisfied.   

The big question: Can conversational AI be trusted? Does it keep your data safe and private?  

Well, people are skeptical, and they have every right to be. Here's what the research tells us. 

A significant 85% of U.S. consumers are worried about receiving inaccurate information from conversational AI tools. According to Capterra's survey on AI shopping security risks, over 64% of U.S. consumers have concerns about the data privacy practices of conversational AI tools .  

How is customer service — a field based on chat, conversations and empathy — impacted by conversational AI? Let's understand from these stats.  

Conversational AI has ushered in a paradigm shift in customer service dynamics, redefining traditional models with proactive, personalized and efficient solutions.  

Read more: The Essential Guide to AI for Customer Service  

Gartner anticipates a 24% increase in call center investments in 2024, driven by conversational AI tools. The focus on customer-facing solutions, such as 24/7 support through AI chatbots, is set to become the norm, shaping a more convenient customer experience. 

According to the MIT Technology Review, nearly 90% of contact centers report measurable improvements in complaint resolution speed and enhanced call volume processing using AI.  

The same report indicates that executives see an 80% improvement in customer satisfaction, service delivery, and overall contact center performance. 

IBM research shows that chatbot-led customer service interactions turn out 30% cheaper for brands than agent-led interaction. 

The potential time-saving impact of chatbots is monumental, with researchers estimating a cumulative savings of 2.5+ billion hours of customer service time by 2023. 

Deloitte's findings back these efficiency claims, reporting that chatbots reduce the average handle time of customer queries by an impressive 77% .  

VentureBeat predicts that conversational AI solutions could slash the cost of providing customer service by 30% . 

💡Pro tip: Cutting-edge conversational AI bots exhibit the capability to resume interrupted interactions seamlessly, decipher profound sentiments, navigate contextual fallbacks and seamlessly transition between intents and languages. This advanced functionality not only enriches the user journey but also ensures intelligent handling of out-of-context queries.  

Read more: How to Use Conversational AI for Customer Service   

Final thoughts  

Businesses across sectors have woken up to the potential of conversational AI and are figuring out ways to leverage it. So, if you haven't started your conversational AI journey yet, the time to act is now. 

Sprinklr's conversational AI platform enables businesses to handle 55% more cases with generative AI integration, giving more bang for your buck. Build and deploy a sophisticated chatbot with a no-code, 3-step process that optimizes itself with LLM data sets. Eliminate hard-coded decision trees and build intents organically during conversations. 

The best part? 

There is a 30-day full-featured free trial of the Sprinklr Conversational AI platform, just for you, on the house. Claim your trial and watch your business soar! 

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Bhavya Aggarwal

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April Fools' Day pranks: Apps to translate baby stoner sayings, a ghostbuster at Tinder

Every april 1, brands and companies want to get some laughs – and attention – with goofy new 'product' launches. here are some ideas from companies such as sweetgreen, welch's and omaha steaks..

If you don't like Mondays, this one may especially be grating. It's April Fool's Day , when you should trust no one and question everything.

The roots of April Fools' Day may date back before to before the 15th century. But the modern-day April Fools' Day has become a day to prank a friend, family member, co-worker − or your customers.

Even though some companies have had April Fools' pranks backfire , marketers continue to issue spoof products in attempts to get some laughs and attention.

Already ahead of April Fools' Day, 7-Eleven has hinted at a possible prank product: In addition to new Lemon Lime, Green Apple and Sweet Orange flavored 7-Select sparkling waters, out now with partner Miracle Seltzer, there's a fourth flavor coming April 1: Big Bite Hot Dog.

The hot dog-flavored water "combines the mouthwatering experience of 7-Eleven’s iconic Big Bite Hot Dog into one refreshing beverage – ketchup and mustard included," the convenience chain says in a press release . "Say goodbye to the days of alternating bites of a hot dog with sips of a beverage, now those on the go can swap the bun for bubbles."

Krispy Kreme: A special doughnut deal for April Fools' Day

Will Big Bite Hot Dog sparkling water be sold? Its availability will be announced April 1. However, some reporters were sent a can of the drink. USA TODAY can confirm that it definitely smells like hot dog water and has a smoky aftertaste.

If you are interested in trying it, both 7-Eleven and Miracle Seltzer have hinted at having some to give away on their Instagram pages. (If you get a can, share with a friend as it's 16 ounces.)

Here's a roundup of many of the brand-related April Fools’ gag announcements. You've been warned.

Sour cream & onion flavored soda

Despite the proliferation of crazy-flavored products including Peeps-flavored Pepsi , Frank's RedHot sauce-flavored Vlasic pickles and Doritos Nacho Cheese-flavored liquor , healthy soda brand OLIPOP and Pringles are not really teaming up to bring to market a Sour Cream & Onion soda.

The product would have been "a match made in heaven … to bring the delicious, tangy flavor of Pringles’ Sour Cream & Onion flavor to life in liquid form with prebiotic benefits," the companies said.

Stoner lingo translation app

Another dream team prank product: Rosetta Stoned, a mobile app from Rosetta Stone and medical marijuana company Fluent , that "bridges the conversational gap between novice users and seasoned stoners in any social setting."

Da da decoder

Infant equipment site BabyQuip has its own language-bridging lark: the “Baby Translator” app, to decode your baby's secret language.

"Say 'goodbye' to restless nights as you decode your baby's coos and cries instantly, providing you with the understanding you need as a parent, all in one convenient app," it promises.

An AI-powered plush doll

Custom stuffed animal maker Budsies already makes selfie plush dolls with a built-in voice recorder. Its April Fools' spoof: Artificial intelligence-enabled dolls that "come programmed to learn everything about you and to become your new best friend."

A 50-pound Bearabuddy

Sorry to the 3,500 or so who have already signed up to buy Bearaby's Jumbo Benji plush toy, which is four times the size of its regular weighted plush toys and twice as heavy as its heaviest weighted blanket . This isn't actually going to be sold. But it is real and will be making its home in the lobby at The Child Mind Institute in Harlem to welcome children and their families. More weighted plushies are due the day after April Fools' Day, the company says.

A sleeping bag to go bananas over

The Dole Banana Peel Sleeping Bag, conveniently promoted as being available on April Fools' Day only, is made from actual banana fiber and "allows parents to escape into their own cocoon of sensory deprivation."

A full-body cleaning suit

Outrageous clothing company Tipsy Elves has a special product for April Fools' Day: The Mopsie. You don't need paper towels anymore, you can use your body to clean up those messes, with this "innovative, wearable microfiber towel jumpsuit" for "effortlessly soaking up spills and messes with ease." There's also a Baby Mopsie for "hard to reach places."

Korean BBQ deodorant

Kevin's Natural Foods , which has paleo- and keto-certified ready-to-cook and easy-prep entrées, is touting a new line of personal care products inspired by its food dishes including Korean BBQ Deodorant, Cilantro Lime Toothpaste, Lemongrass Basil Shampoo and Tikka Masala Sunscreen.

"These new face, body and hair care essentials will help fans prioritize self-care inside and out," the company says. 

Omaha Steaks' meaty sprays

Omaha Steaks has its own personal care prank product: Meaty Spritz sprays with flavors such as Omaha Fog, Hog Haze, and Cock-a-Doodle-Dew.

"The world’s first protein-infused, flavor-packed, portable pump spray … (to) enjoy all the mouthwatering flavors of your Omaha Steaks gourmet favorites no matter how far away from the kitchen you are!" the company says.

Sriracha toothpaste

Asian sauce maker Lee Kum Kee , which makes Sriracha Chili Sauce and Sriracha Mayo Dressing, is introducing – not – its Siracha Mayo Toothpaste. It's "fiery and creamy goodness … is sure to spice up your morning dental routine."

Post-salad dental kit

Need some less powerful toothpaste? Sweetgreen offered these fanciful personal hygiene products as part of its Sweetgreen After Salad Kit, which is "designed with your pearly whites in mind … offering everything you need to freshen up post-meal."

Choose from Miso Ginger Toothpaste, Spicy Cashew Mints, Lime Cilantro Dental Floss, and Sweetgreen Toothbrush and Floss Picks.

Fruit juice lip gloss

More personal care prank products: Welch’s Juicyfuls Juicy Fruit Lip Gloss – now available in five flavors: grape, orange, peach, strawberry and raspberry – made with real juice from Juicefuls fruit snacks so "you get that irresistible sweet flavor you love, all in a lip gloss that's as fun as it is nourishing."

Protein-powered seasonings

Quest Nutrition , maker of protein powder, snacks and other products, has a prank product line of seasonings including All Purpose, Lemon Pepper, and Garlic Herb, each of which deliver "21g of protein, 2g of net carbs and less than 1g of sugar."

If you want to try Quest's real products, you can use code NOJOKE for free shipping on online orders over $49 April 1-3.

Superpowered Superfeet?

These would certainly come in hand on a run, but – sorry – it's a jogging joke. Superfeet SuperBoost Power E-Soles gives you 8 hours of continuous battery-powered boost, for almost Iron Man-like propulsion. "All the comfort and support of Superfeet , now with electrifying performance," the company says in a video about the prank product. "It's like having a powerful electric motor in your shoes."

Scotch tape-branded Scotch?

This shenanigan seems like a blend that could stick: Scotch Whisky by Scotch Brand. The whisky "features a nose of cherry wood and a delightfully smooth finish that hits like a well-wrapped gift."

Who you gonna call when ghosted? This new title at Tinder

Dating app Tinder announced a new April Fools' Day hiring quest for a Vice President of Ghost Hunting to help combat "one of dating culture’s most prevalent vices – ghosting," a practice inflicted on 78% of singles already in 2024 (an untrue fact from Tinder).

Patrón's bringing back a beloved liqueur. No kidding.

Patrón patrons get some good news today. The premium tequila maker chose April Fools' Day to announce the return of its Patrón XO Cafe tequila-based coffee liqueur, which was discontinued in 2021. Since production ceased, devotees took to social media and signed a petition asking parent company Bacardi to bring it back.

Made with Patrón Silver tequila and Arabica bean coffee – the dry liqueur can be sipped straight, in cocktails and as dessert topping – Patrón XO Cafe will begin arriving in stores again later this month.

Say it with dead flowers

Don't forget to put roses on your April Fools' Day list. UrbanStems has this "special" delivery, The Dead Inside Collection, "an assortment of dead flower bouquets, dead plants, half empty vases, and more for the pessimist in your life." But, for real, check UrbanStems' social media accounts including Instagram for how to get 20% off an order of real flowers.

Cheesecake Factory's real deals

The Cheesecake Factory  also has a deal that's no joke: Sign up for the chain's Cheesecake Rewards loyalty program on April 1 to get an Any Slice, Half Price reward, redeemable for 50% off any slice of cheesecake or layer cake, with any food or beverage purchase (no gift cards).

Those who were members before April 1 will find something special in their account on Monday, too: either a free slice of cheesecake each month for a year, a free whole cheesecake, a free slice of cheesecake, $5 off $25 purchases, or $10 off $40 purchases. (All rewards redeemable by April 16; can be redeemed for dine-in, to-go and DoorDash.)

New merch from Dunkin', bonus points in app

Dunkin' announced it is going back to its roots and rebranding to just "Donuts'" on Monday, April 1. To celebrate the rebrand, the company is selling "Donuts'" merch, including sweatshirts that read "DONUTS," on ShopDunkin.com .

Additionally, Dunkin' Rewards members will receive 3x bonus points on any donut order through the mobile app on April 1.

Urban Outfitters launches 'Name Three Shirts' movement

Urban Outfitters said it is launching a global movement to "stand in solidarity against band-tee-shaming" by launching a new collection called "Name Three Shirts."

The t-shirt line "playfully mocks the gatekeeping attitudes of older generations who insist that band-shirt wearers should be required to name songs by those artists," the company said in a news release.

The line, which features revamped logos from bands such as The Grateful Dead, Joy Division and Led Zeppelin, is a "playful jab at the attitudes of older generations, and fights back against the misogynistic undertones of the infamous ‘name three songs’ line of questioning," Urban Outfitters said in the news release.

The collection of shirts is available online and in select Urban Outfitters stores starting April 1. You can shop the collection online here .

Auntie Anne's, Frontier Airlines collaborate on Pretzel Plane

Auntie Anne's pretzels and Frontier Airlines announced they have collaborated on the newest addition to Frontier's fleet: the Pretzel Plane.

According to a news release, the plane includes new in-flight entertainment featuring Auntie Anne's pretzels rolled seat-side, the "luxurious" smell of hot, fresh pretzels throughout the cabin and airplane-shaped pretzels if you're feeling hungry.

Moe's Southwest Grill, Sonic team up to introduce a Queso Slush

Two popular fast food chains announced a collaboration that is sure to be polarizing.

Moe's and Sonic announced a new beverage, the Queso Slush, a queso-flavored slushie. "The frozen goodness of a Sonic Slush meets the delicious flavor of Moe's queso."

Follow Mike Snider on X and Threads:  @mikesnider  & mikegsnider .

Gabe Hauari is a national trending news reporter at USA TODAY. You can follow him on X  @GabeHauari  or email him at [email protected].

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Celebrating Female Leaders Shaping African Tourism

T he incredible work of African women in leadership positions is helping to shape the future of the continent’s tourism industry. These women’s efforts, in turn, are making Africa a shining example of innovation and tenacity in global travel. These pioneers are negotiating the complex tourist industry and paving the way for long-term prosperity, cultural preservation, and local agency. 

From Ethiopia to Uganda, these forward-thinking women are leading a movement for change. Their leadership and unique viewpoints foster a more inclusive, sustainable, and lively future for African tourism . We honor their triumphs and acknowledge the lasting impression they are leaving on the world at large.

Naledi Khabo – Pioneering Sustainable Tourism

Naledi Khabo is at the forefront of sustainable travel in Africa. Khabo’s efforts have spotlighted the continent as a leading destination for eco-conscious travelers. As the CEO of the Africa Tourism Association, she has been instrumental in promoting sustainable practices that protect the environment while enriching visitors’ cultural experience. Her leadership has helped bridge the gap between conservation efforts and community development, proving that tourism can be a force for good.

Bethlehem Tilahun Alemu – Revolutionizing Retail with Artisanal Crafts

Bethlehem Tilahun Alemu has taken the path less traveled in tourism by focusing on the artisanal craft market . Her brand, SoleRebels, has gained international acclaim for its eco-friendly, handcrafted shoes and accessories, showcasing Ethiopian artisans’ unique talent and craftsmanship. By marrying traditional techniques with contemporary design, Bethlehem has created a global market for local goods. This, in turn, has empowered communities and promoted cultural tourism.

Sibongile Sambo – Leading in African Aviation

African aviation pioneer Sibongile Sambo exemplifies the continent’s inherent spirit of creativity and tenacity. By launching SRS Aviation, she became the first woman in South Africa to operate an aviation firm, shattering glass ceilings and establishing new norms in a male-dominated field. SRS Aviation offers a comprehensive range of services, including private aircraft charters , cargo, and emergency evacuation services. Her company showcases the versatility and resilience required to succeed in aviation and travel.

Dr. Gladys Kalema-Zikusoka – Fighting for Wildlife Conservation

Renowned for her revolutionary work with mountain gorillas in Uganda, Dr. Gladys Kalema-Zikusoka is a pioneer in wildlife conservation. As the founder of Conservation Through Public Health (CTPH), she creatively combined public health and wildlife conservation. She has improved the chances of mountain gorilla survival while also raising the level of life in the surrounding community through sustainable tourism, healthcare, education, and economic opportunities. 

The Impact Beyond Tourism

These women’s influence extends beyond the tourism industry. By fostering sustainable practices, promoting cultural heritage, enhancing connectivity, and leveraging technology, they contribute to the socio-economic development of their communities and the continent. They serve as role models while inspiring the next generation of female leaders in Africa and beyond. They exemplify how passion combined with purpose can lead to meaningful transformations in any sector, including tourism, which is vital for Africa’s future.