According to ground-breaking research just published by leading travel retail research agency m1nd-set, the global travel retail industry is encountering a significant shift in consumer behavior, with price becoming less dominant in purchasing decisions as shoppers prioritize other beneficial aspects of the shopping experience in travel retail.
The research, which explores the reasons behind this shift and its implications for brands and retailers in the global travel retail sector, reveals that while price has traditionally been a major determinant in the purchasing decisions among travelers, it is no longer the most important factor influencing travel retail shopper behavior.
According to m1nd-set, consumers in travel retail are increasingly valuing the overall shopping experience over the price. Factors such as convenience, product exclusivity, and the allure of unique, location-specific products are becoming more influential in driving purchase decisions.
The research shows that travel retail consumers are seeking out experiences and products that offer unique value beyond just cost savings, highlighting the growing demand for distinctive and immersive shopping experiences.
This shift in consumer behavior reflects a broader trend, where the emotional and experiential aspects of shopping hold greater significance than price in the decision-making process.
The increasing incorporation of technology and customized services in travel retail has reduced the emphasis on price, as consumers now favor seamless omni-channel experiences and personalized options over mere cost savings.
“Experiential retail is becoming a major trend, with consumers placing greater emphasis on the experiences associated with shopping rather than just the products themselves,” comments m1nd-set COO Clara Susset. “Quality and sustainability are also becoming key drivers of consumer choices.
“Travel retail consumers, particularly among the younger generations, are becoming more discerning and willing to pay a premium for products that are ethically produced and made from sustainable materials, shifting the focus away from price alone, the research reveals,” Susset continued.
The research provides an in-depth analysis of consumer behavior in travel retail revealing that the relevance of price as both a driver to visit the Duty Free shops and a purchase driver in the stores, has been steadily declining in recent years. While value for money remains important, aspects such as the desire to browse and discover new products and indulge in self-treats are increasingly motivating travelers to visit and purchase in Duty Free stores.
The importance of price advantage as a reason to visit Duty Free shops has fallen significantly from 26% in 2019 to just 17% in 2024.
“Price advantage” alone is no longer among the top 5 drivers to visit, according to the research. In addition, the shift in consumer priorities is further demonstrated by a growing desire among consumers to browse and discover the shops and the increased promi-nence of the attractiveness of the Duty Free environment among shop visitors.
In store experiences are increasingly important purchase drivers in travel retail. 45% of shoppers on average now cite the in-store experience as a key driver to purchase, with Gen Zs and Millennials leading on the experiential aspect with 49% and 48% respectively. The in-store experience is defined by several factors including attractive packaging, special activations, the possibility to try and test products, attractive displays and special events and themed experiences.
“The perception of value in travel retail is undergoing a decisive transformation,” m1nd-set Head of Business Development Anna Marchesini explained. “While competitive pricing is still relevant, it is no longer the primary determinant of consumer choice.
“Instead, the focus is shifting towards creating memorable, immersive shopping experiences that engage customers on an emotional level. We are observing a distinct trend where the emotional and experiential value of the shopping experience has clearly started to outweigh the importance of price in the decision-making process.
“The research findings underscore the need for brands and retailers to adapt to this changing landscape, Marchesini continued.
“This shift will inevitably force brands and retailers in travel retail to rethink the way they operate and focus on aspects that create more long-lasting customer engagement,” Marchesini concluded.
