Global Travel Retail Facing a $9 Billion Value Gap
The global travel retail sector is currently facing a $9 billion value gap, a new report reveals. Despite a strong rebound in passenger traffic, with projections to surpass pre-pandemic levels by 2025, the average spend per traveler has dropped by 15% since 2019. This decline is largely attributed to a significant gap in customer experience compared to domestic retail, where domestic stores deliver exceptional experiences almost twice as often as their travel retail counterparts.
Bridging the Gap: The Trilogy Approach
The report, titled Revolutionising Travel Retail, suggests a “Trilogy Approach” to address this issue. This strategy calls for a collaborative effort among airport authorities, travel retail operators, and brands to improve customer experience, optimize operations, and maintain brand integrity. The report emphasizes that the future of travel retail lies in moving beyond a transactional model and creating more immersive, personalized, and culturally rich experiences.
Airports Leading the Way
The report highlights several airports that are already implementing successful strategies to transform the retail experience. London Heathrow’s Terminal 5 offers ultra-luxury services and personal shopping, while Louis Vuitton’s Le Café at Terminal 2 blends fashion and fine dining. Singapore’s Changi Airport uses AI and robotics, as well as cultural attractions like the HSBC Rain Vortex, to engage travelers and boost spending.
