Remember when duty free shopping was almost a ritual at the airport—right up there with nervously checking your passport eighteen times? Picture crowds flooding into glitzy boutiques, nose-to-wrist with perfume testers and considering whether a five-kilo Toblerone was a travel essential. Well, those days seem as distant now as a non-stop flight to Mars. Since the end of the Covid crisis, duty free sales haven’t just dipped—they’ve nosedived.
The Duty Free Glory Days: Gone with the Wind?
Duty free stores used to be the promised land for travelers before their flights. Perfumes, cigarettes, and chocolates—tax free and slowly melting in your pocket—were hard to resist. Airports buzzed with shoppers bagging treats and souvenirs. But according to a recent study from Kearney, unleashed for the Tax Free World Association event, those golden years have faded fast.
Globally, travel retail was enjoying a decade of robust and regular growth—9% every year, in fact. Then came the Covid crisis, which promptly slammed the brakes on this retail party. Now, even as air traffic has clawed its way back to nearly 2019 levels, duty free’s cash registers aren’t singing quite the same tune.
Staggering Numbers: From Feast to Famine
The numbers are enough to make airport shop managers weep into their discounted whisky. The Kearney study drills down: the average spend per traveler dropped a whopping 29% in 2022 over the previous year—down to 17 dollars per person—and has settled at 15 dollars per traveler in 2024, compared to 24 dollars in 2019. In raw sales, global duty free turned over $74.1 billion last year, which is a decline of 13% from its pre-pandemic high.
Why this sharp nosedive? The culprits are multiple, but price and product assortment top the list. According to the research:
- 64% of travelers are dissatisfied with either prices (50%) or the product offerings in duty free shops.
- The sting of general inflation has bitten into everyone’s purchasing power, and airfares themselves have soared, thanks to specific price hikes—making that duty free splurge less tempting.
Instead of mindless shopping before boarding, travelers are making choices—and not just about which overpriced sandwich to buy. People, especially the younger crowd, are handing over their time to digital distractions rather than duty free deals.
The New Traveler: Young, Connected, and… a Little Demanding
The faces in airport terminals are changing; generations Y and Z are taking up a growing share of the travel landscape, and their shopping habits are far from the old playbook. The Kearney study highlights their priorities: for 77% of these younger travelers, the shopping experience takes top billing—more important than price. They want:
- A wide product range
- Special deals and advantageous prices
- Personalized interaction
- Tailored shopping experiences
- Premium quality services
Duty free retailers are on notice: a serious shake-up is needed if they want to lure these digital natives away from their screens and back into the shops. The airport must become more than just a place to wait—it has to feel like a top-tier shopping destination all its own.
The Kearney survey is clear about what might rekindle the shopping spark:
- 37% of respondents would buy more at airports if exclusive products were offered
- 17% would be more inclined if delivery was available
- 32% identify the overall shopping experience as a key driver for purchase
- 69% say that, if the experience is well designed, waiting at the airport could actually be a great time to shop
Crisis or Opportunity? Duty Free at a Crossroads
So what’s the way forward? According to the study, all players—from airports and distributors to brands and airlines—need to join forces and leverage data collaboration. Only a collective re-think of current models and a new awareness can help travel retail, especially in Europe, reclaim its former glory. In a nutshell: adapt or be left behind in a fast-moving terminal.
Kearney’s extensive study, covering 3,500 customers across 10 countries, along with interviews with over 40 senior airport, airline, and travel retail executives, delivers a simple message—times have changed, and so must the shopping experience.
If you’re an airport retailer, maybe it’s time to swap autopilot for innovation. For travelers, your next airport wait might just become a retail adventure again—if the industry plays its cards right.
John is a curious mind who loves to write about diverse topics. Passionate about sharing his thoughts and perspectives, he enjoys sparking conversations and encouraging discovery. For him, every subject is an invitation to discuss and learn.
