The global travel retail industry is encountering a significant shift in consumer behaviour, as shoppers increasingly prioritize experiential value over price, says m1nd-set.
According to research just published by leading travel retail research agency m1nd-set, price is becoming a less dominant factor in purchasing decisions, as shoppers prioritise 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 travellers, it is no longer the most important factor influencing travel retail shopper behaviour. 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.
According to the m1nd-set research, travel retail consumers are seeking out experiences and products that offer unique value beyond just cost savings. The research highlights the growing demand for distinctive and immersive shopping experiences. This shift in consumer behaviour reflects a broader trend, where the emotional and experiential aspects of shopping hold greater significance than price in the decision-making process. The research reveals that the increasing incorporation of technology and customized services in travel retail has reduced the emphasis on price, as consumers now favour seamless omnichannel experiences and personalized options over mere cost savings.
“Experiential retail is becoming a major trend,” m1nd-set COO Clara Susset commented, “with consumers placing greater emphasis on the experiences associated with shopping rather than just the products themselves. Quality and sustainability are also becoming key drivers of consumer choices. Travel retail consumers, particularly among the younger generations,” Susset continued, “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.”
The research provides an in-depth analysis of consumer behaviour 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 travellers 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 prominence 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.
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Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
