What: An opinion piece on the relevance of travel retail

Why it is important: we are at the dawn of pre-pandemic record-breaking levels in international tourism, however, the nature of the business may have changed.

The travel retail industry has faced significant challenges, particularly with a 70% decline in activity due to Covid-19. Recovery is slow, with expectations to return to pre-pandemic levels only by next year. Despite the convenience of domestic and international e-commerce, travel retail offers unique, experience-driven opportunities that brands are leveraging to enhance consumer engagement.

Travel retail encounters a unique contradiction: airports provide ample dwell time, promoting aimless browsing, yet the window for actual shopping is limited by factors like check-in and immigration processes, which can disengage potential buyers. This tension creates a hyper-competitive environment during the critical 'golden hour' where attention to retail fundamentals and staff effectiveness becomes crucial. Staff play a pivotal role in converting interest into sales, particularly with diverse international customers.

To capitalize on its unique position, travel retail must innovate and adapt to the tech-savacity of modern consumers. Emphasizing pre-trip engagement through digital strategies like personalized emails, social media ads, and mobile notifications can enhance the chances of conversion. Ultimately, success in travel retail hinges on understanding and integrating into the shopper’s journey, creating memorable experiences and investing in skilled staff to navigate the complexities of this unique market.

Is travel retail still relevant?