Cannes_2026_WEDNESDAY_ISSUE_DIGITAL

Global travel retail pulse: Opportunities in customer growth Travel retail is growing, but the pace is uneven across geographies, categories and generations. Travel retail’s historic price- led proposition alone is no longer sufficient to convert the new generation of travellers. Yesterday morning’s TFWA workshop – ‘Global travel retail pulse: Opportunities in customer growth’ – explored how the future growth model depends on travel retail’s ability to attract, engage and retain customers through a seamless journey both in travel retail and domestic channels. T he ‘Global travel retail pulse: Opportunities in customer growth’ workshop opened with compelling insights into a bespoke study conducted exclusively for TFWA by Oliver Wyman. Denise van Wijk, Principal, and Pierre-Alexandre Koch, Partner, from the firm’s Retail and Consumer Goods team, presented the key findings and identified emerging growth opportunities. “After several years of recovery, the outlook for travel retail is finally positive,” they shared. “Passenger traffic is growing and the industry has a real opportunity to return to growth. However, the next chapter will look different from the last. The geographic mix of travellers is shifting, younger generations have different expectations, and consumer demand is fragmenting into increasingly specific needs and expectations.” Van Wijk and Koch highlighted how the growth opportunity is becoming increasingly diverse, both geographically and across customer groups. Europe has emerged as a standout performer, with travel retail sales growing 20% between 2019 and 2025, compared with 5% passenger growth, while India is expected to become an increasingly important market, with its share of Asia-Pacific travel retail estimated to quadruple by 2035. The generational shift is equally significant. Millennials and Gen Z already account for 61% of global airline travel spend and are expected to represent around 80% by 2035. “These travellers bring different The ‘Global travel retail pulse: Opportunities in customer growth’ workshop featured compelling insights into a bespoke study conducted exclusively for TFWA by Oliver Wyman. Denise van Wijk, Principal, and Pierre-Alexandre Koch, Partner, from the firm’s Retail and Consumer Goods team, presented the key findings and identified emerging growth opportunities. expectations around brands, products and shopping experiences,” said Van Wijk and Koch, making it increasingly important for the industry to tailor its proposition to their needs. Price, they argued, can no longer be the sole differentiator. “Price remains an important part of the travel retail proposition, but it is becoming less powerful as a source of differentiation.” While 80% of Baby Boomers cite price as a key purchase criterion, this falls to 51% among Gen Z. Travellers across generations nevertheless expect an average discount of around 18% versus domestic retail, making price an important “hygiene factor”. “The challenge is therefore to rebuild the value equation through credibility, Wednesday 30 September 2026 4 T F W A D A I L Y