A $9 billion value gap is expected to emerge in 2023 despite a robust rise in passenger traffic, indicating that the global travel retail industry is at a key turning point. To close this gap and prepare the industry for the future, stakeholders must follow the strategic recommendations outlined in the new industry research, Revolutionising Travel Retail, published by customer experience consultancy CXG.
In 2025, global air traffic is expected to reach 9.9 billion passengers, surpassing pre-pandemic levels, and nearly doubling to 19.5 billion by 2042, according to data from ACI World that was referenced in the paper. However, from $19 in 2019 to $16 in 2023, the average traveller’s spending has decreased by 15%, reducing the market’s size from $86 billion to $72 billion.
According to CXG, this drop is the result of lower customer experience standards in travel retail as opposed to domestic retail settings. Travel retail competitors only manage to provide extraordinary experiences 28% of the time, but domestic boutiques do so 50% of the time, indicating a lost chance to engage a captive audience.
The report challenges industry participants to reconsider travel retail as a hub for tailored experiences rather than a transactional area, given the anticipated surge in passenger volumes. The authors believe that immersive, customized, and culturally rich experiences are the key to the future of travel shopping.
Also Read:
Under an Emergency legislation, Trump Requests That the US Supreme Court Sustain Tariffs
