Travel Retail: A New Growth Driver

When airports and railway stations become global shopping destinations

Travel retail refers to commercial activities taking place within airports and railway stations, whether in duty-free or duty-paid zones. This retail channel, which emerged in the post-war era and grew significantly during the 1960s, was long associated with the sale of cigarettes and alcohol at low prices. Today, however, it has evolved into a strategic sector where beauty (fragrances and cosmetics) alone accounts for 30% of total sales. This transformation is attracting increasing interest from leading international brands.

A Strategic Channel for Global Brands

“This distribution channel is a strategic market for the development and visibility of our brands and contributes to the conquest of one billion new consumers.”
— Barbara Lavernos, Managing Director Travel Retail, L’Oréal

With global air traffic continuing to grow, airports have been reinventing their economic model to transform themselves into genuine international malls. A striking example is Singapore, where a futuristic dome-shaped glass greenhouse has been integrated into the airport, creating a unique, immersive experience that blends urban park and shopping centre. The ambition: to maximise brand exposure, foster loyalty and recruit new consumers.

Travel Retail: The Sixth Continent of Luxury

Travel retail is a privileged touchpoint with a captive and highly qualified clientele: the so-called “Global Shopper”. Unlike traditional consumers, these travellers purchase where they are rather than where they live.

“This channel reaches clients probably more interested in luxury than the average, and who are over-represented (…) because the shopping experience is improving considerably in airports.”
— Patrick Albaladejo, Deputy Managing Director, Hermès

The airport is no longer just a place of transit: it has become an ideal setting for an exclusive shopping experience, giving luxury brands a unique opportunity to attract, engage and retain international high-value customers.

A Market on the Rise

With 3.6 billion passengers expected annually by 2016, the travel retail market is forecast to reach $100 billion by 2024. In France alone, it generated €1.7 billion in 2014, nearly 47% of which came from duty-free and luxury, with annual growth of around 6% (Source: LS Travel Retail France).

These figures confirm that travel retail is no longer just an opportunity but a genuine growth pillar for global brands, particularly in luxury and beauty.