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Sales Crash Landing: The Numbers Behind the Slump
Just a few years ago, duty-free shops were vibrant pit stops for international travelers. Today, it’s a different picture. According to a study by consulting firm Kearney, presented at the Tax Free World Association conference, global duty-free retail sales reached $74.1 billion USD last year. That sounds impressive—until you realize it’s a 13% drop compared to pre-pandemic highs. And while air traffic rebounded and is now almost at 2019 levels, duty-free sales are still struggling to lift off.
If we zoom in a bit, the numbers get even starker. The Kearney study found that the average spend per traveler tumbled by 29% just between 2021 and 2022—from $24 USD per person in 2019 down to $17 in 2022, then dropping further to $15 in 2024. For airport shopping—a ritual that once seemed unshakeable—the turbulence is real.
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Why Aren’t Travelers Shopping?
How did things go so wrong, so fast? The reasons are, quite literally, all over the map:
- Price and Product Offerings: 64% of passengers say they’re either unhappy with the prices (50%) or the product selection in duty-free shops.
- Inflation’s Double Whammy: Not only have everyday prices gone up due to general inflation, but airfares have climbed too—making that extra splurge at the airport feel out of reach for many.
Travelers have had to cut back, plain and simple. They’re watching their budgets, not just for big trips but in all the small ways, including browsing (and buying) at the duty-free.
And then there’s another culprit: time. Increasingly, passengers—especially younger ones—are trading the souvenir hunt for scrolling through their phones. The lure of duty-free doesn’t stand a chance against TikTok, apparently.
Younger Generations, New Expectations
Younger travelers—mainly Millennials and Gen Z—now make up a bigger slice of the global jet-setting crowd. But their idea of shopping is different.
“For 77% of these generations, the shopping experience comes before price when considering a duty-free purchase. The industry must completely reinvent the way it does business to win back travelers’ attention and make airports the vibrant shopping destinations they once were.”
According to the Kearney report, Millennials and Gen Z want:
- More than just special prices and promotions—they want a broad range of products, personalized interactions, tailor-made shopping experiences, and top-tier services.
What Gets Travelers Spending Again?
Kearney’s extensive survey of 3,500 customers across 10 countries (backed up by interviews with over 40 senior executives from airports, airlines, retail, and brands) dug into what would bring travelers back to duty-free shops:
- 37% of respondents would buy more if they found exclusive products at the airport.
- 17% would spend more if airport delivery were available.
- 32% say the overall experience is a make-or-break factor when shopping.
- 69% see airport wait time as prime shopping time—if it’s made worthwhile.
So, it’s not just about what’s on the shelves. It’s about how it feels to be there, to be welcomed, surprised, and maybe even entertained.
“Retailers have every reason to work together better—sharing data between airports, distributors, brands, airline partners, and digital platforms. Only a true rethink of today’s business model and a collective awakening will let travel retail, especially in Europe, regain its momentum with future generations.”
The bottom line? Those tax-free shelves won’t start bustling again just because the planes are full. For the new wave of travelers, it’s all about experience, value, and yes—a little sense of delight before takeoff.
