Price is becoming a less dominant factor in purchasing decisions as shoppers prioritise other beneficial aspects of the shopping experience in travel retail.

According to research published by travel retail research agency m1nd-set, price has traditionally been a major determinant in purchasing decisions among travellers but it is no longer the most important factor influencing travel retail shopper behaviour. 

The study says that consumers in travel retail are increasingly valuing the overall shopping experience over the price. 

Factors such as convenience, product exclusivity, and the allure of unique, location-specific products are becoming more influential in driving purchase decisions.

The study explores the reasons behind this shift and its implications for brands and retailers in the global travel retail sector.

According to the m1nd-set research, travel retail consumers are seeking out experiences and products that offer unique value beyond just cost savings. 

The research highlights the growing demand for distinctive and immersive shopping experiences. 

Clara Susset

This shift in consumer behaviour reflects a broader trend, where the emotional and experiential aspects of shopping hold greater significance than price in the decision-making process. 

The research reveals that the increasing incorporation of technology and customised services in travel retail has reduced the emphasis on price as consumers now favour seamless omnichannel experiences and personalised options over mere cost savings.

“Experiential retail is becoming a major trend with consumers placing greater emphasis on the experiences associated with shopping rather than just the products themselves. Quality and sustainability are also becoming key drivers of consumer choices. Travel retail consumers, particularly among the younger generations are becoming more discerning and willing to pay a premium for products that are ethically produced and made from sustainable materials, shifting the focus away from price alone, the research reveals,” says Clara Susset, COO, m1nd-set.

While value for money remains important, aspects such as the desire to browse and discover new products and indulge in self-treats are increasingly motivating travellers to visit and purchase in duty free stores, says the research.

The importance of price advantage as a reason to visit Duty Free shops has fallen significantly from 26 pc in 2019 to just 17 pc in 2024. 

‘Price advantage’ alone is no longer among the top five drivers to visit, according to the research. 

The shift in consumer priorities is further demonstrated by a growing desire among consumers to browse and discover the shops and the increased prominence of the attractiveness of the duty-free environment among shop visitors.

The research says that in store experiences are increasingly important purchase drivers in travel retail. 

Nearly 45 pc of shoppers on average now cite the in-store experience as a key driver to purchase, with Gen Zs and Millennials leading on the experiential aspect with 49 pc and 48 pc respectively. 

The in-store experience is defined by several factors including attractive packaging, special activations, the possibility to try and test products, attractive displays and special events and themed experiences.

Anna Marchesini

“The perception of value in travel retail is undergoing a decisive transformation. While competitive pricing is still relevant, it is no longer the primary determinant of consumer choice. Instead, the focus is shifting towards creating memorable, immersive shopping experiences that engage customers on an emotional level,” says Anna Marchesini, Head of Business Development, m1nd-set.

“We are observing a distinct trend where the emotional and experiential value of the shopping experience has clearly started to outweigh the importance of price in the decision-making process. The research findings underscore the need for brands and retailers to adapt to this changing landscape. This shift will inevitably force brands and retailers in travel retail to rethink the way they operate and focus on aspects that create more long-lasting customer engagement” Marchesini adds.