In this exclusive comment piece, Simon Black, Executive Managing Director, Newmark, shares his opinion how pricing is one of the defining challenges for travel retail in 2026.

“In 2026, pricing has emerged as one of the most critical topics in the travel retail industry. We began to feel the momentum and importance of this topic growing during 2025 through customer feedback, airport and retailer discussions and indeed through personal experience.

“Across categories, we are witnessing a steady increase in prices, with food and beverage (F&B) leading the conversation. Unlike other retail segments, F&B pricing is highly emotive and plays a fundamental role in the perception of an airport’s wider commercial offer. Passengers will often compare what they pay at the airport for their everyday basics like a bottle of water or a coffee against what they pay downtown or at their favourite cafés.

“While an element of the current price levels are a symptom of rising costs globally, the airport business model and the competitive landscape for contracts seems to be exacerbating the issue; the question for the industry: ‘Are pricing levels now crossing into territory that risks alienating consumers?’

“From a passenger perspective, they don’t necessarily make the connection that operating retail or restaurants in airports has unique constraints: high rents, stringent security requirements, high staffing costs and complex logistics all contribute to elevated operating costs which have to be accounted for.

“These factors have traditionally justified premium pricing, and consumers have largely accepted this reality. However, recent trends suggest that the gap between airport and high-street pricing is widening beyond reasonable expectations. When a coffee, sandwich or sit-down meal costs significantly more airside than landside, even seasoned travellers begin to question value.

“The implications are profound. While higher prices may offset the high costs of operating in airports in the short term, they risk suppressing passenger spend in the long term. We are all increasingly aware that today’s traveller is more informed and value-conscious than ever. According to a survey in September 2025 by PayPal, 61% of Gen Z shoppers used AI tools to help them make purchases, including comparing prices and finding the best deals. The perceptions of overpricing can erode trust, loyalty and critically spend. In an era where airports compete not only on efficiency but on experience, pricing strategies must strike a delicate balance between profitability and perceived value.

“At Newmark, this call to action meant we spent the last three months of 2025 undertaking an extensive pricing survey, further reaching than our usual annual research. We took the decision to widen our survey, as the topic suddenly began to feel urgent, critical – maybe even existential. We have surveyed prices in over 40 European and Middle Eastern airports and expanded the survey to include all the key categories from Duty Free, Retail Essential and Convenience and F&B. We will be releasing the headline findings to the industry, providing a comprehensive view of where pricing stands and how it is potentially impacting passenger spending behaviour.

“The message is simple – ultimately, pricing should enhance, not hinder, the passenger experience. If we fail to address this issue thoughtfully, we risk turning airports commercial offers from destinations of choice into places of avoidance.”

A version of this opinion piece first appeared in the January 2026 issue of TRBusiness, which featured Global Industry Survey 2026.

READ NEXT: Embrace the decline, Forum delegates urged

READ NEXT: Global Travel Retail Awards 2026: Entries now open!

READ NEXT: Catterall promoted to Executive Director of Newmark’s Travel Services division