TFWA President Philippe Margueritte has challenged travel retail stakeholders to address dwell time problems at Asia Pacific airports to offset the diminishing impact on commercial revenues.

Making his inaugural state of the industry address this morning (12 May), the former Coty leader pointed to total airside dwell time at airports in Asia Pacific declining by 16% in recent years in a worrying sign for the region’s retail operators and brands.

Referencing the data point from Kearney, Margueritte said total airside dwell time was 125 minutes in 2018, with travellers spending an average of 65 minutes in processual activities such as check-in, security, immigration and boarding, leaving 60 mins of free time to engage in airport experiences, including duty free shopping.

In 2024, the portion of ‘free time’ in airside terminals amounted to 44 mins – a decline of -16 minutes (-26%).

“We are making travellers wait far too long to get airside at airports, many of them face lengthy queues for check-in, immigration, security and boarding procedures and things are not getting any better,” he stressed.

“As travellers are no longer choosing to arrive two hours before their flights, this represents 26% less shopping dwell time which translates directly into 13% less spend per passenger. Of course, this is affecting non-aeronautical revenues. This is something we are all very keen to grow and not reduce.

Philippe Margueritte, President, TFWA.

Shifting priorities

“There is little point in offering fantastic retail experiences if passengers are rushing past the airport shop to catch their plane.

“It is in our own financial interest, whether we work for airport authorities, retailers to brands, to invest in seamless passenger processing at airports,” he continued, referencing the typically seamless curb-to-gate experience that passengers experience at Singapore Changi Airport.

In a dynamic performance on stage, Margueritte spoke of his excitement for the globe’s largest regional revenue driver.

“It’s rarely been a better time for all stakeholders to join forces and optimise the shopping journey of our travellers, especially in APAC,” he said.

Addressing the general shifts in buying demography in travel retail, he said: “Traditional airport brick and mortar stores won’t work so well for this new generation.

“They see shopping as more than purely transactional; it needs to be an experience, something to enjoy, share that really stimulates the sense and offers excitement or newness.”

He went on to explain that while footfall among Gen-Z passengers is climbing, conversion rates and average spend, by comparison, is significantly lower.

“Obviously this group is not finding what it wants in our stores and are not attractive enough by what they see. However, it is good to see how some operators are trying to inject more excitement, developing hybrid retail concepts at the airports, or example.”

Promising load factors

The future prognosis for global passenger traffic remains upbeat, with just shy of 10 billion air travellers expected in 2025 (having recorded 9.5bn in 2024), rising to 18.7bn by 2045, according to ACI World.

He pointed to load factors for the Asia Pacific region’s carriers reaching 83.5% in 2024 year-on-year, according to IATA, representing huge potential for the number of potential shoppers.

“As we know, we seem to be living in an uncertain world where international regulations can change everyday. I believe it has rarely been a better time for all stakeholders in the industry to join forces and optimise the shopping journey of our travellers.

“In Asia Pacific, a combination of factors – economic, demographic and technology – is aligning to help us maximise the appeal of our brands and shops for new kinds of travellers.”

China and India, two economic superpowers, have the “critical mass to drive consumption for decades”, he continued. This is being spurred by rising numbers of middle class in China.

Indeed, global Chinese passenger numbers are forecast to reach almost 200m by 2028 according to m1nd-set.

Meanwhile, 18.9m international travellers were carried by Chinese carriers in 2024 – up 34% year-on-year, said Margueritte, quoting figures from the Civil Aviation Administration of China (CAAC).

He claimed that F&B is currently the fastest growing commercial activity in Asia Pacific’s airports, combining high-quality meals in a quick-service format.

“Introducing a retail element into F&B or vice-versa is a logical development,” he said. “It plays to the desire for multi-sensory experiences, which is why we are more of this kind of outlets at airports.”

Elsewhere, the President referenced the growing importance of sustainability among global travellers with 75% stating they want to travel more sustainably in the coming 12 months, while 55% indicated a willingness to pay more to support sustainable travel options [source: World Travel & Tourism Council].

More to follow…