According to research published by travel retail research agency m1nd-set, price is becoming a less dominant factor in purchasing decisions, as shoppers prioritise other beneficial aspects of the shopping experience in travel retail.

The global travel retail industry is encountering a significant shift in consumer behaviour, as shoppers increasingly prioritize experiential value over price.

The research, which explores the reasons behind this shift and its implications for brands and retailers in the global travel retail sector, revealed that while price has traditionally been a major determinant in the purchasing decisions among travellers, it is no longer the most important factor influencing travel retail shopper behaviour.

According to m1nd-set, consumers in travel retail are increasingly valuing the overall shopping experience over the price.

Experience over price

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

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

M1nd-set noted 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 also revealed the incorporation of technology and customised services in travel retail has reduced the emphasis on price, as consumers now favouromni-channel experiences and personalised options over pure cost-saving potential.

“Experiential retail is becoming a major trend,” Clara Susset, COO of m1nd-set, commented. “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.

Susset continued: “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.

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.

The importance of price advantage as a reason to visit Duty Free shops has fallen significantly from 26% in 2019 to just 17% in 2024. Price advantage alone is no longer among the top five drivers to visit, according to the research.

In addition, 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.

In-store magic

In store experiences are increasingly important purchase drivers in travel retail.

According to the research, 45% 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% and 48% respectively.

M1nd-set added the in-store experience is defined by several factors including: attractive packaging; special activations; product testing; attractive displays; special events and themed experiences.

“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. 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,” said Anna Marchesini, Head of Business Development for m1nd-set.

“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” concluded Marchesini.

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