Younger travellers are now driving spend, while passenger behaviour - rather than sheer traffic volumes - has become the defining factor of airport travel retail performance, according to a study by Airports Council International Asia-Pacific & Middle East (ACI APAC & MID), the trade group representing over 600 airports across 44 countries and territories.
The Travel Retail Study in the Post-Pandemic Era, developed by ACI APAC & MID in partnership with Auran and Steer, spans 36 major airports in 21 countries and draws on insights from retailers and passengers. It finds that, despite traffic surpassing 2019 levels, travel retail growth now hinges on passenger mix, behaviour, and preferences- not traffic volumes alone.
Younger travellers, particularly Gen Z and Millennials, have overtaken older generations as the primary spenders at airport when indexed against Boomers.
Unlike older generations, who remain more price-sensitive and category-conservative, Millennials and Gen Z are the primary drivers of spending on luxury goods and perfumes and cosmetics. They also demonstrate a strong preference for local, culturally relevant products, shifting demand toward destination-linked purchases supported by storytelling and authenticity.
Stefano Baronci, Director General of ACI Asia-Pacific & Middle East, said: “The traditional assumption that commercial performance scales automatically with passenger volumes is no longer reliable. What this study highlights is a structural change: as passenger behaviour becomes more segmented, revenue outcomes depend increasingly on who travels, not simply how many travel. This shift matters because airports operate with high fixed costs and long investment horizons.
“When financial growth is not volume driven, optimising the commercial performance becomes a matter of financial resilience. In that context, non-aeronautical revenues, and travel retail and duty free play a significant role in airport business models. Airports that align their commercial strategies with evolving passenger behaviour are better equipped to manage revenue volatility, sustain investment capacity, and remain competitive over the long term.”
In the Middle East, duty-free is not just important, it is central to airport economics. Within total sale, the duty-free sales shares are consistently high across the region, from Saudi Arabia (31 per cent) and the UAE (36 per cent) to Qatar (38 per cent), Bahrain (34 per cent) and Oman (31 per cent). The revenue dependence is even higher, around 60 per cent in Saudi Arabia and Qatar, and over 50 per cent across the UAE, Bahrain and Oman.
Middle East duty-free baskets favour confectionery and perfumes, while Asia-Pacific and Oceania hubs are more premium and alcohol-driven. Electronics spend climbed 14 per cent in the Middle East, as passengers increasingly leveraged tax advantages and sought out airport-exclusive collections unavailable in malls, a shift toward more deliberate, value-driven purchasing at the airport.
Outbound travellers from UAE and Saudi Arabia are now top spenders, characterised by high disposable income and a strong gifting culture.
Top airport retail facts
•56pc airports say commercial revenue is stronger than 2019 levels.
•44pc airports expect higher commercial revenue per passenger in the next 12 months.
•Airports cite perfume and cosmetics as the strongest-performing category post-2019.
•Passenger demographics and price competitiveness are key drivers of retail performance.