More and more people are shopping duty-free

The travel retail sector, which deals with the sale of products in travel-related locations such as stations, airports, and terminals, is set to reach an impressive global turnover by 2025, potentially surpassing one hundred billion dollars. This figure emerges from a recent analysis conducted by ATRI (Associazione Travel Retail Italia) and reported by La Repubblica, which provided an overview of the sector's health and current trends. Although the sector is still recovering from the severe blow of the pandemic, this year has seen a strong recovery, particularly driven by the return of international travelers. In the broader context, the travel retail industry fits into a landscape of continuous growth in air traffic, closely tied to global GDP trends. Future estimates are optimistic, with a projected annual increase in air traffic of 1.7% in 2024 and an additional 1.8% increase in 2025. Looking further ahead, the global number of passengers is expected to increase by an average of 3.4% annually until 2040, leading to an additional nearly 4 billion passengers.

Overall, the sector's compound annual growth rate (CAGR) has been steadily improving: from 2019 to 2025, it is estimated at 7.5%, demonstrating a robust recovery that has seen sales volumes in Italian stations and airports exceed pre-lockdown levels. A key factor in this rebound is the reduction of the tax-free shopping threshold, lowered from 154.95 to 70.01 euros, a measure introduced by the Ministry of Tourism in February 2023. According to Stefano Gardini, president of ATRI, who discussed it with La Repubblica, this change has had a positive impact, contributing to results that exceed those of traditional retail, with performances expected to continue improving through the end of this year. These developments will certainly have a positive impact on the sector, although challenges remain, such as the decline of revenge travel, or the potential rise of narrow-body aircraft for long-haul flights, which could reduce traffic at main hubs, impacting airport commercial spaces. ATRI also highlights the emergence of new consumers, particularly from Asian countries like Vietnam and the Philippines, which could bring new purchasing dynamics. This trend suggests a need to adapt commercial offerings to meet the diverse needs and preferences of these new consumer groups.

Travelers' purchasing habits are influenced by various factors. A recent survey revealed that consumers are primarily motivated by good value for money, with 26% of respondents considering it the most important factor, followed by convenience, which affects 19% of respondents, and available time for choosing, cited by 17%. Other key factors include brand loyalty, mentioned by 16%, and interaction with sales staff, which plays a crucial role in the shopping experience. 50% of buyers stated that they interact with sales assistants, and among them, 73% said that the advice they received positively influenced their purchasing decisions. Another interesting point concerns the type of purchases: 51% of travelers buy for themselves, 25% buy gifts, 16% choose products to share upon return, and 8% purchase upon request. Additionally, about one-third of buyers make impulse purchases, without specific planning. This behavior is particularly evident in travel locations, where the immediate availability of products attracts consumers.