Younger travellers driving shift in airport retail, ACI study finds
Airport retail business is now driven by passenger mix and behaviour, not traffic volumes, the ACI report shows
04 February, 2026
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Airport retail is undergoing a structural shift, with spending increasingly driven by younger travellers and passenger behaviour rather than overall traffic volumes, according to a new study by Airports Council International Asia-Pacific & Middle East (ACI APAC & MID).
The industry body, which represents more than 600 airports across 44 countries and territories, said its Travel Retail Study in the Post-Pandemic Era shows that although passenger traffic has recovered beyond 2019 levels, commercial performance now depends on who is travelling and how they spend.
The study, developed with consultancy firms Auran and Steer, covers 36 major airports in 21 countries and is based on input from retailers and passengers.
It found that 56 per cent of airports reported commercial revenues stronger than in 2019, while 44 per cent expect higher commercial revenue per passenger over the next 12 months.
Perfume and cosmetics were identified as the strongest-performing retail category since 2019.
Passenger demographics and price competitiveness were cited as the main factors influencing retail outcomes.
Generation Z, Millennials travellers are key buyers
Younger travellers, particularly Generation Z and Millennials, have overtaken older age groups as the biggest spenders at airports when measured against Baby Boomers. Generation Z and Millennials spend 3.5 times more than Generation X and Boomers.
Generation Z travellers are four times more likely than Boomers to buy electronics and 2.5 times more likely to purchase luxury products. Boomers are 2.5 times more likely than Generation Z to buy alcohol and 1.4 times more likely to buy confectionery.
The study found that Millennials and Generation Z are driving spending on luxury goods, perfumes and cosmetics, and show a stronger preference for local and culturally relevant products. This has increased demand for destination-linked purchases supported by local identity and storytelling.
Passenger behaviour is evolving
Stefano Baronci, director general of ACI Asia-Pacific & Middle East, said airports can no longer rely on passenger volumes alone to drive commercial growth.
“As passenger behaviour becomes more segmented, revenue outcomes depend increasingly on who travels, not simply how many travel,” Baronci said. He added that with high fixed costs and long investment cycles, non-aeronautical revenues such as travel retail and duty free play a growing role in financial resilience.
Regional data shows differing patterns between traffic recovery and passenger spending.
In Asia-Pacific, domestic traffic rose two per cent between January and October 2025 compared with 2019, while passenger spend increased 13 per cent. International passenger spend rose five per cent, even though traffic remained two per cent below pre-pandemic levels. Luxury goods sales increased nine per cent and local product sales rose seven per cent.
In the Middle East, domestic traffic increased 14 per cent over the same period, but passenger spend fell 17 per cent. International traffic rose 17 per cent, while passenger spend increased two per cent. Electronics spending climbed 14 per cent, supported by tax advantages and demand for airport-exclusive products.
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Duty-free is a major revenue driver for travel retail
Duty-free retail continues to be a major revenue driver across both regions. In the Middle East, duty-free accounts for between 31 per cent of total retail sales in Saudi Arabia and Oman and 38 per cent in Qatar, with the UAE at 36 per cent.
Revenue dependence is higher still, at around 60 per cent in Saudi Arabia and Qatar, and more than 50 per cent across the UAE, Bahrain and Oman.
Middle East duty-free baskets are dominated by confectionery and perfumes, while airports in Asia-Pacific and Oceania see stronger demand for premium products and alcohol.
The highest-spending travellers originate from China, India, the UAE and Saudi Arabia. Chinese travellers lead the recovery in domestic and international spending, with luxury spend running at double the Asia-Pacific average.
Indian travellers are recording strong growth in international and duty-free spending, driven by brand aspiration and pricing advantages. Outbound travellers from the UAE and Saudi Arabia are among the top spenders globally, supported by high disposable incomes and a strong gifting culture.
Despite rising digital engagement, most airport retail purchases remain in-store.
Around 70 per cent of buying decisions are impulse-led, with digital interaction currently generating only two per cent of incremental sales.
Product choice accounts for 39 per cent of purchase motivation, while pricing and promotions account for 29 per cent. Experience influences 20 per cent of buying decisions, with ease of access and time efficiency ranking higher than store ambience.
While 65 per cent of Generation Z travellers say they are willing to pay more for sustainable products, only 20 per cent of airports currently view sustainability as a core driver of retail decisions.
Across Asia-Pacific and the Middle East, luxury goods and perfume and cosmetics are the top two retail categories by spend, followed by electronics. These three categories generate the highest margins for airports.
Beyond these, regional differences emerge, with local products performing strongly in Asia-Pacific and confectionery showing greater strength in the Middle East.
Top contributing product categories by spend
Asia-Pacific
1. Luxury goods
2. Perfume and cosmetics
3. Electronics
4. Local products
5. Alcohol
6. Confectionery
7. Tobacco
8. Books and magazines
Middle East
1. Luxury goods
2. Perfume and cosmetics
3. Electronics
4. Confectionery
5. Local products
6. Alcohol
7. Tobacco
8. Books and magazines




















