New data shows experience instore is more important than price for duty free

A recent study by leading travel retail research agency M1nd-set, have revealed that price is becoming a less dominant factor in purchasing decisions, as shoppers prioritise other beneficial aspects of the shopping experience in travel retail and duty free. The perception of value in travel retail is undergoing a decisive transformation. M1nd-set Head of Business Development Anna Marchesini explained. “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.”

While the 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, according to the data from the research.

What does the data say?

Since 2019, figures of consumers who place importance on price advantage as a reason to visit duty free shops have fallen significantly. A drop of 9% has occurred between 2019 and 2024, with figures going from 26% (2019) down to 17% (2024).

Browse to discover on the other hand has jumped up as the number one reason to visit a duty free store, having increased from 25% in 2022 to 32% in 2024. Other reasons to visit such as self-indulgence, looking for the latest products, and inviting/attractive duty free shops have all been on an upward trajectory.

The aspect related to experiential retail gain that saw the biggest increase over the period (2019-2024) was inviting/attractive duty free shops. Being second last in 2019, at 12%, has dramatically risen by 15% to now sit second at 27%. This could be explained by the data that 43% of travellers are likely to share their in-airport experiences on social media, boosting brand visibility.

From the data, it is also clear that in-store experiences influence purchase drivers in travel retail. 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. Among those who are shopping in duty free stores, 55% are more likely to make repeat purchases after having a positive brand experience, and 65% who had a positive experience are more likely to return and recommend the brand to others.

How should travel retailers respond to this message?

Ms Marchesini sums up how best to respond to the data, stating: “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.

“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.”