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Airport Retail Growth Now Shaped By Passenger Behaviour Rather Than Traffic Volumes

ByArticle Source LogoInternational Airport ReviewFebruary 10, 20265 min read
International Airport Review

Posted: 9 February 2026 | Gabriel Higgins | No comments yet

A new ACI study shows airport retail performance is increasingly driven by passenger mix, behaviour and spending preferences, with duty free and younger travellers reshaping revenues.

Airport retail performance is undergoing a structural shift, with passenger mix and behaviour now outweighing traffic volumes as the main drivers of commercial success, according to a new study released by Airports Council International Asia-Pacific & Middle East (ACI APAC & MID).

The Travel Retail Study in the Post-Pandemic Era, developed in partnership with Auran and Steer, draws on insights from retailers and passengers across 36 major airports in 21 countries. It shows that while passenger traffic has largely surpassed 2019 levels, commercial growth increasingly depends on who is travelling and how they spend, rather than how many passengers pass through terminals.

More than half of responding airports, 56 per cent, report that their commercial revenues now exceed pre-pandemic levels, while 44 per cent expect higher commercial revenue per passenger over the next 12 months. Perfumes and cosmetics have emerged as the strongest performing category since 2019, supported by favourable passenger demographics and competitive pricing.

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The study highlights a generational shift in spending patterns. Gen Z and Millennials now significantly outspend older cohorts when indexed against Boomers, spending 3.5 times more than Gen X and Boomers combined. Gen Z travellers are four times more likely than Boomers to purchase electronics and 2.5 times more likely to buy luxury goods, while Boomers remain more inclined towards confectionery.

Unlike older, more price-sensitive generations, younger travellers show a strong appetite for luxury goods and perfumes and cosmetics. They also demonstrate a growing preference for local and culturally relevant products, increasing demand for destination-linked retail supported by authenticity and storytelling.

Commenting on the findings, 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.”

Regional trends further underline this shift. In Asia-Pacific, a modest 2 per cent increase in domestic traffic translated into a 13 per cent rise in passenger spend between January and October 2025 compared with 2019. Luxury goods and local products led this growth. In the Middle East, electronics spending increased by 14 per cent, driven by tax advantages and demand for airport-exclusive products.

Duty free continues to underpin airport commercial models across both regions. In the Middle East, duty free accounts for between 31 and 38 per cent of total sales across key markets, with revenue dependence reaching around 60 per cent in Saudi Arabia and Qatar. While Middle Eastern duty free baskets favour confectionery and perfumes, Asia-Pacific hubs tend to be more premium and alcohol focused.

The strongest spending passengers now originate from China, India, the United Arab Emirates and the Kingdom of Saudi Arabia. China leads recovery in domestic and international luxury spending, India is seeing rapid growth in duty free purchases, and travellers from the UAE and Saudi Arabia are characterised by high disposable income and strong gifting cultures.

Despite rising digital engagement, around 70 per cent of purchases remain impulse driven and in store. Product choice and pricing account for nearly 70 per cent of purchase motivation, while sustainability expectations among younger travellers remain underrepresented in current airport retail strategies.

 

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Airport development, Duty Free, Non-aeronautical revenue, Passenger experience and seamless travel, Tourism, Workforce

Airports Council International Asia-Pacific & Middle East (ACI APAC & MID)

Asia Pacific and Oceania

Stefano Baronci

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