The travel retail industry has undergone significant changes over the last three years, largely driven by the COVID-19 pandemic. Some of the key changes include:
- Decrease in travel demand: The pandemic has significantly decreased travel demand, with many countries implementing travel restrictions and border closures. This has resulted in a sharp decline in the number of passengers passing through airports, which has had a major impact on the travel retail industry. As this trend is slowly recovering, many Duty-Free retailers are prioritizing their relationships with the big brands, often with reduced staff numbers, rather than venturing into new areas.
- Shift to e-commerce: With many consumers staying at home and avoiding physical stores, there has been a significant shift towards e-commerce in the travel retail industry. Brands and retailers have had to rapidly adapt to this new reality, investing in digital platforms and online marketing to reach customers.
- Changes in consumer behavior: The pandemic has also led to changes in consumer behavior, with many people prioritizing health and safety concerns. This has led to an increased demand for products such as hand sanitizers and face masks while reducing demand for traditional travel retail products such as cosmetics and fragrances.
- Focus on domestic travel: With international travel restrictions in place, many travelers have shifted their focus to domestic travel. This has led to a greater emphasis on local products and brands in the travel retail industry and an increased focus on promoting domestic tourism.
- Increased emphasis on sustainability: There has been a growing emphasis on sustainability in the travel retail industry, with consumers increasingly looking for eco-friendly products and brands. This has led to a greater focus on sustainability initiatives and product offerings from travel retailers and brands.
Overall, the travel retail industry has faced significant challenges over the last three years, but has also seen new opportunities emerge. While the pandemic has had a major impact on the industry, it has also accelerated trends such as e-commerce and sustainability, which are likely to continue shaping the industry in the years to come.