The Airports Council International Asia-Pacific & Middle East (ACI APAC & MID), the trade group representing over 600 airports across 44 countries and territories, has released its Travel Retail Study in the Post-Pandemic Era, revealing a fundamental shift in airport retail dynamics. The study points out that younger travelers are now driving spend, while passenger behaviour, rather than sheer traffic volumes, has become the defining factor of airport travel retail performance.
Developed by ACI APAC & MID, in partnership with Auran and Steer, the study spans 36 major airports in 21 countries and draws on insights from retailers and passengers. It finds that despite traffic surpassing 2019 levels, travel retail growth now hinges on passenger mix, behaviour, and preferences, not traffic volumes alone.
56% of responding airports say their commercial revenue is now stronger than 2019 levels.
44% of airports expect higher commercial revenue per passenger in the next 12 months.
Airports cite Perfume & Cosmetics as the strongest-performing category post-2019.
Passenger demographics and price competitiveness are key drivers of retail performance.
Younger travelers, particularly Gen Z and Millennials, have overtaken older generations as the primary spenders at airports, when indexed against Boomers:
Gen Zs and Millennials spend 3.5 times higher than Gen X & Boomers
Gen Zs are 4 times more likely than Boomers to buy electronics
Gen Zs are 2.5 times more likely than Boomers to buy luxuryproducts
Boomers are 2.5 times more likely than Gen Z to buy alcohol
Boomers are 1.4 times more likely than Gen Z to buy confectionery products
Unlike older generations, who remain more price-sensitive and category-conservative, Millennials and Gen Z are the primary drivers of spending on luxury goods, perfumes, and cosmetics. They also demonstrate a strong preference for local, culturally relevant products, shifting demand toward destination-linked purchases supported by storytelling and authenticity.
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. This shift matters because airports operate with high fixed costs and long investment horizons. When financial growth is not volume driven, optimizing the commercial performance becomes a matter of financial resilience. In that context, non-aeronautical revenues, and travel retail and duty free play a significant role in airport business models. Airports that align their commercial strategies with evolving passenger behaviour are better equipped to manage revenue volatility, sustain investment capacity, and remain competitive over the long term.”
Regional Performance: APAC and Middle East
Asia-Pacific: A modest 2% rise in domestic traffic translated into a strong 13% increase in passenger spend (sales per passenger) in 2025 (January to October) as compared to 2019, reflecting changing consumer behaviour and higher-value purchases. Luxury goods (+9%) and local products (+7%) were at the forefront of this growth.
Middle East: Electronics spend climbed 14% as passengers increasingly leveraged tax advantages and sought out airport-exclusive collections unavailable in malls, a shift toward more deliberate, value-driven purchasing at the airport.
The rise of Duty Free
Duty-free has become the financial backbone of airports across Asia-Pacific and the Middle East, delivering a significant share of retail revenue and driving commercial performance at major hubs.
In the Middle East, duty-free is not just important; it is central to airport economics. Within total sales, the duty-free sales shares are consistently high across the region, from Saudi Arabia (31%) and the UAE (36%) to Qatar (38%), Bahrain (34%), and Oman (31%). The revenue dependence is even higher, around 60% in Saudi Arabia and Qatar, and over 50% across the UAE, Bahrain, and Oman.
Middle East duty-free baskets favour confectionery and perfumes, while Asia-Pacific and Oceania hubs are more premium and alcohol-driven.
Biggest spenders
The strongest spenders today originate from China, India, the United Arab Emirates, and Saudi Arabia, reflecting the specific traveller segments, trip purposes, and purchasing behaviour that these markets currently generate.
China: Leads recovery in both domestic and overseas spend, with luxury spend 2x the APAC average.
India: Showing massive growth in international and duty-free spend, driven by high brand aspiration and tax advantage.
UAE & Saudi Arabia: Outbound travelers from these nations are now top spenders, characterized by high disposable income and a strong gifting culture.
Drivers of Retail Purchases
While digital use is growing, especially among younger travellers, most purchases still happen in-store. Around 70% of buying decisions are impulse-led, with digital engagement mainly supporting the journey and currently driving only 2% of additional sales.
Product choice (39%) and pricing and promotions (29%) together account for nearly 70% of purchase motivation. “Experience” alone influences just 20% of purchase decisions, while ease of access, time efficiency, and friction-less processes rank higher than environment or ambience.
While 65% of Gen Z travelers are willing to pay more for sustainable products, only 20% of airports currently see sustainability as a core factor shaping retail decisions, a clear gap between passenger expectations and airport strategy.
Top Performing retail categories
Across Asia-Pacific and the Middle East, airport retail performance shows strong uniformity, with the same categories consistently leading sales. Luxury goods and perfumes & cosmetics rank as the top two categories in both regions, reinforcing airports as trusted destinations for premium, duty-free, and gifting purchases. Electronics typically rank third, supported by pricing advantages and last-minute convenience, and together these top three categories generate the highest net margins for airports.
Beyond the top tier, regional preferences emerge, with local products performing strongly in Asia-Pacific, while confectionery and impulse gifting categories show greater strength in the Middle East.
