‘Forget duty-free — the future is travel-based brand experiences’

According to Introspective Market Research, the global travel retail market was valued at $6.8 billion in 2023 and is projected to grow to $17 billion by 2032. But growth alone isn’t what’s driving momentum — it’s transformation. Once a channel tied strictly to airports and cruise terminals, travel retail is entering a bold new phase. At Helios & Partners, we call it Travel Retail 3.0: a model in which travel retail evolves from a transactional touchpoint into a strategic brand-building platform that extends far beyond the terminal. APAC’s travel retail landscape continues to shift in 2025. Hainan, previously a duty-free hotspot, saw a 29% decline in 2024 sales amid fewer tourists and rising overseas competition. In contrast, Singapore is experiencing a resurgence in Chinese tourism, with arrivals up 5.8% in Q1 2025, driven by mutual visa exemptions and a focus on personalized experiences. Amid these evolving dynamics, Travel Retail 3.0 isn’t just about how or where people shop — it’s about rethinking how brands show up across the travel journey. From points of exit to points of experience Traditionally, travel retail has been boxed into physical spaces tied to logistics — airports, cruise ships, border zones. But that view is rapidly becoming outdated. Around the world, we’re seeing examples of travel retail moving into high-footfall, high-emotion environments, not just transit points. Think in-town, in-hotel, and en route. In Hainan and in neighboring Hong Kong, duty-free has expanded into a comprehensive retail and lifestyle ecosystem, blending physical stores with digital redemption, international delivery, and mobile app ordering. In South Korea, travelers can unlock duty-free pricing while shopping downtown by using their boarding pass for verification. These aren’t anomalies — they’re signals that travel retail is shifting from being tied to location to being driven by intent. Put simply, it’s not about where you are anymore — it’s about who you are when you travel. Retail without borders: Rethinking what “duty-free” means The real opportunity for brands lies in using travel retail not only to sell but also to build identity, loyalty, and cultural relevance in places where consumers are most receptive. Travelers are often in a discovery mindset. They’re more open to inspiration, more likely to engage, and increasingly motivated by experience over price. Imagine this: a tourist at Art Basel browsing limited-edition fashion and luxury brands co-created with artists — tax-free with a valid boarding pass. Or a festival-goer at ComplexCon engaging with a limited-time collaboration that lets them purchase duty-free via a mobile platform and have the product shipped home after their trip. These aren’t far-off ideas. The technology and logistics are already in place. What’s needed is vision — and a willingness from brands to break the mental link between “duty-free” and the airport gate. As events like SXSW, Art Basel, ComplexCon, and the Strawberry Music Festival expand beyond their traditional borders, travel retail should evolve alongside them. We’re already seeing this model in action on cruise lines, where luxury brand pop-ups are seamlessly integrated into curated lifestyle experiences. In retail districts in Tokyo and Los Angeles, there’s also a growing appetite for urban “duty-free zones,” where tourists can receive tax-back pricing with in-app verification or hotel concierge support. The new face of travel retail: High-intent, experience-first consumers Today’s travel retail consumer is no longer a passive last-minute buyer. According to McKinsey, millennials and Gen Z took nearly five trips on average in 2023, devoting 29% of their income to travel — more than any prior generation. Over half of Gen Z say they prioritize experiences over goods, which makes the old “stack-it-high, sell-it-cheap” duty-free model feel increasingly misaligned. This is where Travel Retail 3.0 shines: not as a price-driven outlet, but as an intent-rich moment to build brand love. Lancôme’s recent partnership with DFS at LAX, for example, used AR, AI skin diagnostics, and digital storytelling to convert airport dwell time into a brand memory. But the same kind of experience can — and should — reach travelers outside the airport. What’s stopping it? Breaking the silo between brand and travel Historically, travel retail has been treated as a lower-funnel sales channel, separate from brand marketing or domestic retail planning. That wall is crumbling. The channel is becoming a brand’s first impression — not its final pitch. To keep up, brands need to integrate travel retail into upstream planning: product exclusives, IP partnerships, influencer strategy, and experiential design. That means equipping travel retail teams with the same creative resources and budgets as local market teams. It also means viewing travelers as not just buyers but brand storytellers — ones who will post, share, and influence peers well beyond the purchase moment. A cultural channel, not just a commercial one This new era opens up an exciting question: Can travel retail become a true cultural channel? We believe yes. With the rise of platform-based shopping (like WeChat and TikTok Shop), KOL-driven commerce, and borderless digital identity, there’s every reason to believe it will expand into entertainment, content, and even fandom. Imagine limited drops tied to destination campaigns, AR filters that lead to travel retail coupons, celebrity tie-ins exclusive to travel moments, and co-branded capsules launched at events. In this context, travel retail influencers and travel-driven brand culture become not just likely but inevitable. Final thoughts: Brand-building is the destination The expansion of travel retail is no longer about square footage or channel growth — it’s about redefining how brands interact with mobile, global, and experience-driven consumers. TR 3.0 isn’t just a logistical evolution; it’s a creative one. Brands that embrace it won’t just sell more — they’ll mean more. Travel has always been about moments. It’s about time for travel retail to make those moments unforgettable. Humphrey Ho is the CEO of Helios & Partners, a capital enterprise focused on Consumer Ecosystem Investing — an approach that fuses equity, marketing, and operational transformation to accelerate brand growth. With over 20 years of global experience in equity management, entrepreneurship, and consumer marketing, Humphrey helps companies thrive at the intersection of strategy and storytelling. The views expressed in this opinion piece are the author’s own and do not necessarily represent the views of Jing Daily.

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‘Forget duty-free — the future is travel-based brand experiences’