Quick Answer
Airport retail is no longer shaped by how many passengers walk through the terminal. It is shaped by who those passengers are.
In 2026, Gen Z and Millennials account for the majority of airport retail spending and are growing at a 10.87% CAGR through 2031. However, they shop differently from every generation that came before them, and those differences play out differently across every category from fragrance and spirits to watches and confectionery.
Understanding those differences is no longer optional for brands and distributors operating in travel retail. It is the commercial baseline.
This article is the first in a dedicated series examining how Travel Retail by Generation behaviour is changing across the six categories we work in. The changes are not uniform.
We have been tracking this shift across our category research at Weitnauer Group.
- In our article on Gen Z Trends in Watches, we explored how a single generation is quietly redrawing the rules of luxury watch distribution.
- In our piece on Wellness Trends in Travel Retail, we traced how shifting traveller priorities are creating new category opportunities at the point of sale.
Gen Z: High Potential, Low Conversion — For Now
Gen Z travellers (born between 1997 and 2012) — are the most discussed generation in travel retail and, at present, the most misunderstood.
Their potential is genuine. Gen Z and Millennials combined are spending an average of 3.5 times more than Gen X and Boomers combined in airport retail, and Gen Z travellers are 2.5 times more likely than Boomers to purchase luxury products (Travel and Tour World, 2026). Their global spending power already exceeds USD 450 billion and is growing rapidly (PGM Solutions, 2025).
But the current picture in duty free is more complicated. Research from m1nd-set reveals that:
- Only 41% of Gen Z visitors to duty free shops actually make a purchase, compared to a global average of 51% across all age groups.
- Less than a third noticed duty free touchpoints before travelling, against an all-age average of 47%.
- And fewer than half interact with sales staff, compared to around two thirds for other segments (Airport World, 2023).
What Gen Z actually responds to in travel retail:
- Experience and authenticity over price and exclusivity: “We are seeing a clear shift from routine purchasing among older travellers to discovery-driven behaviour among Gen Z and Millennials” (DFNI Online, 2026)
- In-store theatre, storytelling, and digital integration — 80% of Gen Z browse products online but prefer to purchase in store (Trunblocked, 2024)
- 56% say they would use online pre-order or click-and-collect at the airport if it were better promoted (Airport Dimensions)
- Destination-specific and culturally relevant products: authenticity is a stronger purchase driver than brand heritage alone
- Convenience-led purchasing: when they buy, Gen Z tends to purchase on impulse rather than with prior intent
Key takeaway: Gen Z is the opportunity of the next decade — not because of what they spend today, but because of the habits, loyalty, and purchasing power they will bring in the next five to ten years. Brands that build relevance now are investing in the right direction.
Millennials: The Current Commercial Engine of Travel Retail
Millennials (born between 1981 and 1996) — are the generation that travel retail is winning with right now. They combine:
- growing spending power,
- strong travel frequency,
- clear appetite for premium and exclusive products.
Millennials and Gen Z together now represent the largest and fastest-growing share of consumer spending in the United States, according to American Express’s Q4 2025 earnings call. Luxury retail merchant spending rose 15% and restaurant spending climbed 9%, with the average new Platinum card customer aged 33 and Gold at 29 (PYMNTS, 2026).
In travel retail specifically, Millennials demonstrate the highest engagement rates of any segment.
- More than 80% of Millennial visitors to duty free shops make a purchase.
- They are the most likely to buy travel retail exclusives and to try products for the first time (DFNI / NTRG, 2024).
- Premiumisation in spirits is heavily Millennial-driven — premium and super-premium categories continue to gain airport shelf space in direct response to trading-up behaviour among frequent international travellers (Mordor Intelligence, 2026).
What Millennials respond to in travel retail:
- Premium and exclusive editions — travel retail exclusives are a meaningful purchase driver
- Experience-led discovery: Millennials want to find something they cannot get at home
- 73% of Millennials use social media to discover products — second only to Gen Z at 73% (Salsify, 2026)
- Sustainability and brand values — Millennials are more likely to support brands that align with their ethical priorities
- Experiential retail: 61% of 16–34-year-olds in the UK plan holidays with a wellness element, influencing what they look for in airport retail (Mintel, 2026)
Key takeaway: Millennials are travel retail’s most commercially active generation today. They reward brands that offer exclusivity, storytelling, and genuine premium quality — and they are the primary reason premiumisation is the dominant strategy across airport fragrance, spirits, and cosmetics assortments in 2026.
Gen X: The Overlooked High-Value Traveller
Gen X (born between 1965 and 1980) — is the generation that travel retail consistently underestimates.
Despite representing only 19% of the population, Gen X:
- Accounts for 31% of both in-store and online retail spending (UPS, 2026). They contributed an estimated USD 7 trillion to global consumer spending in 2024 (PGM Solutions, 2025).
- Travel frequently for both business and leisure
- Carry established brand loyalties
- Purchase with purpose.
Unlike Millennials, who begin with social media discovery, or Gen Z, who need experience-led engagement, Gen X typically goes directly to brands and retailers they already trust.
They are not easily impressed by novelty — but they are loyal when trust is established. In airport retail, this translates to reliable, high-value purchasing across spirits, watches, cosmetics, and premium gifting categories.
What Gen X responds to in travel retail:
- Brand trust and quality assurance over trend-driven marketing
- 46% start their product search directly at a trusted retailer or brand, rather than social media or search engines (UPS, 2026)
- 21% prefer discovering new brands in-store — making physical retail touchpoints especially important
- Premium gifting: business travellers and high-frequency fliers in this cohort drive consistent gifting spend
- Service quality and efficient purchasing — they are not browsing for entertainment; they are buying with intent
Key takeaway: Gen X is travel retail’s most reliable high-value segment and the least targeted by current airport marketing. Brands that maintain quality, trust, and efficient in-store experience hold a stable and profitable relationship with this cohort.
Baby Boomers: Still Spending, Still Premium
Baby Boomers (born between 1946 and 1964)— remain a commercially significant force in travel retail, particularly in categories where quality, heritage, and brand trust drive purchase decisions.
Boomers currently:
- Dominate overall retail spending by sheer demographic weight and accumulated wealth (Circana). I
- n travel retail, their spending concentrates in premium spirits, luxury confectionery, fragrances, and high-value gifting — categories where Weitnauer has direct relevance across our brand portfolio.
Older travellers are increasingly interested in premium F&B options (61%), and remain twice as likely as younger generations to spend on practical, value-assured categories (Airport Dimensions). They are not driven by social media or in-store theatre.
They respond to:
- service quality,
- product reviews,
- familiar brands,
- clear value
Key takeaway: Boomers are not the growth story in travel retail — but they are a steady, high-margin segment that rewards operational consistency and brand heritage. Removing them from the commercial equation to chase younger cohorts is a strategic error.
What the Generational Shift Means for Brands and Distributors
The central challenge in travel retail in 2026 is not choosing which generation to serve. It is building an offer, an activation model, and a distribution approach that works across all four simultaneously.
| Generation | Primary purchase driver | Duty free conversion | Key category opportunity |
|---|---|---|---|
| Gen Z | Experience, authenticity, convenience | 41% — below average | Cosmetics, fragrance, limited editions |
| Millennials | Exclusivity, premiumisation, discovery | 80%+ — highest of all segments | Spirits, niche fragrance, luxury accessories |
| Gen X | Brand trust, quality, intent-driven | High, reliable | Watches, spirits, gifting, cosmetics |
| Baby Boomers | Heritage, service, value assurance | Stable | Premium spirits, confectionery, fragrance |
Around 70% of airport purchases are still made on impulse, and fewer than 10% are influenced by digital pre-order mechanisms (DFNI Online, 2026). This means that despite the shift toward digital engagement among younger cohorts, the in-store experience remains the primary commercial lever across all generations. Digital tools support discovery. Physical retail closes the purchase.
For brands and distributors, this has three practical implications:
1. Assortment must serve multiple generational purchase drivers simultaneously
- A spirits range that offers only premium aged expressions appeals to Boomers and Millennials but loses Gen Z.
- A fragrance wall built around heritage houses captures Gen X but misses the discovery-driven shopper.
The most commercially effective airport assortments in 2026 build a price ladder and a format range that addresses each cohort.
2. Activation and in-store experience are no longer optional
- Gen Z’s 41% conversion rate is not a demographic problem. It is an engagement problem. Research consistently shows they respond to storytelling, in-store theatre, and experiential brand presentation. Brands that invest in activation at point of sale are converting a cohort that others are leaving at the door.
3. Digital and physical must be integrated, not separated 58% of travellers across all age groups say they would use airport e-commerce more if it were better promoted. Pre-order, click-and-collect, and mobile engagement in the lounge are not niche features — they are the infrastructure of the next decade of travel retail growth (Airport Dimensions).
Frequently Asked Questions
Which generation spends the most in travel retail in 2026?
Millennials are currently travel retail’s highest-converting and fastest-spending generation, with engagement rates above 80% in duty free.
Why is Gen Z underperforming in duty free despite high spending power?
Gen Z’s low conversion in duty free reflects an engagement gap, not a spending gap.
What do Millennials want from travel retail?
Millennials prioritise premium and exclusive products, experience-led discovery, and brands that reflect their values. They are the primary driver of premiumisation in airport spirits, fragrance, and cosmetics assortments. They are also the most likely generation to purchase travel retail exclusives and try new products for the first time in-store.
How should brands adapt their airport assortment for a multi-generational passenger mix?
The most effective approach builds a structured price ladder and format range that serves multiple generational purchase drivers simultaneously — from accessible entry points that capture Gen Z impulse purchasing, to exclusive and premium editions that drive Millennial and Gen X spend, to trusted heritage ranges that serve Boomer and high-frequency business travellers.
What role does digital play in travel retail conversion?
Despite being digitally native, Gen Z travellers are not primarily driven by digital tools when making airport purchases. Around 70% of purchases remain impulse-driven and experience-led. Digital tools support discovery and pre-trip planning but physical in-store experience drives conversion across all generations. The opportunity is in integrating both — not choosing one over the other.
Conclusion
Travel retail’s generational shift is not a future challenge. It is the present commercial reality. Millennials are driving growth today. Gen Z will drive it tomorrow. Gen X and Boomers anchor the high-margin, high-reliability end of the portfolio.
Brands and distributors that understand each generation’s specific motivations — and build their assortment, activation, and channel strategy around those differences — are the ones gaining ground in airport retail in 2026.
At Weitnauer, we work with brand partners across Perfumes & Cosmetics, Watches & Jewellery, Beverages & Spirits, Food & Confectionery, and more to ensure their travel retail offer is built for the passenger mix that actually exists — not the one that existed a decade ago.
If you are rethinking your travel retail strategy for 2026 and beyond, our team is ready to discuss what that looks like in practice.
