The Anatomy of Travel Retail

Travel retail typically plays second fiddle in brand communications, which emphasize flagship mono-brand stores. However, people traveling account for 40 percent of global spending on personal luxury goods, with 12 percent to 13 percent captured by the specialized and globally dispersed travel retail channel. Airport malls account for almost 60 percent of the travel retail market, but the travel retail channel also includes ferries and cruises, border shops and downtown duty and tax-free shops.