Are airports becoming luxury shopping destinations?

The nature-themed entertainment and retail complex, Jewel Changi Airport, attracts approximately 300,000 visitors per day. Video by Bento Fotography / Getty Images Plus via Getty Images

Airports are no longer simply gateways; in many cases they’re evolving into retail hubs that offer travellers an expanding selection of designer stores and luxury experiences. Luxury in this context no longer refers solely to premium products; it increasingly encompasses the quality of the retail experience itself – from personalised services to immersive brand environments. 

Luxury shopping is growing at airports because it sits at the intersection of time efficiency and indulgence, says James Mullaney, President of Executive Retail Shops. The dwell time travellers spend airside is a significant portion of their overall time at the airport, and can often set the tone for a passenger’s trip – elevating its importance.

And with private jet and top-tier commercial passengers viewing travel as an extension of their lifestyle, they’re looking for premium offerings such as personalised service, access to exclusive collections and the convenience of purchasing luxury goods on the go. 

Travellers want to maximise every moment of their journey, and airports are responding by offering them the same calibre of luxury retail they’d find in major global cities.

Leading the way are the main aviation hubs in Europe, the Middle East and Asia, with airports such as Incheon, in South Korea, seeing demand for luxury offerings from increasingly diverse passenger groups. This highlights that demand for luxury shopping doesn’t just come from premium passengers.

“Luxury concessions are crucial in transforming an airport from a mere transport point into a destination in itself, by offering a differentiated shopping experience and creating a premium atmosphere,” notes Sol Jung, Assistant Manager of Incheon Airport’s Duty Free Business Team.

She goes on to cite luxury concessions as a core pillar of the airport’s non-aeronautical revenue – something that’s essential for all airports as these margins shrink. Those leading the way are addressing passengers’ changing needs by redefining their airport experience through the introduction of new commercial strategies, including an increase in luxury retail experiences.

‘Experience’ is the keyword here, as experiential consumption is one of the five most relevant consumer trends, often blurring the lines between shopping and entertainment – highlighted in the Airport Council International’s (ACI) latest Airport Service Quality (ASQ) Global Traveller Survey Report. 

“In an airport, you need to offer a place someone wants to enjoy rather than going to the gate to sit and wait for boarding to start,” notes Mauro Anastasi, a partner in Bain & Company’s retail practice. “You want to make it such a great experience that they want to stay there because it’s simply a great way to spend their time!” 

“It’s about creating environments that feel both aspiring and inviting,” adds Mullaney. “By focusing on beauty, comfort and experiential elements, whether that’s personalised service, artfully curated displays or moments of interaction, we make sure everyone feels at ease while still experiencing the sense of prestige that luxury brands are known for.” 

Today’s consumers aren’t just looking to buy products, notes the ACI report; they’re seeking memorable experiences that align with their personal values, goals and interests. This is driving the integration of digital tools into physical retail spaces, particularly in luxury and premium outlets.

This merging of physical and digital retail, sometimes referred to as ‘phygital’, says the ACI, is enabling customers to engage with brands in a multi-sensory, immersive environment designed to deliver a more personalised, memorable experience. 

The report cites Gucci and Ralph Lauren as examples, with the former leveraging augmented reality (AR) to virtually try on products. The latter similarly introduced ‘intelligent mirrors’ in its fitting rooms that could display other suggested items to “complete the look”. 

While remaining luxury shopping hubs, airports are also becoming centres of innovation across categories and price points that aren’t strictly luxury. This shift is essential because global duty-free penetration is only 10–20% according to research by management consultancy Bain & Company, meaning up to 90% of passengers don’t buy, and that relevance is declining.

Anastasi also notes that while younger generations may spend as much, if not more, than their predecessors, they approach luxury differently.

Instead of investing in a single, iconic piece from a traditional luxury brand, they prefer to mix high-end items with contemporary or niche labels, creating a more personalised luxury identity.

“Their preferences are highly fragmented – there’s no single iconic brand that defines Gen Z. Instead of dedicating space to one or two established luxury brands, airports may need to accommodate 20 or 50 smaller labels, which change constantly. The problem is that revenue, margin and rent per square metre from these brands is often less than half of what a ‘classic’ luxury brand’s boutique delivers.” 

For younger travellers in particular, luxury is often as much about discovery and experience – engaging with emerging brands, interactive retail formats or exclusive pop-ups – as it is about established labels. The challenge for airports and retailers, then, is that replacing one established luxury brand, where performance can be forecast almost to the percentage point based on years of data, means substituting it with a mix of smaller, less predictable brands.