Industry Analysis

Travel retailers are “ready to reinvent and put forward new propositions for travellers” in the wake of the global pandemic, according to DFS Group CEO Benjamin Vuchot speaking at the recent TFWA World Conference. But with a new wave of younger, digitally-savvy passengers on the horizon – namely, Generation Z – these same retailers will need to adapt quickly to meet a host of new shopper demands.

To take full advantage of this unique opportunity, travel retailers need to clearly communicate with Gen Z shoppers and manage their image in order to meet their expectations and match their values.

The Gen Z shopper

Generation Z represents a massive business opportunity – making up 34% of the world’s population with US$4.4 trillion spending power – yet is often an elusive target for many travel retailers.

One reason behind this is a lack of direct engagement with these shoppers. According to Jay Richards of Imagen Insights, these shoppers are used to having a two-way conversation with companies on social media – an area where some travel retailers fall down.

In order to resonate with Gen Zers, these businesses must expand beyond more traditional, passive forms of communication and develop a more open dialogue with these customers. More interactive content such as Twitter polls or website quizzes, or even responding to directly to customer questions on social media, will help build closer relationships and demonstrate you have their best interests at heart.

The conscious consumer

In the same vein, many young travellers say their desire to purchase travel retail goods often runs against their environmental beliefs.

This demand for ‘conscious consumerism’ is a growing opportunity, but travel retailers must ensure they share a true reflection of their sustainability credentials in any customer communications. Any hint of ‘greenwashing’ – where environmental credentials are presented misleadingly – will be instantly picked up by conscious consumers and shared with others, potentially leading to business reputations being damaged.

Digital revolution

The digital journey is here, and Gen Z passengers now expect a seamless, integrated digital service as standard on their journey.

Travel retailers can build loyalty among younger customers by introducing digital solutions that prioritise innovation and convenience. For example, travel experience experts Airport Dimensions found over two-thirds of Gen Z shoppers (68%) want a single app to access all their travel retail needs, from shopping to food ordering. This is just one simple way to deliver excellent service while also directly communicating with this increasingly important demographic.