“Travel retail is the ultimate channel for innovation” – declares TFWA President; plus more on its new Innovation Square

“Newness” is a key expectation of travelers these days. As described by TFWA President Philippe Margueritte in a Q&A with Global Travel Retail Magazine, innovation is vital for the association’s members across all product categories. In many cases, new products contribute between 10% and 20% of brand sales in travel retail. According to TFWA research, conducted in partnership with m1ndset among 5,000 duty free shoppers, 65% reported purchasing a new product and 18% tried a brand for the first time.

“This ratio is significantly higher than in domestic retail and reflects the unique mindset we adopt when traveling,” comments Philippe. “Travel often pushes us out of our comfort zones – encouraging exploration, openness to new cultures, and readiness to try something different. That spirit carries into the shopping experience. Travel retail is, in many ways, the ultimate channel for innovation.”

Philippe is swift to note innovation does not only apply to a brand’s product portfolio. With Generation Z soon poised to become the number one consumer group for both brands and airports, he says retail innovation is equally critical. Consumers of the age group are not simply purchasing items – they are collecting meaningful experiences. “To remain relevant, travel retail must continuously surprise, integrate new technologies, and create environments where the airport itself becomes a destination,” he says.

It is here that Philippe says the industry has a clear disadvantage in comparison to high street retail, as browsing time in duty free is reported to be three times less (between three and five minutes). With this in mind, innovation in retail is necessary to improve conversion rates. Only adding to the challenge, procedural elements at the airport such as check-in and security have seen little improvement in recent years. With travelers increasingly arriving closer to departure time, this further reduces shopping opportunities. Streamlining these processes is another area where innovation is “urgently needed.” When it comes to artificial intelligence (AI) in duty free, he believes the opportunities are limitless and the technology is ready – the industry just needs to implement it quickly and intelligently.

“AI will play a transformative role as travel retail is uniquely positioned thanks to the quality and accuracy of its data. With AI, we can create a more personalized, efficient, and memorable shopping journey, tailored to individual traveler profiles,” remarks Margueritte.

However, he says, unlocking the full potential of AI and improving the travel shopping journey hinges on the industry’s ability to collect and share quality data – while ensuring transparency and confidentiality. Post-pandemic it is evident stakeholders across the value chain recognize the importance of collaboration and the days of competing solely over price have come to an end.

“TFWA will work to create secure, scalable data-sharing models that respect privacy while empowering strategic thinking,” states Margueritte. The association expects to share more concrete progress on this initiative by the beginning of 2026.

TFWA’s Innovation Square in Cannes

The association’s new Innovation Square at this year’s TFWA World Exhibition & Conference reflects the same line of thinking. Located at “the very heart of the exhibition” in front of the Palais des Festivals in Cannes, France, the dedicated space will span nearly 400 square meters and showcase cutting-edge solutions. According to the TFWA President, the location will bring together brands, retailers, airports and operators to spotlight their leadership in areas including customer experience, technology, sustainability and AI.

“Learning is central to our mission. The venue will host early-morning workshops, designed to spark conversation and share best practices. In the evening, our immersive 100-square-meter LED screen will light up as a background to private networking events and cocktail gatherings, continuing the spirit of discovery and inspiration into the night.

“Innovation Square is not just a display; it is a celebration of creativity and progress where all stakeholders will be able to spotlight groundbreaking achievements and projects,” he explains.

Beyond the launch of Innovation Square, from its TFWA Lounge at Carlton Beach to its broader activation program, the association will bring excitement for its exhibitors and visitors in Cannes this year. While overall attendance was slightly down at TFWA Asia Pacific in May, Margueritte notes the number of buyers held study and airport participation increased. TFWA also reached a record 1,100 ONE2ONE meetings scheduled at the show.

“AI will play a transformative role as travel retail is uniquely positioned thanks to the quality and accuracy of its data. With AI, we can create a more personalized, efficient, and memorable shopping journey, tailored to individual traveler profiles,” remarks Margueritte.

Spirit of discovery

On the topic of ongoing political uncertainty, he points out while the imposition of tariffs can undermine consumer confidence and create market instability, uncertainty is the new normal, and travel retail is resilient. “What remains a certainty, is our strong will, deeply rooted in our DNA to discover the world and learn from others. That spirit continues to drive our industry forward, and with travel numbers expected to double in the next two decades, we remain optimistic,” he says.

Where one might see challenges, Margueritte sees a landscape of opportunities. To encourage the fostering of innovation within the industry, TFWA aims to generate greater value for travel retail. “As TFWA President, my mission is to inspire and foster more creativity, and I’m thrilled to see how the team is progressively embarking on a journey to bring more excitement to our exhibitions, more services to our members, all this embracing sustainability. Many exciting projects are underway – stay tuned!” he concludes.