Blueprint on digital natives driving a new travel retail
Thomas Kaneko Henningsen, Partner at Blueprint, says as airports and retailers continue to adapt to Gen Z’s digital-first mindset, AI implementations are proving crucial in creating the seamless, personalized experiences these consumers demand
Positioned as a “business development consultancy,” Blueprint combines expertise in strategy, knowledge transfer and collaborative innovation to help airports, operators, and brands respond to evolving consumer demands. Blueprint’s approach in the travel retail industry goes beyond the traditional consultancy model.
Thomas Kaneko Henningsen, Partner at Blueprint, recently moderated a pivotal session on Airport Consumer Profiles 2030 at ACI EUROPE in Helsinki. The panelists including eurotrade Flughafen München, Gharage, Finavia and m1nd-set shared insights with over 150 industry delegates on how traveling shoppers are ushering in a new era.
Thomas Kaneko Henningsen moderated a pivotal session at ACI EUROPE in Helsinki
The revelations about Gen Z’s impact on travel retail and the growing influence of artificial intelligence sparked considerable interest among airport stakeholders looking to adapt to changing consumer behaviors.
“The world’s first digital natives, Gen Z represents a global lifestyle transcending age groups, nationalities, social backgrounds and cultures, unified by digitalization and enhanced by AI,” says Henningsen.
As this generation emerges as travel retail’s fastest-growing customer segment, airports and retailers are racing to implement artificial intelligence solutions that cater to these digital natives’ preferences. This technological transformation is reshaping the airport customer journey, with innovative AI applications already showing promising results at major European hubs.
The Gen Z factor
By 2028, Gen Z will become travel retail’s largest customer profile, representing 1.2 billion shoppers. According to m1nd-set, this cohort’s approach to shopping differs significantly from previous generations, with experience trumping price as a primary purchase driver. And this group is spending less in duty free stores. As Henningsen states, it’s imperative to understand why.
“For Gen Z, first of all, we need to be less focused on pricing advantage,” Henningsen says While the “tax-free” concept understandably started with a concept of price perception, this group of people is constantly bombarded with promotions, so they are especially price-savvy – and, as has been noted, duty free has a hard time keeping up with online.
In a way, this is a boon for the industry, as it can focus on experiential value that doesn’t have as clear a price tag. Henningsen notes that m1nd-set’s research based on 230,000 global shoppers has shown the significance of pricing has dropped in the eyes of the travelers.
The digital generation
This shift in consumer behavior is prompting airports to rethink their retail strategies. Gen Z travelers are more likely to be influenced by social media and peer recommendations, with 50% following algorithmic recommendations and 74% trusting peer reviews over other sources.
“Well, potentially because Gen Z has grown up spending five, six, seven hours a day on their devices, on social media, TikTok, YouTube,” Henningsen notes. “What they all have in common is that they are shaping your shopping behavior based on algorithms, which in turn are based on your behavior.”
Blueprint’s approach transcends traditional demographic segmentation, viewing Gen Z not merely as an age bracket but as a distinct lifestyle pattern. “In travel retail, we recognize three distinct lifestyle groups,” Henningsen explains. “There are those who grew up analog – our most experienced travelers; then we have the Genesis Gen Alphas and Gen Z who are purely digital natives; and finally, the hybrid segment – travelers who bridge both worlds, having grown up analog but successfully adapted to digital and AI technologies. Understanding this landscape is crucial to serving today’s diverse traveler base.”
TikTok and influencers
Global brands are increasingly partnering with AI influencers to create immersive, multicultural content that resonates across global markets. These digital personalities can seamlessly switch languages and cultural contexts while maintaining consistent brand messaging – a particular advantage in the international travel retail environment.
Given the importance of social media to this generation and the strength of AI influencers in that area, we see the popularity of an item on social media affects the item’s appeal for this group.
Henningsen says retailers are putting stickers on products saying “seen on TikTok,” or spaces within the store are dedicated to TikTok’s bestsellers. “That will not appeal to me, but it would appeal potentially to Gen Z travelers who are very aware of what goes on these social media platforms,” he says.
The big 3
As artificial intelligence continues to reshape industries worldwide, its impact on travel retail is set to be monumental. According to projections, AI’s market size could grow from US$184 billion in 2024 to a staggering US$826 billion by 2030.
This immense expansion highlights the technology’s potential to redefine airport customer journeys in transformative ways. From predictive analytics that tailor in-store recommendations to real-time assistance for travelers, AI is becoming an essential tool. Travel retailers and airports who invest in AI today are positioning themselves to tap into this exponential growth, ensuring they meet the evolving needs of an increasingly digital-savvy customer base.
Three ground-breaking AI implementations are already showing how technology can enhance the airport customer journey addressing seamless, digital-first experiences.
At Oslo Airport, Fast Travel’s AI-driven taxi booking platform has revolutionized ground transportation. The system has achieved remarkable results, with 85% passenger satisfaction rates and an 80% reduction in driver waiting times. Perhaps most notably, 70% of rides are now zero-emission, up from just 15% previously – a feature that resonates strongly with sustainability-conscious Gen Z travelers.
“Fast Travel started two years ago in Oslo airport and Fast Travel is digitalizing airport taxi booking,” Henningsen explains. “At the back end of that is AI, which is much more predictive because you have a whole taxi queuing system where AI supports on not having too many taxis and not having too few taxis.”
The environmental impact has been significant, with Henningsen noting, “Fast Travel has really excelled at delivering that capability to Oslo airport, and have now implemented their system with the airport hotels.”
In Sweden, Indivd is transforming retail analytics through cloud-based AI-enhanced people-counting technology. The system achieves over 99% accuracy in tracking customer behavior while maintaining GDPR compliance, providing retailers with unprecedented insights into shopping patterns and preferences.
“We in retail look for KPIs like penetration, footfall, conversion, dwell time and cross visitation” Henningsen says. “You upload AI software to existing CCTV cameras and then AI monitors behavior right down to the accuracy of more than 99%.”
This level of precision allows retailers to optimize store layouts and product placement based on actual customer behavior, creating more intuitive and engaging shopping experiences that appeal to Gen Z’s preference for seamless interactions.
Perhaps most impressive is the implementation of VEESION’s AI theft detection system at Amsterdam’s Schiphol Airport. Airport Retailers Association (ARA) deployed AI across 144 CCTV cameras in 16 stores, the system has already recovered €163,000 (US$178,000) in retail sales between April and September 2024 by identifying suspicious behavior patterns.
“The moment I put an item in my jacket pocket or my bag, AI will recognize the suspicious behavior,” Henningsen explains. “When it detects suspicious behavior it notifies the store management who in turn alert airport police.”
Sustainability and transparency
For Gen Z consumers, environmental consciousness is not just a preference but a driving force in their purchasing decisions. “From a shopping perspective, the idea of having green alternatives is important to Gen Z, and they vote with their wallets,” Henningsen observes. “Some would argue that they’re inheriting a world that is a little bit of a mess and that’s how they are kind of showing that instead of voting for politicians or celebrities or athletes for that matter, they’re much more focusing on doing good things with how they spend their money.”
This commitment to sustainability is reflected in the implementation of AI systems like Fast Travel’s taxi booking platform, which prioritizes zero-emission vehicles and has achieved remarkable adoption rates among Gen Z travelers.
Digital assistants
A new wave of digital assistants is poised to revolutionize personalization within travel retail. These AI-driven tools go beyond standard customization, learning from consumer preferences to anticipate needs before the shopper steps into the airport. With AI technology continuously refining its understanding of individual behaviors, travelers can expect seamless, efficient interactions that save time and heighten convenience. This high-level personalization is rapidly becoming a hallmark of modern travel retail, appealing to digital natives like Gen Z who value efficiency and relevance.
Looking ahead, Henningsen envisions AI becoming an even more integral part of the travel retail experience through digital assistants that understand and anticipate customer needs.
“Your AI will prompt you; let’s say your lovely husband has his birthday coming up shortly. Your AI knows that he’s looking for this type of skin care, fragrance, chocolate or wine,” he explains. “Instead of you then having to search for it, your AI or digital assistant will engage the AI of a retailer that may have the products you’re looking for.”
This evolution in AI capability mirrors Gen Z’s expectation for personalized shopping experiences. “In fact, your life will be happening while you’re resting, sleeping, flying, being offline. Your AI assistant will be setting up your decisions,” Henningsen adds.
These digital assistants will fundamentally change how travelers interact with airport retail, creating a more personalized and efficient experience. “The company with AI will understand your preferences,” Henningsen explains. “Their AI will help your AI find the right airline seat, the right airline ticket, help you book a lounge or parking spots at the airport, help you navigate all the different duty free stores and the promotions and product offerings that may be relevant to you.”
As airports and retailers continue to adapt to Gen Z’s digital-first mindset, AI implementations are proving crucial in creating the seamless, personalized experiences these consumers demand. The successful cases at Oslo, Amsterdam, and other European airports demonstrate how AI can enhance operational efficiency while delivering the authenticity and sustainability that Gen Z values.
“That digital footprint is critical,” Henningsen concludes. “Without that, you can’t really leverage AI. Going forward companies leveraging AI technology will unlock capabilities that translate into multi-dimensional competitive advantages.”
