The Z factor

 

Airports need to acknowledge the increasing importance and propensity to travel among Gen Z passengers (currently aged 9-24) and understand how their shopping behaviours differ from older generations.

Historically, airports have been more focused towards Millennials (currently aged 25-40). However, with members of the Gen Z age group maturing and acknowledging their significant purchasing power, businesses need to have the preferences of this consumer group at the forefront of their marketing strategies, to make the most of future opportunities for the industry.

In this article we explore the purchasing preferences and shopping behaviours of the Gen Zs in travel hubs, using a combination of our Industry Global Pulse Survey, as well as other current global passenger insight studies we have conducted.

Food & Beverage
When in the departure lounge of an airport, Gen Zs are showing a strong preference for dwelling and purchasing in the food and beverage (F&B) outlets, compared to shopping in the retail or duty free facilities. 57% selected F&B outlets as their primary commercial priority, whilst Millennials have a much stronger preference to shopping in the retail facilities, and Gen Xs preference "finding a comfortable place to sit and relax".

There is also a preference for F&B outlets to be of local and authentic heritage, with 53% of Gen Zs finding local F&B brands the most appealing concept to purchase from. Authenticity and localism have been ever-growing trends post COVID, with several airports introducing local tenants into the mix to maximise engagement from all consumer groups. Tokyo’s Haneda Airport utilises the sense of place that Japan provides through the traditional Edo Market (seen above) that passengers can experience. Kansai International Airport has opened a new food court “Tasty Street” reflecting a traditional Japanese market, as well as the new dual-branded food & beverage space at Rome Fiumicino Airport – Rossopomodoro and Caffè Vergnano.

Gen Z travellers are showing an increased desire for experiences over physical products and are demanding a new type of shopping experience. Technology drives their purchasing habits, but they still enjoy the social aspect of shopping at a physical location. 81% of Gen Zs browse products online but purchase in store and 56% claim they would consider using an online pre-order or click and collect service at the airport.

It is therefore imperative for airport operators to develop their omnichannel experience and allow passengers to browse the commercial offer before arriving at the airport, in order to maximise engagement from the younger demographics.

Retail and Duty-Free
Data shows Gen Zs are less engaged with the duty-free shopping experience and less likely to purchase in store. It is also notable that when Gen Zs do shop in store, they spend less. The group generally perceives duty free stores as a place “to visit to kill time before their flight.”

According to M-Cube, 49% of Gen Zs say in-store shopping makes them feel anxious, which has led to the rise of leading consumer brands investing more in their immersive experiences. UNIQLO have launched UMood, a retail activation that helps consumers select from over 600 T-shirts by using wearable technology to carry out a brain wave analysis on participating customers by identifying their mood.

Experiential retail focuses on creating a memorable shopping experience for consumers to drive footfall and return spend. H&M have begun to leverage this trend through the opening of interactive stores aligned to specific clothing provision, including Move Studio, which highlights its athletic wear.

Health & Wellbeing
Gen Zs see health and well-being as an essential spend category, with 41% identifying health, well-being, and happiness as a primary goal of theirs. Demand and spend on wellness products and services is continuing to rise around the world at a rate of 5-10% per annum, according to a global survey conducted by McKinsey. EE has opened a “Digital Spa” to try and help consumers practice digital detoxing in a meditation area, where shoppers will be encouraged to put away their phones and just chill.

Many airports are catching on to the wider health and wellbeing trends, offering elements like full-service spas, green spaces, fitness classes, and wellness cafes. Hamad International Airport in Doha have just opened the first 100% vegan café in Qatar called Evergreen Organics, this food concept aims to promote sustainable and healthy lifestyles through their menu.

Airports have an opportunity to expand the presence, visibility, and width of offer in the wellness category to truly engage the Gen Z consumers, through standalone stores, targeted healthy offers within F&B, and enhanced wellness related service provisions. Although Gen Zs only represent 9% of the travelling population, the size of the segment as a share of all passengers has more than doubled between pre and post COVID. Therefore, airports need to consider how the travel retail offer can adapt to engage and reach the Gen Z consumers.


Physical retail still plays a fundamental role in this customer groups purchase behaviour. Therefore, making highly engaging concession units, with storytelling, in-store theatre, and digital integration, operators will be able to attract footfall and spend in their stores. For Gen Zs, there is a greater emphasis placed on experiences over material wealth, and experiential activations therefore allow brands to give this audience what it craves.

Jemima Scott