CHINA. China Trading Desk’s (CTD) Q1 2026 China Outbound Travel Survey has revealed that travel retail continues to offer strong commercial potential, highlighting the need for operators to shift their focus from stimulating demand to capturing spend from travellers already on the move.
The study found outbound travel from China has stabilised, with near-term travel intent softening to 21.6%, yet airport retail propensity remains strong at 64.3%, down just 0.2 percentage points from the previous quarter.
China outbound travel also reached 167.5 million in 2025 and is projected to surpass 175 million in 2026, with total outbound spend rising from US$254 billion in 2025 to an expected US$280 billion this year.
High-value travellers to power airport retail opportunity
The report found airport retail intent is strongest among confident, conversion-ready travellers, with high-net-worth individuals at 76% and frequent travellers at 71.8%, compared with 51.9% for first-timers.
This positions repeat and premium-capable travellers as the key segment for driving basket growth in a narrower decision window.
Turning to category trends, beauty leads duty-free purchase intent, followed by fashion and premium accessories, with fragrances, souvenirs and fine food comprising a strong middle tier.
In its stakeholder summary, CTD underscored beauty and fragrance as the key category drivers for retail conversion, particularly when combined with clear value propositions and greater pre-store visibility.
Product search against price and value
Another key insight was a clear intent-versus-conversion gap, revealing that retail fundamentals, rather than lack of desire, create the main conversion hurdle for travellers who don’t normally shop at duty-free stores.
According to the study, 33% of these travellers struggle to find desired products, 28% cite higher prices and 21% report insufficient time for shopping.
The study showed competitive pricing and guaranteed genuine products as leading motivators for duty-free purchase, underlining that delivering trust and value continues to outperform theatrical elements in driving sales.
Travel retail brands see the strongest impact ahead of journey and at the point of purchase. Travel apps, Xiaohongshu and destination websites influence shopping intent, with most shopping research finalised before departure rather than after arrival.
CTD recommends linking discovery, planning and airport conversion by building preference early in creator and utility channels, then convert in the post-ticket window with reserve-to-pickup, clearer product visibility, and stronger price reassurance.
The data presented a clear challenge for airport operators, as travellers view airport retail as part of a broader shopping journey rather than the main destination, with only 5% citing the airport as their primary venue and most favouring downtown-led shopping.
In response to this trend, the study recommends that brands and retailers reduce friction fast by making the right brands easier to find, simplifying promotions and make stopping feel faster than walking past.
Price promotions and free gifts (36%) and tastings (27%) are highlighted as key activation drivers for duty-free engagement, while over three-quarters of travellers view staff assistance as important in purchase decisions.
China Trading Desk Founder & CEO Subramania Bhatt said: “China outbound is no longer a simple rebound story for travel retail. Intent is there, but the close is harder. The winning brands will be the ones that build preference earlier, make value more legible, and remove the friction that still stops spend from landing.” ✈
