The global travel and tourism industry is expected to touch $927,3 billion in 2024 with a CAGR of 3,47%. Additionally, luxury travel is forecasted to reach $703,14 billion between the years 2022 and 2027. Europe will contribute the most to it (29%). Mexico, India, Italy, Japan, Spain, South Korea, and Canada will be key markets.

As the travel that boomed after the pandemic is still steady and rising, retailers can experiment and innovate more to sell products on cruises, boats, trains, and flights. The brands can reach the customers wherever they are and can localize and personalize based on the place they are.

Adapt to People and Places

The retail journey of a customer must include hyperlocal services and exclusive products along with innovative store formats. The brands and retailers have to implement VIP and membership-style experiences and services in ideal resort locations and stores too. They have to think out of the box instead of following traditional retailing - beauty retailing in the hotel room and styling services during vacations. Here, they can also consider cross-industry collaboration with luxury clubs, local resorts, cafes, and more.

Louis Vuitton has its first airport lounge for Qatar in Hamad International Airport to target Ultra High Net Worth travelers through staff who are multilingual, Fendi cafe, Dior spa, and Michelin-star menu list. Saks changed its Fifth Avenue Club into a personal shopping and styling service provider. The hotel chain Kimpton collaborated with Anthropologie to offer the guests of its hotels in the UK access to the limited-edition seasonal products of the brands including bracelets, bags, and belts.

Target the Hotspots

Many consumers stick to the location nearer to their home. Therefore, brands and retailers have to consider using train stations and other commutable hotspots to reach them. They have to get out of their usual games to become more experimentative in incorporating their shopping experience into the most responsive retail spaces. Businesses such as SpaceandPeople Group from the UK offer short-term rental spaces in train stations for the brands.

Other viable options include vending machines (cost-efficient), portable mini shops without staff (ideal for college campuses, travel hubs, leisure spaces, and offices), click-and-collect booths, and exclusive products and pricing.

Louis Vuitton operates a store at Osaka airport with Airport Mode services, an easy reservation for duty-free items through the LINE app. Kate Spade occupied Waterloo station in London during Christmas 2023 with a 10m branded Christmas tree. Fenty Beauty had the Drive-Thru popup at the Gare Saint-Lazare in Paris in 2023 with touchscreen fast product ordering.

Bleisure Travels

With the bleisure traveling and virtual nomadic lifestyle on the surge, the consumers are expecting their brands to meet them in that space. The brands have to place themselves as open-minded and exploring ones by getting into the traveling formats like cruises, trains, and flights. They have to spread through other services such as drinks, food, and wellness. Cruise ships are the most ideal location as they bear wealthy passengers who have a lot of money and time. Each retailing format has to be curated and adapted according to the traveling format. This also includes outdoor adventurers and enthusiasts by building a nomadic retail format in remote locations.

Dior did a spa cruise on a boat through the River Seine in the summer of 2023 with exclusive and personalized treatments and wellness programs. The brand has launched another spa cruise docked at port Henri IV, Paris from 30th of July to 11th of August 2024. Arc'teryx has a ski shop at Beidahu Ski Resort in Jilin, China that prioritizes engagement and brand storytelling for the customers with only 1/3rd the space dedicated to product sales. Louis Vuitton has a retail location housed in a yurt in the Niseko ski resort, in Japan.

Go with Flexible Spaces

Flexible and portable pop-up spaces can be a solution for short-term retailing. These can act as the low-risk phenomenon to test the new market and to analyze the changing minds of the consumers. One of the locations for this format is luxury desserts and places with high-net-worth individuals who don’t have access to luxury brands.

The designer Tory Burch went active on the streets with Nordstrom through a few pop-ups and personal appearances at the latter’s outlets in Dallas and Miami, dubbed as the ‘Tory Tour’ in March 2024. Glossier had the You Look Good tour with a “carnival on a truck” theme that traveled around college campuses to reach Gen Z consumers. It offered giveaways, spin-to-win discounts and promotions, selfie-taking spots, and access to the brand's products in real life.

Cover image: Dior Spa Cruise 2024, Dior official website.