From Sail Away to Runway: Travel Retail Christmas and Beyond.

As the summer cruise season eases to a close and the last ships return to port, focus across global travel retail shifts from sunlit decks to crowded terminals.  The handover is seamless.  Cruise passengers turn into frequent flyers, airport shoppers pick up brands they first noticed at sea, and the lines between onboard retail, airport lounges and duty free become less defined with every season.

For operators and distributors such as Compass Supply Solutions, this moment signals more than a change of calendar, it signals a shift in how travellers think and spend.  The behaviour seen across this year’s sailings selective purchasing, trading up, and a desire for experiences that feel worth the money mirrors the expectations that will shape the festive period and the wider opportunities for 2026.

Travel demand remains high as the pace of revenge travel settles

The surge in travel after the pandemic has often been called revenge travel, describing the rush to make up for lost time.  During 2022 and 2023 many travellers booked trips at almost any price, which kept airlines and cruise lines buoyant despite inflationary pressures.

By late 2024 the frenzy softened.  Travellers continued to take trips in large numbers but with more thought and more planning.  The mindset has shifted from spontaneous travel to experiences that feel purposeful.  Fewer trips, longer durations or a focus on quality have defined much of 2025 and will continue into 2026.

This development is central to travel retail.  Demand has not dipped, it has matured. The opportunity lies in understanding a more measured traveller who still spends but wants clear value, authenticity and a reason to believe in the product they choose.

Travel volumes are at record levels

IATA figures show global passenger traffic in 2024 up 10.4 percent on 2023 and around 3.8 percent above 2019, with load factors reaching 83.5 percent.  ACI World estimates passenger numbers at roughly 9.5 billion in 2024, around 104 percent of pre pandemic levels.  IATA expects air passengers to rise from 4.7 billion in 2024 to 5.8 billion by 2027.

Cruise performance is equally strong.  CLIA’s 2025 State of the Cruise Industry report records 34.6 million passengers in 2024, rising to 37.7 million in 2025.  The global fleet continues to grow and is on track to reach around 310 ocean going vessels.  More than 70 percent of new ships on order are small to medium sized, reflecting a shift towards intimacy, quality and higher guest spend.

WTTC reports that travel and tourism contributed around 10 percent of global GDP in 2024, or about 10.9 trillion US dollars, supporting 357 million jobs.  It forecasts this rising to 11.7 trillion US dollars in 2025, with international visitor spending expected to reach 2.1 trillion US dollars.  These foundations set a strong platform for 2026.

Cost of living pressures and the search for value

Travellers continue to feel the strain of higher living costs yet still ringfence spending for experiences.  WTTC expects visitor expenditure to keep rising through 2025 and into 2026.

The Duty-Free World Council’s KPI Monitor, produced with m1nd set, shows value for money as the strongest purchase driver at 24 percent, followed by convenience at 20 percent and self-treating at 15 percent.  Higher prices compared with home markets are a barrier for 27 percent of travellers.

Even so, there is clear appetite for credible premium choices.  The shift is away from buying on discount and towards buying on merit.  This will be a defining theme for Christmas 2025 and the wider landscape in 2026.

Airlines and lounges: paying for comfort and time

Premium cabins continue to outperform with airlines increasing premium seating as demand rises.  The global airport lounge market is valued at around 6.7 billion US dollars, with 62 percent of travellers prepared to pay for fast track or lounge access to improve their airport experience.

Lounges are becoming important spaces for brand discovery.  Premium drink serves, festive tasting moments and compact gift formats suited to cabin baggage all reinforce value.  As the year end approaches, lounges will link travel retail, hospitality and gifting in ways that matter to the modern traveller.

Cruise retail: luxury, intimacy and curation

Cruise remains one of the strongest parts of the sector.  Passenger numbers are expected to reach 37.7 million in 2025 with further growth forecast into 2026.  Luxury and ultra luxury capacity has risen from 28 ships in 2010 to nearly 100 in 2024, which signals a clear move towards smaller ships, higher spend and curated experiences.

This shift is changing retail expectations, as breadth of range matters less than thoughtful curation.  Passengers want provenance, craftsmanship and a link to the itinerary.  As ships move from Mediterranean summer routes to Caribbean and festive sailings, themed assortments and seasonal packaging aligned with event nights such as Thanksgiving and New Year will influence sales.

Duty free and airport retail: experience with clarity of value

Airport retail continues to move away from transactional selling towards experiential engagement.  Recent DFWC and m1nd set data shows a rise in impulse purchasing driven by the experience rather than pricing alone.  Many travellers arrive intending to buy yet remain open to persuasion when the offer is well curated.

Success across the year end period and into 2026 is likely to come from:

• Clear value ladders across price points.

• Gifting and consumption that fits real travel moments such as the first drink after security or family gifting.

• Design, service and storytelling that create a sense of discovery.

Beverage trends: premium choices and mindful drinking

Beverage alcohol remains a core part of travel retail, although the category is becoming more polarised.  IWSR reports that premium and above brands grew by roughly 3 percent in 2024, even as some mainstream segments softened.

No and low alcohol continues to gain ground:

• Expected compound growth of 4 percent across 2024 to 2028 in ten key markets.

• No alcohol products forecast to grow 7 percent annually to 2028, adding around 4 billion US dollars in value with low alcohol expected to be minimal or static.

• Global non alcoholic beer volumes up 9 percent in 2024, expected to reach about 23 billion US dollars by 2025.

• Around 59 percent of Gen Z travellers plan to cut alcohol consumption.

Moderation is no longer niche.  Retailers that build credible no and low alcohol into their core range rather than treating it as an add on will capture new customers without eroding their premium credentials.

Five areas to focus on for 2026

1. Expect high volumes yet selective spending

   Travellers remain active but more discerning.  Every product must justify its place.

2. Build around moments, not categories

   Seasonal occasions such as Thanksgiving, Christmas and New Year create natural triggers for purchase.

3. Strengthen experience and visibility

   Value is now judged by how something feels as much as what it costs.

4. Support moderation and wellness

   Functional, lighter and non-alcoholic drinks are part of the mainstream and should be presented confidently.

5. Use festive insights to shape 2026

   Sales data from this holiday period will set the direction for assortment, pricing and activation planning.

The close of the cruise season is far from a finish line, it marks the start of the next chapter.  The weeks ahead connect two major peaks in global travel and provide a clear view of what travellers will expect in 2026.  They will fly, sail and shop in record numbers, with sharper expectations around value, quality and purpose.  Those in travel retail who adapt from sail away to runway will be well placed to succeed in the year ahead.

“Travel retail has always been shaped by movement, and right now that movement is faster and more connected than ever.  Our job is to read the shifts early, back the right products, and give travellers something that feels genuinely worth their time and money.  The winners in 2026 will be the ones who deliver clarity, quality and real service at every touchpoint.”

Simon Francis, Managing Director, Compass Supply Solutions.