Retail tourism trends: Shaping next generation of shopping experiences
As the global retail tourism trends evolve, understanding the next generation of retail tourists is crucial to shaping the future of retail tourism. These tourists are not only reshaping traditional shopping habits but are also influencing how businesses approach retail experiences. The next generation shopping experiences for tourists are defined by their desire for sustainability, personalised experiences through technology, and the influence of social media, which are all driving forces in retail innovation in tourism.
Behaviours and demographics
The future of retail tourism will be largely shaped by younger, more affluent, and diverse consumers. Predominantly comprised of millennials and Gen Zs, this group is known for its tech-savviness and love for experiential travel. Younger travellers, especially those aged 18 to 30, are high spenders on retail, motivated by immersive experiences and personalised shopping. Next generation shopping experiences for tourists will have to adapt to this group’s expectations, blending digital and physical shopping environments.
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As the global retail tourism trends evolve, understanding the next generation of retail tourists is crucial to shaping the future of retail tourism. These tourists are not only reshaping traditional shopping habits but are also influencing how businesses approach retail experiences. The next generation shopping experiences for tourists are defined by their desire for sustainability, personalised experiences through technology, and the influence of social media, which are all driving forces in retail innovation in tourism.
Behaviours and demographics
The future of retail tourism will be largely shaped by younger, more affluent, and diverse consumers. Predominantly comprised of millennials and Gen Zs, this group is known for its tech-savviness and love for experiential travel. Younger travellers, especially those aged 18 to 30, are high spenders on retail, motivated by immersive experiences and personalised shopping. Next generation shopping experiences for tourists will have to adapt to this group’s expectations, blending digital and physical shopping environments.
Family dynamics also play a significant role in spending behaviour. Married parents, for example, are anticipated to spend 49% more on shopping than single tourists. Moreover, risk-takers and the self-employed tend to spend more during their retail tourism experiences, signalling a shift from traditional shopping to more dynamic, adventure-driven spending patterns. Retailers will need to innovate to cater to these next generation shopping experiences for tourists.
Role of sustainability
Sustainability is a key driver for the future of retail tourism. Conscious consumerism is on the rise, with 35% of tourists likely to consider sustainability in their purchasing decisions during trips. This trend is driven by growing environmental awareness and a desire to reduce one’s carbon footprint. Notably, consumers from countries like India, the UAE, and the US are more willing to pay a premium for sustainable products, with a significant percentage willing to pay more than 20% extra for ethical goods.
Retail innovation in tourism will include offering locally-sourced and ethically-produced goods, particularly for small and medium-sized enterprises (SMEs) looking to differentiate themselves. Integrating sustainability into their business models, such as using plastic-free packaging or promoting eco-friendly products, can attract these conscious tourists and position SMEs as leaders in the future of retail tourism.
Power of technology
Technology continues to transform retail tourism with innovations like virtual shopping environments and AI-powered personalised recommendations. Over 50% of future retail tourists are interested in exploring virtual reality spaces and shopping online, marking a shift to digital experiences. Retailers are increasingly leveraging these tools to create next generation shopping experiences for tourists that seamlessly blend physical and virtual shopping.
SMEs can adopt digital tools such as augmented reality (AR) to allow customers to preview products before purchase or engage in immersive storytelling. Furthermore, contactless payments and AI-driven data insights are enhancing personalisation, making retail experiences more engaging and customer-centric. This level of retail innovation in tourism will appeal particularly to younger, tech-savvy tourists.
Social media platforms like Instagram, TikTok, and YouTube are playing an increasingly influential role in next generation shopping experiences for tourists. Influencers, especially in the luxury goods market, are driving demand for exclusive products and unique retail experiences, underscoring the importance of social media in the future of retail tourism.
By creating visually appealing content and collaborating with influencers, SMEs can harness the power of social media to build brand awareness. This strategy helps tap into the desires of younger travellers, who are often in search of ‘Instagrammable’ moments during their trips.
Thriving in the new retail landscape
To succeed in the future of retail tourism, SMEs must adapt to the trends of sustainability, digital transformation, and social media. Small businesses have the advantage of flexibility, allowing them to quickly implement innovative strategies for next generation shopping experiences for tourists. They can focus on offering unique, local products and experiences that are highly sought after by today’s retail tourists. Partnering with local artisans and promoting ethical practices will enhance their products' appeal to the next generation of shoppers, positioning SMEs to thrive in a landscape defined by retail innovation in tourism.
