Travel retail as a growth driver: How Asia’s new international airport stacks up

Articles & Reports
 |  
Sep 2025
 |  
Inside Retail
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What: Cambodia’s new Techo International Airport showcases Asia’s growing focus on airport retail as a driver of tourism and economic growth, though service gaps remain.

Why it is important: Asia’s airport retail boom demonstrates how travel hubs can anchor regional tourism and retail expansion, though seamless service delivery is essential to realise their full potential.

Cambodia’s Techo International Airport exemplifies the region’s ambition to transform airports into vibrant retail and lifestyle destinations, moving beyond their traditional role as transit points. The airport offers a curated mix of international and local brands, including Aelia Duty Free, Gallery in Phnom Penh, and Artisans Angkor, alongside a variety of food and beverage options that create a mall-like atmosphere for travellers. This approach mirrors successful models in Singapore and India, where airport retail has become a key growth driver, attracting millions of visitors and delivering robust sales growth. However, Techo’s shortcomings in essential services—such as banking, telecom, and baggage handling—highlight the operational challenges that can undermine the overall traveller experience. As airports across Asia increasingly compete to capture tourism and retail spending, the ability to deliver both a compelling retail mix and seamless services will determine their long-term impact on regional economic development and brand reputation.

IADS Notes: The evolution of airport retail in Asia, as seen with Cambodia’s new Techo International Airport, reflects a broader regional trend where travel hubs are becoming sophisticated retail and lifestyle destinations. Jewel Changi in Singapore set a benchmark in January 2025 by attracting 80 million visitors and delivering 5% sales growth through a strategic mix of global brands and experiential retail (Inside Retail, January 2025). India’s Shoppers Stop followed suit in August 2025, opening the country’s largest airport department store at Delhi Airport, underscoring the strategic value of travel retail in capturing high-value consumer segments (India Retailing, August 2025). The rise of “goods getaways,” where travellers choose destinations for unique shopping experiences, has driven the global travel retail market toward a projected $121.09 billion by 2029 (Visa, February 2025). Airports now account for over 8% of global luxury retail revenue, with terminals increasingly designed for immersive, experiential shopping (The Robin Report, January 2025). Takashimaya’s April 2025 results further highlight how flagship stores in tourist destinations can drive up to 80% of sales, but also reveal the operational vulnerabilities tied to fluctuating travel patterns (Inside Retail, April 2025).

Travel retail as a growth driver: How Asia’s new international airport stacks up