Retail News CRM

Tag: Travel Retail

  • Furla Opens 75Sqm Boutique at the Venetian Macao

    Furla Opens 75Sqm Boutique at the Venetian Macao

    Italian accessories brand Furla has opened a boutique at Shoppes at The Venetian Macao in September 2026, adding more than 75 square metres of retail space to its Asia-Pacific network.

    It carries the brand’s full range of handbags, small leather goods, eyewear, textiles and charms under an updated store format.

    Modular Layout and Interior Fit-Out

    Inside, the boutique features dedicated product zones and a magnetic display wall for seasonal arrivals. The setup lets staff reconfigure floor layouts without structural work.

    Italian materials anchor the interior, mixing natural oak and painted metal with lacquered surfaces, tiles and light gold accents. A palette of ivory, latte, white, grey, burgundy and aqua green runs across the display fixtures and perimeter shelving.

    Casino Footfall and Regional Push

    Casino mall retail relies heavily on mainland tourist traffic. Leases demand steady transaction velocity from transient shoppers rather than local repeat footfall. In this corridor, premium leather goods makers face direct competition from heritage luxury houses upstairs and accessible fashion labels fighting for discretionary travel spend.

    A compact 75-square-metre footprint keeps operating costs down while the brand tests product turnover along high-density casino walkways. Success at The Venetian will depend on converting foot traffic during peak holiday windows when mainland visitor volumes surge.

    Greater Bay Footprint

    Founded in Bologna in 1927, the company expanded its retail presence earlier in the year with a refreshed store format in Hong Kong. That rollout introduced lighter fixtures and revised zoning across urban locations.

    The Macao opening extends that format across the Pearl River Delta, where retail performance tracks incoming visitor arrivals alongside cross-border ferry and bridge volume.

  • Mecca Opens 285-Square-Metre Store at Sydney International Airport

    Mecca Opens 285-Square-Metre Store at Sydney International Airport

    In September 2026, Mecca opened a 285-square-metre retail space in Sydney’s T1 International terminal, marking the Australian beauty brand’s first international airport store.

    The footprint sits inside the Heinemann Tax and Duty Free concession, trading standard duty-free product walls for interactive service stations and dedicated brand zones. That footprint is roughly half the size of a standard Mecca high-street flagship, forcing the retailer to compress its inventory into high-velocity skincare, cosmetics, and travel exclusives.

    Shifting airport beauty from transaction to service

    Airport beauty retail across Asia-Pacific has historically relied on branded island counters, multi-buy discounts, and quick transactions before boarding gates call. Operators like Shilla, Lotte, and Heinemann have traditionally built duty-free concessions around volume and liquor-tobacco margins rather than high-touch advisory services.

    Mecca is testing whether hands-on consultations, application stations, and curated indie labels can extract higher basket values from outbound passengers who have cleared customs with dwell time to spare. The risk falls on staffing costs and turnaround speed: consultative beauty takes ten to twenty minutes per shopper, a cadence that clashes directly with flight departure windows.

    Heinemann’s concession strategy in Sydney

    For Heinemann, integrating a domestic specialty powerhouse allows the German travel retailer to defend sales against competing downtown duty-free stores and suburban flagship locations. Domestic travelers familiar with the Mecca brand loyalty ecosystem get an immediate reason to spend before departure rather than waiting for overseas destinations.

    Sydney Airport restructured its T1 luxury and retail precincts over recent years to capture higher average spends from returning international traffic, particularly routes across East Asia and North America. Adding specialized domestic operators inside wholesale duty-free concessions gives landlords a blueprint to raise sales per square metre without carving out independent tenancy leases.

    The travel retail rollout pipeline

    The Sydney terminal opening establishes the operating template Mecca needs before negotiating similar airside locations in Melbourne, Brisbane, or Auckland. The immediate metric to monitor is sales productivity per square metre against Heinemann’s conventional multi-brand cosmetic floorplates during peak morning departure banks.

  • Saicho Opens First Travel Retail Site at Hong Kong International Airport

    Saicho Opens First Travel Retail Site at Hong Kong International Airport

    Sparkling tea brand Saicho opened its first travel retail location at Hong Kong International Airport in September 2026. The pop-up targets transit shoppers with exclusive gifting formats.

    Dedicated tasting stations sit alongside exclusive sets created with Hong Kong artist Jonathan Jay Lee. The layout bypasses standard supermarket aisles to capture outbound tourist spend directly.

    Airport Formats and Gifting Inventory

    Merchandise at the space includes branded luggage tags, bottle stoppers, and packaged gift boxes sold only inside the departure terminal. Co-founders Natalie Chiu and Charlie Winkworth-Smith structured the format around direct sampling. They aim to convert long-haul passengers looking for regional gifts before boarding.

    Travel retail gives premium drink makers concentrated foot traffic and higher transaction values than grocery channels. Premium non-alcoholic brands continue to secure terminal space across Asian hubs as operators diversify departure lounges beyond standard liquor and confectionery.

    Shifting Premium Shelf Space Across Asian Hubs

    For regional airport landlords, specialised cold-brewed and sparkling tea concepts replace slowing duty-free volumes in traditional categories with higher-margin craft products. Mainstream spirits brands face softer volumes across North Asia. That drop creates openings for alternative beverage labels to claim prime concourse square footage.

    High-rent airport spaces carry clear conversion risks. Pop-up formats need rapid stock turnover and impulse purchases to justify short-term concession fees compared with long-term wholesale supply deals in luxury hotel bars and restaurants.

    Broadening Beyond Hospitality Distribution

    Saicho built its initial distribution through dining rooms and hospitality accounts across the United Kingdom and Asia before committing to standalone retail real estate. Setting up inside terminal corridors lets the label test direct retail without the overhead of permanent high-street flagship leases.

    Passenger traffic through Hong Kong International Airport continues to rebuild toward pre-pandemic schedules, providing a live test for shopper demand in the premium tea category.

  • Da Nang Airport Sets $379 Million Terminal 1 Expansion for August 2027

    Da Nang Airport Sets $379 Million Terminal 1 Expansion for August 2027

    Airports Corporation of Vietnam will start construction on a VND9.9 trillion ($379 million) expansion of Da Nang International Airport Terminal 1 in August 2027.

    The project will raise the domestic terminal’s processing capacity to 14 million passengers annually, dividing volume between 10 million domestic and 4 million international travelers.

    State operator ACV and the Da Nang municipal People’s Committee confirmed the timeline during a formal project rollout that also includes the first phase of an expanded aircraft apron. Under the construction schedule, the newly built extension will open to passengers in January 2029. Crews will then finish renovating the existing terminal structure by August 2029.

    New Commercial Space and Road Access

    Engineering plans cover auxiliary facilities and airfield infrastructure alongside the main passenger building. Contractors will rebuild the elevated access road, install a wastewater treatment plant, and lay out revised traffic lanes, landscaping, and waste collection stations.

    Commercial real estate forms a central part of the footprint. The blueprint includes a dedicated technical facility and a multi-story car park designed with integrated commercial service floors for retail and food tenants.

    Central Vietnam Gateway Capacity

    Da Nang serves as the primary commercial and tourism conduit for central Vietnam, where air traffic growth has repeatedly outpaced terminal design limits over the past decade. Expanding T1 allows ACV to relieve pressure on domestic gates while capturing higher non-aeronautical revenue from travel retail concessions, passenger dining, and airport parking.

    Work on the apron expansion proceeds first, with full terminal construction tenders expected ahead of the August 2027 groundbreaking date.

  • 52TOYS Opens Hong Kong Airport Store to Expand Global Reach

    52TOYS Opens Hong Kong Airport Store to Expand Global Reach

    Chinese collectible toy maker 52TOYS has opened a retail store inside Hong Kong International Airport, targeting travelers passing through a hub connected to more than 200 global destinations. The shop sits in Terminal 1 at Shop 7E101A on Level 7 Departures East Hall, inside the airside restricted area.

    Its interior uses an industrial aesthetic with runway markings and turbine motifs, mirroring the travel-focused flagship design the brand first rolled out at Beijing Capital International Airport.

    Local exclusives and travel gear

    The shop layout puts practical travel items at the front, led by POUKAPOUKA neck pillows. Shelves deeper inside carry original intellectual property lines including NOOK and CiCiLu, alongside mechanical series such as BEASTBOX and Hyper-Activated display models.

    To appeal directly to outbound tourists, 52TOYS introduced several airport-exclusive goods. These feature local cultural motifs, including pineapple bun accessories, kung fu figurines, Cha Chaan Teng themed sets, and branded luggage tags.

    Transport hub rollout strategy

    Chinese pop toy brands are leaning heavily on transport retail to capture foreign shoppers without opening standalone city networks abroad. Pop Mart and 52TOYS both treat airport footprints as low-risk international shows, converting high footfall into brand recognition across Western and Southeast Asian markets.

    This launch follows earlier openings at Macau Studio City and Beijing Capital International Airport, completing the company’s network across key Greater Bay Area and mainland travel gateways. 52TOYS plans to secure additional high-traffic transit locations across regional airports in its next expansion round.

  • Lotte GRS to Re-Enter Indonesia with 10 Angel-in-Us Coffee Outlets

    Lotte GRS to Re-Enter Indonesia with 10 Angel-in-Us Coffee Outlets

    South Korean restaurant operator Lotte GRS will reintroduce its Angel-in-Us coffee brand to Indonesia through a master franchise agreement with Surabaya-based Bogajaya Group.

    Bogajaya plans to open 10 outlets across Indonesia over the next five years, starting with a debut location before the end of 2026.

    The agreement brings Angel-in-Us back to Southeast Asia’s largest economy after Lotte pulled its direct operations in 2020. Bogajaya Group, an Indonesian food and retail operator with nearly 50 years of operating history, specializes in travel retail and runs concessions across the country’s major airports.

    Airport operator takes the master franchise

    Lotte GRS operates several consumer foodservice brands across Asia and the United States, including burger chain Lotteria, Krispy Kreme Doughnuts, Villa de Charlotte, and food hall concept Plating. Outside its home market in South Korea, the group runs locations in Vietnam, Malaysia, Singapore, and the US.

    Securing a local franchisee with established airport concessions allows foreign food groups to avoid the heavy capital commitments and real estate bottlenecks that often hamper direct store operations in Indonesia. South Korean food operators have increasingly favored asset-light franchise partnerships across Southeast Asia, shifting operational risk to domestic companies with existing commercial lease networks.

    Southeast Asian expansion targets

    The Indonesian rollout follows Lotte GRS’s push into neighboring markets earlier this year. The company introduced its Lotteria fast-food chain to Singapore in February with an opening at Jewel Changi Airport.

    Bogajaya will begin store buildouts immediately, targeting its first Angel-in-Us site launch before January 2027 as it starts the 10-unit rollout schedule.

  • Flight Centre Posts Record $25.7 Billion Transaction Value as Leisure Slips in Q4

    Flight Centre Posts Record $25.7 Billion Transaction Value as Leisure Slips in Q4

    Flight Centre Travel Group booked a record $25.7 billion in total transaction value for FY26, but fourth-quarter flight disruptions cut underlying pre-tax profit by 4 per cent to $278 million.

    Group revenue rose 2.5 per cent to $2.9 billion for the twelve months ended June 30. Statutory earnings before interest, tax, depreciation, and amortisation increased 8 per cent to $430.6 million, while underlying EBITDA climbed 3.9 per cent to $466 million.

    Middle East Flight Reductions Hit Leisure Bookings

    A $60 million earnings decline in the fourth quarter derailed what had been nine months of steady profit expansion. Managing director Graham Turner said the leisure business was tracking toward $200 million in pre-tax profit before conflict in the Middle East prompted airlines to trim flight schedules.

    Full-year leisure transaction value still rose 7.4 per cent to $12.6 billion, generating $1.4 billion in revenue. Early trading showed signs of recovery, with July transaction values setting a monthly record as seat capacity normalised on key routes connecting the Asia-Pacific region to Europe.

    Corporate Bookings Provide Buffer

    Corporate travel accounts insulated the broader business from sharper consumer pullbacks. Corporate transaction value rose 2.9 per cent to $12.7 billion and revenue gained 3.3 per cent to $1.2 billion, pushing the division’s underlying EBITDA up 24.4 per cent to $275 million.

    Small and medium business unit Corporate Traveller exceeded $5 billion in transaction value for the first time, while the group’s US operations turned in more than US$2 billion. Management is counting on its proprietary booking platforms and cost programmes to protect margins as capacity stabilises across the first half of FY27.

  • Hong Kong Airport Opens Revamped Terminal 2 to Boost Passenger Capacity

    Hong Kong Airport Opens Revamped Terminal 2 to Boost Passenger Capacity

    Hong Kong International Airport has opened its revamped Terminal 2, shifting 15 regional airlines into the upgraded facility as part of a three-runway expansion targeting 120 million passengers annually.

    The three-runway system, which launched in November 2024, expands the hub’s overall passenger throughput by 50 per cent.

    Terminal 2 targets regional passenger traffic with 24-hour retail and dining outlets, five canopy-covered vehicle drop-off lanes, and automated processing systems. The Airport Authority Hong Kong designed proprietary self bag-drop kiosks fitted with 10 artificial intelligence cameras, cutting luggage check-in times to 45 seconds on ultra-low conveyor platforms.

    Automated Security and Regional Flight Routing

    Operational changes cut curb-to-gate transit times below 20 minutes. Facial recognition hardware replaces manual passport and boarding pass inspections at every security checkpoint, allowing carry-on passengers to pass from taxi drop-off to the restricted airside zone in two and a half minutes.

    Centering security gates in the departure hall keeps passenger flow direct, according to Steven Yiu Siu-chung, executive director of airport operations at Airport Authority Hong Kong. Architectural changes include a feather-shaped roof resting on slender inclined columns designed by engineering head Tommy Leung King-yin to maximize natural lighting over departure halls.

    Aviation Retail Footprint Across Greater Bay Area

    Airport operators across Asia are rebuilding commercial terminals to capture regional business travel and transit retail spend. Singapore Changi and Seoul Incheon have steadily expanded duty-free footprints and biometric automation, raising the benchmark for transit speed and non-aeronautical revenue generation across East Asian hubs.

    Hong Kong airport management is tracking passenger processing volumes across the 15 relocated carriers as flight frequencies ramp up toward the 120 million annual passenger threshold.

  • Tumi Unveils Its First Flagship Store in China, Redefining Luxury Travel Retail Experience

    Tumi Unveils Its First Flagship Store in China, Redefining Luxury Travel Retail Experience

    Tumi has unveiled its inaugural flagship store in China, a pivotal moment for the renowned luggage and travel accessories brand. Situated in the bustling Shanghai Centre on Nanjing West Road, this new storefront marks a strategic expansion into the Asian market, underscoring Tumi’s commitment to establishing a robust presence in China.

    The flagship’s exterior captivates with a sleek design, highlighted by metallic finishes and a striking façade inspired by Tumi’s iconic 19 Degree collection. It’s not just a store; it’s a visual statement that promises to draw in passerby foot traffic.

    Step inside, and you’re greeted by an inviting atmosphere adorned with marble accents, soothing neutral tones, and contemporary metal and stone textures. This design ethos creates an elegant yet inviting space, encouraging customers to explore Tumi’s complete lineup, which encompasses men’s, women’s, and travel collections.

    Adding an artistic flair to the store, Tumi features an exclusive installation titled “Journey,” crafted by notable Chinese artist Xu Fei. This striking piece, made from natural bamboo, embodies themes of movement, balance, and craftsmanship, beautifully echoing Tumi’s design philosophy while honoring local cultural roots.

    Another intriguing element of the flagship is its innovative scenario-based display system, which provides customers with a clear and engaging way to interact with Tumi’s diverse product range, making the shopping experience feel more intuitive.

    Questions & Answers

    What is the significance of Tumi’s new flagship store in Shanghai?
    The flagship store represents Tumi’s strategic expansion into the Chinese market, solidifying its commitment to growth in Asia.

    What unique art installation can be found in the Shanghai store?
    The store features an exclusive piece titled “Journey,” created by Chinese artist Xu Fei, which reflects themes of movement and craftsmanship using natural bamboo.

    How does the design of the flagship store enhance the customer experience?
    The store’s elegant design, combined with a scenario-based display system, allows for an engaging and intuitive shopping experience, encouraging customers to explore Tumi’s extensive product range seamlessly.

  • Sands China mall sales increase when land-based visitors return

    Sands China mall sales increase when land-based visitors return

    Sands China mall revenue rose 5.8 per cent last year as Mainland China visitor numbers rebounded. Sands China owns The Venetian Macao, Sands Cotai Central, The Parisian Macao and The Plaza Macao shopping centres which boast a combined 1.87 million sqft of retail-mall space. They form a key part of the company’s giant gaming and resorts business in the territory, which combined posted US$8.67 billion in sales last year, up more than 14 per cent, and achieved a post-tax profit of $1.87 billion, up 17 per cent.

    The company says mall revenues for the year increased 5.8 per cent overall to $507 million, compared to $479 million the previous year.

    The increase was primarily driven by higher turnover fees from Shoppes at Four Seasons, Shoppes at Venetian and Shoppes at Cotai Central, and from additional retail space becoming available at Cotai Central.

    The strongest-performing mall complex was the smallest of the four, The Plaza Macao, which has the 241,548sqft gross leasable area (GLA). It achieved 99 per cent occupancy with a base rent of $460 per sqft and tenant sales of $4373 per sqft, contributing $145 million in revenue, up 10.7 per cent year on year.

    The weakest-performing mall was The Parisian Macao, with 89.8 per cent occupancy of its 295,915sqft GLA. Base rent per sqft was $156 and tenant sales per sqft $649. Revenue there fell 13.6 per cent year on year to just $57 million.

    The company’s largest Macau property, and its first, The Venetian Macao, has 813,376sqft of GLA. It achieved total mall revenues of $233 million last year – up 6.4 per cent – with 90.3 per cent occupancy, a base rent of $263 and tenant sales of $1746.

    Sands Cotai Central, with 519,681sqft GLA, achieved $69 million in revenue – up 9.5 per cent – and achieved 91.5 per cent occupancy. Base rent was $108 and tenant sales $892.

    Sands China said its food and beverage revenues rose 4.1 per cent last year to $304 million, driven primarily by increased foot traffic.

    Chairman Sheldon G Adelson said Macao’s development and evolution as Asia’s leading tourism destination accelerated during the year, with market-wide visitation from China reaching a record 25.2 million visits, an increase of 14 per cent compared to last year.

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  • Retail report says holiday sales were disappointing

    Retail report says holiday sales were disappointing

    Shoppers did not spend as much as expected this past holiday season. Holiday sales were up just 2.9 percent in 2018, the National Retail Federation said, on the heels of the Commerce Department announcing retail sales for December fell 1.2 percent, the largest decline since September of 2009. NRF, the retail industry’s trade organization, had been calling for 2018 holiday sales, those from Nov. 1 through Dec. 31, to rise between 4.3 and 4.8 percent.

    “It appears that worries over the trade war and turmoil in the stock markets impacted consumer behavior more than we expected,” NRF President and CEO Matt Shay said in a statement. “There’s also a question of whether the government shutdown and resulting delay in collecting data might have made the results less reliable.”

    NRF said online and other nonstore sales were up 11.5 percent this past holiday season, while the group had been calling for growth of between 11 and 15 percent.

    It said sales, both in stores and online, were down 1.5 percent in November year over year, and in December were up just 0.9 percent. It added that October sales were up 5.7 percent year over year, but spending during that month isn’t included in NRF’s holiday sales tally.

    NRF chief economist Jack Kleinhenz said the sales results were “truly a surprise” and “in contradiction to the consumer spending trends” NRF had been monitoring.

    The fresh retail sales data from the Commerce Department has, meanwhile, raised new concerns about a recession. But economists also say the biggest drop in nine years clashes with other data and may be suspect.

    NRF is still calling for retail sales, excluding automobile dealers, gasoline stations and restaurants, to climb between 3.8 and 4.4 percent this year, amounting to as much as $3.84 trillion.

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  • Where Chinese tourists go for shopping

    Where Chinese tourists go for shopping

    Hong Kong, Tokyo, Seoul and Singapore were among the hottest shopping destinations for Chinese tourists last year, according to Ctrip. In the latest big-data report from the Chinese travel-services provider, Edinburgh, Singapore and San Francisco were also among the top 10. Last year, nearly 150 million overseas trips were made by Chinese tourists, who collectively spent US$120 billion.

    London was the city that saw the highest per-capita spending by Chinese tourists – more than US$4428 – followed by Paris, Macau, Dubai, Okinawa, Kyoto, Osaka, Nagoya, Hong Kong, Singapore and Fukuoka.

    Europe is still a hot destination for Chinese luxury goods buyers because prices there are much lower than the global average, and a tax-refund system also facilitates sales.

    Despite the recovery of the British pound last year, the UK remained a popular destination for Chinese tourists, said Ctrip.

    Experts noted that Chinese consumers would still be a focus of competition between shopping destinations this year, and many retailers internationally have upgraded their shopping facilities to lure Chinese tourists.

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  • Incheon Airport to add AI to security systems

    Incheon Airport to add AI to security systems

    Never mind airport security, artificial intelligence (AI) may also be rooting through your luggage in the near future at Incheon International Airport. Incheon International Airport Corporation said Wednesday it will incorporate AI into its security systems in a bid to improve accuracy in screening passenger luggage for prohibited items.

    The airport has already started working on the project to develop an AI-based X-ray screening system to be tested in the second half of next year.

    Instead of the existing system that relies on X-ray scanning, manual image checking by security officers and a final physical check, artificial intelligence will crosscheck the X-ray scan and the analysis will be available to officers along with the X-ray image.

    The first-stage AI scan is expected to complement and improve the accuracy of the security check as an officer will continue to be responsible for the final call to physically inspect luggage.

    The airport said it will apply deep-learning technology on over 600,000 pieces of footage of around 20 prohibited items and 20,000 commercially sold liquid products to develop an algorithm for imagery interpretation and improve the AI’s screening accuracy.

    The development project is expected to take two years overall, with a proof-of-concept system to take 10 months to develop.

    “By preemptively incorporating AI technology into security, [we] will strengthen airline security and plan to provide a safer and more convenient environment for passengers,” said Chung Il-young, CEO of Incheon International Airport Corporation.

    This will be the country’s first large-scale practical application of the technology, according to the airport.

    It is part of broader efforts to introduce a “Smart Security System” with the Ministry of Land, Infrastructure and Transport.

    The airport is also planning to introduce a tunnel security search system, the first of its kind, which will allow passengers to simply go through security checks by walking through a tunnel.

    The airport screened around 60 million pieces of luggage last year through the conventional X-ray system and found 3 million prohibited items such as firearms and swords.

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  • Air France-KLM more than doubles profits in 2018 despite strikes

    Air France-KLM more than doubles profits in 2018 despite strikes

    Air France-KLM, which was badly hit last year by strikes and management upheaval, reported on Wednesday that its annual net profits rose by 150% to 409 million euros (US$463 million). “The strong performance of our front-line teams and continued cost control helped partly offset the impact of strikes at Air France in the first half of the year, as well as significant fuel headwinds,“ Benjamin Smith, the company’s new chief executive, said in a statement.

    The Canadian businessman took over in September following Jean-Marc Janaillac’s sudden exit in a bitter dispute over salaries in the group’s French wing.

    Fifteen days of strike cost the company 335 million euros, Air France said.

    On Tuesday, Air France pilots voted by 85% in favour of a new pay deal, concluding a series of long employee-management negotiations.

    Revenue growth last year was up in all business segments, with operating earnings coming in at of 1.3 billion euros, the Franco-Dutch airline group reported.

    The group said it had carried more than 100 million passengers last year, making it the leading European airline for long-haul traffic.

    Transavia, a low-coast subsidiary, carried 15.8 million passengers last year, an increase of 7.1% on 2017.

    Full year 2018 capacity increased by 2.1%, mainly driven by the South American, North Atlantic and Asian networks, with respective growth of 8.6%, 3.0% and 2.1%, Air France-KLM said.

    In 2019, the group will concentrate on “operational efficiency”, financial director Frederic Gagey said.

    “We can make a lot more money compared to last year,“ he said, adding that Air France-KLM would also be looking to renewing its fleet to replace some of its more fuel-guzzling planes.

  • Malaysia ranks second in SEA for Chinese tourist transactions during CNY

    Malaysia ranks second in SEA for Chinese tourist transactions during CNY

    Malaysia is the second largest market in Southeast Asia for Chinese tourists spending over the Chinese New Year holiday season, as recorded by Alipay, the digital payment and lifestyle platform offered by Ant Financial, an affiliate company of Alibaba Group. The transactions were recorded between Feb 4 and 10 this year. Malaysia saw a 16% increase in average per-capita spend by Chinese tourists this year, with a growth in transaction volume by 71% compared to 2018.

    What’s more, Chinese millennials can no longer claim to be the dominant user group spearheading spending while travelling, as 68% of Chinese tourists born between 1960 and 1979 were found to be the main driving force in outbound tourism and overseas consumption.

    Alipay head of business operation for cross-border business Janice Chen said this year’s findings highlight how mobile payment is taking root in China’s outbound tourism market, and it is excited to see the robust growth in the use of Alipay by overseas tourists from third-and-fourth tier cities and middle-aged vacationers.

    “While providing a better experience for Chinese travellers, Alipay is, at the same time, a huge drawcard for overseas merchants as a platform to help grow their business,” Chen said in a statement.

    This is in accordance to a recent report published by Nielsen and Alipay, called the 2018 Trends for Mobile Payment in Chinese Outbound Tourism.

    Chinese tourists are bringing their cashless lifestyles outside of China, paying for 32% of their overall travel transactions using mobile payment, overtaking their use of cash for the first time ever.

    The survey found that merchants offering Alipay as a payment option has experienced growth in both foot traffic (58%) and revenue (56%).

    Heinemann, a travel-retailer with a store in Kuala Lumpur International Airport 2 (KLIA2) has also reported an increase in sales. Its general manager for retail operations Alexander Maas said since implementing Alipay, it is now able to provide added convenience to its customers from China, and provide them with a familiar shopping experience, ultimately seeing over 20% of all its transactions completed on the Alipay app with Chinese tourists.

    With the increased popularity of Alipay among both young and old Chinese tourists, brick-and-mortar retailers across the region can continue to adopt Alipay as a payment option to further boost profitability moving forward.