Increasing Introduction of Duty-free Campaigns to Boost the Market for Top Travel Retail Companies

The travel retail industry revolves around cruise ships, airport duty-free shops, and airlines. The industry is made up of four primary channels, each of which is completely unique. Each channel has a different passenger profile, consumer behavior, and business dynamics.

Fortune Business Insights stated that the global market size for travel retail was valued at USD 51.28 billion in 2021. The global market is projected to grow from USD 55.74 billion in 2022 to USD 96.11 billion by 2029, exhibiting a CAGR of 8.1% during the forecast period.

Below mentioned are the four types of travel retail platforms:

•  Airport

Airports across the world have stores in the terminals for arrivals and departures, allowing passengers to shop while on the go. In terms of sales and the number of passengers, it is the largest channel in the travel retail sector and the key growth engine for the sector.

•  Aircraft

Pre-ordered or in-flight purchases of goods are possible during flights, and both digital entertainment options and paper catalogs are accessible. It is a channel that commands the full attention of passengers yet necessitates carefully chosen strategic merchandise and meticulous attention to detail to ensure success.

• Cruise Ship

Cruise ship allows for possibilities for shopping at sea while moving between ports globally, allowing passengers to utilize the long transit time to repeatedly explore travel retail offerings. Cruise ships offer the market a rapid growth trajectory, particularly as young passengers have an inclination to become more popular.

• Downtown Duty-free

It offers opportunities for shopping that let visitors from other countries buy tax-free goods right away or reserve them to pick up after customs at the airport. It is a channel that focuses on the rapidly expanding trend of duty-free shopping outside of the typical channels, particularly in the Asia Pacific region.

Below mentioned are the top 10 travel retail companies around the world:

1. Lagardère Group

Lagardère Group is an international group headquartered in Paris, France, with operations in more than 40 countries worldwide. The group started functioning in 1852. The company houses Burberry, Gucci, Hermes, and Victoria's Secret products and adopts various strategies such as acquisitions and partnerships to grow its sales.

2. LVMH (DFS Group Ltd)

DFS is a luxury travel retailer established in 1960 and headquartered in Hong Kong. It offers a broad spectrum of product categories, including wines & spirits, perfume & cosmetics, and fashion accessories. These companies target international travelers in Europe, the Americas, Asia, and the Middle East.

The company has around 400 boutiques spread over 13 countries offering high-end products.

3. Dufry AG

Dufry is a Swiss-based travel retail company established in 1865. It operates more than 2,300 duty-paid, duty-free shops and convenience stores in cruise lines, seaports, railway stations, airports, and central tourist areas worldwide. The company is headquartered in Basel, Switzerland and employs approximately 36,000 individuals worldwide.

4. King Power International Group 

King Power International Group is a Thai company based in Bangkok and established in 1989. The group has three primary duty-free operations in Thailand. It operates through four business units, travel-retail, hotel, travel and sports-related.

The group provides duty-free beauty & cosmetics, fashion, and electronic products for travelers in its retail stores. It mainly focuses on competitive strategies such as collaborations and joint ventures with various luxury brands to generate higher revenue.

5. DAA (Aer Rianta International)

Aer Rianta International, headquartered in Dublin and established in 1988, is one of the significant players in the global market. The company manages and owns duty-free retail outlets in Europe, the Middle East, Asia Pacific, and the Americas.

6. Delhi Duty-Free Services Pvt. Ltd.

Delhi Duty-Free Services Pvt. Ltd is a joint venture between Delhi International Airport Limited, Yalorvin Limited, and GMR Airports Ltd. The company's flagship store is at Delhi International Airport. It also has 11 stores that offer products such as watches & jewelry, toiletries & cosmetics, apparel, liquor, and tobacco products. The group focuses on introducing novel products at its flagship stores.

7. Lotte Duty-Free

Lotte Duty-Free is one of Korea's leading duty-free operators, established in 1980. The brand has its presence in 19 locations across 7 countries. Lotte Duty-Free also has an online presence that is accessible from any place. The company provides 1,613 brands as of 2019 and is expanding globally to reach more travelers worldwide.

8. Gebr Heinemann SE & Co. KG

Gebr Heinemann SE & Co. KG is a German travel retailer established in 1879. The company operates duty-free shops, fashion-label boutiques at international airports along with stores on board cruise ships and border crossings. The group provides perfumes & cosmetics, confectionery, wine & spirits, fashion & accessories, watches & jewelry, and tobacco products.

9. China Duty-Free Group Co. Ltd.

Established in 1984, China Duty-Free Group is a state-owned organization that operates duty-free businesses across China. It works in 90 cities across 30 provinces of China and has over 200 retail stores. The company strongly focuses on launching new stores and introducing innovative products.

In December 2021, the company launched its first flagship store, CDF Macau Grand Lisboa Palace Shop, in Macau, China. The store offers over 170 brands of fashion, watches, accessories, cosmetic products, jewelry, perfumes, culinary delights, wines, and souvenirs.

10. Abu Dhabi Duty-Free

Established in 1984, Abu Dhabi Duty-Free operates and manages retail, food & beverage, and service operations in the airport's facilities. The group offers an array of duty-free products, high-street stores, luxury boutiques, and theme-based dining outlets. Abu Dhabi Duty-Free's product categories include beauty, fragrances, watches, toys, food, and souvenirs. The company aims to open new stores in airports and cruises to promote its brands.

Duty-free Campaigns are Regularly Offered by Retailers to Increase Product Demand

Nowadays, leading businesses use marketing campaigns to entice customers to purchase duty-free goods. For the higher-income airport traveler groups, businesses also consistently offer high-quality, privately labeled goods and services. The product sales at the airport's retail stores are expected to be aided by the above-mentioned factors.