As we move into 2024, the global travel retail industry is demonstrating a robust recovery from the pandemic's challenges. The pace of this recovery varies across regions, and 2023-2024 data reflects these differences, with some markets rebounding faster than others.
Travel retail closely mirrors airport passenger traffic trends. Pre-2019 figures represent typical operations, while post-2019 data highlights the severe impact of COVID-19 on travel volumes. By 2023, many operators experienced a substantial recovery as global travel surged.
Notably, Asia-based companies like China Duty Free Group (CDFG) and The Shilla Duty Free have seen accelerated growth due to the rapid return of passengers in the Asia-Pacific region. In 2023, CDFG reported an impressive 24.1% revenue increase, reaching CNY 67.54 billion (USD 9.3 billion), alongside a 32.8% profit rise, showing strong recovery driven by eased travel restrictions and higher consumer spending.
Meanwhile, European operators such as Dufry and Lagardère Travel Retail are also rebounding, though they are still working to reach pre-pandemic levels, especially in the long-haul international travel sector.
This trend underscores a revitalized global air traffic landscape, with the travel retail industry poised for further growth as the world returns to the skies.
Key takeaway: While Asia-Pacific leads the recovery, the entire global travel retail sector is on an upward trajectory, benefiting from rising passenger traffic.
To note: the figures are approximate, based on the number of passengers served in airports where these operators had significant market presence.
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