After launching ‘the world’s largest duty free shop tender by turnover’ in 2022, Aena’s Managing Director Commercial and Real Estate María José Cuenda explains that the operator is striving to work hard with its retail partners in 2023 and beyond on digitisation, differentiation and finding solutions to ‘supply failures’. 

Cuenda shared her views in the TRBusiness Global Industry Survey 2023*, including her summary of the travel retail industry 2022.

“The stoppage in the travel retail market for the last few years is over,” she said. “The industry is experiencing a faster recovery than expected and this new situation has had a very positive impact on Spain with an almost [full] recovery of traffic vs 2019.

“The average spend per customer has grown, and in our tenders launched the numbers have fully recovered.

“[However] the industry will have to live with the new habits of consumers. Aena works to support retailers and suppliers through a shared commitment to deliver what the traveller is looking for throughout their trip and to adapt to the inevitable changes that arise from emerging trends and the evolution of buyer behaviour.

“There are three areas we want to focus on with our partners: the digitisation of the market, the differentiation of products and services and supply failures. Working on these points together will help retailers and suppliers to communicate and improve current and future industry changes more effectively.”

Read on for Cuenda’s comments to our top questions…

Question: What are your expectations for your business in travel retail in 2023 and what are the major challenges you anticipate?

Answer from Aena’s Managing Director Commercial and Real Estate María José Cuenda: Digitisation. Most retailers are moving towards digital platforms and trying to create an experience for shoppers by linking their physical and virtual stores.

Travellers are becoming more digital-savvy. Airports must take advantage of the uptick in e-commerce during the pandemic and integrate it into the consumer experience to combat the inevitable shift away from conventional travel retail.

Digitisation brings opportunities for personalisation and consumer engagement; two elements that are likely to attract shoppers.

“The stoppage in the travel retail market for the last few years is over. The industry is experiencing a faster recovery than expected and this new situation has had a very positive impact on Spain with an almost [full] recovery of traffic versus 2019.” María José Cuenda, Managing Director, Commercial and Real Estate, Aena

Another challenge is ensuring differentiation. For retailers, the challenge that has always existed and will continue to evolve is ensuring that the products offered provide value to customers that cannot be found elsewhere.

Your product offerings must be relevant to consumer journeys. The need for a better retail experience becomes more critical. Consumers expect more. Finally, supply interruptions. Supply chains around the world have experienced disruptions.

Retailers have to ensure that their products are delivered on time, in full, and to the right place.

How do you anticipate inflation and the risk of global recession affecting your business and the consumer appetite to spend in the travel retail channel in 2023?

We set ourselves an ambitious challenge in the commercial business. If inflation gradually converges towards banks’ targets, in 2026 we expect an increase of at least +23% of commercial income with respect to 2019, and of at least +12% of commercial income per passenger (adding to inflation is the positive demand that we have).

How has the shift in passenger demographics as a result of the pandemic/travel restrictions affected your product portfolio and growth plans?

The lack of traffic from some Asian countries has had an impact, above all on the average ticket, due to the passenger profile of those countries.

“Supply chains around the world have experienced disruptions. Retailers have to ensure that their products are delivered on time, in full, and to the right place.” María José Cuenda, Aena

However, if we take into account that the average ticket has still grown, this situation makes us hopeful that as soon as these countries are open, the impact will be even more positive. On the other hand, the war has not had a great impact on our results.

Stagnant conversion rates continue to pose a challenge for DF&TR. How should the industry be addressing this in a post-pandemic environment?

Aena would like to help improve its listening and understanding of passengers through data, knowledge and planning of commercial actions. As we have already mentioned, we believe that the retailer must bet on digitisation, differentiation and optimisation of its supply chain, as well as repeat and continue all those actions that they do well, which are many.

CLICK HERE: To read the Global Industry Survey 2023 in full.

*The Global Industry Survey was conducted during November 2022 up until the second week of January 2023. Some of the views expressed are representative of individuals rather than their entire organisations. Some of the comments were also shared prior to China’s announced easing of travel restrictions from 8 January.