Optimism levels among respondents to the Q3 2024 TR Confidence Tracker, sponsored by Suntory Global Spirits, have seen a marked rise to bring them back in line with year-over-year (yoy) results following a significant dip in the second quarter.

Almost 70% of respondents to the latest Travel Retail (TR) Confidence Tracker flash poll reported feeling very or quite optimistic about the global travel retail industry over the next 12 months, compared to 50% in Q2.

The result moves back in line with yoy results, with almost 68% of respondents feeling optimistic in Q3 2023.

How respondents felt about their organisation’s performance in travel retail over the next 12 months tracked similarly.

For this key indicator, confidence levels have been falling steadily following Q1 2023. Our poll for Q3 2024 shows the first uplift in optimism since this time, with 76.09% of respondents feeling very or quite optimistic compared to 56.25% in Q2 2024. (The peak share was 91% in Q1 2023.)

Commenting on the dynamics that have impacted their views, stakeholders volunteered the following: “Travel retail is bouncing back from the pandemic with air traffic and travel retail sales exceeding 2019 levels by the end of 2025,” said Thomas Kaneko Henningsen, Partner, Blueprint.

“Blueprint continues to experience an increased demand for commercial ‘think tank’ capabilities which supports airports, operators and brands connect with travelling shoppers in new ways.”

“We have seen Asian customers returning to our vessels and will continue to work towards the pre-Covid results,” offered Katri Keian, Head of E-commerce and Onshore Travel Retail, Tallink Duty Free AS.

“We are seeing many challenges tackling our business and customers through global economic and geopolitical turbulence, all impacting heavily our customers confidence and financial means for consumption.”

“As in all industries, pessimism and optimism co-exist. The perspective difference lies in whether it is long-term or short-term view you are taking,” commented Eng Hill, Director, TSPtravelretailspaceplanners.

“Having been in this industry and working with major players, their ability to handle the pandemic over the prior five years, shows great resilience and this should bode well for the industry as a whole.”

Leading suppliers also weighed in on factors punctuating the current climate.

“We come from years of huge instability, wars and pandemics. We have [a] very low basis as benchmark,” said Emanuele Lasagna, Head of Global Travel Retail, Kering Eyewear.

“I am very confident about Kering Eyewear’s performance in the channel for the years ahead. We have built a solid line of trustful partners and relevant projects at global level, on top we will keep innovating and be the first movers of the industry.”

Key voices from the confectionery category also aired their views.

“The commodity prices for chocolate and cocoa show a slightly stabilised graph. However, they still positioned significantly high,” said Sven Adriaenssens, Sr Channel Manager Travel Retail & Duty Free, Chocolaterie Guylian.

“Consumers show understanding of this tendency, but it is difficult to predict how this will affect their purchase behaviour in the coming months. Our business in the GTR business is still growing in both volume and value but the cacao pricing effect on the retail prices slows down the optimism for the coming months.”

Steven Candries, Commercial Director, ChocDecor/Belfine, added: “It is clear that various retailers/buyers are willing to try and are eager to be different from others.

“The children’s segment is a segment that can be more interesting and valuable in the chocolate category. Premium impulse gifting is on-top sales and worthwhile.”

A bigger picture view also came from Bérangère Felbabel, Senior Sustainability Strategist, Quantis, who is partnering with TRBusiness for the upcoming TR Sustainability Week 2024 (taking place from 2-6 December – click here to register).

“The travel retail industry could face challenges in 2025 if awareness of climate-change-driven risks remains low,” she commented. “Without addressing these risks, the industry may miss opportunities to innovate and meet evolving consumer expectations for sustainability, potentially limiting future growth and competitiveness.

“As a sustainability consultant, I see the travel retail industry increasingly integrating ESG metrics into their reporting and strategy, driven by CSRD. This shift will align travel retail with local market trends, creating opportunities for sustainability expertise to thrive.”

What provided the biggest boost for your company in DF&TR during Q3 2024 and how did this help propel you toward your year-end goals?

“Our creative and dedicated team together with our brand partners are the biggest asset of our operations. We are adapting to changes quickly and by doing so can and will continue to offer the quality service our customers are looking for in order to boost the sales.” Katri Keian, Head of E-commerce and Onshore Travel Retail, Tallink Duty Free AS

 

“The past years Blueprint has invested heavily into understanding how AI impacts travel retail. As AI development accelerates, we are in a strong position when it comes to leveraging our AI insights, capabilities and opportunities.” Thomas Kaneko Henningsen, Partner, Blueprint

 

“Our biggest boost in Q3 2024 came from our partners’ trust in celebrating together with us the 10 years of our fruitful partnership.” Emanuele Lasagna, Head of Global Travel Retail, Kering Eyewear

 

“NPDs are an important source of growth.” Ramon Olivé Altès, Head of Sales – Global Travel Retail, Henkell Freixenet

 

“Probably the strong North American market and overgrowth for travel retail.” Michael Payne, President and CEO, IAADFS

 

“[The] Choco Myths launch in Antalya & Istanbul airports with Avolta was extremely successful in terms of sales and visibility for the brand.” Georgios Chouseas, Head of Choco, Choco Myths

 

“Since the start of August, Chocolaterie Guylian has Leen Baeten on board as new CEO. Leen is impressively experienced in confectionery in global travel and brings strong shoulders to support Guylian in the GTR channel.” Sven Adriaenssens, Sr Channel Manager Travel Retail & Duty Free, Chocolaterie Guylian

 

“The distribution extension driven by a growing appetite for port based on Portugal’s popularity as a destination.” João Vasconcelos, Head of Global Travel Retail, Taylor’s Port

 

“The consolidation of the big players gives good indication to taking steps in tandem. Sustainable practices are also opening new directions and opportunities.” Eng Hill, Director, TSPtravelretailspaceplanners

 

“I would not say that there has been a boost. Travel retail business this year have been quite solid. The best performance versus last year comes from North of Europe. We are confident to achieve our goals in travel retail.” Pier Giuseppe Torresani, Sales Director, Masi Agricola

 

“Breaking into the Australian and New Zealand travel retail market.” Hoj Parmar, CEO, Bitmore

 

“Our Q3 2024 overall fragrance sales outperformed the same period in 2019 by +11.5% despite a -10% overall passenger volume.” Justin Guay, Vice President, IGL Duty Free

The results of the Q2 TR Confidence Tracker first appeared in the TRBusiness Nov/Dec ezine.

The Q4 2024 TR Confidence Tracker flash poll will be live in January 2025.

Q2 2024 RESULTS: Optimism levels tumble Q2 TR Confidence Tracker

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Q3 2023 RESULTS: Industry confidence levels shrink over 25% in Q3

Q2 2023 RESULTS: Pessimism impacting confidence levels in Q2, shows TR Confidence Tracker

Q1 2023 RESULTS: 91% of respondents optimistic about the GTR industry, says flash poll

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