ETRC launches report on prevailing business models in travel retail

The European Travel Retail Confederation (ETRC) has released a report examining the effectiveness and sustainability of the business and concession models that underpin duty-free and travel retail in Europe.

Through a series of in-depth, qualitative interviews with key industry decision-makers, this study explores, via scenario analysis, how different contractual models perform under varying market conditions.

Overall, the report concludes that flexible contractual models allow for innovation, experimentation, and better customer engagement – with such activities essential in an evolving retail landscape. Stressing the need for flexible, adaptable models that are reflective of a changing and uncertain global environment, the report concludes that sustainability and value creation for all parties is essential.

Olivier Jankovec, Director General of ACI EUROPE, commented: ‘Travel Retail is essential to the financial model of most European airports. Overall, airport revenue from business areas beyond aviation, the non-aeronautical business, accounted for 37% of total airport revenues in 2024 – showing Travel Retail still has the potential to grow.’

Europe’s airports will further require an additional €360 billion in capital expenditure (CAPEX) by 2040 to address the long-term trend in passenger demand along with decarbonisation, resilience and digitalisation. In that context, optimising revenue from non-aeronautical operations will become even more relevant, and so will a true collaborative approach to enhancing the passenger experience.

At ACI EUROPE, we look forward to continuing this dialogue with ETRC, putting innovation, collaboration and the passenger at the heart of a stronger and sustainable future of airport retail.’

Find the full report here.