Page 20 - TFWA World Exhibit 2022 Special Edition

INSIDER

Dufry’s new strategy “Destination 2027” focuses on

Four Pillars to enhance travelers’ experience

Dufry presented the new company
strategy at Capital Markets Day in London
on Sept. 6.
Under the name of “Destination
2027,” the four-pillar strategy is designed
to “make travelers happier,” says the
company.

Solid fundamentals but shifts in
consumer behavior and travel patterns
The airport travel market has proven
to be a resilient and attractive space,
showing a strong rebound after the COVID
crisis, said the travel retail giant, which --
after a steady acceleration of demand over
the past six months -- expects passenger
volume to resume growth in line with the and nationalities, as well as through Dufry reports that it will strive
historical trajectory. digital channels, with extensive digital for “superior profitability” with a logic
While its fundamentals are solid, engagement before and after travel, to drive of zero-based budgeting, focused on
the industry is experiencing a significant consideration and loyalty. disproportionally allocating resources to
shift in consumer behavior and in Dufry’s travel experience revolution activities that make the most impact for the
travel patterns, notes Dufry. “Consumer also brings together travel retail and food customer, while leveraging technology to
demographics have changed, bringing & beverage through its transformative simplify work and operations.
about, amongst other things, a stronger business combination with Autogrill. This In addition to budgeting discipline,
demand for personalized experiences, will allow Dufry to engage consumers Dufry will systematically and actively
a greater influence of online media in with a broader set of products and a wider manage its portfolio of concessions, with
purchasing decisions, and stronger interest range of experiences, which will provide “a stronger focus on the evaluation of full
for sustainable, healthy, ecofriendly platform to make travelers happier during profitability and cash flow contribution.
products,” said the company in an official travel,” says the company.
statement. 4. Connecting the other three pillars of the
Travel patterns are also changing, it 2. Continue to Diversify its Geographical strategy, ESG continues to be a defining
noted, with stronger rebound of domestic Presence to tap into fast-growing markets ambition for Dufry and a “strong light-
and short-haul routes, increasing share of and hedge against regional economic house” for its day-to-day business, which
low-cost service, acceleration of leisure cycles and shocks. the company says is “providing a source
vs. business travel, and different mix in the Building on a strong portfolio of of inspiration of what to do best for our
origin of international travelers, especially international airport locations and global customers, our employees, and the world
on the path to full recovery after COVID. brands, Dufry will continue to expand its at large.”
footprint, with strong focus on the highly
Four pillar strategy attractive and resilient U.S. market, and a Xavier Rossinyol said: “The new
To cater to the needs of these “new” dedicated strategy for Asia-Pacific, building company strategy has been crafted
travelers, and continue to lead the Travel a team focused on a set of strategic markets based on a deep understanding of our
Experience space, Dufry developed a new in the region and on the fast-growing stakeholders’ needs, customer insights and
strategy, “Destination 2027,” built around cohort of the Chinese traveler. the current market trends evolution.
four pillars. In Europe and Rest of the World, “Our new strategy ‘Destination 2027’
1. Launch a Travel Experience Revolution Dufry will accelerate its business will be delivered by further empowering
by creating – together with brand and development process and set clear priorities our already excellent teams and reinforcing
landlord partners – a unique, new value and targets. them when needed. As a team, we are in a
proposition for customers. The combination of travel experience position to generate sustainable long-term
The new value proposition is based revolution and geographical expansion is value for all our stake-holders, including
on customized offerings for travelers, expected to translate into annual turnover employees, landlords, brand partners, and,
including elements of experience, new growth of 5% to 7% in 2025-2027. finally, our shareholders.
categories, and exclusive products. “This is supported by the trans-
This experience will be delivered both 3. Foster a Culture of Operations formative business combination with
in physical “smart” stores, with a modular Improvement to fuel profitability, Autogrill as an inherent part of our vision
concept that allows it to customize the accelerate cash-flow generation, and to deliver a holistic travel experience and to
offering to different passengers, routes reinvest in growth. make travelers happier.”

October 2022 20