The Basel-based company Avolta, formerly Dufry, operates shops and restaurants at over 350 airports worldwide. In an interview with Andrea Martel, CEO Xavier Rossinyol explains what duty-free means today – and which traveler preferences have surprised him.
Once you have passed through security at the airport, you’re relieved. But there is usually still time before boarding. So, what to do?
This is where Avolta comes in, with its duty-free shops, restaurants, and convenience stores located between baggage check and the gate. CEO Xavier Rossinyol knows better than almost anyone what travelers buy – and why.
Mr. Rossinyol, summer vacation has begun. Is this the most important season for Avolta?
Yes, July marks the start of our busiest time of the year. Although the season no longer ends in mid-September as it used to but now runs through the end of October. That’s a positive development for us, because in July and August, some airports are so crowded that people get stressed out. Those who travel in October are often more relaxed – and that increases the likelihood that they’ll make a purchase.
Who is the most important customer for you: the tourist or the business traveler?
Globally, there is more leisure than business travelers. But when it comes to spending per person, the picture is more complicated. People used to say that business travelers spend more on average. We consider that view outdated. It matters whether someone is traveling alone, with family, or with colleagues; whether they’re traveling in the morning or evening; and whether they have a connecting flight or not. The diversity of human behavior is much greater.
What conclusions do you draw from this?
We think less in traditional categories. So not: “These are Chinese passengers, so they’ll buy this.” Or: “This is a business traveler, so he’ll buy that.” That’s also why we’ve evolved from a pure duty-free company into a provider that sells both duty-free and taxable goods and operates food and beverage outlets. The same person might first need a coffee, then AirPods because they have lost their own, and finally a gift.
Why do people shop at the airport in the first place?
The most important reason is gifts. People like to bring something back for their loved ones. In some cultures, it’s almost unthinkable to return from a trip without a gift. What’s important is that you can tell it really came from your travels. Packaging that says “London” sends the message: I was thinking of you while I was away. The second most important reason is to treat yourself. You’ve been away for two days, you return home, and you tell yourself: I’m going to treat myself to this.
Many passengers believe duty-free is cheaper. Is that still the case today?
Duty-free is no longer just about low prices. Twenty years ago, the business revolved almost exclusively around tobacco and alcohol – around low prices. Today, it’s more sophisticated. Of course, there are categories like tobacco and alcohol where duty-free sales can offer a price advantage. However, these categories each account for only about 10 percent of our sales. People also buy for the convenience, the selection, the authenticity of a product, or because they need a gift.
Does that mean price is secondary?
Not everywhere. Some passengers compare prices to their local supermarkets. Others buy a gift and don’t think twice about whether it costs a dollar more or less. Sometimes it’s also about authenticity: In certain markets where there are many counterfeit products, customers are willing to pay a premium because they can be sure they’re getting the genuine product from us.
Have you ever encountered any surprises when it comes to demand?
When I was in Seattle, I noticed a huge selection of sunglasses at the airport. I asked, “Why? It’s always cloudy in Seattle.” The answer was, “That’s exactly what everyone thinks, which is why no one brings sunglasses – even though it’s not true.” Another surprise was the spending behavior of Indian travelers.
In what way?
When Indians began traveling more frequently, many assumed they would behave like travelers from North Asia and prefer dark spirits such as cognac or whiskey. But for some reason, Indians like to buy tequila when they travel. So, we offer it at airports frequented by many Indian travelers. Our approach is this: We don’t need to know why they like tequila. We just need to know that this is the case and offer the corresponding product.
What is your best-selling product?
Perfume and cosmetics are very important categories. Globally, we sell one bottle of perfume every second. And half a million cups of coffee every day.
When it comes to perfumes, there’s a trend toward niche and luxury brands. Can you keep up with that in your duty-free stores?
We’re actually at the forefront of this trend. Duty-free is one of the most important places where people discover new brands or buy them for the first time. Depending on what our customers want, we offer different store concepts. At Zurich Airport, for example, we’ve opened a separate store for haute perfumery in a tranquil setting. We have similar offerings in other product categories: In London, we operate a Macallan whiskey store that also sells collectibles for six-figure sums. We have to be able to do both: classics and trends.
Why do you have to show your boarding pass at the checkout?
For duty-free goods, it’s a regulatory requirement because we need to know whether someone is traveling to a duty-free destination or not. Within the EU, the duty-free business was abolished in 1999.
Avolta was formed three years ago through the merger of Dufry and Autogrill. For many Swiss people, Autogrill is synonymous with the first real espresso on the way to their Italian vacation. What makes this combination strategically interesting?
Many people associate Autogrill with Italian highways. But that was only part of the business. The old Autogrill was already heavily involved in food and beverage at airports, just not under the Autogrill brand. With the merger, we’ve brought together the leading airport retailer with the leading airport food and beverage operator. We want to have everything in our portfolio that travelers need or want to buy while on the go.
Do people spend more money on shopping or on food and drinks at the airport?
The average purchase amount is highest in the duty-free business. In F&B, customers spend less per purchase, and even less on convenience items – such as a drink or a sandwich to go. In terms of the number of customers, however, it’s the other way around: Food & Beverage has the most customers. Almost everyone needs coffee or something to eat at some point.
What do passengers want to eat at the airport?
We’re constantly working on new concepts. In Spain, we developed a street food concept called “Hungry Club” with Dabiz Muñoz, one of the world’s best chefs. Concepts like this generate buzz. However, the bulk of revenue comes from what you’d expect: coffee, pastries, sandwiches, pizza, and burgers. Local offerings are also essential. In Rome, people want pasta and gelato. In Texas, they want big cuts of meat. Sometimes clichés actually hold true.
Avolta talks a lot about data and personalization. Do you already know better than I do whether I’ll buy champagne, Toblerone, or headphones before my flight?
Not yet. Compared to two years ago, however, we’re making much better use of data.
What data do you have?
We’re present in 70 countries with 5,000 retail locations. We have our sales data, but we also know when which flight is going where, what the weather is like, and much more. Even if travelers don’t buy anything, thanks to what’s known as “camera analytics,” we now know whether they looked around and where they lingered. Of course, this is done in compliance with applicable data protection regulations, and it’s about aggregated patterns, not individuals. We’ve also had our Club Avolta app for almost two years.
Loyalty cards have long been considered the be-all and end-all of retail. Why did you take so long to adopt them?
For a long time, the industry thought loyalty programs made little sense for airport shops because people fly, on average, only once every two years. But that was the wrong way to think about it. I travel four times a week myself, and there are many people like me. Club Avolta is accepted at all our locations, whether in retail or dining. We also have partnerships with airlines and airport lounge operators to help members earn points or miles. That’s how we’ve managed to reach 18 million members in such a short time.
How do you put this knowledge into practice?
We’re becoming more flexible. A duty-free shop no longer looks the same for days. We’re constantly adapting it. For example, if a flight to China is coming up, we start advertising products that are particularly popular with Chinese travelers two hours beforehand, and we may also position those products more strategically. We also make sure that sales associates who speak Chinese are on duty at that time. Our goal is to have a flexible product mix and dynamic prices.
So, prices that change constantly?
In the past, prices were set only once or twice a year. Today, we try to adjust them perhaps on a weekly basis. This isn’t about individual prices for specific customers, but rather about aligning our product mix, advertising, and prices more closely with the respective passenger flows.
Passenger numbers have recovered since the pandemic. Avolta’s stock price hasn’t recovered to the same extent. Why?
Our revenue is actually growing faster than passenger numbers. Passenger numbers have risen by 3 to 4 percent, while revenue has increased by 5 to 7 percent. This means we’re increasing spending per passenger year after year – in 2022, 2023, 2024, 2025, and hopefully 2026 as well. This is the result of all the measures I’ve described: new concepts, new stores, new product lines. But the world has changed significantly. Many investors are now focusing on other topics, especially AI.
You’re currently expanding rapidly in Asia, have won a major contract in Shanghai, and are acquiring DFS Okinawa in Japan. Is business in Asia going better than elsewhere?
We want to have as broad a footprint as possible. Asia is interesting to us because we’re still relatively small there and therefore have more opportunities for growth. Today, we’re no longer dependent on any one country or any single contract.
How is Avolta affected by the war in the Middle East?
The Middle East accounts for about 3 percent of our total revenue. During the months of the war, this business was severely impacted. Some airports were temporarily closed entirely, while others saw significantly lower passenger numbers. The situation has since improved: some locations are still well below their previous levels, while others are already close to them again.
Your contract at Zurich Airport has been extended through 2035. How attractive is Zurich to you?
By European standards, Zurich is a medium-sized hub with a very good customer profile and many business travelers. In addition, the collaboration with the operating company is excellent. The airport views retail and F&B not just as a source of revenue, but as part of the passenger experience.
Speaking of revenue sources: How much does an airport typically receive from its revenue?
That depends on the market and the category. We don’t disclose specific details. Across all markets and categories, our concession fees account for 25 to 26 percent of revenue.
New security scanners have recently been put into use in Zurich. Passengers no longer have to remove liquids and electronic devices from their carry-on luggage, and larger quantities of liquids are once again permitted. Are you noticing this in your business?
The liquids themselves don’t make much of a difference to us. What’s more important is that security screening is becoming faster and smoother. People buy more when they’re relaxed. Someone who waits a long time at security may objectively still have time afterward, but they feel rushed. Anything that makes the process easier is therefore good for our business.
Specialist in Airport Retail
Xavier Rossinyol (56), a Spanish national, has been CEO of Avolta since June 2022. He has long been familiar with the company: From 2004 to 2012, he served as CFO, and subsequently led the business in Europe, the Middle East, Africa, and Asia until 2015. From 2015 to 2021, he led the Swiss airline caterer Gategroup. Avolta was founded in Basel in 1865 and was known as Dufry until 2023. Following its merger with Autogrill, the Italian highway and airport food and beverage operator, the group adopted the name Avolta. Today, Avolta operates nearly 5,100 stores, restaurants, and cafés with 78,000 employees – primarily at airports, but also at highway rest stops, train stations, and on cruise ships and ferries.