GTR_ASUTIL-June2025-print-issuu by Paramount Publishing Ltd.

JUNE 2025 · VOL 37 · NO 4

Global Travel Retail Magazine (ISSN 0962-0699) is published seven times a year by Paramount Publishing Company Inc. The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or the editor. June 2025, Vol 37. No. 4. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. Paramount Publishing Company Inc.

GLOBAL TRAVEL RETAIL MAGAZINE

Tel: 1 905 821 3344 www.gtrmag.com

PUBLISHER

Aijaz Khan aijaz@globalmarketingcom.ca

EDITORIAL DEPARTMENT

EDITOR-IN-CHIEF Hibah Noor hibah@gtrmag.com

DEPUTY EDITOR

Laura Shirk laura@gtrmag.com

SENIOR EDITOR Wendy Morley wendy@gtrmag.com

SENIOR CORRESPONDENT

Atoosa Ryanne Arfa atoosa@gtrmag.com

SENIOR WRITER

Alison Farrington alison@gtrmag.com

ART DIRECTOR Jessica Hearn jessica@globalmarketingcom.ca

ADVISORY BOARD

Gary Leong Thomas Henningsen

CIRCULATION & SUBSCRIPTION MANAGER accounts@globalmarketingcom.ca

Seeking something new

As we gather in Lima, Peru, for ASUTIL Conference 2025: Nexus, there is a sense of excitement beyond the norm. Taking place against the backdrop of Lima Airport’s new terminal, the annual rotating conference is well-known for integrating the identity of the selected city, as well as the region at large in a vibrant way. According to ASUTIL Secretary General Carlos Loaiza-Keel, the inauguration will be reflected in the content of the program, where airport authorities, Lima Airport Partners and Lagardère Travel Retail will all play an important role. In an exclusive interview with Loaiza-Keel for this issue, he discusses the idea of preserving the identity of the association and its future.

Despite tariff tension and economic challenges, in speaking with the featured experts for our Latin America Overview current opportunities in the region’s travel sector are bright in line with the return to growth of the middle class and proinvestment politics. From its aging population and steadily increasing offering to the potential redirection of passenger flows, Latin America is poised to experience above average growth rates in international tourism over the next decade.

Speaking on a sense of exhaustion with the destinations that fascinated much of the Western World for the last half-century, John Price, Managing Director at Americas Market Intelligence, notes people are seeking something new – and the pandemic was instrumental in planting the idea of a bucket list in people’s minds.

According to economist Carlos Melconian, regional growth forecasts for 20252026 show dramatic variations across Latin America, with Argentina projected to achieve 19.6% gross domestic product growth. We connected with Melconian ahead of his role as speaker on day two of the conference.

With all of this in sight, flight scheduling and structural challenges such as infrastructure limitations and capacity constraints at major hubs need to be resolved. As shared by Rafael Echevarne, Director General, Airports Council International, Latin America & Caribbean, the region must explore smarter slot management, invest in terminal expansions and modernize air traffic control systems. “Collaboration between governments, airlines and airport operators will be essential to sustaining growth and improving the passenger experience,” he says. On this we cover Airbus’ increase in demand for aviation services in Latin America.

We also hear from L’Oréal Travel Retail’s new Managing Director Petrina Kho on plans to reignite consumer conversion and sat down with the co-founders of Código 1530 Tequila to discuss the brand’s growing presence in travel retail.

Looking forward to covering the conference and wishing everyone a great event!

Kindest regards,

LAURA SHIRK Deputy Editor laura@gtrmag.com

WHAT’S INSIDE

The future of travel starts today.

We’re pioneering the travel experience revolution. Combining the best of Autogrill, Dufry, HMSHost & Hudson.

Avolta extends presence at JFK International Airport Terminal 5

Avolta has secured two landmark contracts in North America’s JFK International Airport through its subsidiaries Hudson and HMSHost, including a 10-year deal to revamp the terminal’s dining experience.

Hudson has secured a seven-year contract to launch a Manhattan-inspired retail store and JFK Terminal 5’s first immersive video gaming lounge. Simultaneously, HMSHost will debut six new restaurants spanning over 725 square meters, beginning in 2025. Awarded by Fraport USA, the concessions developer and manager selected by JetBlue, the contracts will further elevate the traveler experience in JetBlue’s award-winning flagship terminal.

“Our vision for JFK Terminal 5 is bold. New York’s worldclass culinary scene deserves to be reflected in its airport

dining,” said Steve Johnson, President and CEO, North America, Avolta. “We appreciate the confidence that the Port Authority of New York and New Jersey, Fraport USA, and JetBlue have in us and our joint-venture partners and that they share in our excitement to transform the traveler experience. 2025 will be a landmark year for Hudson and HMSHost as we expand our retail and F&B operations in several terminals at JFK, one of the busiest airports in North America.”

The new dining venues will showcase New York’s diverse culinary scene, offering authentic Italian and Mexican flavors alongside a locally inspired restaurant and bar designed exclusively for T5 travelers.

In Memoriam: Thom Rankin, former TFWA board member

TFWA has reported the sad news of the passing of Thom Rankin after a short illness. Thom was a member of the TFWA management committee for a number of years and also served on the board for several years, with responsibility for conferences and research.

Philippe Margueritte, TFWA President, said, “It is with deep sorrow that I learned of the passing of Thom. Alongside former TFWA president Erik Juul-Mortensen, I, the TFWA board, management committee and permanent team would like to extend our heartfelt condolences to Thom’s family and loved ones. Thom will be remembered as a loyal, committed and proactive member of our association, as well as a long serving vice president. His dedication and contributions will not be forgotten.”

Erik Juul-Mortensen, who worked with Thom for more than a decade, commented, “Thom was a much-valued member of the global duty free and travel community, who was well respected by all. Under his tenure, TFWA’s conference and research program was developed into an essential resource that still stands its members in good stead. He truly embraced the spirit of our industry and was fully devoted to ensuring that TFWA fulfilled its promise to be ‘by the trade, for the trade’.”

Thom Rankin passed away following a short illness

MSC Cruises opens world’s largest cruise terminal at PortMiami

MSC Cruises inaugurated the world’s largest and most advanced cruise terminal at PortMiami.

The new MSC Miami Cruise Terminal sets a global benchmark for cruise infrastructure as the first in the industry to implement a complete biometric journey with digital identity verification for a seamless embarkation experience.

Imagined by global design firm Arquitectonica and built by Fincantieri Infrastructure, the 492,678-square-foot facility is capable of processing up to 36,000 passengers daily and was developed with the guest experience at its core. As the first and last impression of a guest’s holiday, every step is carefully streamlined for a stress-free embarkation.

The new terminal will serve both MSC Cruises’ and Explora Journeys’ ships sailing from PortMiami, including MSC Cruises’ new flagship, MSC World America.

From beginning to end, the MSC Miami Cruise Terminal streamlines processes which include:

Check-in from the comfort of home: Guests can check-in for their cruise online, via the MSC for Me app or the MSC Cruises website.

Arrive at the terminal with ease: Guests can arrive by car, bus, taxi or ride share without hassle. Those arriving by car can park in the terminal’s impressive six-level garage with over 2,400 spaces and reserve their parking spot in advance.

Dropping bags is a breeze: Guests who have checked in online can simply scan their boarding pass and drop their luggage at one of the secure, strategically placed drop-off points in the parking garage before continuing to the terminal.

Check-in and security are faster than ever thanks to biometrics: Guests who have opted into the biometric journey can scan their passport and look at the camera of one of the terminal’s 18 biometric face pods for validation.

Relax pre-cruise: Guests will enjoy a terminal bathed in natural light, where Biscayne Bay’s sparkling waters reflect through the facility’s expansive glass façade.

One last step to embarkation, powered by biometrics: The terminal uses 22 biometric E-gates to finalize the embarkation process before guests enter the gangway.

Seamless disembarkation and luggage collection: Guests will benefit from an easy, quick disembarkation thanks to an advanced baggage handling and processing system.

“In line with expectations”: SSP Group releases 2025 half year results

SSP Group has reported financial results for the half year ended March 31, 2025.

Revenue of £1,661 million (US$2,221 million) was up 9% at actual exchange rates and 12% on a constant currency basis, with like-for-like sales growth of 5%.

Patrick Coveney, CEO of SSP Group, said, “We recognize the importance of driving enhanced performance, and we are executing against our agenda to achieve this. Our accelerated actions include a decisive turnaround plan for our Continental European Business, a program to deliver the full benefits of recent strategic and capital investments

and a further step up in initiatives to deliver cost efficiencies.

“As a result, notwithstanding the higher level of macroeconomic uncertainty, we are maintaining our full-year guidance.”

Coveney continued, “Given the resilience of our business and the strong foundations that we have built in growing food travel markets across the world, we continue to see significant opportunities for SSP to drive compounding growth and to build margins and returns in the medium- and long-term.”

Setting a global benchmark: MSC Cruises' new terminal at PortMiami, Florida

L’ORIGINALE

WHERE WILL IT TAKE YOU ?

THE NEW EAU DE PARFUM

Operation Nexus

LAURA SHIRK

Asociación Sudamericana de Tiendas Libres (ASUTIL) has partnered with leading travel retail research agency m1nd-set to provide ASUTIL members with regular insights on traffic forecasts and shopper insights via a quarterly newsletter. The new service, which draws on m1nd-set’s in-depth research, is based on interviews conducted across more than 20 airports in Latin America. The first edition focuses on an analysis of air traffic performance in the region for the full year of 2024, comparing traffic levels to pre-COVID in 2019, 2025 and 2030. The inaugural report

also analyzes shopper behavior among international Latin American travelers looking at all key behavioral trends, as well as the main footfall and conversion key performance indicators.

“These reports will deliver critical insights into international air traffic trends, travel retail performance, shopper profiles and behaviors, as well as barriers to conversion. Importantly, they also offer strategic, actionable recommendations to help boost engagement, conversion, and spend across duty free environments in the region,” says ASUTIL Secretary General Carlos Loaiza-Keel. “In today’s rapidly evolving

market, it is vital for all stakeholders to stay closely attuned to changing shopper dynamics, and this collaboration with m1nd-set will be an indispensable resource for our members.”

According to the initial update, ASUTIL reports air traffic across Latin

Thrill seekers take in a bird’s eye view of the city while paragliding along the coast of Miraflores in Lima, Peru

Carlos Loaiza-Keel, Secretary General, South America Duty Free Association

ASUTIL and m1nd-set consider international air traffic departures – Latin America versus global

America and the Caribbean shows healthy growth trends for 2024 as well as in the medium-term, when compared to global air traffic trends. The association notes, “While global growth is set to accelerate between 2024 and 2030 with a projected 28% increase over this period, Latin America maintains steady but slightly lower growth at 22% over the same period. The cumulative growth from 2019 to 2030 however, is expected to be slightly higher in Latin America (39%) than the global average (38%).”

When speaking to Global Travel Retail Magazine about the impact of US President Trump’s trade war on currency in the Americas, Loaiza-Keel points out although the association can’t deny the impact of the new geopolitical scenario on the travel retail industry, ASUTIL remains optimistic based on the opinions of its well-informed

sources and data-based partners.

“We have good reason to be confident that tourism and consumption by our passengers in the region will continue to grow in the coming years, and that existing opportunities such as Brazil’s domestic tourism, inbound and outbound travel in Argentina and the rebound of the Caribbean remain relevant. [The Latin American consumer] is one that demands greater sophistication and exclusivity, but also environmental and social awareness and, above all, experiences, but the players in the industry are ready for this challenge,” explains Loaiza-Keel.

Latin American charm

The notion of building travel around personal preferences is becoming increasingly relevant around the world – and in Latin America. Loaiza-Keel

says operators in the region have a lot of experience and capacity to satisfy this preference of potential consumers. Plus, the Latin American culture “and therefore the human capital of our countries” identifies with this approach. This is also part of the identity of ASUTIL and its conferences. He shares, “It is the magic that we experienced last year in Bogotá, and it is the core of the ‘nexus’ that we want to experience this year in Lima.”

ASUTIL Conference 2025: Nexus is taking place against the backdrop of the grand opening of Lima Airport’s new terminal. Since the association’s annual conference is a rotating one, the team believes the choice in location should be sensitive to the interests of the industry and those in attendance. The inauguration will also be reflected in the content of the program, where the airport authorities, Lima Airport Partners

EXPLORE NEW HORIZONS

The first quarterly ASUTIL newsletter highlights notable demographic distinctions between Latin American travel retail shoppers and their global counterparts. Latin American duty free shoppers are younger, with Gen Z representing 15% and Millennials 34% of the consumer base

and Lagardère Travel Retail all play an important role. “We believe that this type of criteria should also guide us in the selection of future locations,” states Loaiza-Keel.

A return to the Caribbean

Although the Secretary General can’t confirm what conference locations ASUTIL is considering for the future,

the association is looking to return to the Caribbean. “Our members have very robust operations there and it is a region that we see as dynamic and expanding for the various channels in the industry,” he says.

On what direction the association is heading in terms of balancing its sense of exclusivity and interest in growth, Loaiza-Keel says the team is con-

vinced with the support of its Board of Directors, that ASUTIL must preserve its identity in order to guarantee the conference atmosphere that it offers. “To this end, size is one of the key factors and we believe it is worth preserving. Because at the end of the day, we believe that we can evolve and improve without compromising our identity,” comments Loaiza-Keel.

An evening shot of The Plaza Mayor, also known as the Plaza de Armas, in Lima; it is the main public square of the historic city center

CROSSING OFF THE BUCKET LIST

John Price, Managing Director, Americas Market Intelligence

by LAURA SHIRK

As demographics change globally, travelers tire of tariff talks and the region steadily increases its offering, Latin America is expected to experience above average growth rates in international tourism over the next decade. We speak to experts about the potential redirection of passenger flows, the rise of niche travel segments and its aging population

Since returning to office in January for his second term, US President Trump’s trade war has strongly impacted currency in the Americas, particularly the Mexican peso. The currency has experienced volatility tied to tariffs, trade tensions and shifting investor confidence. John Price, Managing Director at Americas Market Intelligence, notes the peso has lost approximately 10% of its value since Trump’s first day back. While this is partially driven by the economic recession underway in Mexico, he believes

three-quarters of it can be attributed to the work of the world leader.

However, despite the ongoing turbulence, Rafael Echevarne, Director General, Airports Council International, Latin America & Caribbean, explains the long-term fundamentals of the economy remain relatively stable and the impacts have not yet translated into a major disruption for the broader travel and tourism industry.

“Looking ahead, the persistent uncertainty surrounding US foreign and trade policies could pose long-

term challenges. Latin America and the Caribbean are heavily reliant on US outbound tourism and policy unpredictability – whether due to visa changes, economic fluctuations or geopolitical tension – can hinder planning and investment in tourism infrastructure,” shares Echevarne. “That said, the region has proven resilient, and this uncertainty may even drive diversification strategies that promote intra-regional tourism and engagement with other international markets.”

Alternative destinations and sector opportunities

For a closer look at the current state of Latin America, Global Travel Retail Magazine spoke with Price and Echevarne about opportunities for the travel industry in line with the return to growth of the middle class and pro-investment politics, changing traveler preferences and expected key challenges.

Rafael Echevarne, Director General, Airports Council International, Latin America & Caribbean

It is anticipated starting toward the end of this year and well into 2026 and 2027, the lifting of Argentina’s currency controls will translate into increased outbound tourism

“As the region adopts more liberal aviation policies and encourages open skies agreements, access to air travel is expanding across socioeconomic groups,” remarks Echevarne. While the United States continues to be the primary destination for travelers from Latin America and the Caribbean, he adds it is possible the region could benefit from redirecting passenger flows from Canada and Europe, as vacationers originally planning to travel to the US choose alternative destinations.

Speaking about sector opportunities, Price highlights Brazil’s domestic tourism, inbound and outbound travel in Argentina and the rebound of the Caribbean. As a result of increased public and private investment in hotel and airport infrastructure in Brazil, as well as the corresponding drop in price of domestic travel, affluent Brazilians are

exploring closer to home or traveling to Chile or Panama to avoid the steep premiums attached to the luxury brands they seek.

Describing 2025 as a “breakout year” for Argentina, Price touches on the currency appreciation currently being experienced there and how it will translate into increased outbound tourism. It is anticipated that once its currency controls are lifted several billions of dollars of hedge fund and pension fund monies will enter Argentine capital markets, which will boost the spending power of the average middle class and upper middle class citizen. Starting toward the end of this year and well into 2026 and 2027, people who have wanted to travel for a long time will finally be able to afford to. Price shares, “This move will also whet the appetite of investors to invest more in all kinds of real estate

and development including tourism. It will also give the government more money after several years of austerity to invest in road building and new infrastructure that will support tourism, particularly outside of Buenos Aires.”

Along with those in South America wanting access to safe, quality beaches, it is believed that European and Canadian disdain for the United States will drive sunseekers further south to the Caribbean, more so than in the past, with travelers visiting countries such as Mexico, Dominican Republic and Jamaica. According to Price, the Caribbean has upped its game in terms of creating a more diversified offering that embodies niche travel segments including adventure and eco-tourism and cultural tourism. Case in point, foreign direct investment in tourism totalled over US$1.5 billion last year for Mexico’s Yucatán Peninsula.

Changing preferences and key challenges

Latin America travel sector growth snapshots indicate regional air travel grew 12% and Latin America and Caribbean cruise visits rose 17% in 2024. As demographics change globally, Price says international tourism will increase at levels above gross domestic product growth rates. “A greater proportion of the population is reaching the ages between 50 and 75 and this is when people both have the economic means and the time to take longer periods of time to travel internationally,” he notes.

Beyond Latin America’s offering steadily increasing, there is a sense of exhaustion with the destinations that have fascinated much of the Western World for the last half-century (i.e. Western Europe, United States and Canada). People are seeking something else.

“I think COVID was instrumental in planting the idea of a bucket list in people’s minds and confronting their own mortality woke people up to the idea that they want to try something new – and Latin America would be up

As demographics change globally, Price says international tourism will increase at levels above gross domestic product growth rates

there on the list of that,” explains Price. “I don’t believe the same rates of growth will be sustained because part of that is a post-COVID bump, but we’ll defi-

nitely see above average growth in Latin America – and to a lesser degree in the Caribbean – over the next 10 years than we’ve seen in the past.”

The notion of building travel around personal preferences and travel themes is becoming increasingly relevant worldwide. Echevarne says, “Regional destinations in Latin America and the Caribbean remain vastly underexplored from a global tourism standpoint. We are actively working to open these destinations to direct international travel and to increase their visibility among global travelers.”

Known for its gastronomy, natural landscapes, sports-themed activations and more, what is special about Latin America is its cultural offering. There is so much to see and do. These niche travel motivations are still only being developed organically; however, the issue of safety and navigating the messaging around this topic is difficult to break through to the mindset of a traveler.

According to Echevarne, double-digit growth in the travel sector is possible but not guaranteed, especially given structural challenges such as infrastructure limitations and capacity constraints at major hubs. One of the most pressing challenges is how to manage airport and airspace capacity more efficiently.

“Another key issue is flight scheduling. Many US airlines design their flight times to align with hub-and-spoke wave patterns, making it difficult for Latin American airports to spread demand evenly throughout the day. This creates peak congestion periods that strain existing facilities and resources. To address this, the region must explore smarter slot management, invest in terminal expansions and modernize air traffic control systems.

“Collaboration between governments, airlines and airport operators will be essential to sustaining growth and improving the passenger experience. Long-term planning and investment in infrastructure – both physical and digital – will be critical to ensuring that the region can continue to grow in a sustainable way,” concludes Echevarne.

An economic outlook of 2024-2026 shows Latin American markets are middle income markets by global standards

“A greater proportion of the population is reaching the ages between 50 and 75 and this is when people both have the economic means and the time to take longer periods of time to travel internationally,” notes Price

An economic outlook comparing 2024 to 2008 shows despite economic challenges, the number of mass affluent households across Latin America is growing robustly

Travelers aged 50-75 are projected to outpace overall GDP growth in

for

Shifting trade winds

by WENDY MORLEY

Aresurgence of US trade protectionism unmatched since 1930 has sent ripples through Latin American economies, though the effects are varied across the region. While the Mexican peso has lost approximately 10% of its value since January, other regional currencies have shown greater resilience against this geopolitical backdrop.

“The impact on Latin American currencies has been limited and transitory so far,” explains economist Carlos Melconian. “This is partly because the trade war, which was initially declared a global tariff hike, has gradually turned into a focused conflict between the US and China.”

Macroeconomic recalibration

Despite relative currency stability, broader economic consequences cannot be ignored. Regional growth forecasts for 2025-2026 show dramatic variations across Latin America, with Argentina projected to achieve 19.6% nominal GDP (gross domestic product) growth while Mexico contracts by 4.7% in US dollar terms.

“There is an undeniable impact on the global macroeconomy,” Melconian notes. “We see a deceleration in global growth and trade, but we lack solid indicators that would allow us to measure the magnitude of the impact quantitatively.”

The current environment contrasts

sharply with the robust conditions that characterized the previous year. Melconian calls 2024 impressive. He explains, “Strong world growth, disinflation, central banks cutting interest rates in an almost synchronized manner, positive wealth effects due to brilliant financial market performance, solid commodity prices, stable emerging currencies.”

Tourism’s resilience

While manufacturing sectors brace for impact, the tourism sector particularly demonstrates resilience

Economist Carlos Melconian

tourism spending

at least the next decade in the region

amid the shifting trade landscape.

European and Canadian travelers are increasingly looking southward, bypassing the United States in favor of Caribbean destinations.

“The tourism sector does not seem exposed to a direct blow from the trade war. Instead, the trade war will involve industries that manufacture and export goods. There should therefore be no sudden stop in tourism flows,” Melconian observes.

This resilience positions tourism uniquely within regional economies. As manufacturing faces direct tariff exposure, travel services benefit from Latin America’s appeal as a value destination. The psychological shift toward bucket list experiences further insulates tourism from immediate trade war impacts.

Consumer evolution

The Latin American travel landscape is being reshaped by substantial socioeconomic progress and increasing consumer sophistication across the region.

“In spite of the political ups and downs that Latin America has experienced in recent years, the region’s economies have made significant progress in terms of macro stability in the past two or three decades, allowing their populations to thrive in terms of income and job opportunities,” Melconian explains.

This economic stability has fostered an expanding middle class with greater discretionary spending power. Despite periodic setbacks, the number of mass affluent households has grown robustly across major economies. These increasingly sophisticated consumers have developed more discerning travel preferences, aligning with global trends toward experiential tourism.

Strategic imperatives

Latin American travel operators face a market characterized by increasing polarization between luxury and value segments. With economic uncertainty looming for 2025-2026, businesses are adapting their pricing models and service offerings to accommodate budget-conscious travelers without sacrificing quality.

“The industry should be prepared for consumers who are looking for ways to save, who prioritize environmental sustainability, driving the demand for ecological products and services, and boosting the availability of digital means of payment,” Melconian advises. “Destinations that do not address the sustainability of tourism and that are not at the forefront of means of payment or e-commerce may fall off the menu.”

This shift is manifesting in ecofriendly accommodations across Patago-

nia’s expanding tourism corridor and sustainable tourism initiatives in Chile’s national parks network. Meanwhile, multi-tiered pricing strategies are emerging as businesses respond to the region’s changing income distribution – luxury expenditure continues to grow among the more affluent, while thoughtfully designed mid-market offerings cater to the expanding population of middle-income travelers with increasingly sophisticated expectations.

Argentina’s resurgence

Against this mixed regional backdrop, Argentina presents a particularly intriguing case with its macroeconomic restructuring under a non-traditional administration. The combination of fiscal discipline and currency appreciation creates distinctive dynamics for tourism flows.

“Argentina is governed by a very particular administration,” Melconian states. “It is a new set of politicians that do not stem from traditional politics, and they have to deal with a large opposition in Congress.”

The administration’s focus on securing an early fiscal surplus provides a stabilizing anchor, though exchange rate management remains challenging. Recent policy adjustments implemented in April introduced a single foreign exchange market with established boundaries between 1,000 and 1,400 pesos per dollar.

“The current real exchange rate is strong; it encourages demand for dollars to pay for imports, to save, and, more importantly, to travel abroad,” says Melconian. “It discourages exports, capital inflows and tourism in Argentina.”

This currency environment creates contrasting outcomes for different tourism segments. Higher-end businesses offering distinctive experiences may capitalize on inbound travelers seeking value, while outbound tourism from Argentina will likely surge as residents find international travel increasingly affordable.

Outbound passenger traffic from Argentina is expected to rise sharply in 2025 as the country’s new FX regime boosts demand for overseas travel and enhances consumer purchasing power

On the right path

With retail and F&B offerings becoming increasingly sophisticated in Latin America, Lagardère Travel Retail approached the 2025 Lima Airport opening as a unique opportunity to reinforce its presence in the

and set a new benchmark

by LAURA SHIRK

Defining consumer spending in Q1 2025 as a “mixed picture,” shoppers, brands and retailers continue to face economic pressures and geopolitical tensions. According to Lagardère Travel Retail, across the Americas, it was largely shaped by ongoing global economic uncertainty and shifting international trade dynamics. Showing resilience, consumer spending in Latin America remained relatively strong despite global pressures throughout the

first quarter. North America showed a different story, experiencing a higher level of uncertainty.

Jean-Baptiste Morin, Regional COO, Americas, Lagardère Travel Retail, explains, “While passenger traffic [in North America] remains strong and dynamic, inflation continues to be a key concern, and the combination of geopolitical tensions and cautious consumer sentiment has led to more restrained spending patterns. Consumers are becoming more selective, prioritizing

essential goods and services while delaying discretionary purchases.”

The company is pleased to see Latin America now reaching pre-pandemic performance levels. As Morin notes, the macroeconomic environment has been favorable overall, which supports both consumer confidence and travel demand. “While the region is still in recovery, particularly after the impact of the pandemic, we are clearly on the right path. Our main focuses have been Santiago and Lima, two key markets where we see great potential and where our teams are fully mobilized to accelerate growth,” he shares.

Speaking about its performance last year, Morin adds, Lagardère Travel Retail achieved solid growth across its integrated business model and three

region

Jean-Baptiste Morin, Regional COO, Americas, Lagardère Travel Retail

business lines: duty free, fashion and food & beverage (F&B). The retailer also won a significant number of RFPs (request for proposals) in 2024, which positions it well for future expansion.

Looking ahead, Morin says, it is essential to be more selective when bidding on projects, particularly in the current market climate. “In North America, for instance, we are facing a significant rise in costs, especially with staff-related expenses, which makes the profitability of several projects increasingly challenging. As a result, we have already become more selective in our approach and have decided not to position ourselves on certain tenders,” he continues. “In fact, if a project does not pencil, we choose not to engage.”

This said, Lagardère Travel Retail remains very interested in the dynamic region, which shows great promise for the future.

Lima Airport: sense of place

and sustainability commitment With retail and F&B offerings becoming increasingly sophisticated in Latin America, Lagardère Travel Retail approached the 2025 Lima Airport opening as a unique opportunity to reinforce its presence in the region and set a new benchmark. Morin says, “We’ve developed a unique sense of place, celebrating Peru’s extraordinary culinary heritage by partnering with top chefs such as Mitsuharu Tsumura (Maido) and Jaime Pesaque (Mayta). These collaborations bring authentic Peruvian flavors to the airport, using local suppliers to promote sustainable sourcing and support the local economy.”

With a great selection of local products, from premium liqueurs to chocolate, the retail offering at the

airport highlights Peruvian excellence, giving travelers an authentic taste of the country. Additionally, the retailer has integrated the latest technologies including self-service and self-checkout solutions. Morin says sustainability is at the heart of the project, with a zeroplastic policy at all F&B operations and a commitment to social impact through its partnership with Forge and Lima Airport Partners to hire 100 young professionals from the local community.

“This project perfectly reflects our ambition to deliver meaningful, sustainable and locally inspired travel experiences,” he states.

In 2025, Lagardère Travel Retail has several other new openings and projects planned across Latin America in the process of development. More details to come.

A benchmark in the region

Describing ASUTIL 2025: Nexus as an important moment for our industry, Morin believes that bringing the annual conference to Lima at the time of the Lima Airport terminal opening is the perfect opportunity to showcase not only the dynamism of the region, but also the excellence of Lagardère Travel Retail’s operators at this key airport.

“The new terminal in Lima is a perfect demonstration of our operational excellence. It highlights the extraordinary work that has been done by our teams both locally and globally to deliver an outstanding travel retail experience. It also reflects the power of collaboration between our teams, our partners, and all the stakeholders who have contributed to making this project a success.

“Hosting ASUTIL 2025: Nexus in this context allows us to share this success story with the wider industry and to position Lima as a benchmark in the region. It’s a good way to demonstrate our commitment to raising standards and delivering exceptional experiences for travelers,” he concludes.

A look at Lagardère Travel Retail’s presence at Santiago Airport in Chile

Serving luxury

Motta Internacional’s

Luxury Avenue at Panama’s Tocumen Airport represents a significant evolution in the region’s travel retail landscape. Commercial Vice President Ignacio Lasa addresses how this curated collection of brands caters to discerning international travelers seeking premium shopping experiences

by LAURA SHIRK

Motta Internacional’s

Attenza Duty Free has opened a new Luxury Avenue in Terminal 2 at Tocumen International Airport in Panama City, Panama. The promenade offers the latest from luxury fashion and lifestyle brands and showcases a select number of elevated boutiques featuring accessories, leather goods, watches, jewelry, shoes and apparel: Tory Burch; Montblanc and TAG Heuer; TUMI and Longchamp Paris and Polo Ralph Lauren.

At the heart of the airport’s luxury transformation: a renewed focus on creating distinctive retail environments that reflect each brand’s rich heritage.

This is often communicated through every element of the brand’s identity –the product, the store design, the sales force and more. As an example, the Tory Burch boutique exemplifies this approach with a façade distinguished by a unique parquet pattern crafted in ceramic tile and screens displaying seasonal campaign imagery.

According to the team, the Luxury Avenue represents a significant evolution in the region’s travel retail land-

The dual-concept boutique featuring TUMI and Longchamp Paris caters to travelers seeking premium luggage and accessories

Ignacio Lasa, Commercial Vice President, Motta Internacional

scape, establishing a dedicated high-end shopping destination. This curated collection of brands caters to discerning international travelers seeking premium shopping experiences.

“Luxury has always been a priority in travel retail, and Tocumen Airport aimed to develop a dedicated luxury area for this category,” says Ignacio Lasa, Commercial Vice President, Motta Internacional. “The Motta Group participated in this effort, bidding for store space with some of the luxury brands we represent. We are proud to confirm that today, the main area designated exclusively for luxury is where our stores are located. However, we would like to highlight that the term ‘evolution’ can imply that one concept or offering was replaced by a more advanced one.”

Lasa notes in this case, Tocumen Airport still features a broad non-luxury offering, which is an excellent commercial strategy for the group’s growing base of international passengers who are not necessarily luxury shoppers. “The large expansion area provided an opportunity to create a distinct zone for this particu-

lar group of travelers who have always traveled – and will continue to do so,” he adds.

Brand resilience and retail competition

Post-opening, the expansion has worked well and Motta Group continues to partner with the airport and its brands to communicate this area in the best and most precise way possible. This includes strategic out-of-home placements across both terminals to ensure visibility of the new boutiques. Press initiatives and collaborations with both influencers and brand friends serve as a key component to Motta Group’s media and communication strategy. “We aim to reach the specific traveling target consumer offline and online considering their demographic and lifestyle,” says Lasa.

One markable tendency postCOVID-19 has been the resilience of luxury brands – many of which have not only recuperated quickly, but surpassed pre-pandemic figures. Lasa explains, “Tocumen Airport’s decision to dedicate a specific area in the new Terminal 2

for luxury brands not only reflects its understanding of this trend, but also the stability that these brands should bring to the airport since the category has proven resilience to changing economic situations.”

Speaking about how this expansion reflects a broader trend in airport commercial development, where operators are increasingly focused on developing premium retail environments that can compete with high street shopping destinations, Lasa believes airports should tailor areas for premium retail environments in a way that meets the highest standards of the industry to compete with local malls.

“However, as an industry, we must not forget that a large proportion – the majority in fact – of travelers do not shop at duty free stores. This segment also represents a significant opportunity. Fortunately, these two strategies are not mutually exclusive,” he says. “The best approach to serving all passengers is to organize specific areas for different types of products – just like shopping malls do.”

Providing

sophisticated selection of the brand’s signature handbags, shoes and accessories, the Tory Burch boutique features a façade distinguished by a unique pattern crafted in ceramic tile and screens displaying seasonal campaign imagery

The Polo Ralph Lauren boutique in T2 offers a curated seasonal apparel collection, reinforcing the brand’s 50-year legacy of authentic, timeless style that resonates with international travelers

Bright southern skies

Airbus’ expanding fleet – from single-aisle mainstays to nextgeneration widebodies – positions the manufacturer to support Latin America’s projected need for 2,600 new aircraft by 2043

by WENDY MORLEY

In 2024, Europe-based aircraft manufacturing giant Airbus delivered 766 commercial aircraft worldwide, surpassing the previous year’s total of 735, with 53 delivered to Latin American carriers. The company has been pointedly strengthening its strategic position in Latin America, particularly in Chile.

Damien Sternchuss, Vice President and Head of Airline Marketing, Airbus Latin America & Caribbean says, “In 2024, Airbus achieved significant financial success, marked by record revenues and strong operational performance. The company reported consolidated revenues of €69.2 billion [US$74.7 billion], a 6% increase from the previous

year. Its net profit reached €4.23 billion [US$4.53 billion], a 12% rise compared to 2023.”

Chile has emerged as a significant market, receiving more than half of the region’s new aircraft deliveries in 2024. “Right now, Chile is a very important market for Airbus. We account for 74% of the country’s commercial aircraft fleet, and 100% of the single-aisle aircraft with our clients LATAM, Sky, and JetSMART,” notes Yohan Closs, Vice President of Customer Services, Airbus Latin America & Caribbean.

Widebody growth

Beyond the single-aisle market where Airbus has established dominance, the

company is experiencing significant growth in its widebody segment.

Sternchuss says, “Over the past years we have seen a big order intake for our widebody aircraft, confirming that we have the best products for that market segment. If we just look at 2024, the A330 and the A350, we received 224 gross orders and we delivered 89 aircraft.”

These figures included several milestone deliveries, including the first A350 to Emirates. In Latin America, the company announced a Memorandum of Understanding with the Abra Group for five A350 aircraft.

Sternchuss emphasizes the strategic importance of expanding the A350’s

Damien Sternchuss, Vice President and Head of Airline Marketing, Airbus Latin America & Caribbean

presence in the region, to strengthen air connectivity between Latin America and the rest of the world. He describes the A350 as, “the world’s most modern and efficient widebody aircraft and the long-range leader in the 300-410 seater category, flying efficiently from shorthaul to ultra-long-haul routes up to 9,700 nautical miles.”

Rising demand across the region

The growing demand for aviation services across Latin America stems from several factors beyond just population growth and the rising middle class, according to Sternchuss.

He explains, “The increasing demand for aviation services across Latin America is being driven by a combination of economic, technological and structural factors. As GDP (gross domestic product) per capita in the region is projected to grow faster than the global average over the next decade, more people are gaining the financial means to travel by air, both for leisure and business.”

Sternchuss notes that the expan-

sion of low-cost carriers in key markets like Brazil, Mexico, Chile and Colombia have made air travel significantly more affordable and accessible. “This democratization of air travel has led to a significant increase in passenger traffic on both domestic and intra-regional routes,” he says.

Recent industry data confirms this growth trajectory, with IATA reporting global air passenger demand hitting a record in 2024. Total full-year traffic in 2024 (measured in revenue passenger kilometers or RPKs) rose 10.4% compared to 2023. In Latin America that RPK rose 7.8%.

“Domestic and international passenger traffic in Latin America is expected to grow at an annual rate of 5.5% until 2027 as a result of the pandemic recovery,” says Sternchuss. “In the medium to long-term, traffic will return to prepandemic trends and is expected to have an annual growth rate of 3.6% between 2028 and 2043.”

These projections translate to significant changes in travel patterns across

the region. “In Latin America yearly trips are expected to grow from 0.48 annual trips per capita in 2023 to 0.94 annual trips per capita in 2043. Travel rates per capita will double in Peru and more than double in Brazil, Chile and Colombia,” he shares.

Future fleet requirements

According to Airbus’ Global Market Forecast (GMF), Latin America and the Caribbean will require approximately 2,600 new aircraft over the next 20 years to meet growing demand. The passenger and freighter fleet is projected to grow from 1,560 in 2023 to 2,670 aircraft by 2043, with 2,570 fulfilled by new aircraft deliveries and 100 remaining from today’s fleet.

Single-aisle aircraft will continue to dominate, accounting for 90% of total new deliveries (about 2,300 aircraft), while widebody aircraft will represent the remaining 10% (approximately 270 units).

This forecast is driven by several demographic and economic factors. The

As Latin America’s largest airline, LATAM plays a central role in the region’s aviation growth – its single-aisle fleet is made up entirely of Airbus aircraft, and the airline contributes to the manufacturer’s strong market presence

The Airbus A330 plays a key role in meeting Latin America’s growing demand for widebody aircraft, contributing to record deliveries and strengthened regional connectivity in 2024

region is expected to see population growth of 74 million inhabitants over the next two decades, with the middle class expanding by 87 million people to represent two-thirds of the total population by 2043. The region’s average GDP is projected to grow at 2.9% CAGR (compound annual growth rate) through 2043, slightly above the world average.

Rafael Echevarne, Director General of Airports Council International, Latin America & Caribbean, confirms that capacity constraints are already affecting regional growth. “The forecast by Airbus highlights both the tremendous potential of the Latin American and Caribbean aviation market and the urgency of ensuring sufficient capacity to meet that demand. Unfortunately, we are already seeing cases where growth ambitions are being held back due to aircraft shortages.”

Regional infrastructure development

Meeting this projected growth will require substantial development.

“Strengthening the region’s infrastructure is vital for maintaining competitive and efficient air travel,” says Sternchuss. “This includes both passenger terminals and cargo facilities, especially as international trade and tourism expand.”

These developments create opportunities for specific aircraft types to serve different market segments. “We see a huge potential for aircrafts like the A220 perfect for airlines’ domestic expansion,” Sternchuss points out. “The A220 offers a unique ability to fly both regional and longer-range missions with one single aircraft type. Its superior range capability allows more destinations to be served while being more fuel-efficient and having lower operating costs per trip.”

For established routes, Sternchuss mentions another model, “The A321neo helps airlines to consolidate mature markets with established demand and will help capture further growth in the most profitable way for airlines.”

Sustainability roadmap

As passenger numbers increase, sustainability becomes increasingly critical. Airbus is working with regional stakeholders to advance decarbonization efforts aligned with 2050 goals. Sternchuss says, “We cannot leave our decarbonization roadmap out. At Airbus we are working towards our ambition of pioneering sustainable aerospace and to deliver on the industry’s objective of net-zero emissions.

“Achieving these targets requires a collective effort from governments, industry partners and stakeholders. Establishing robust regulatory frameworks is essential to drive market stability and unlock private investment in SAF, advanced technologies, optimized air traffic management and carbon dioxide removal solutions,” he emphasizes.

Recent progress includes new regulatory frameworks in Brazil, roadmaps in Colombia, and ongoing work in Chile. Airbus has also partnered with the International Civil Aviation Organization to support Sustainable Aviation Fuel feasibility studies for Argentina, Panama and Peru.

Sternchuss says, “This is a defining moment and at Airbus we are proud to lead the way not only delivering fuel-efficient aircraft advancing through sustainable aviation fuels and technologies but also supporting the industry.”

Chile’s air traffic is soaring, prompting major expansions at Santiago’s Arturo Merino Benítez Airport. Recent upgrades have doubled capacity, with plans aiming to handle over 100 million passengers by 2040

LATAM Airlines reports record profit

LATAM Airlines Group (LATAM) has posted a net income of US$355 million for Q1 2025, representing a 38% increase year-on-year. The airline carried over 21 million passengers during the quarter and achieved an adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization and restructuring or rent costs) of nearly US$1 billion – a new record for the group.

The strong performance has prompted LATAM to raise its full-year EBITDAR guidance to between US$3.4 billion and US$3.75 billion. The group cited stable demand, especially in international and domestic South American markets, and disciplined cost control as key drivers of profitability.

LATAM also continues to invest in fleet renewal and cabin upgrades, with newly retrofitted Boeing 787s entering service this spring. The carrier is now among the most profitable airlines in the Americas and continues to build on its recovery after exiting Chapter 11. Analysts view LATAM’s performance as a signal of renewed strength for the broader Latin American aviation market.

El Salvador’s Pacific Airport project breaks ground

Construction has begun on El Salvador’s long-anticipated Pacific Airport (Aeropuerto del Pacífico) in Conchagua, La Unión. The first phase of the government-backed project includes a 2,400-meter runway and a small terminal with two gates, targeting a modest annual capacity of 300,000 passengers.

The total project investment is US$386.4 million, financed through a combination of international and domestic sources. While future phases could eventually support up to five million passengers annually, the current build remains relatively limited in scope. The airport is part of President Nayib Bukele’s broader economic development plan for the eastern region, alongside initiatives such as Bitcoin City and new highway infrastructure.

Supporters say the project will generate thousands of jobs and diversify air

access beyond San Salvador. Critics, however, have raised environmental concerns due to the airport’s proximity to protected mangrove areas. Construction is expected to continue through 2026.

LATAM Airlines’ Boeing 787 Dreamliner, part of the fleet receiving upgrades as the airline reports record Q1 2025 profits of US$355 million

El Salvador’s Pacific Airport in Conchagua, a US$386.4 million project featuring a 2,400-meter runway designed for initial capacity of 300,000 passengers, with future capacity to five million

Bogotá Airport City project promotes regional MRO hub

“Invest in Bogotá” unveiled the Airport City (Ciudad Aeropuerto de Bogotá) project this month at the ALTA CCMA & MRO Conference, outlining a major urban and logistics hub centered around El Dorado International Airport to position Colombia’s capital as a leading destination for aviation investment in Latin America.

The project is led by Invest in Bogotá and aims to integrate airport operations with broader urban development through infrastructure such as the International Airport Modal Center (CIMA). Backed by local authorities and the private sector, the airport city model supports the growth of maintenance, repair, and overhaul (MRO) services, logistics, and commercial real estate around El Dorado International Airport.

With Bogotá already handling over 35 million passengers annually and rising cargo volumes, stakeholders say the region is well placed for expanded aeronautical investment. The initiative aligns with national efforts to improve

multimodal connectivity and create an ecosystem around the airport that fosters economic diversification and job creation in aviation-linked sectors.

Corporación América reports 14% passenger growth in April

Corporación América Airports (CAAP), one of Latin America’s largest private airport operators, reported a 14.0% year-on-year increase in passenger traffic across its global network in April 2025. Argentina led the way with a 16.4% rise, including a notable 13.9% increase in domestic travelers.

International passenger growth was also strong at 14.1%, with higher volumes in Brazil, Uruguay, and Italy. CAAP attributes the results to continued recovery in air travel demand and the rapid expansion of low-cost carriers, especially JetSMART, which has now become Argentina’s secondlargest domestic airline.

The growth comes as several of CAAP’s managed airports ramp up commercial and infrastructure investments, including terminal upgrades and concession expansions. These traffic trends reinforce the resilience

of Latin America’s aviation market, which has rebounded steadily despite macroeconomic headwinds. The company is listed on the NYSE and operates 52 airports in six countries across Latin America and Europe.

El Dorado International Airport in Bogotá, central to the new Airport City development project aimed at positioning Colombia’s capital as a leading aviation investment hub

Carrasco/General Cesáreo L. Berisso International Airport in Montevideo, operated by Corporación América Airports, which reported 14% passenger growth across its network in April 2025

Unlocking the Americas

by HIBAH NOOR

Kho believes the way travelers seek value and experiences has transformed completely in five years

Fresh from her transition into the

Americas market, L’Oréal Travel Retail’s

new Managing Director reveals to Global Travel Retail Magazine her ambitious growth strategy, pentarchy vision and plans to reignite consumer conversion in a changing travel landscape

On the first day of 2025, Petrina Kho took the helm of L’Oréal Travel Retail Americas as Managing Director. Kho is no stranger to the world of travel retail and beauty. Prior to returning to the travel retail division of the company, Kho served as Senior Vice President & Global Deputy General Manager at L’Oréal-owned Urban Decay Headquarters and IT Cosmetics Headquarters in California and New Jersey, respectively. Before relocating to the United States, Kho was Brand General Manager at L’Oréal Travel Retail Asia Pacific, working on brands like Kiehl’s, Helena Rubinstein and Biotherm. Previously, she spent more than 13 years combined at Mattel, Diageo and P&G

in Asia Pacific. A few months into her new role, Global Travel Retail Magazine’s Editor-in-Chief Hibah Noor caught up with her in Miami.

Market immersion

Hitting the ground running, Kho has already completed an ambitious tour of key markets from East to West coasts, and to South America. This isn’t just about visiting stores – it’s about capturing the nuanced differences in consumer behavior across the Americas.

“Watching how consumers shop reveals striking differences between North and South America,” Kho observes. “These insights are invaluable for developing market-specific strategies.”

Beyond market visits, Kho is tapping

into her team’s collective expertise. “What's most important for me, being so new, is to connect with the teams and our retail partners. They possess both experience and market knowledge that’s impossible to replicate. Understanding their barriers and challenges they face has been my priority from day one.”

Leadership ambitions

When asked about her objectives, Kho doesn’t mince words: “My overarching ambition is for L’Oréal to become the undisputed leader in the region. I’m someone who’s obsessed with progress.”

After a challenging 2024 for global travel retail, with particular headwinds in the Americas, Kho sees 2025 as the inflection point. Rather than dwelling

Petrina Kho, Managing Director, L’Oréal Travel Retail

on past difficulties, she’s laser-focused on leveraging these challenges as catalysts for innovation.

“We need to transform our ways of connecting with consumers and clients; 2025 must be the year we revolutionize how we create memorable experiences for travelers that drive both engagement and conversion,” she asserts.

Cracking the conversion code

While passenger numbers have rebounded to pre-pandemic levels across the region, Kho highlights a critical disconnect. “The good news is that travelers are back. The challenge is conversion – market growth isn’t matching passenger growth.”

This gap reveals a fundamental shift in traveler behavior that L’Oréal must address. Today’s passengers navigate airports differently, heads down on their devices rather than browsing retail environments.

“We can’t change consumer habits – they’ve evolved,” Kho acknowledges pragmatically. “When travelers are glued to their phones instead of browsing stores, we need to integrate with that reality. The way travelers seek value and experiences has transformed completely in five years.”

For Kho, success hinges on “cracking that code to unlock the next conversion hurdle we’re facing in the Americas. This isn’t just a L’Oréal challenge; it requires industry-wide collaboration.”

The pentarchy revolution

At the core of Kho’s strategy lies a transformative concept: the pentarchy. This evolution beyond the traditional travel retail trinity model represents what she calls “a modern way of thinking, especially for this region.”

“We need to rethink how we approach this channel by working together with airlines, airports and media partners alongside brands and retailers to create value for our travelers of today,” Kho says. “The pentarchy creates an ecosystem that engages travelers at multiple touchpoints throughout their journey, not just at the point of sale.”

L’Oréal Travel Retail Asia’s successful implementation of this model with Changi Airport and The Shilla Duty

Lancôme Génifique Ultimate features with DFS at Los Angeles International Airport

“We must be at the forefront of trends, understanding the culture dynamics of our consumers and at the service of their evolving needs”

Free around Lancôme Génifique last year provides a blueprint that she’s eager to adapt for the Americas.

Alongside this external transformation, Kho is equally focused on internal culture. “I’m encouraging the team to bring forward even their craziest ideas. This daring, entrepreneurial spirit is essential for reigniting growth. We need to shake things up.”

Beauty’s resilience

Economic headwinds haven’t dampened consumers’ beauty appetite, according to Kho. “Despite travel becoming more expensive, the appetite for both travel and beauty remains remarkably strong. We see this consistently across markets.”

L’Oréal’s diverse brand ecosystem positions it uniquely to capture this demand across price points. “Our portfolio spans from accessible luxury to super-premium offerings” Kho explains. “This breadth allows us to cater to virtually every traveler segment.”

The modern beauty consumer exhibits radically different shopping behaviors from even five years ago. “Consumers are looking for better value, better service and experience and better products for the environment. Therefore, we must be at the forefront of trends, understanding the culture dynamics of our consumers and at the service of their evolving needs. At L’Oréal, we have a vast winning portfolio of brands catering to all consumer categories, with a constant pipe of innovation to delight our consumers,” Kho observes.

Fragrance powerhouse

Fragrance remains the powerhouse category across L’Oréal’s Americas travel retail business. A December 2024 launch exemplifies the company’s innovation approach: Lancôme La Vie est Belle Elixir.

“La Vie est Belle represents a huge franchise for us,” Kho explains. “Rather than just creating a flanker, we devel-

oped Elixir, with a distinctly different olfactory profile to target consumers who weren’t attracted to the original. The results have been remarkable –we’ve not seen cannibalization at launch.”

This success validates Kho’s belief in the category’s untapped potential. “There’s still significant appetite for growth in fragrances, even within established franchises,” she says.

Emerging hotspots

Kho’s market immersion has revealed clear priorities for targeted expansion. “Caribbean and Mexico represent markets where we need to double down immediately,” she asserts. “The rising sophistication of beauty consumers in these regions presents tremendous growth potential. Mexico, in particular, is absolutely a market to watch.”

Her strategy centers on capitalizing on the unique psychological state of travelers post-security. “There’s this magical moment when security is behind you, anxiety evaporates, and your vacation truly begins,” Kho observes. “Suddenly you have time, you feel empowered. Even traveling parents have a rare moment of personal freedom. This is when consumers are most receptive to experiences that enhance their journey.”

Collaborative vision

Kho’s pentarchy concept requires collaborative innovation that transcends traditional industry boundaries. “Brands, airlines, airports, retailers and media need to work together to transform that precious one or two hours travelers have into truly memorable experiences,” she emphasizes.

The path forward contains practical challenges, but Kho remains undaunted. “Getting everyone to the table takes coordination. The good news is there is appetite for growth and innovation. I am confident the future of the Americas is bright for travel retail,” she says.

Made in

Mexico

Global Travel Retail Magazine sat down with the co-founders

of Código 1530

Tequila to discuss the rise of cocktail culture and the brand’s growing presence in travel retail. It recently launched in Mexico travel retail in partnership with Avolta

by LAURA SHIRK

Similar to country music in the mainstream, tequila is having its moment in global travel retail. Nobody knows this better than the co-founders of Mexicobased Código 1530 Tequila, Federico “Fede” Vaughan and Ron Snyder. The two partnered with country music legend George Strait to bring this ultrapremium tequila brand into the mix and they haven’t looked back since. Crafted over five generations, the family recipe offers the most natural form of tequila with no additives. Código 1530 elects to create pure tequila made up of three ingredients: agave, water and yeast. The tequila brand’s primary offering – Blanco, Rosa, Reposado, Cristalino, Añejo and Extra Añejo – ranges from the unaged to the aged with care for six years and stars uncharred French White Oak Napa Valley Cabernet barrels. According to the duo, carefully aged for

18 months to create tequila designed to be sipped and savored, its Añejo (aged to taste) perfectly blends agave and barrel and has won every single competition it’s entered.

Only the best

Sitting down with Vaughan and Snyder it’s clear that both respect the history behind the liquid. “When people sample these SKUs there is so much history across so many years coming from so many different parts of the world,” says Vaughan. “We’ve already waited hundreds of years for the oak, six-to-seven years for the agave, so it’s important not to rush the process of tequila making.”

By only using the best parts of all the tequila that it produces, Código 1530 accepts it wastes a lot of tequila. However, as noted by its master blender, the secret to making good tequila is sacrificing a lot of the product that is produced.

“For us, there is a specific purpose for everything that we do. And our purpose is to make it the best way,” he adds.

The margarita is the number one cocktail in the world – and this isn’t lost on Snyder. “What’s unique about tequila is that it’s an all-day, all-night expression. For all age groups,” he remarks.

“We have expressions that span all demographics and all drinking occasions. We are focused on the mixology space, whether that’s relatively simple margaritas or more complicated cocktails – all the way up to old fashioneds and higher-end SKUs.”

The choice of vodka can easily be substituted for Código 1530’s Rosa, which was invented by the brand. The use of uncharred French White Oak Napa Valley Cabernet barrels over a one-month aging process gives the expression a rosy hue and floral aroma. Also, in line with new age tequila drink-

Vaughan and Snyder partnered with country music legend George Strait [seen on the left] to bring this ultrapremium brand to life

ing, the pair recommends using orange to accentuate the flavor of the range (as opposed to lime).

The gift of choice

Now that Código 1530 is available in Mexico travel retail in partnership with Avolta, it is present in 80% of airport stores. The brand is also listed with Duty Free Americas, DFS Group, Aer Rianta International, Motta Internacional and International Shops. The fact that this is the case within its first year in travel retail speaks to the quality of the liquid and the surge in category demand.

Outside of the channel, the brand is available in all 50 states and 41 countries.

“Over the last few years through barrel innovation and techniques, it’s an exciting time. What I love about global travel retail – especially the special editions – people are traveling, they see a new expression. People are willing to try new bottles that they see on the shelf. People are now curious to see what’s coming out in the tequila world,” says Vaughan.

Snyder acknowledges Código 1530 entered the channel at the right time, especially considering its status on gifting. “Tequila has become the gift of

choice in alcohol because it’s unique and it’s high-end.” However, there is still a lot of work to do and calculated experimentation to try.

“We’re going to continue making tequila the right way. We have a lot of different types of expressions because we use different types of barrels – all of which start with wine. The first aging starts with wine barrels, then we might have a finish in a sherry barrel or cognac barrel (higher-end SKUs),” says Snyder. “We have fun with it. We even have a very unique offering where instead of fermenting in a big tank in the traditional way, we ferment in individual barrels.”

Since Código 1530 has its own distillery in Jalisco, Mexico, it can create unique offerings that align with the sense of curiosity integrated in travel retail. “With us it’s about continuing to expand globally. Now that people are back traveling and there is a hint of curiosity, there is room for growth,” says Snyder.

[L-R]: Federico “Fede” Vaughan, Co-CEO & Co-Founder, Código 1530 Tequila, Global Travel Retail Magazine’s Laura Shirk and Ron Snyder, Co-CEO & Co-Founder, Código 1530, pictured at the 2025 Summit of the Americas in Miami, Florida, earlier this year

Since Código 1530 has its own distillery in Jalisco, Mexico, it can create unique offerings that align with the sense of curiosity integrated in travel retail

L’ORIGINALE. WHERE WILL IT TAKE YOU ?

THE NEW EAU DE PARFUM

GTR_ASUTIL-June2025-print-issuu

Seeking something new

WHAT’S INSIDE

Top Stories

Features ASSOCIATIONS

LATIN AMERICA OVERVIEW

AIRPORTS & AIRLINES

BRANDS

The future of travel starts today.

Avolta extends presence at JFK International Airport Terminal 5

In Memoriam: Thom Rankin, former TFWA board member

MSC Cruises opens world’s largest cruise terminal at PortMiami

“In line with expectations”: SSP Group releases 2025 half year results

L’ORIGINALE

Operation Nexus

Latin American charm

EXPLORE NEW HORIZONS

CROSSING OFF THE BUCKET LIST

Changing preferences and key challenges

Shifting trade winds

Macroeconomic recalibration

Consumer evolution

Strategic imperatives

Argentina’s resurgence

On the right path

Lima Airport: sense of place

A benchmark in the region

Serving luxury

Brand resilience and retail competition

Bright southern skies

Widebody growth

Rising demand across the region

Future fleet requirements

Regional infrastructure development

Sustainability roadmap

LATAM Airlines reports record profit

El Salvador’s Pacific Airport project breaks ground

Bogotá Airport City project promotes regional MRO hub

Corporación América reports 14% passenger growth in April

Unlocking the Americas

Market immersion

Leadership ambitions

Cracking the conversion code

The pentarchy revolution

Beauty’s resilience

Fragrance powerhouse

Emerging hotspots

Collaborative vision

Made in

Mexico

of Código 1530

Only the best

The gift of choice