Image: Shop from the outside at Frankfurt Airport
Government and Society

The Impact of Retail on Airports for a Future-Proof and Sustainable Aviation Industry

  • Sustainable Impact
  • We create change

Why is advocacy important for ensuring that duty-free and travel retail can have a positive impact on the transformation of the aviation industry?

People love to travel and passenger figures in 2023 developed very positively, despite geopolitical conflicts and high inflation in several countries around the globe. As public opinion polls by the International Air Transport Association (IATA) show, people also recognize the need of aviation for the functioning of society and economy in general. Nearly 90 percent agreed that air travel is a necessity for modern life and air connectivity is critical for the economy. In addition, travelers enjoy the offers of duty-free and travel retail.

At Gebr. Heinemann alone, about 800,000 passengers shop across 70 airports globally every day. This shows that people want to enjoy traveling but, at the same time, that expectations by passengers, political stakeholders, and civil society are high in terms of sustainability and climate protection. The aviation industry is committed to achieving net-zero emissions by 2050. But to meet the expectations and achieve the goal, comprehensive efforts and enormous investments are needed.

Making these necessary investments requires stable or increasing revenue streams. As a key player in the aviation sector, airports rely on two sources: aeronautical revenues from airlines and passenger charges, and commercial revenues from other activities at the airport, such as parking, food and beverages, or duty-free and travel retail — especially the latter are of increasing importance to airports. Or as Aletta von Massenbach, CEO of Flughafen Berlin Brandenburg GmbH, put it at an event with members of the German parliament of the German Travel Retail Association (DTRV) in September 2023: “As an airport, we do need the revenues from travel retail to finance the sustainable transformation of our airport and to remain competitive at the same time.”

This clearly shows two things:

  • Duty-free and travel retail is an integralpart of the aviation industry
  • Duty-free and travel retail offers at airports are contributing to the sustainable transformation of the aviation industry

Gebr. Heinemann has always seen itself as a partner of airports and airlines in terms of in-flight business, and as part of the aviation ecosystem. Therefore, Gebr. Heinemann supports industry-wide efforts via its engagement in industry associations.

Photo of Aletta von Massenbach, CEO Flughafen Berlin Brandenburg GmbH

As an airport, we do need the revenues from travel retail to finance the sustainable transformation of our airport and to remain competitive at the same time.

Trade Associations Are Key to Driving Dialog

For Gebr. Heinemann, travel retail industry associations such as the European Travel Retail Confederation (ETRC) or the German Travel Retail Association (DTRV) are of high relevance for driving the dialog with political stakeholders. In addition, the company is also encouraged to promote the dialog more directly via memberships in associations of the aviation industry (e.g., Airports Council International (ACI) or the German Aviation Association (BDL)) concerning interdependencies within the aviation ecosystem and the importance of our business for driving the transformation of the sector. “We see ourselves as part of the overall aviation industry and are therefore taking the responsibility and encouraging the dialog of various stakeholders in the field,” states Raoul Spanger, Co-CEO of Gebr. Heinemann.

In addition, Gebr. Heinemann is convinced that collaboration is also needed beyond pure regulatory issues. There are overarching topics like how to further improve the traveler journey or how cooperation with airports can look like on tackling skilled worker shortage, for instance. Gebr. Heinemann addresses these topics in smaller contexts as well as on big stages: Co-CEO Max Heinemann did just this at the ACI World Annual General Assembly, Conference and Exhibition 2023 in Barcelona, where he pointed out the importance of collaboration among industry partners in order to make airports attractive for employees: “If we — airports, retailers, F&B companies — work together to see the airport as an aviation ecosystem and keep the quality of and investments into the workspace high, then the airport will once again be an attractive place to work.” Furthermore, Gebr. Heinemann is constantly in direct exchange with customers and partners to discuss how we can build a future-proof business together, including all necessary transformations.

Photo of Max Heinemann sitting in a chair

If we — airports, retailers, F&B companies — work together to see the airport as an aviation ecosystem, then the airport will once again be an attractive place to work.

Stakeholder Dialog Is a Chance — Not a Threat

Gebr. Heinemann is convinced that a strong voice of the industry via associations as well as engagement as a company is needed in order to work with all stakeholders involved on regulations that take into account a holistic approach and include a solid impact assessment. A strengthened dialog between politics, society, and industry should be seen as a chance rather than a threat. “Via our collaboration in the associations with our industry partners, we promote and, where necessary, protect our business model in all markets that we operate in. Travel retail is still a niche market that is often not yet understood by regulators. It is our task to provide professional and transparent as well as reliable industry data in this area,” states Nina Semprecht, who stands for the collaboration herself with her two roles as Director Corporate Communications & External Affairs at Gebr. Heinemann as well as Managing Board member and Vice President PR & Communications of ETRC.

The past year demonstrated that there is a global need to strengthen this dialog, as a number of regulative proposals were initiated or even agreed, which create challenges for the travel retail and duty-free business and for the commercial revenues of airports immediately or in the future. These decisions will undoubtedly limit the capabilities of airports to invest in more sustainable operations. In addition, as a retailer, we also rely on revenues to transform our own business and to make the necessary investments in order to achieve our ambitious sustainability goals.

Gebr. Heinemann will therefore continue to strengthen its dialog with industry partners, regulators, and civil society directly or via industry associations in future. This exchange is a central pillar toward creating a more sustainable aviation industry, both financially and ecologically.

Photo of Nina Semprecht, Director Corporate Communications & External Affairs

Via our collaboration in the associations, we promote and protect our business model. Travel retail is still a niche market that is often not yet understood by regulators. It is our task to provide professional and transparent as well as reliable industry data in this area.