What is Sales and Marketing Strategy of Avolta Company?

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What is the Sales and Marketing Strategy of Avolta?

Avolta's sales and marketing strategy has undergone a significant transformation, marked by the global launch of Club Avolta, an industry-first loyalty program. This initiative underscores a pronounced shift towards a traveler-centric approach.

Avolta, previously known as Dufry AG, operates as a leading global travel retail and food & beverage company. Its strategic evolution is evident in its current market presence, spanning 70 countries with approximately 68,750 employees as of December 31, 2024.

The company's 'Destination 2027' strategy aims to enhance the traveler experience, driving its innovative marketing tactics and brand positioning. This includes the introduction of Avolta Porter's Five Forces Analysis, reflecting a comprehensive approach to market engagement.

Avolta employs a multi-faceted sales channel strategy, predominantly focusing on physical retail locations within high-traffic travel hubs. The company's core operations are built around duty-free and duty-paid shops, convenience stores, and food & beverage concessions strategically situated in airports, railway stations, seaports, and motorways.

Core Retail Locations

Avolta's primary sales channels are its extensive network of duty-free and duty-paid shops, convenience stores, and F&B outlets. These are predominantly located in airports, which accounted for 81% of net sales as of December 31, 2024.

Geographic Distribution

Beyond airports, Avolta maintains a presence in railway stations (5%), cruise liners and seaports (1%), and motorways (10%). Other locations, including borders, downtown areas, and hotel shops, represent 2% of its sales.

Strategic Evolution of Channels

The company is actively pursuing a 'travel experience revolution' by integrating retail and F&B offerings. This includes developing hybrid concepts that blend shopping with localized culinary experiences, a trend expected to capture 10% to 20% of the market.

Digital and Omnichannel Integration

Avolta is enhancing its digital presence and omnichannel capabilities to improve customer engagement throughout the travel journey. The launch of Club Avolta, a loyalty program, aims to connect duty-free, F&B, brands, and travel partners seamlessly.

Avolta's sales strategy is significantly bolstered by key partnerships and exclusive distribution agreements. The company's strong relationships with airport operators are evidenced by a 95% contract renewal rate between 2022 and 2024. Strategic expansions in 2024 and 2025 underscore this approach, including securing long-term contracts at New York JFK airport for various retail and F&B concessions. In 2024, Avolta expanded its Asian footprint by acquiring 100% of the Free Duty concession in Hong Kong, adding 6 stores and access to an additional 150 million travelers, projected to boost regional sales by CHF 250 million annually. Further growth in 2025 includes new retail and F&B contracts at Shanghai Pudong International Airport and F&B expansions at Dallas Fort Worth (DFW) International Airport, introducing popular localized concepts.

Key Sales Channel Developments

Avolta's commitment to expanding its sales channels is evident in its strategic initiatives and recent achievements. These efforts are crucial for its overall Marketing Strategy of Avolta and its continued growth.

• As of December 31, 2024, Avolta operated 831 general travel retail shops and 760 convenience stores globally.
• Airports represent the largest segment of Avolta's sales, accounting for 81% of net sales.
• The company is integrating F&B offerings into its retail spaces, with hybrid concepts expected to represent 10% to 20% of the market.
• A 95% contract renewal rate between 2022 and 2024 highlights strong partnerships with airport operators.
• Recent expansions include securing contracts at New York JFK and increasing its presence in Asia through the Hong Kong acquisition.

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Avolta employs a comprehensive marketing strategy that blends digital innovation with a focus on enhancing the customer travel experience. The company aims to build brand awareness, generate leads, and ultimately drive sales by engaging customers throughout their entire travel journey.

Loyalty Program Expansion

The Club Avolta loyalty program is a key component of their customer retention efforts. By Q1 2025, it had welcomed over 1 million new members, adding to a base that exceeded 10 million members by the end of 2024.

Data-Driven Personalization

Avolta leverages data analytics and customer segmentation to tailor its offerings. This data-driven approach informs everything from store concepts to product assortment, ensuring a personalized experience.

Digital Engagement Strategy

The company focuses on maintaining continuous engagement with customers, from the initial planning stages of travel through post-travel interactions. This digital-first approach is central to their marketing efforts.

Innovation Hub

Avolta NEXT serves as an innovation hub, dedicated to accelerating technological advancements within the travel retail and food and beverage sectors. This commitment drives forward-thinking marketing solutions.

In-Store Technology Integration

The implementation of in-store technologies, such as self-order kiosks and digital menu boards, enhances customer convenience and operational efficiency. This is a key aspect of their evolving marketing mix.

AI-Powered Insights

The use of AI, exemplified by Avolta GPT, enhances customer understanding and market analysis. This technology is crucial for refining their marketing tactics and improving overall performance.

While traditional marketing channels like TV, radio, and print are less highlighted in recent strategic discussions, Avolta's primary focus has shifted towards digital transformation and creating a revolutionary travel experience. This includes leveraging their global platform for commercial and digital advancements, ensuring they deliver significant value to customers, concession partners, and brand collaborators. Understanding the evolution of their approach provides insight into their broader Brief History of Avolta and its impact on their current Avolta business strategy.

Key Marketing Pillars

Avolta's marketing strategy is built on several key pillars designed to foster growth and customer loyalty.

• Digital Transformation: A strong emphasis on digital channels and technologies to reach and engage customers.
• Customer Centricity: Utilizing data to personalize offers and enhance the overall travel experience.
• Loyalty Programs: The Club Avolta program is central to customer retention, contributing significantly to revenue.
• Innovation: Investing in new technologies and concepts to stay ahead in the travel retail market.
• Data Analytics: Employing data-driven insights to optimize marketing efforts and business operations.

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Avolta positions itself as a premier global travel experience provider, distinguishing itself through a comprehensive offering that integrates retail, convenience, and food & beverage concepts to elevate the traveler's journey. The company's central message focuses on 'making travelers happier' by delivering seamless and personalized experiences, both in its physical locations and through digital channels.

Holistic Traveler Experience Enhancement

Avolta's core strategy is to enrich the traveler's journey by combining diverse offerings, aiming to create a more enjoyable and convenient travel experience. This approach differentiates it from competitors who may focus on singular aspects of travel retail or services.

Personalization and Local Relevance

The company emphasizes a traveler-centric approach, focusing on personalization and incorporating local relevance into its concepts. This strategy ensures that offerings resonate with the specific needs and preferences of travelers in different regions.

Brand Identity Pillars

Avolta's brand identity is built on key pillars including flexibility, smart concepts, and the integration of unique 'X-factors'. These elements contribute to creating engaging and memorable experiences for travelers across its portfolio.

Strategic Partnerships and Local Integration

The company actively partners with local businesses to enhance its offerings, as seen with the introduction of Texan cuisine concepts at Dallas Fort Worth International Airport. This strategy strengthens local relevance and provides travelers with authentic culinary experiences.

Avolta's brand positioning is further solidified by its commitment to consistency across its extensive global network of over 1,000 locations in 70 countries. This widespread presence, coupled with a strong emphasis on sustainability, reinforces its image as a responsible and reliable global player. The company's ability to adapt its value proposition based on data insights and consumer intelligence allows it to effectively respond to evolving traveler expectations. This adaptability is reflected in its impressive contract renewal rate of 95% between 2022 and 2024, highlighting its sustained value to partners and its success in customer retention strategies.

Global Reach and Consistency

Maintaining a consistent brand experience across more than 1,000 locations in 70 countries is a testament to Avolta's operational excellence and strategic brand management.

Sustainability as a Core Value

Sustainability is integrated into Avolta's operations, serving as a guiding principle that influences its business strategy and resonates with environmentally conscious consumers.

Adaptability to Consumer Trends

Avolta continuously evolves its offerings by leveraging data insights and consumer intelligence to meet changing customer profiles and expectations, ensuring its market relevance.

Strong Partnership Retention

The high contract renewal rate of 95% between 2022 and 2024 demonstrates Avolta's ability to deliver consistent value and maintain strong relationships with its airport and travel hub partners.

Competitive Advantage through Integration

Avolta's integrated approach, combining retail, convenience, and F&B, creates a unique competitive advantage by offering a more complete and satisfying experience for travelers.

Focus on Traveler Well-being

The overarching goal of 'making travelers happier' underscores Avolta's commitment to enhancing traveler well-being through thoughtful service and curated offerings.

Avolta's Market Positioning Strategy

Avolta's brand positioning is centered on being a comprehensive travel experience provider, differentiating itself through a seamless blend of retail, convenience, and food and beverage services. This integrated approach aims to enhance the traveler's journey by offering personalized and locally relevant experiences, a key aspect of its Revenue Streams & Business Model of Avolta.

• Holistic integration of retail, convenience, and F&B.
• Focus on 'making travelers happier' through personalized experiences.
• Emphasis on local relevance and unique 'X-factors' in offerings.
• Commitment to sustainability as a core operational principle.

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Avolta's sales and marketing strategy is built around sustained initiatives that foster traveler loyalty and enhance the overall travel experience. These efforts are designed for long-term impact rather than short-term promotions, aligning with their overarching business strategy.

Club Avolta Loyalty Program

This industry-first loyalty program is a cornerstone of Avolta's customer acquisition and retention strategies. Launched to deepen engagement with frequent travelers, Club Avolta had over 10 million members by the end of 2024 and added more than 1 million new members in Q1 2025, contributing over 5% of annual revenue.

'Destination 2027' Strategy

This strategic initiative aims to revolutionize the travel experience by placing the traveler at its core. It emphasizes flexible, smart, local, cross-selling, and hybrid retail and dining concepts, dynamically adapting to local trends.

Global Expansion and Renewal

As part of 'Destination 2027', Avolta secured an eighteen-year contract at New York JFK airport for various retail operations. The acquisition of 100% of the Free Duty concession in Hong Kong in 2024 added 6 stores, anticipating an annual regional sales increase of CHF 250 million.

Localized F&B Concepts

New F&B contracts at Dallas Fort Worth International Airport in 2025 exemplify the strategy's focus on local integration, introducing Texan cuisine. These initiatives are key to Avolta's growth strategy and market penetration.

Driving Digital Engagement

Club Avolta's success is amplified by digital platforms like Avolta GPT, which enhance customer insights and personalized offers. This demonstrates the role of digital marketing in Avolta's sales.

Financial Performance Indicators

Avolta's strategic initiatives are reflected in its strong financial results, including a 6.3% core organic growth and a core EBITDA margin of 9.4% in 2024, showcasing their effective Avolta business strategy.

Enhancing Traveler Experience

The focus on flexible, smart, and local concepts within the 'Destination 2027' strategy directly addresses how Avolta targets its ideal customer profile and aims to increase market share.

Cross-Brand Promotions

Club Avolta leverages cross-brand promotions across duty-free, duty-paid, F&B, and partner ecosystems, a key element of Avolta's partnership strategies for sales growth.

Customer Retention Focus

The loyalty program is a prime example of Avolta's customer retention strategies, aiming to build lasting relationships and encourage repeat business.

Strategic Market Penetration

The expansion into new airports and the acquisition of existing concessions are critical components of Avolta's market penetration efforts, directly impacting their Avolta sales strategy.

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