Dufry is beefing up its cruise ship services by creating the Dufry Cruise Services center of excellence. Based in Miami, the new center is in line with the travel retail giant’s strategy to further expand its presence in the cruise ship business, and combines the cruise ship expertise formerly known as Flagship Retail Services with the global strengths and resources of the Group.
In more cruise developments, Dufry announces that it is entering the Asian cruise market and has begun operations on board the Norwegian Joy, a vessel specially built for and customized to the Chinese cruise market.
The cruise line channel is a strategic growth area for Dufry as it is globally growing and offering new opportunities going forward. Dufry Cruise Services is based in Miami (US) and offers the resources and support of a global company, such as centralized procurement and purchasing, store development, marketing and logistics as well as supply chain. Through its presence in 63 countries, the group features a global support network for its growing cruise operations, while at the same time providing proximity to the single markets, customers and the related business partners.
From an operational perspective Dufry cruise ship & seaport sales account for 2% of Group revenue. Dufry’s cruise ship operations cover routes from the USA to the Caribbean, Alaska, Europe and Asia. Dufry operates a total retail space of close to 9,000 sqm, ranging from 140 sqm to nearly 2,000 sqm per store on vessels of the Norwegian Cruise Lines, Carnival and Pullmantur. In total Dufry is today present on 17 cruise ships and offers a full range of traditional duty free products as well as brand boutiques similar to airports and specialized shops, such as the Colombian Emeralds jewelry stores.
Entering the Asian cruise market
Dufry has just recently started operations on the Norwegian Joy with nine shops covering a retail space of 1,950 square meters. The Joy is the first Norwegian cruise liner which has been built specifically for the Chinese traveler, catering to 3,850 guests in luxurious suites in the exclusive ship-within-a-ship complex. For Dufry this is an important strategic step to open the Asian cruise market and further expand this growing channel.
Dufry´s CEO of Division 4, Rene Riedi comments: “The new operational offices will complement the current operations and logistics-purchasing platform, in order to have our resources close to the main cruise ship itineraries. It allows a global footprint with specialized local knowledge and regional expertise. These offices and platforms will receive support from the Center of Excellence and other relevant teams across the Dufry business, while maintaining a close relationship with, and management of, the market, the customer and the operation itself.
We firmly believe that this is a remarkable step forward for this key strategic area of growth for the company and look forward to a continued success, hand-in-hand with our partners, and to expand our business even further as opportunities arise in this fast growing market.”
Growing travel retail channel
According to CLIA (Cruise Lines International Association), and regularly reported in TMI, ocean cruise passengers reached 24.7 million in 2016, and CLIA forecasts 25.8 million passengers this year. Part of the growth is attributed to the ongoing development of the Asian market, with capacity was up 9.2% in 2016, a 38% increase compared to 2015.