The Travel Markets Insider newsletter is attached to this post as a PDF file. To open the PDF file, please click on this link.
NOTES: The Duty Free World Council (DFWC) has extended the deadline to respond to its global Recovery Framework Protocol to Monday, May 18.
See details on page 1. You can access the questionnaire here. In related news, The European Travel Retail Confederation (ETRC) welcomed the publication on Wednesday of the European Commission’s guidelines and recommendations on the restoration of safe transport and tourism services in Europe. See page 2 for more information.
The fallout from the COVID-19 pandemic is taking its toll on every level of the travel industry, with layoffs and furloughs affecting management and staff on every level.
Miami-based Starboard Cruise Services, this week filed notice with the government that it was laying offs and furloughing 215 employees based at the company’s Miami headquarters and its Medley warehouse.
Carnival Corp. also announced that it will lay off, furlough, and reduce work weeks and salary across the company, including senior management. The moves will contribute hundreds of millions of dollars in cash conservation on an annualized basis, the company said in a statement.
According to SeaTrade Cruise News, Carnival is reducing its US workforce by nearly half, “eliminating 820 positions out of a workforce of roughly 3,000” in Florida alone. SeaTrade reports that another 537 employees are being furloughed, but could potentially return to work when ships begin sailing.
In a touch of positive news, TMI has heard talk that LaGuardia International Airport will be adding at least 57 flights from American Airlines and Southwest on June 8. (This information has not been confirmed by us as of now.)
COPING WITH COVID-19:
DUFRY
In today’s issue of TMI, our lead story reports Dufry’s first quarter earnings, and the company’s action plan that will be flexible enough to apply to different scenarios, as well as a location-by-location recovery plan. Page 1.
COPING WITH COVID-19:
INTERNATIONAL SHOPPES
With fewer people flying and those who are traveling through airports concerned for their safety, International Shoppes tells TMI how it has updated its ishoppes.com website and expanded its pre-order program to allow for “store-side pickup.” Page 2.
DFWC Q1 KPI Monitor
The Duty Free World Council (DFWC) KPI Monitor for the first quarter of 2020 reveals that passenger satisfaction has dropped statistically compared to the same period last year, and reveals that as many as 75% of travelers interviewed for the Q1 KPI Monitor said they would avoid visiting certain destinations after travel resumes.
See more details on page 3.
GUEST EDITORIAL: Industry consultant Alan Gluck
The future of airport concessions in a post-COVID-19 world
Alan Gluck, Sr. Manager Aviation, of global consulting firm ICF, has shared his in-depth assessment with TMI readers.
Concessionaires need to understand the new business reality when they ask for relief, he says, and analyzes six options for how to ensure that the airport concessions industry continues to be a robust and vibrant business for all. Page 4.
SUPPLY SIDE NEWS
IWSR: The drinks market analyst compares the latest crisis with that of the 2008 financial crash and concludes that on-premise drinking and travel retail will be hit hard. Page 6.
Duty Free Dynamics launches confectionery cluster with three global brand partners. Page 6.
L’Oréal creates L’Oréal for the future program and donates €150 million to support vulnerable women and protect the environment. Page 7
L’Oréal USA partners with research group to raise awareness of melanoma. Page 7
Shiseido Travel Retail reports 1Q results. Page 7
Coty: Mr. Burberry Element joins the Burberry family. Page 7
