ASUTIL Conference opens with address by Lagardère TR CEO Dag Rasmussen; all eyes on Lima Airport opening
ASUTIL Secretary General Carlos Loaiza-Keel addressed the audience on day one of the conference
Enrique Urioste, President & CEO, Latin America & Caribbean at Avolta discussed the pros and considerations of the current landscape and the "Trump Era"
Wednesday, June 4: Statement of affairs
Setting the tone for ASUTIL 2025: Nexus, ASUTIL Secretary General Carlos Loaiza-Keel and Enrique Urioste, President & CEO, Latin America & Caribbean at Avolta, partnered to deliver a strategic overview of the current state of the association and the wider travel retail industry in Latin America on the morning of day one.
The pair highlighted the key developments, challenges and opportunities shaping the sector, as well as the role ASUTIL plays in connecting stakeholders, advocating for growth and navigating change.
Urioste provided world forecast highlights including that passenger traffic is set to double by 2053, reaching 22.3 billion and international traffic is expected to grow faster than domestic through 2053. Latin America is expected to grow by 8.7% overall in 2025 compared to 2024. He also offered a list of pros and considerations for "Tariffs & Duty Free" which featured that duty free products will be much cheaper than in domestic markets among the fact that US travelers continue to be more conservative with their spending due to ongoing uncertainty.
Speaking about Argentina and the "Milei" effect, he noted its outbound travel surge, cost-effective travel and policy incentives. Chile is the main destination for Argentine travelers.
Dag Inge Rasmussen, Chairman & CEO at Lagardère Travel Retail, spoke on opportunities impacting the future of travel retail across Latin America, plus the retailer's profit-sharing model with Lima Airport Partners
Gateway to growth: The future of travel retail
Dag Rasmussen, Chairman & CEO at Lagardère Travel Retail, spoke on opportunities impacting the future of travel retail across Latin America, plus the retailer's profit-sharing model with Lima Airport Partners. He said the key to a lasting profitable relationship with partners is trust; to create a model where airport and operators share the same goal. "It might not be appropriate everywhere, but we believe it's an option worth exploring," he stated.
While Lagardère Travel Retail still considers itself an "emerging player in Latin America," the new terminal opening at Lima Airport is on full display at this year's conference. Consisting of over 4,000 square meters of duty free and duty paid space, 12 new restaurants and a food hall entitled "Land of Flavor," the terminal started operations on June 1.
According to Rasmussen, locally sourced products account for 30% of Lagardère Travel Retail's worldwide offering to help better meet the expectations of the new generation and hedge the risk of structural decline. "Understanding and embracing local culture is one of the keys to success," he said.
Rasmussen also discussed the reinvention of the brand Relay to maintain relevance with the traveler and Lagardère Travel Retail's bespoke commercial approach. The need to adapt is increasingly central to the retailer's strategy. From 180 employees in 2023, Lagardere Travel Retail Peru will grow to be over 800 by mid-2025.
"We don't know what the tariffs will be at the end of the day. Uncertainty is not good for economic growth or traveler confidence," he said. "We as an industry need to rise to the challenges that travelers are setting for us. Some of the answers lie in what we're doing here in Lima."
Michael Payne, President & CEO, IAADFS is seen here being awarded the 2025 ASUTIL Award
Juan Jose Salmon Balestra, CEO at Lima Airport Partners introduced the Lima Airport: Transforming the region section of the conference
Norbert Onkelbach, Chief Commercial Officer at Lima Airport Partners discussed how the new terminal at Lima Airport is set to redefine regional connectivity and drive growth in travel retail
Lima Airport: transforming the region
With the new terminal at Jorge Chávez International Airport (Lima Airport) having officially started operations on June 1, Lima Airport Partners (LAP) discussed how the terminal is set to redefine regional connectivity and drive growth in travel retail. The audience gained insights into the vision, scope and strategic impact of this major transformation.
The terminal’s modern design is inspired by the hummingbird of the Nazca culture; it has an initial capacity of 30 million passengers. The five-level infrastructure offers passenger services including check-in, arrivals, departures, lounges, food and beverage and a shopping complex with pedestrian access to the city. The terminal displays expendable infrastructure to enable growth capacity after 2025, as well as promotes sustainable transport and consists of LED lighting, automation systems and biometric records.
As part of LAP’s vision to elevate the passenger experience and inspire enthusiasm for its offerings, the company has introduced innovative concepts such as a central commercial plaza with a unique space for travelers to immerse themselves in Peruvian heritage while awaiting departure, plus international and domestic marketplaces that feature food halls celebrating local gastronomy and dining experiences created by globally renowned Peruvian chefs.
Additionally, LAP’s commercial partners have opened flagship stores displaying luxury Peruvian apparel and jewelry crafted from alpaca and vicuña. “Peruvian culture holds a central position in our strategy, weaving elements that evoke a bespoke and distinctive sense of place, leaving passengers with a memorable impression and deeper connection to Peru,” shared Norbert Onkelbach, Chief Commercial Officer at Lima Airport Partners, in an earlier interview with Global Travel Retail Magazine
With the purpose to establish greater connectivity and accessibility, LAP has introduced the concept of the “airport city” to South America. The new terminal is accompanied by several ongoing investments around the airport such as elevated metropolitan roads connecting with faster access to Lima’s southern tourist districts. As these projects are still under construction, LAP will continue to deliver infrastructure integrated with Lima that is key to the economic growth of Peru and the development of the capital city into a regional hub.
“We are introducing the concept of an airport city, which does not exist in South America, but does exist in Europe, in airports like Peru, Frankfurt, Madrid and Barcelona, among others. This is a broader real estate development concept and plan that we start with, where we integrate various economic asset classes, complementing them with the surrounding area, with the Callao region and with Metropolitan Lima,” he continued.
Onkelbach explained airports are increasingly becoming engines of macro-growth and socio-economic development for the country and the region. “Overall, we believe the airport city in Lima, Peru, will not only redefine the local airport industry, but also consolidate its role as a hub for sustainable job creation in the region.”
When asked how the duty free channel factored into the planning and decision-making of the airport city, Onkelbach noted LAP’s retail strategy is built on fundamental principles: customer focus and innovation, a deep connection with local culture and the execution of sustainable practices.
LAP looked to create a marketplace at Lima Airport based on a plaza, a unique concept to Latin America
Four days into operations, Onkelbach said, the team can reflect on LAP's commercial vision (see below) and feel successful.
"Develop a business platform with current and future airport partners to jointly create unique experiences for passengers and users, with an exciting range of shops and services, as well as attractive business locations on airport land and properties."
With a focus on developing a new retail marketplace, LAP has looked to integrate duty free, food and beverage and retail to strengthen the passenger experience.
Although there are already issues to resolve, Onkelbach noted Lima Airport will be a main airport providing the best services in the region. It will be an important hub in Latin America in line with food, services, retail, logistics and more. It will be the first airport in the world with a first-class gastronomic offering for all tastes.
"Now we need to be critical and constructive and work together," Onkelbach concluded.
