AFRICA/MIDDLE EAST. Africa is a key region in the Avolta (formerly Dufry) ‘Destination 2027’ strategy and one in which the company is committed to investing heavily back in the coming years. That’s what Avolta Middle East and Africa CEO Abdeslam Agzoul says, speaking to The Moodie Davitt Report for the magazine’s November issue.
“Africa is a market that presents resilience, growth potential and the opportunity to create smart partnerships with landlords and local business partners,” he says.
Abdeslam Azgoul: Despite challenges, regional outlook for Africa is positive, based on strong travel market fundamentals
While the company recognizes the continent’s rich travel retail potential, it also recognizes that it remains small, contributing just 3% of international air traffic. From a relatively low base, both the volume of passengers and the quality of the offer can be increased significantly, says Agzoul.
It mentions the main dynamics supporting the growth of the market such as:
- By 2050, Africa will add 796 million people to the global workforce and host the world’s largest and youngest population
- The emergence of pan-African airlines and the development of regional hubs (Andes, Kigali, Accra, Abidjan, Casablanca, Cairo and others).
In addition to these factors affecting the market, Agzoul also highlights travel retail’s strong reliance on the airport channel compared to others, as well as the “fragmentation of the business in Africa, with many smaller operators, even in the same airports ».
Converting potential into a profitable business opportunity starts with understanding the customer at a local level, as one size does not fit all.
Agzoul says: “Our priority is to create and operate stores that share the DNA of the airport and the cities they represent, to include digitization and new technology as much as possible and to integrate – whenever possible – food and beverages as part of the value proposition.
“Our focus will be on functions that add value to the entire value chain: passengers, airports, operators and brand partners. And underpinning all of this will be a strong ESG focus on environmental sustainability, social engagement and fair, honest and committed governance.”
Agzoul also hosts the investment priorities for Avolta in Africa. After opening a new terminal at Lagos Murtala Muhammed International Airport, Nigeria, Avolta is planning a new store. Next year, the retailer plans to open the new terminal at Rabat-Salé International Airport in Morocco.
Further renovations are planned, with stores at Abidjan and Cairo airports among them. Avolta also points to previous investments that include last year’s opening of Terminal 3 of the Accra Kotoka International Airport.
Agzoul says: “As Avolta, together with airport operators, we want to invest in a new generation of stores and commercial offers. We want to work with landlords to achieve a good and smart balance between investment, contract duration and rent. We have also identified Africa as a key region for F&B growth and can bring together international ideas as well as local flavors and specialties to offer customers a variety of F&B offerings that also offer a strong sense of place.”
![](https://www.moodiedavittreport.com/wp-content/uploads/2023/12/accra-duty-free-departures-1024x768.jpg)
![](https://www.moodiedavittreport.com/wp-content/uploads/2023/12/accra-duty-free-departures-1024x768.jpg)
Accra Duty Free got a new look through investment last year, both in departures (pictured) and arrivals
The African market presents many challenges to the retail journey, but Agzoul says Avolta is determined to bring the business in line with global standards.
“We want to drive the development of smart and new generation stores (with phygital and hybrid retail options), and this also includes adding F&B offerings to the retail business in Africa.
“We are also focused on strengthening partnerships with our current and new owners, based on increased value generation for both sides, long-term relationships and with an enhanced focus on the passenger experience. We are also very aware that Africa offers some of the richest cultures and history, and although this is nothing new for us, we want to bring more local products and suppliers to the airports. This will not only enrich the passenger experience, but have a greater impact on local communities.”
Highlighting one important location, Agzoul says the market in Morocco has proven resilient and has recovered “very quickly” since September’s devastating earthquake.
For the region more broadly, he adds that “the overall performance is good and in line with the traffic recovery we are seeing on the continent. We are at the forefront of the evolution of the passenger [growth] in the countries where we are present”.
Middle East priorities
Reflecting on Avolta’s investments in the Middle East region, Avolta was finalizing 13 food outlets in the new Terminal A at Abu Dhabi International Airport as this publication went to press.
In Qatar, as part of a dining joint venture with Qatar Airways Group, the company recently completed the final four outlets as part of a major development program at Hamad International Airport. This was the final part of a major project that started in the summer of 2022 ahead of the FIFA World Cup, consisting of 24 F&B outlets managed between Qatar Airways and Avolta subsidiary HMSHost International.
As competition continues to intensify for new business in the Middle East, how does Avolta stand out and play its part in driving the broader offering for its key airport partners, we ask?
![](https://www.moodiedavittreport.com/wp-content/uploads/2023/12/Amman-Duty-Free-1.png)
![](https://www.moodiedavittreport.com/wp-content/uploads/2023/12/Amman-Duty-Free-1.png)
Promoting a sense of place throughout the region, here in Amman with the concept of Sense of Jordan
Agzoul says: “We know very well that tourism is the main driver of airport traffic. However, there are different types of tourists and travelers and we strongly believe that understanding all our potential customers (their needs, aspirations, values) is the key to being able to adapt and bring innovation through our offers. Since we operate in airports in the most relevant tourist destinations, this gives us the opportunity to have the most insightful data regarding customer preferences and trends.
![](https://www.moodiedavittreport.com/wp-content/uploads/2023/12/Amman-Duty-Free-2.png)
![](https://www.moodiedavittreport.com/wp-content/uploads/2023/12/Amman-Duty-Free-2.png)
Amman Duty Free, a key location for Avolta in the Middle East
“Through our commercial offering we aim to make the travel journey as rewarding as the destination. We work with our owners, our partners and the communities we work with to ensure our stores provide a continuum of the travel and tourism experience and obviously we want to do this in partnership with the airports and communities we work with . Digitalization of stores and innovative entertainment are part of our strategy.”
As CEO Xavier Rossinyol noted at the recent Trinity Forum, Avolta’s updated strategy is about putting the consumer front and center.
In detail, Agzoul says: “Avolta conducted an analysis of fifteen million social media posts using artificial intelligence technology that has generated new insights in relation to predicting traveler patterns and behavioral changes.”
In addition to the classic traveler looking for novelty, value and gift ideas, the intelligence gathered by Avolta identified three distinct new personas with different behaviors and emerging needs:
1) Wandering workers
2) Experience seekers
3) New explorers
Agzoul adds: “These three core traveler segments have different behaviors and preferences, with some focusing more on the mix of retail and F&B or personalized offerings, travel experiences, premiumization or technology, sustainability and so on.”
Being what Avolta refers to as “travel-centric” means constantly learning, controlling and observing the behaviors of these travelers, notes Agzoul, looking at what they need in specific destinations and assessing what they haven’t yet recognized they need. .
In turn, he adds, Avolta will rely on its global footprint “to identify trends and developments, to ensure we can respond and surprise. This is how we can continue to learn from our travelers and bring the “travel experience revolution” to life. ✈
*This feature first appeared in The Moodie Davitt Magazine for November. Click here to access this version.