Dufry Cruise Services unveiled as travel retail giant launches shopping operation onboard the Norwegian Joy in China

USA/CHINA. Dufry today announced an ambitious expansion of its cruiseline retail activities with the creation of Dufry Cruise Services and a related Center of Excellence, based in Miami, USA.

The world’s largest travel retailer underlined its ambitions for the channel by also revealing that it has just started operations onboard Norwegian Joy. The Norwegian Cruise Lines vessel was especially built for and customised to the Chinese cruise market.

 “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 specialised local knowledge and regional expertise.” – Dufry CEO of Division 4 Rene Riedi

“The cruise line channel is a strategic growth area for Dufry as it is globally growing and offering new opportunities going forward,” the company said.

Dufry Cruise Services and the Center of Excellence are based in Miami, USA. They combine the proven cruise ship expertise formerly known as Flagship Retail Services (Dufry’s onboard duty free retail concession business incorporated in Doral, Florida, in 2010) with the group’s global strengths and resources, the retailer said.

Norwegian Joy is Norwegian Cruise Line’s first ship to have been built specifically for Chinese travellers [Picture: Norwegian Cruise Lines]
“While Flagship has a knowhow that is second to none in the sector, Dufry offers the resources and support of a global company, such as centralised procurement and purchasing, store development, marketing and logistics as well as supply chain,” the group said. “Moreover, 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.”

Dufry CEO of Division 4 Rene Riedi: “We firmly believe that this is a remarkable step forward for this key strategic area of growth for the company”

Dufry CEO of Division 4 Rene Riedi (left) commented: “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 specialised 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.”

A growing share of group revenue

Dufry cruise ship & seaport sales currently account for 2% of Group revenue, the company said.

Dufry’s cruise ship operations cover routes from the USA to the Caribbean, Alaska, Europe and Asia. The company operates total retail space of close to 9,000sq m, ranging from 140sq m to near 2,000sq m per store on vessels owned by Norwegian Cruise Lines, Carnival and Pullmantur. Dufry is currently present on 17 cruise ships and offers a full range of traditional duty free products as well as brand boutiques similar to airports and specialist shops, such as the Colombian Emeralds jewellery shops.

Entering the Asian cruise market on board the Norwegian Joy

Dufry debuts on Norwegian Joy with nine shops covering 1,950sq m of retail space. The ship is the first Norwegian cruise liner which has been built specifically for Chinese travellers. The new Breakaway-Plus Class Ship caters for the 3,850 guests it can accommodate with luxurious suites in an 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,” the company said.

A fast-growing travel retail channel, buoyed by Asia

According to the Cruise Lines International Association (CLIA), ocean cruise passengers reached 24.7 million in 2016. For 2017, CLIA projects another year of growth with a passenger forecast of 25.8 million. Part of that rise can be attributed to the development of the Asian market, whose ocean capacity was up by +9.2% in 2016, representing a +38% increase compared to 2015, Dufry said.

Cruise ships span a broad spectrum of sizes and scopes with various passenger capacities, crew sizes and retail spaces, Dufry explained. Americans constitute the majority of travellers with other nationalities, such as Canadian, British and other Europeans, making up much of the balance. Asian passenger numbers are increasing rapidly, the company emphasised.

Footnote: This story was first brought to the industry by The Moodie Davitt e-Alert, travel retail’s leading breaking news platform. To subscribe free of charge please e-mail Sinead@MoodieDavittReport.com

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