For a sector that was hit harder than most by the Covid-19 pandemic and resulting travel restrictions, the return of affluent US travellers to Europe – and their propensity to visit more than one destination – is a hugely positive development.

European travel retail stands to benefit from the return of affluent American travellers to the continent, while the recovery of multi-destination trips is another positive development for the sector. The easing of entry requirements throughout Europe comes as a relief to the entire travel industry – not least the travel retail sector, which relies on the steady flow of wealthy travellers through airports.

Of particular interest to duty-free operators and retail brands is the long-haul segment, which, according to ForwardKeys’ on-the-book data, will reach 2019 levels during the Christmas peak season. With the US historically representing an important market for travel retail, this is a further boost for Europe-based duty-free operators and airport retailers that have suffered during the pandemic.

Among the long-haul markets leading this recovery, the United States tops the table, having reached 95% of its 2019 performance in July and August and, based on on-the-book arrivals, will reach 96% in the autumn months. It is also a positive development for travel retail as it allows airport stores in more European destinations to profit from this highly valuable source market.

The destinations benefiting most from the influx of affluent American travellers in Europe include Istanbul, Lisbon and Athens, with all three comfortably surpassing their 2019 performance in terms of US arrivals this summer, at +63%, +49% and +24%, respectively.

In yet more good news for the European travel retail sector, US visitors to the continent have, on average, more disposable income than before the pandemic. This suggests that the fear of being caught out by changing travel restrictions is fading and that Americans generally feel more confident about crossing multiple borders during their stay.

This summer, 32% of US arrivals in Europe visited two or more destinations, the same proportion as in 2019 and 10 percentage points greater than in 2021. As a result of Europe’s reactivation, both intracontinental and long-haul inbound travel is recovering well.

Compared to 2019, premium cabin class travel is up 18%, while the economy is still down by 8%. Another noteworthy trend is the return of multi-destination trips to pre-pandemic levels. Even more encouragingly, the trend looks set to continue in the months ahead.

Written by: William Trevan

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