Travel Retail: Telecom Operators Also Take Off
The massive influx of travelers over the past 20 years, along with the rise of the middle class, continues to fuel the growth of the travel retail market—sales that take place in travel transit areas such as ferries, train stations, and airports. Across all sectors, this market is expected to generate around $109 billion in revenue by 2025.
Today, travel retail is best known as a preferred distribution channel for cosmetics and luxury brands, which often refer to it as the "sixth continent to conquer." But they are no longer the only ones eyeing this rapidly growing market, which expands by 15% annually.
Travel Retail: A New Opportunity for Telecom Operators
Telecom operators are increasingly turning their attention to this channel—and to travelers in general. Indeed, travelers have very specific needs and expectations when it comes to telecommunications. Upon arrival at their destination, they want to contact their families, use GPS for navigation, or share their experiences. Above all, they want to stay connected and enjoy their mobile device just like they would at home.
In this context, the European regulation abolishing roaming fees within the EU allows European tourists to benefit from the same rights and services throughout the EU. This raises the question: Does travel retail still have a place in this landscape?
Currently, non-European tourists—particularly Americans and Asians traveling to Europe—represent a significant additional revenue stream for operators. A study by the Mindset Institute confirms this, revealing that 70% of tourists from the Americas, Asia-Pacific, and the Middle East are willing to spend €50 on a local European plan to avoid the “bill shock” upon returning home.
While the potential is clear, the challenge for operators lies in mastering the codes of this new distribution channel. Communication, customer approach, services, and products all need to be carefully adapted in order to effectively reach tourists. Operators must identify and engage with travelers at key touchpoints—either at departure or upon arrival.
True Move: A Case Study in Bangkok
The Thai operator True Move has already taken up the challenge by setting up its own retail outlet in the arrival zone of Bangkok Airport. It offers tourists prepaid SIM cards with data and call credit for 300 Baht (around €8). Thanks to attractive pricing and aggressive marketing, the operator now sells over 1,500 SIM cards per day.
True Move’s success lies in its strong knowledge of the local market, making it easier to operate within the airport. But other operators also need to tackle foreign markets in order to deliver an outstanding experience beyond their home countries.
This leads to the key question: How can a telecom operator, typically active in its domestic market, offer a competitive experience abroad?
Orange Rises to the Challenge
Since 2015, Orange has been leveraging its presence in over 32 countries to expand into traveler transit zones. The brand has launched multiple initiatives to capture the potential of this market and boost revenue.
Some offers, such as Orange Holiday (in France and Spain), were specifically designed for tourists traveling in Europe. In Tunisia, for example, a stand was set up in the baggage area at Tunis Carthage Airport to distribute free prepaid SIM cards.
To better reach critical traveler touchpoints, both within and outside its existing markets, Orange partnered with Lagardère Travel Retail. This partnership provides access to a wide retail distribution network, especially in countries where the Orange brand is not yet well known.
As a result, Orange Holiday SIM cards are now available at Relay stores in Hong Kong Airport and Paradies shops in U.S. international airports. Through its physical presence and strategic partnerships, Orange is carving out a solid place in the travel retail space.
