Interview: London Luton and Lagardère aim to set new duty-free benchmark for mid-sized airports

Introduction: London Luton Airport recently awarded Lagardère Travel Retail a new ten-year duty-free contract, deepening a partnership that currently spans two decades. The renewed deal will see the retailer manage a greatly expanded Aelia Duty Free store footprint and, in line with a growing airport trend, introduce a food & beverage component within the main store – a Bottega Prosecco Bar.  

Our Senior Business Editor Mark Lane speaks with London Luton Airport Interim-Director of Non-Aeronautical Revenue Mark Jennings about the tender process, why the airport chose to continue its relationship with the French travel retail powerhouse and how duty free is being reimagined for the next generation of travellers.

UK. London Luton Airport (LLA) has ushered in the next chapter of its relationship with Lagardère Travel Retail through a new ten-year contract award to operate an expanded duty-free offer at the UK’s fifth-busiest airport.

The concession, commencing 1 November 2026, continues a collaboration dating back to 2005, but its direction points firmly to the future.

Under the agreement, Lagardère will oversee a significantly enlarged store footprint, with total duty-free space growing from 2,530sq m to 3,340sq m.

The main departures store will expand by more than +40% to 2,680sq m, joined by a second departures store and an arrivals outlet. All will continue trading under the Aelia Duty Free name.

The stores will be comprehensively redesigned, aligning with LLA’s vision to create a retail experience that is “unexpected, immersive and fun”. Central to that vision is a first-of-its-kind feature at the airport – the introduction of a Bottega Prosecco Bar within the main duty-free store, adding a premium food & beverage dimension with the central aim of encouraging increased passenger dwell time and experience.

The tender was, says LLA Interim-Director of Non-Aeronautical Revenue Mark Jennings, “a highly competitive process”, attracting wide-ranging international travel retailer interest.

“We had engagement from UK, European and overseas organisations,” Jennings tells The Moodie Davitt Report. “The quality and level of submissions was extremely high across all bids, and that sends a strong signal to the industry about the calibre of operators in the duty-free sector.

“Our approach was built around our core values – being the simplest, friendliest UK airport with a focus on responsible growth. From that, we developed three commercial pillars: customer centricity, sustainability and operational excellence.”

To bring those pillars to life, LLA created a ‘design playbook’, a tool that replaced conventional design guidelines with an open brief for bidders to define the passenger journey through the store.

“Instead of saying, ‘Here’s what the fixtures should look like’, we asked them to describe the experience before, during and after the duty-free visit,” says Jennings. “That gave the bidders license to be expressive and imaginative. Lagardère really took that on – they didn’t just design a good-looking store; they designed how it should feel.”

That experiential focus became the decisive factor. Jennings explains that Lagardère’s proposal “brought the whole thing together” combining layout, brand proposition and passenger engagement into a cohesive concept.

“Our focus was more about how passengers experience the store,” he says. “The look, the staff interaction, the atmosphere – making it immersive rather than simply transactional.”

The resulting design represents a major shift for LLA’s duty-free environment.

“When passengers step into the new store, it will look and feel completely different to any other duty-free space,” he says. “It’s a step change from what we have today.”

The new concept, Jennings adds, also takes account of evolving passenger demographics and expectations.

“We recognised the need to span generations,” he notes. “For those of us who’ve grown up with duty free, much of the proposition is familiar. But younger travellers – my daughters’ age group, in their mid-20s – want a different experience. This design bridges both worlds.”

Among the most striking elements of the proposal was the inclusion of a premium food & beverage offer within the store, a concept LLA encouraged but did not insist upon in its bidding requirements.

“We gave all bidders the option to include a premium F&B component,” Jennings recalls. “Given how productive duty-free space is [in revenue per square metre], we expected that might be a tough sell. But every bidder took up the challenge, which was a pleasant surprise. It shows how far the category has evolved.”

The new concept also includes a partnership with Bottega, the Italian sparkling wine brand renowned for its Prosecco bars across European airports and cities.

“Bottega are a recognised name in travel retail,” says Jennings. “They already have a strong product presence in our current [Aelia Duty Free] store, and we’ve spoken with [Bottega CEO] Sandro Bottega and his team over the years about independent sites around the terminal.

“Including Bottega as part of the concept was a win for us. It’s a brand that resonates with our passengers, and they truly understand quality and experience.”

The Bottega Prosecco Bar will be located roughly two-thirds of the way through the main store, occupying a central position beyond the perfume & cosmetics and liquor categories, offering 35-40 covers.

The layout has been designed so that travellers can see the bar both as they enter and after they exit the main space – encouraging dwell and curiosity.

“We asked bidders to think about sightlines, the view into and out of the store,” Jennings explains. “The Bottega bar has that magnetic presence. It’s a focal point whether you’re inside or just walking by.”

The bar will serve from morning through evening, offering coffee and pastries for early travellers, light bites during the day and Prosecco, spritzes and cocktails later on. Crucially, it will connect directly to the retail journey.

“It’s about dwell, but also about creating a moment,” Jennings says. “A passenger might stop for a glass of Prosecco, and a staff member can introduce related gifting items – something to take away. That seamless link between F&B and retail is what makes it special.”

The scale of the project demanded a long-term commitment. When asked about contract duration, Jennings notes the fresh ten-year agreement reflects both the financial investment required to develop the duty-free offer, and the shared confidence between airport and operator.

“The store’s expansion by about 500sq m represents a major investment,” Jennings explains. “A contract of this length ensures that quality is maintained over time.”

Some might see a decade-long term as a risk in a fast-evolving market, but Jennings points to Lagardère’s track record of adaptation.

“We’ve worked with Lagardère to navigate COVID, Brexit and changing brand dynamics with agility,” he says. “They’re proactive, they innovate and they evolve. That’s exactly what you want in a long-term partner.”

The expansion comes at a time of sustained commercial growth at LLA. Both duty-free and food & beverage revenues have outpaced passenger growth in each of the past four years, a clear indicator, says Jennings, that travellers respond to experiences rather than transactions.

“We continually look to invest in passenger facilities across the terminal and enhancing the passenger experience will always be at the heart of our core strategy,” he reveals. “Over recent years, there has been significant investment in our food & beverage offering, and whilst this continues, we are now at a really exciting point in our investment in duty free. It’s all about extending the journey.”

Passenger demographics, too, are shifting in ways that support the new proposition.

“Post-Brexit, we saw a levelling off in Eastern European traffic, but that’s been offset by strong growth in outbound leisure,” Jennings points out. “Jet2 joined us this spring, and both Wizz and easyJet Holidays are growing their Western Med and Canary Islands routes. That’s an audience that wants experience, recognisable UK brands and a compelling duty-free offer. This expansion delivers that.”

For Jennings, the transformation of LLA’s retail and F&B portfolio over the past few years has been personally gratifying. He proudly notes that the airport was named Europe’s Best Airport for Food & Beverage at The Moodie Davitt Report’s 2024 FAB Awards, and at this year’s version of the world’s most prestigious airport F&B event took home Best Restaurant Design in Europe for its Sanford’s restaurant, a partnership with TRGC.

Reflecting on these and other LLA commercial achievements in recent years, Jennings says: “There’s nothing better than walking through the terminal and seeing customers interact with what you and your partners have created. Duty free will be no different.”

He also highlights the backing of LLA’s shareholders, whose support for LLA’s long-term programme of investment and its overall business approach, including eye-catching infrastructure investments – such as the 500sq m mezzanine for Sanfords – underlines their long-term confidence, he contends.

“Those are permanent additions to the building,” Jennings says. “You don’t often get those moments in our industry, but they make a lasting mark.”

Jennings’ remit has recently expanded, taking on the interim role of Director of Non-Aeronautical Revenue, adding parking and property to his portfolio. Meanwhile, LLA is pressing ahead with several active tenders – four in food & beverage and one for travel essentials.

The renewed partnership between London Luton Airport and Lagardère Travel Retail is set to represent more than merely the continuation of a successful concession. By blending retail with hospitality and giving passengers reasons to dwell in a key commercial area for longer periods, Jennings believes the alliance could set a new benchmark for duty free in the mid-sized airport category.

The Bottega Prosecco Bar will be the most visible symbol of that change – a meeting point between indulgence, social experience and brand storytelling.

“We’re not just adding more space,” Jennings concludes. “We’re creating a destination, a reason to arrive early, linger and enjoy the moment.” ✈