Interview: Talking tenders, consumer dynamics and a diversified commercial mix at Norway’s airports

Norway’s airport company Avinor is preparing to call tenders in early 2026 for its key commercial contracts, led by duty-free & duty-paid retail, travel essentials, food & beverage and lounges. In advance of the launch, Dermot Davitt speaks to Avinor Executive Vice President for Commercial Areas Joachim Lupnaav Johnsen and Vice President Commercial Terminal Iskra Skram about the opportunities.

NORWAY. “This represents the largest Nordic airport concession opportunity this decade.” So says Avinor Executive Vice President for Commercial Areas Joachim Lupnaav Johnsen as Norway’s airport company prepares to issue tenders for duty free & duty paid, speciality retail, travel essentials, food & beverage and lounge contracts in early 2026.

The value of the business – anchored by core-category duty free – explains the intense market interest from potential partners as the opportunities come to market.

The concessions on offer span around 120 outlets in total across channels at 12 airports, led by Oslo, Bergen, Stavanger and Trondheim plus selected regional locations.

According to Avinor estimates, the new contracts are worth around NOK50 billion (US$5.04 billion) in sales value over their lifetime, though this also depends on term lengths, which remain under discussion and will be finalised before tender launch.

The opportunity can also be framed though the lens of recent traffic performance: Norway’s airports served over 51 million passengers in 2024, with international traveller numbers growing almost twice as fast as domestic.

Among these contracts, duty-free & single-price retail, currently managed by long-term partner Travel Retail Norway, is the most valuable agreement, described by Johnsen as “the financial backbone of our business”.

The channel contributes close to 25% of Avinor’s annual income – and around 40% of commercial revenues – and is fundamental to the ‘Avinor model’, where profitable airports finance those that are not.

“The contracts are therefore far more than retail agreements: they safeguard the financing of Norway’s entire airport network and ensure national connectivity, making duty free one of the most critical pillars of our business model,” stresses Johnsen.

The high duty-free spends and basket sizes in this market are driven by the affluent Norwegian population – across all categories at the airport they spend six times the amount compared to visitors – but the business is not what it was before the pandemic.

The weakening of the Norwegian Kroner is one factor, softer spending and changing shopper habits are others, while regulatory change, notably in the slashing of tobacco allowances three years ago, has also played a part.

The arrivals business remains a critical channel, one sustained largely by the wide price differential between duty-free and domestic wines & spirits.

Given these factors, the duty-free & single-price contract at Norway’s airports represents one of the world’s most attractive travel retail opportunities, with an estimated five-year turnover valued at around NOK30 billion (US$3.06 billion).

Duty free is also central to the traveller experience, created around variety of offer, building guest relationships through physical and digital contact points, while being a premium showcase for Norwegian and international brands.

All of this should help attract the right partner, one that is “hands-on, agile and customer-centric, able to stay relevant with dynamic assortments, shorter trend cycles and a changing passenger mix”, says Avinor.

One element that bidders will need to take into account is the change in the consumer audience and how they are engaged.

Johnsen says: “During the pandemic we anticipated the world would come back as it used to be, which it has not. It’s a very different world.

“We have seen business travel reduce significantly and recover at a slower rate. There has been much stronger growth in leisure travel and in the variety of visitor groups, many of them Gen Z and many from the major western European countries, who have come into our market. Norway has become a big focus for tourism now, encouraged by the government, with winter sports a growing attraction, with the weaker Kroner a factor too.

“In general, we have gone from a very predictable market to a dynamic and hyper-segmented, and that will be a big challenge for us under the next set of contracts.”

For retail this means Avinor and commercial partners must consider the continuing vital role of Norwegian shoppers while becoming “much sharper” in segmenting the audience and in tailoring the offering to them, he adds.

Johnsen says, “What we have learned in the last five years is that we cannot predict the future, so we need to cater for each situation, be open for flexibility and learn and develop as we go.

“Norwegians are the among the highest travelling nationalities in the world plus they still spend heavily so we cannot expect much more from them.

“The opportunity lies in the new wave of travellers from outside but that also demands flexibility, new skill sets and different ways of approaching them. We have become good at adapting but we probably won’t even see the full story in the next five to seven years.

“This is also why we are going pretty early in terms of the tendering. We have time to have proper dialogue with potential partners, to get a new understanding of consumer trends and to get their feedback.

“This is not about us telling everyone what to do, but about making sure we have good exchanges during the tendering process. And we are looking for partners that can handle the new dynamics.”

Broadening appeal

Further impetus should come from deregulation this year that allows duty-free and duty-paid goods to be sold in the same space for the first time.

Under a new bonded warehouse regulation titled Tollager C, this will help provide greater assortment flexibility, enabling sales of more categories within the duty-free space beyond the traditional core, broadening customer appeal, says Avinor.

Duty free, in short, will appear much like it does in other comparable markets, says Avinor.

To allow for the evolution of other categories, the two main departures duty-free stores in Oslo will become one large one, with an extended offer.

Avinor Vice President Commercial Terminal Iskra Skram says, “With the changing passenger mix and regulations for duty free, we are changing the offer in the terminal and also the share of space between duty free and speciality retail.”

Johnsen adds, “When you are limited by the possibility for growth in one area, which we are in duty free with the passenger mix, regulation and so on, you have to make that as efficient as possible.

“So in one single space we will broaden the offering and get more products in. Our bet then is that we can derive new revenues from the extra space. That comes back to generating more spend from visitors and encouraging them to find ways to spend money.” (Main article continues after the panel below)

A multi-category, multi-airport tender programme Beyond Oslo, the other major airports will see space additions and upgrades as part of the forthcoming tender processes. At Bergen, the footprint of international departures retail will increase to accommodate more gifting and fashion, while in Stavanger there will be some layout changes to make the store more inviting and experiential. Meanwhile, as part of the upcoming bid process, F&B concessions will be tendered at Bergen and Trondheim airports early in the new year, while travel essentials/convenience stores will go to market across the network soon after. Of the F&B opportunity, Avinor management says that guests are seeking greater variety, healthier options and a blend of local and international brands. “We see room for casual-dining, café and bakery concepts rooted in Norwegian culture, as well as premium offers that complement international brands. The mix should reflect both local identity and global trends.” Within convenience, speed, trust, relevance and innovation are the key factors. “We want partners that can deliver basics efficiently, while experimenting with digital ordering, flexible formats and assortments that respond to different passenger profiles.” Lounges can become even more important as destinations for some passenger groups. “We will, in the future, emphasise lounge development with concepts focusing on Norwegian design, local food and retail. We will look into new format development, addressing the needs of younger travellers,” says Avinor. As noted above, not all terms are yet confirmed at five years as under previous agreements, with the possibility that some will run longer. The model will not alter though, with traditional concession fee agreements required under rules related to Avinor’s state ownership. Avinor says: “We will adapt contract lengths to the needs of partners and passengers within each category, combined with more flexible packaging of tenders and clear incentives for innovation. The focus is on building mutual value, where operators thrive commercially and Avinor sustains its model of financing airports nationwide.” While things can change, the senior team does not foresee wider changes to regulation around retail for the Avinor group. Johnsen says, “Avinor is financed by commercial revenues, and the commercial offering is part of the airport experience. “The government learnt after the cutting of tobacco allowances just what an impact that had on Avinor’s earnings and its funding capabilities. The aviation model in Norway is a self-financing system underpinned by commercial revenues, so we hope not to see further limitations on spending quotas.”

In a market where spend per passenger has softened, but with healthy dwell time averaging one-and-a-half to two hours, the keys to success will lie in maintaining that focus on core Norwegian spend while capturing more value from visitors.

Johnsen says, “We have to close the six-fold spending gap between Norwegians and others, but that will be helped by having more retail outlets plus a more granulated offering.”

Avinor plans to allocate more space to speciality retail at Oslo Airport and elsewhere, led by fashion & accessories and destination goods. Norwegian brands will be emphasised across categories.

Skram says, “We anticipate a more elevated assortment among Norwegian brands, including fashion and jewellery, with additional space for gifting, from confectionery to children’s goods.

“The stores should also be much more experiential than before now. That is a trend we all face in the industry.”

This means acting on the shift Avinor identifies towards premiumisation, authenticity and digital engagement.

Of the latter dynamic, Johnsen says: “We need to work on the integration of digital into the shopping experience.

“We are trying to embed and integrate the customer journey into apps, websites and terminal experiences, so the passenger gets an omnichannel view, alongside synergies with retail to fully leverage the airport marketplace.”

Among other initiatives, Avinor has trialled and is rolling out an AI chatbot that can engage with travellers in their own languages, and has developed a new web and app platform with commercial advertising embedded.

Digital tools also allow consumers to have the world at their fingertips, meaning that transparency in pricing becomes even more important.

Johnsen notes: “We see this especially with new brands in categories such as P&C that are highly exposed online. We have to use digital pricing elements inside the store to substantiate the value proposition all the time and make the saving very obvious.

“We want the retailers to move into this space, to show savviness in terms of development, but also to show what they can do with the store experience and create more of those ‘Insta’ moments.”

Skram adds: “At the core of our commercial strategy is this integration of our market spaces, allowing our partners to deploy all the tools possible from physical to digital. We need partners that sees the importance of this omnichannel thinking to reach all customer groups in the terminals.”

Avinor management points to its new advertising model (with Bauer Media Outdoor Norway), which it says “positions Avinor as the leading media arena in the Nordics, integrating physical and digital assets for brands and partners. We expect operators to embrace phygital retail, data-driven marketing and seamless integration across the journey.”

Operational capability

One factor that supports Avinor’s drive to introduce fresh experiences is the quality of stay, supported by flight punctuality, for which Oslo and Bergen have been regularly recognised.

Johnsen says: “Operationally, we are in the Premier League, and that helps us a lot on the retail side too. When you have updated infrastructure, functioning security lines, on-time baggage handling and little to no queuing problems, you have the ability to do more for passengers, to use the space even more as a marketplace. People can come early to see what is new.”

Reaching its key audiences also means allowing for trial and learning as new trends emerge. Avinor has introduced pop-ups as one device to test emerging brands with potential as consumer desires evolve. The category mix is also shifting in line with traveller trends.

While the core duty-free categories remain the foundation, gifting, confectionery, wellness and premium Norwegian products represent opportunity, while curated brand zones can built on existing formats.

Skram adds: “We still see a lot of potential in P&C in international departures. It’s the largest category in departures, even if it’s challenged by online and high street competition. Alongside gifting as a driver of purchase, P&C can be among the heroes of the future.”

On arrivals, which remains subject to the allowances regime in wines & spirits, Skram comments: “These categories will retain a big share, but we cannot escape trends such as lower alcohol consumption among the new generations.

“We are thinking about how we can encourage Norwegians to buy more on arrival beyond the traditional duty-free categories, while at the same time attracting our foreign visitors to also buy on arrival.”

One other factor that will weigh on decision-making about partners across business channels is their sustainability credentials.

Avinor was one of the first European airport groups to set SBTi-approved climate targets, with an aim to reduce its own emissions by -42% by 2030.

Avinor says: “We expect partners to match that ambition through energy use, sourcing, packaging and waste reduction. Beyond compliance, we want to see innovation that reinforces a credible sense of place and showcases Norway’s values.”

Avinor management says the ambition is to create “the most attractive and inspiring commercial arena in the Nordics”, with a sharper Norwegian identity and increased flexibility for partners.

With that in mind, summing up the opportunities Skram says: “There is potential for partners that are dynamic, hands-on, innovative, customer-centric and who can remain relevant though the contract period.”

Johnsen concludes: “We know that Norwegians spend a lot and we recognise and value their high share of the business. That will remain strong. But if we are also capable, with our partners, of driving even more revenues from the newer customer groups, namely inbound tourists, then this can be a vast opportunity.” ✈