SOUTH KOREA. Lotte Duty Free Shop has expanded its duty free shopping offer and related benefits on non-landing tourism flights (so-called ‘flights to nowhere’).
As reported, a non-landing tourist flight passes through foreign airspace without landing and returns to the departure airport. Since the Ministry of Land, Infrastructure and Transport issued international tourism flight permits last December, the concept has proven popular with travel-starved Koreans.
From 27 February, Lotte Duty Free will extend its duty free shopping offer to travellers flying on Korean Air’s A380. From March, an increase in travel demand for exotic locations is expected with the Spring warm weather.
Korea’s duty free industry has introduced benefits for customers on ‘flights to nowhere’ in an attempt to maximise purchase – the average spend is 2.5 times higher than customer purchases pre COVID-19.
In March, passengers on non-landing tourism flights can receive up to KRW600,000 (US$541) in LDF PAY benefits depending on their total purchase amount with Lotte Duty Free as well as membership points worth up to US$540 on Lotte Duty Free’s online website. The total value of benefits that passengers can receive totals US$1,550.
Depending on the airline and travel class, Lotte Duty Free will provide online membership upgrades to Purple or Black. In addition, customers using Asiana Airlines, Jeju Air, Air Seoul or T’way Air can receive 3% cashback (up to KRW10,000/US$9) for purchases on Toss, a popular mobile money transfer application.
Lotte Duty Free has partnered with Korean Air, Air Asiana and Air Busan for particular product showcases and gifts. Depending on the airline, passengers can expect to receive popular beauty brand products such as Aveda haircare products, Lab Series cleanser samples, Lunasol skincare sets and La Roche-Posay skincare sets. For Korean Air passengers, premium luggage brand Rimowa will be offered as a prize in an in-flight raffle event.
With the latest additions of Korean Air, Asiana and low-cost carrier Jin Air, Lotte Duty Free now provides duty free service onboard seven airlines operating ‘flights to nowhere’. A total of 22 non-landing tourism flights will be made in March with airlines and Lotte Duty Free. Passengers can enjoy tax exemption benefits applicable to overseas travellers – alcohol (within 1 litre, US$400), tobacco (200 sticks), perfume (60ml) and the basic US$600 worth of other duty free products.
Lotte Duty Free customers who purchase onboard non-landing tourism flights from December to February have displayed a preference for not only just skincare, cosmetics and perfumes favoured by Koreans, but demand is high for leather wallets and jewellery too. The proportion of sales of foreign cosmetics was 34%, fashion accounted for 30% and watches & jewellery was 14%. In particular, wallets, handbags, and shoes from luxury brands such as Chanel, Hermès and Prada are favoured, while Biotherm men’s cosmetics, premium baby cosmetics brand Primage and Italian jewellery brand Damiani also popular.
Lee Jung-min, head of the online platform business division at Lotte Duty Free, said: “Lotte Duty Free’s market share of non-landing tourism flight duty free sales has surpassed 50%. We will secure wider variety of in-demand products and partnership benefits to repay customers support.”
