As more people resume travel and vacation planning, retailers and consumer products companies, including US discount store chain Target and cosmetics company Coty, are benefiting from a jump in baggage sales and increased spending at airports.
Duty-free stores and makers of travel-related products such as bags have seen sales stop during closures to limit the spread of Covid-19 around the world, but travel-related trade is starting to recover again.
United Airlines last month forecast the highest quarterly revenue in its history.
Target Corp said before announcing its quarterly earnings that baggage sales grew 50 percent in the first quarter of 2022.
“Now we’re seeing visitors, who might have bought TVs last year, this year looking for luggage because they’re getting ready to travel for the first time,” Target CEO Brian Cornell told reporters.
Samsonite International, which makes Tommy and American Tourister bags, said last week its quarterly sales were up 75 percent from a year earlier.
The corporate cases are consistent with signs of a shift in US household consumption back towards services after two years of massive spending on big goods while they were largely confined to homes.
Commerce Department data for March, the most recent available, showed that the share of total spending on entertainment, lodging and dining out rose to a pandemic-era high of 10.33 percent. This is up from 6 percent early in the health crisis.
The passing of more passengers through airports also increases the chances of selling goods offered in stores such as perfumes and cosmetics
Travel numbers through Transportation Security Administration checkpoints in the United States over the past seven days have seen an increase of 36.33 percent from the same period in 2021.
“People are buying fragrances globally today more than ever before. All levels are higher than 2019/2020,” Sue Naby, CEO of Coty, said earlier this month, adding that the global beauty company expects the momentum to continue.
Cigarette companies Imperial Brands and Philip Morris International said they had begun to see a rebound in sales in airport duty free shops around the world, including in Europe and the Middle East.