Avolta and utu duty free shopping pilot targets untapped potential within the global travel retail ecosystem

Avolta, the world's biggest airport retailer, and FinTech firm, utu, are launching a pilot that aims to maximise duty free shopping opportunities at Milan's Malpensa and Linate Airports.

This will offer travellers 25% more spending power by turning VAT refunds into duty free vouchers redeemable in Milan.

An estimated $4 billion in VAT refunds processed at airports goes unclaimed each year.

The Avolta x utu programme is claimed to be the first to capture this at scale, capturing VAT refunds that might otherwise leave the country, as an incremental sales driver for Avolta’s airside retail stores.

utu caught the attention of Avolta in 2023 at its NEXT Global Innovation Challenge, a showcase seeking innovative ideas to elevate travel retail. Selected as a finalist from over 140 entrants, it bagged a funded project with Avolta.

Maurus Lienhard, Chief Strategy and Transformation Officer at Avolta, says: "utu’s proposition puts the traveler at the centre by providing additional value and enhancing their journey; this fits perfectly within our Destination 2027 strategy.”

“We are excited to launch utu in a major European travel hub where tax free shopping  plays a key role, and look forward to sharing its benefits with our customers.”

“Additionally, we see potential to leverage our global network with a presence over 73 countries and 5,100 points of sale to roll out this programme, driving sales growth for our business. utu's innovative solution complements our mission to make the journey as rewarding as the destination and unlock new sources of value."

Ameer Jumabhoy, Co-Founder at utu, comments: "Our partnership with Avolta demonstrates the untapped potential within the travel retail ecosystem.”

“By rewiring the tax free and duty free value chain, we're creating a win-win for travellers and airside retailers. We believe this model can be replicated in airports worldwide, driving multi-billion dollar growth for the industry."