Lotte Duty Free Partners with 7 Companies Including Korean Air and Asiana for Duty-Free Shopping on Non-Stop Tourist Flights

Up to $1,550 in Rewards and 600,000 KRW LDF PAY Benefits
"Driving 50% of the Duty-Free Market for Non-Stop Sightseeing Flights... Leading Domestic Duty-Free Store Competitiveness"

[Asia Economy Reporter Yuri Kim] Lotte Duty Free announced on the 25th that it has expanded its partner airlines for non-landing sightseeing flights to seven and plans to attract the "non-landing sightseeing" travelers this spring with greater benefits.

Starting in March, Lotte Duty Free expanded its duty-free shopping partnerships with full-service carriers (FSC) Korean Air and Asiana Airlines, as well as low-cost carriers (LCC) Jin Air. Including existing partner airlines Air Busan, Jeju Air, Air Seoul, and T'way Air, the company has partnered with seven airlines operating non-landing sightseeing flights, securing the largest number of partner airlines in the duty-free industry.

There are a total of 22 non-landing sightseeing flights partnered with Lotte Duty Free in March. Passengers can enjoy the same overseas traveler duty-free benefits, including a basic $600 duty-free allowance plus one bottle of alcohol (1ℓ, up to $400), 200 cigarettes, and 60ml of perfume.

The industry expects the non-landing sightseeing flight market to grow further as Korean Air launches a non-landing sightseeing flight product operated by the A380 aircraft, known as the "luxury hotel in the sky," starting on the 27th. Additionally, demand from spring travelers seeking unique travel products is expected to increase from March. The duty-free industry is also actively attracting customers with various benefits, as the purchase amount of duty-free goods by non-landing sightseeing flight customers is about 2.5 times higher than the average domestic customer unit price before COVID-19.

Passengers on non-landing sightseeing flights in March can receive up to 600,000 KRW in LDF PAY based on their purchase amount at all Lotte Duty Free stores. On the Lotte Internet Duty Free website, a total of $1,550 is offered, including up to $540 in partner money. Depending on the airline and seat class, membership levels on the Lotte Internet Duty Free site will be upgraded to Purple or the highest Black tier. Customers using Asiana Airlines, Jeju Air, Air Seoul, or T'way Air can receive a 3% cashback (up to 10,000 KRW) in Toss Money when purchasing via the simple payment service Toss.

Passengers of Korean Air, Asiana Airlines, and Air Busan, which have exclusive partnerships with Lotte Duty Free, will receive gifts prepared based on Lotte Duty Free’s brand lineup. Depending on the airline, popular beauty brand products such as Aveda hair products, Lab Series cleanser samples, Lunasol skincare sets, and Vichy or La Roche-Posay skincare sets are available. Korean Air passengers will also have a chance to win a premium luggage brand "Rimowa" suitcase through an in-flight raffle event.

Meanwhile, from December last year through this month, Lotte Duty Free customers using non-landing sightseeing flights showed high purchase rates not only for basic skincare cosmetics and perfumes favored by domestic customers but also for relatively high-priced items such as leather wallets, rings, and necklaces. The import cosmetics category accounted for 34%, fashion 30%, and watches and jewelry 14%. Luxury brand wallets, handbags, and shoes from Chanel, Herm?s, and Prada were popular, while Biotherm men's cosmetics, premium baby cosmetics brand Primage products, and Italian jewelry brand Damiani necklaces also attracted customers’ spending.

Lee Jung-min, Head of Lotte Duty Free Platform Business Division, said, "As Lotte Duty Free’s market share in the domestic duty-free goods market linked to non-landing sightseeing flights steadily exceeds 50%, we will continue to secure various popular products and prepare partnership benefits to repay our customers’ support."