Travel retail sales have tanked in double digits at the Estée Lauder Companies and South Korea’s Amorepacific Corporation in the quarter ending December 31, 2023, and for the full year, respectively.In an investor call on Monday (February 5), ELC’s CEO Fabrizio Freda was frank about the damage, citing a 28% organic sales slide in the company’s global travel retail business, where key brands include Clinique, Jo Malone, La Mer, MAC, and Tom Ford.The CEO talked of “persistent challenges in our Asia travel retail business” as well as the impact to business in Israel and other parts of the Middle East due to the war in Gaza (generating a 2% headwind). In the final quarter of 2023, Tel Aviv’s Ben Gurion Airport—Israel’s international gateway and a major global duty-free location—saw traffic collapse. According to data from airports association Airports Council International Europe, air traffic in Israel was down 62% in those three months.Overall organic net sales at ELC fell by 8% (7% reported) to $4.3 billion, as BeautyMatter reported. Though shares spiked to more than $155 on the announcement of a restructuring plan, by the end of the week they were nearer to $140.Tackling Inventory LevelsTravel retail had a stellar performance during the pandemic—taking Lauder’s stock to a new high of $360 by the end of 2021—but the travel bubble seems to have burst. High inventory levels have been one issue, and progress has been made in reducing them in Asian duty-free, according to Freda.