PORTUGAL. Airport and inflight retailer LFP–Lojas Francas de Portugal has confirmed that its current onboard trolley service contract on TAP Air Portugal will be terminated and switched to a digital solution with product pick-up at airports.
The joint venture between Vinci Airports (51%) and travel retailer Dufry (49%) will continue with trolley sales until the end of the year. The digital service allows passengers to connect online via an app to see a wide range of products which they can reserve and then pick up at their destination.
LFP Inflight Sales Director Ana Rita Aragão told The Moodie Davitt Report: “The current contract runs until this December and we will start a new one under the new operational conditions.”
The shift to digital was strategic for TAP as it continues to modernise its planes and passenger interface, with the ultimate aim of offering a streamlined customer proposition. In March the airline announced a loss of €118 million for 2018, despite an increase in revenue of 9.1%, more than double the increase of its main European competitors.
About €95 million of the loss was for non-recurring and extraordinary costs “intended for initiatives essential to the transformation of TAP in view of sustained future profitability”.
The change to inflight retail is one smaller aspect of TAP’s transformation. Aragão said of the switchover: “It was a TAP decision as they are renovating their fleet. The new aircraft have no space for the duty free trolleys as they are improving the seating rows – even food on board will be affected with the lack of galley space.”
A learning curve
The digital service will start soon, alongside trolley sales. Aragão said: “We want to start the new digital operation as soon as possible in order to give us time to develop and improve it.” The aim is to fine tune the digital offer while it is running concurrently with the trolley service so that when the latter ends, the new operation will run smoothly.
The collection service will also be rolled out gradually. Initially passengers will be able to pick up their purchases at locations where LFP has ground shops such as Lisbon and Porto airports. “We are starting this operation with our shops in Portugal, especially Lisbon and Porto were we have arrival shops. Then we will expand to other TAP destinations,” said Aragão. “As our two shareholders are Dufry and Vinci this will allow us to negotiate in locations where Dufry has ground stores such as in Brazil, one of TAP’s main destinations.”
LFP is the leading airport and onboard retailer in Portugal. The company is present at airports in Lisbon, Oporto, Faro, Madeira and the Azores, with over 30 stores.
