Agenda What is NFC ? Business Opportunities Mobile NFC in The Airlines NFC Benefits NFC Services How does it work in The Airlines ? Challenges NFC solution providers
What is NFC ? Near field communication or NFC is an extremely short-range (10 cm or so) wireless technology, that allows mobile devices to read RFID tags, or communicate with other NFC devices . It can be used for contactless services such as content sharing, reading and writing, location, access control, ticketing and payment . NFC allows for simplified transactions, data exchange, and connections with a touch. Mobile NFC can be used for payment at kiosks, ticketing, internet, or person-to-person.
Growth / Trends Global handset/platform companies adding NFC to smart phones in 2011 Global consumer electronics leader has shipped 10 million reader/writers, including NFC for PCs and TVs. Juniper Research: 1 in 6 users worldwide will have an NFC-enabled phone by 2014. Frost & Sullivan: by 2015 NFC technology will be the most-used solution for mobile payment
NFC is Become a Mass-Market Phenomenon Source :IHS
NFC in The Airline IndustryNFC can provide benefits in several key areas of this 14 step process map
NFC services in The AirlinesIndustry• Ticketing• Payment ( pay for airports purchase, and in-flight services )• Passenger Check-in• Baggage Check-in• Security Checkpoint• Lounge Access• Boarding• Loyalty program• Post-flight
Benefits of NFC to the Airline Industry • Reduce cost. • Increase revenue. • Improve service levels. • Improve customer satisfaction and loyalty. • Increased penetration of self-boarding. • Easier passenger identification for all process points. • Improve processing times and reduce queues.
•Sale of airline merchandise Benefits – For Passengers • Improved travel process • Easy to use • Reduced transaction time • Enhanced self-serviced purchasing options Benefits – For Airports • Reduced airport congestion • Smooth operations • Minimal delays • Provides more revenue opportunities
NFC in The Leading Airlines ( Current )A few airlines, such as Air New Zealand, Air France, SAS airlines and Japanese airlines have rolled out or trialed faster check-ins or boarding with NFC technology. SAS Scandinavian Airlines Only for Gold members In Loyalty Program ( Frequent Fliers ) Self – services Kiosk, Boarding pass, fast track lanes, and lounges access ( Only in the three airports ) Air France Airlines Only for The most members In Loyalty Program ( Frequent Fliers ) between Nice and Paris airports Self – services Kiosk, Boarding pass.
Current vs. Future Current Future• Lounge access in some airports • Ticketing• Self-services Kiosk • Payments• Boarding pass • Tracking Baggage • Tracking travelers• Fast track • Luggage ID tags• Check –in • Schedules downloaded from smart posters / URLs to NFC phone • Store frequent flyer mileage number and check balance on NFC phone • Redeem miles at the gate for upgrades • And may be more ……
Passenger Check-In• IATA estimates that by 2013, 70% of passengers will use one of the three self-service channels (i.e. kiosk, web, mobile) to check-in.• All of these modes use the IATA BCBP (Bar Coded Boarding Pass) standard.• NFC replace the physical bar code image.• The boarding pass data will be securely stored in the NFC mobile handset. How does it work ?• Passengers will use one of the existing self-service channels to perform their check-in transaction.
Baggage Check-In• NFC technology will enable major process improvements for both baggage acceptance and payment of baggage charges at airports. How does this work? • Get their bag tags. • Go to a process point dedicated to baggage acceptance only identify by NFC phone again and drop their bags.
Security Checkpoint• IATA and Airport Council International (ACI) are recommending that airports implement centralized security checkpoints as opposed to gate screening.• Fast Tracks are also increasingly implemented by airlines and airports.• Track access usually depends on the passenger category.• It can also be offered as payable service to any passenger.• NFC technology provides a seamless solution to perform this eligibility check.
Security Checkpoint How does this work?• An access voucher will then be sent to their mobile phone for them to use in order to access Fast Track.• Passengers may also purchase Fast Track access via their NFC mobile phone. Benefits for Airlines and Airports • Enable passenger localization. • Decision making process for flights departure and flight operational management.
Lounge Access• NFC will become a strong enabler to facilitate lounge access control and additional revenue generation.• Lounge access depends on a variety of criteria generally linked to the class of travel and/or frequent flyer ( loyalty program ) How does this work? • Passenger may also be offered to buy a lounge access. • NFC will then allow a last minute purchase at the airport and carry the voucher for access control at the entrance.
Lounge Access Benefits for Airlines and Airports • Better management of passenger eligibility. • Differentiating mechanism for premium passengers. • Easily sell these services before arriving. • Source of additional revenue.
Boarding• IATA’s Fast Travel Program recommends implementation of Self Boarding.• NFC technology will bring much better ergonomics in this process. How does this work? • Passengers present their mobile NFC phone in close proximity to the boarding gate reader to be granted access to the aircraft.
Post – flight• NFC will enable airlines to sell add-on ground transportation tickets and send the NFC ticket over the air ( OTA ) to their passengers. How does this work? • When buying their airline ticket, passengers can also buy ground transportation tickets. • The ticket will be stored on the NFC phone and used to directly board the ground transport (e.g. train). Benefits for Airlines • Mobile NFC will facilitate the implementation of true intermodal terminal and operations at airport. • facilitate ancillary revenue.
Challenges Consumer Behavior • Demand for card-based contactless payments is low. • Demand for NFC payments remains low. Devices • Lack of NFC phones in the near term. • Lack of a wide range of consumer electronic devices with NFC ( such as PCs, Media Tablets, TVs .. Etc ). • Support of NFC by various smart phone Oss. Infrastructure • Lack of contactless infrastructure. • Legacy implementations in transport vary by region, city and route will take a long time.
Challenges Business Model • Business models are unclear for both mobile carriers and banks • The tug of war between mobile carriers and banks: Each running on their own track Technology and Standards • NFC standards have yet to be finalized • Card emulation mode is currently optional : Yet this is required to support payment. Device vendors may not include this mode, or may have different implementations that lead to a lack of interoperability.