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  1. 1. Navigating the Airport of Tomorrow
  2. 2. 2 Navigating the Airport of Tomorrow Table of contents Foreword 3 1 Executive summary 4 The age of passenger centric technology 4 Market pain points 4 The Airport of Tomorrow 4 2 The passenger centric model 5 3 Understanding market pain points 8 The passenger perspective 8 Baggage issues 9 Service disruptions 9 The check-in experience 10 The role of communication in easing customer frustration 10 Meeting the needs of different passenger segments 10 The airline perspective 12 The airport perspective 14 The ground handler perspective 15 4 Enhancing the travel experience 16 Managing passenger expectations with mobile technology 16 Personalised 16 Location based 18 Context aware 19 Implementing airline priorities 19 Enhancing the airport experience 20 NFC 20 The importance of sharing passenger information 21 5 Forecasting the airport of tomorrow 22 Widespread now 24 Widespread 2011-2014 24 Widespread 2015-2020 24 6 Technology current usage, projections and industry implications 26 Mobile computing 26 Airline systems 27 Airport systems 28 7 Conclusion 29 8 About Travel Tech Consulting Inc. 30 9 About Amadeus 31
  3. 3. Navigating the Airport of Tomorrow 3ForewordThe travel industry continues to strive to deliver a seamless traveller experience.All of us that travel, whether it is for business or leisure, look forward to a day whenwe enjoy the journey almost as much as the time at our destination.At Amadeus, we believe the airport experience is one of the last frontiers in thequest for this seamless travel experience. It is clear from the passengers thatwe surveyed when compiling data for this report, that we are still some way off thisgoal. Frustrations still exist around check-in, security and baggage. Lots of thesefrustrations stem from a lack of information and poor communication between theairline, airport and the passenger.But whilst the impact on the passenger is clear – extended journey times, toomuch complexity, lack of information – the impact on the airport and airline isequally clear. For airlines, a poor airport experience significantly impacts how itsbrand is perceived, as passengers do not view the airport experience as separateto the services provided by the airline directly. For the airport itself, lack ofpassenger information and integration with airlines can lead to lost revenues andreduced productivity.Through a combination of passenger insights and expert opinion, this report paintsa picture of the airport of tomorrow.We are committed to working with our customers and partners across the sector tobreak down the barriers to delivering this vision. We believe that by embracing newtechnologies and with greater collaboration between airlines, airport and partnersthat an easier, quicker and more responsive airport experience is within reach.We hope that Navigating the Airport of Tomorrow will help to stimulate newthinking and new innovations that will both transform the passenger experienceand deliver value to airports and airlines.Julia SattelVP Airline IT, Amadeus IT
  4. 4. 4 Navigating the Airport of Tomorrow1 Executive summaryAt one point in time air travel was considered a luxurious whilst interconnecting existing information silos to betterexperience. Today, the airline passenger often encounters manage the entire passenger experience. Integration betweenlong lines, crowded spaces, lost baggage and service delays. Departure Control Systems (DCS), Passenger Service SystemsTo the customer, the airport experience is viewed as a single (PSS), Baggage Reconciliation Systems (BRS), and airport servicescontinuous part of their trip, unaware that airport operations can provide improved passenger processing. Delivering servicesactually involves different stakeholders, the airline, the airport on advanced mobile devices will help all entities be more efficientand the ground handlers, all working together to deliver a and operate with lower costs.seamless passenger flow. Although today technology is atthe heart of airport operations, a critical factor in the futuresuccesses of an airport and airline is how they harness The airport of tomorrowemerging technologies to enhance the customer experience, To fulfill the vision of the airport of tomorrow all stakeholders,improve customer loyalty and empower their employees to the airline, the airport and the passenger must be interconnectedachieve greater operational efficiencies. with electronic communication driving greater efficiencies and customer satisfaction.The age of passenger centric technology › new age of passenger self-service is being driven by the A adoption of smartphones and tablets. The always connectedThe growth of personal mobile technology is ushering in a new traveller will expect to receive information and promotions (onera of passenger centric services. In today’s environment of an opt-in basis only) based on their status, location, personalinstant information, consumers expect to be constantly informed needs and specific connecting to a variety of sources whilst maintaining contactwith their social networks. To keep pace with the expectations › irlines will utilise this new self-service age by redeploying Aof the customer, airlines and airports must take concrete steps airport resources to areas of specific operational take advantage of these emerging devices and technologies. › irlines will embrace new interconnected DCS and PSS AAs personal technology continues to evolve, they must also keep technology and share critical passenger information withpace with customer expectations and utilise these new platforms the improve loyalty and travel efficiency. › irports which need to drive greater profitability and enhance AAt the heart of this enriched passenger experience is knowledge the user experience will adopt merchandising strategiesof the customer. To effectively deliver personalised services based promoting airport shops transforming the airport into aon that knowledge, sharing information internally and proactively modern shopping mall experience.communicating to the customer are a must. This requires are-thinking of the airline/airport relationship with the goal to › echnologies such as Near Field Communication (NFC), RFID Tprovide passenger insight to all members of the value chain. tags and the use of tablets to enable roaming agents will have a dramatic impact on airport operations. › t the heart of this technological revolution is the more AMarket pain points informed passenger. The always connected passenger willResearch on passenger dissatisfaction reflects the obvious demand information and services delivered on their preferredissues that make air travel difficult. Three main areas represent personal computing device at all points of their journey.the majority of passenger complaints: service disruptions, long All sectors of the industry share a common vision of a morecheck-in lines and baggage issues. Through the adoption of automated, efficient airport experience. This paper will explorenew communication techniques and internal systems that take the steps necessary to bring this vision to reality. We will look atadvantage of advanced technology and shared information, this transformation from the short term view, identifying the keyairlines and airports can improve their delivery of services building blocks being implemented today and in the near futurefocusing on these three primary passenger pain points. to improve the passenger airport experience.Airlines and airports are challenged with updating theiroperational systems to eliminate unnecessary manual steps
  5. 5. Navigating the Airport of Tomorrow 52 The passenger centric modelOver the past 50 years global air travel has become accessible We are truly at the age of passenger-centric mobile computerto millions worldwide. Despite tremendous improvements in devices. The smartphone in your pocket is more powerful thanpassenger comfort, convenience and price; excessive crowds, the super computers of the 1970s. We are also in an age ofservice disruptions and lost baggage still plague the industry. instant information. Mobile computer devices provide an alwaysWe are at the dawn of a new era in passenger processing. Mobile connected traveller who expects to be constantly informed abouttechnology and new integrated systems are transforming the their travel plans.airport experience enabling personalised communication and The industry has been awaiting the mobile revolution forservices to aid the customer on their journey. This paper looks at decades. During the 1990s and early 2000s mobile phonesthe airport experience from three perspectives – the airline, the became a standard accessory for the frequent traveller. With theairport and of course the passenger, providing a roadmap to the introduction of the iPhone in 2007, a permanent change hit theairport of tomorrow. mobile device market. No longer would travellers be happy withAt the heart of the changing airport experience is technology. a mobile phone, but would require the ability to browse the WebSilos of standalone automation are being replaced with and download innovative applications which shifted the focusintegrated systems that allow the exchange of information from mobile telephony to mobile computing. The introduction ofbetween the airline, airport ground handlers and customer. The the iPad in 2010 is having a similar impact resulting in a flood ofairline is embracing self service technology to improve passenger tablets hitting the market in 2011. These tablets represent a newprocessing and differentiate its services. Airports are investing in platform that brings powerful computing, formally confined tonext generation technology to automate the security, baggage the laptop, with touchscreen interfaces and downloadable appshandling and check-in process. Meanwhile, the customer similar to the smartphone. (Fig 1)continues to embrace powerful mobile technology that providesa platform for new airline and airport services. Figure 1 Timeline of personal mobile technology 1980s EARLY 2000s 2008-2009 2011 1990s JUNE 2007 2010Source: Travel Tech Consulting, Inc.
  6. 6. 6 Navigating the Airport of Tomorrow For airlines and airports the emerging mobile computing platforms provide a new way to communicate and control Figure 2 Passenger-centric mobile computing devices passenger flow. This includes more accurate and instantaneous information on flight arrival and departures, self-service check-in, baggage tracking and overbooking and disruption management. These mobile platforms also provide a new opportunity for Airline airport passenger merchandising of airline and airport ancillary services. (Fig 2) information Whilst the mobile revolution is in full swing, a simultaneous revolution is occurring in respect to the influence of social media. Flight arrival departure Check-in With Facebook now the top website in the U.S.1 and with over Passenger-centric 500 million users globally representing 1 in every 13 people mobile computing on earth, the impact of social media cannot be ignored. The devices relationship between mobile devices and social media is clear with more than 200 million active users currently accessing Facebook through their mobile devices.2 This is a global Disruption Baggage management tracking phenomenon impacting travellers worldwide. According to a recent study by JD Powers commissioned by Amadeus, and which covered respondents across five regions, over 60% of travellers worldwide use social media travel related sites. (Fig 3) Overbooking Merchandising Source: Travel Tech Consulting, Inc. Figure 3 Social media: Total and country - use social media for travel related purposes 100% % of respondents using social media travel related sites 92% 90% 85% 81% 80% 77% 78% 59% 71% 72% Total 71% 69% 70% 65% 66% 60% 59% 59% 59% 60% ASIA 53% 53% 54% 50% 46% 42% EUROPE 40% 30% LA 20% ME 10% NA 0% l a g a ng n e ce y ly Sw in n UK a il ile ico a E a US t ta yp an UA or in di tin bi ad az n pa De Ita a an Ch Ko To ex In ra Ch Sp ap Eg Br rm n Ja n e/ Fr Ca iA M ge ng Ge ud Ar Ho Si Sa Source: 2010 JD Power’s ‘Global Airline Traveller Survey’ commissioned by Amadeus1 Tsotsis, Alexia December 29, 2010 “Hitwise: Facebook Overtakes Google To Become Most Visited Website In 2010” TechCrunch hitwise-facebook-overtakes-google-to-become-most-visited-website-in-2010/2 Facebook Press Room :
  7. 7. Navigating the Airport of Tomorrow 7For airlines and airports, understandingthe impact of mobile use of social media isessential. One customer complaint is nowamplified across the traveller’s social graphimpacting the carrier’s brand and influencingother customers. With instant feedback,airlines and airports must implementcomprehensive mobile social mediastrategies to identify influential unhappytravellers and implement immediate actionto better manage passenger frustrationand improve customer satisfaction.
  8. 8. 8 Navigating the Airport of Tomorrow3 Understanding market pain pointsTo better understand the roadmap for the airport of tomorrow, airports based on individual country and city requirements andit is essential that each market segment’s pain points be thus beyond the control of both these entities. Managing baggageidentified. We will look at market challenges from three delays, cancelled flights and improving the check-in experienceperspectives: the passenger, the airline and the airport (including are all areas where airlines and airports can work together toground handlers). better manage the communication and services delivered around these issues. The JD Powers study indicates that 18.4 out of 100 passengers experienced delayed or cancelled flights and 15.7 outThe passenger perspective of 100 passengers complained about wait times during the check– in process. Clearly, from a passenger perspective there is a needIn the JD Powers study passengers cited three airline operational for improvement in these areas. By far, baggage was the mostissues as having the most severe impact on their travel experience: significant issue citied in this survey with 34.4 passengers per 100baggage issues, disruption management (delayed or cancelled experiencing some delay in baggage handling. (Fig 4)flights), and check-in time delays. The number one issue of airportsecurity wait times clearly presents challenges for airlines and Figure 4 Problems experienced on most recent flightS Problems experienced per 100 passengers Waiting too long to pass through security 25,2 Difficultly to find the right flight at an acceptable price 20,4 Dalayed or cancelled flights (incl. connecting flights) 18,4 Waiting too long to check-in 15,7 Waiting too long to check-in bags 11,9 Baggage issues, Not getting / delayed baggage at destination 11,2 combined PP100=34.3 Waiting too long to drop off bags 11,2 Difficulty booking a flight with your miles 10,9 Not receiving relevant and real-time information 9,9 No compensation in case of service failure 9,5 Difficulty changing your tickets 9,4 Not getting the seat requested 7,7 Difficulty booking a flight 5,8 Waiting too long to get miles to your frequent flyer account 5,5 Update of frequent flyer miles and status 5,2 Difficulty being rerouted in case of flight disruption 5,2 Difficulty booking and paying for extra services 3,4 Not receiving the services booked at reservation 2,2 Other 4,7 Source: 2010 JD Power’s ‘Global Airline Traveller Survey’ commissioned by Amadeus
  9. 9. Navigating the Airport of Tomorrow 9Baggage issues Service disruptionsAll aspects of baggage handling represent serious issues to the Nothing is more stressful for the traveller than delayed orcustomer. The baggage check-in process is plagued with long cancelled flights. Some delays are controllable whilst many arelines and often requires physical strength and agility just to keep not. It is immaterial to the customer whether or not the cause isyour baggage together whilst waiting for the next available within the control of the airline or airport. A delay can impact theagent. Waiting at the luggage carrousel for your baggage to entire travel experience. 2010 was particularly severe with lastarrive can seem endless. Losing your bag can impact a long winter’s European volcanic ash disruption as well as this year’splanned holiday or an important business trip. Now that most heavy winter snowstorms putting a strain on airline operationsairlines are charging for checked baggage, this has become worldwide. The eruption of the Eyjafjallajokull volcano in Icelandan even more sensitive subject with passengers. According to on April 14, 2010 led to massive closure of airspace in Europea SITA/Air Transport World Passenger Survey, in 2009 airlines for six days. The financial impact to airlines was estimated to bereported that about 1% of total baggage was mishandled, US$1.8 billion of revenue loss with 10 million passengers andequating to slightly more than 25 million bags globally.3 100,000 flights impacted during the six day period.4 (Fig 5)Clearly, baggage handling is a prime area for improved Solving service disruptions is a priority for all airlines but willprocessing and customer communication. require an investment in improved airline systems, the ability to distribute workload through roaming agents and the automation of communication of changes and electronic vouchers to the passengers on their personal mobile devices. Figure 5 Aspects of travel for improvement 0% 20% 40% 60%Disruption management 42,4%Check-in / Baggage process 33,8%Seating 32,5%Make changes to booking 30,3%In-flight service 28,7%Baggage claim at destination 27,1%Optional service fees 26,2%Boarding / Deboarding 24,4%Choosing booking flight 19,6%Flight crew experience 11,8%Other 3,2% Total - Global SampleSource: 2010 JD Power’s ‘Global Airline Traveller Survey’ commissioned by Amadeus3 IATA Press Release October 2010 “Baggage Management: Behind the Scenes” IATA Fact Sheet “Volcanic Ash”
  10. 10. 10 Navigating the Airport of TomorrowThe check-in experience Passengers are looking for additional communication from the airlines as evidenced by the JD Powers survey results.With the introduction of kiosks and the print-at-home boardingpass now in full implementation by a majority of the world’s With our current era of instant information, airlines mustairlines, the entire check-in experience is becoming simpler, utilise mobile channels to better communicate service issuesbut customer frustration remains significant the longer the particularly with their best travellers. Providing flight updatespassenger waits in line. (Fig 6 7) have become a standard offering for most carriers, but insuring that the communication is timely and personalised representsEven with the paper or electronic boarding pass, long lines the next frontier for passenger communications.persist. Can the entire check-in process be further simplified?Technology such as Near Field Communication may hold the Meeting the needs of different passenger segmentsanswer to more automated check-in. As airports install NFCstations and more mobile devices come loaded with NFC readers, Not all travellers are created equal. This may sound like a cliché,passengers will be able to check-in by simply swiping their but when it comes to airport operations, providing differentphone against a reader. The introduction of permanent boarding services to various customer groups particularly based on statuspasses and luggage tags as showcased by Qantas for domestic has long been standard operational procedure. But productAustralian flights will make the process more efficient. Ultimately differentiation has to go beyond simply having a dedicatedlines cannot be eliminated entirely, but roaming ticket agents check-in area for top frequent flyers. Airlines have embracedusing emerging tablet technology may hold the key to reducing the concept of lifetime customer value. There are many factorsline waits and improving the check-in experience. Qantas has that influence the value of the customer to the airline beyondinstalled NFC readers at the Sydney and Perth airports allowing simply the price they paid for the ticket. Factors such as theirthe easy self-check in using NFC enabled smartcards. travel patterns (domestic versus international), class of service habits, and the distribution channel where the customerThe role of communication in easing purchased the ticket all go into the calculation of customercustomer frustration value. As communication becomes more automated, airlines need sophisticated tools that work across operational systems toIn the 1990s many airlines implemented a basic process that ensure that the airlines’ most valuable customers receive the besthelped ease customer frustrations with delays. That process was service. This is particularly true during times of service disruption.simply to make frequent announcements providing an update onthe status of the flight. This simple operational change did noteliminate passenger frustration, but does demonstrate the role Figure 7 Check-in methodsimple communication plays in lowering passenger stress levels. Last check-in method 0% 20% 40% 60% Figure 6 Average check-in time Preferred method Online with PC 50% 59,4%100% 10.0 (+9,4%) Overall Satisfaction Raiting - Airline Percentage of Responess80% 9.0 Check-in desk 32,5% 19,3% (-13,2%)60% 7.7 8.0 Self-serve kiosk 12,7% 13,7% 7.2 7.0 7.0 (+1,%) 6.740% 7-0 5,6% Mobile / 3,4% Smartphone (+2,2%)20% 6.0 1,8% 48,8% 31,8% 9,6% 7% 2,8% SMS / Text 0,8% (+1%) 0% 5.0 10 mins 10-19 20-29 30-39 40 mins 0,2% Check-in time Other 0,5% (-0,3%) Airline - overall experience Total - Global SampleSource: 2010 JD Power’s ‘Global Airline Traveller Survey’ commissioned by Amadeus Source: 2010 JD Power’s ‘Global Airline Traveller Survey’ commissioned by Amadeus
  11. 11. Mobile/smartphoneboarding passes arein their infancy, butcustomer acceptanceis growing.
  12. 12. 12 Navigating the Airport of TomorrowThe airline perspective Airlines are faced with the need to balance a reduction in staff made possible by increased self-service techniques with theFew passengers are aware of the information infrastructure need to staff appropriately during times of service disruption.needed to support an airline’s airport operations. Unfortunately, Depending on the severity of the service disruption, providingsilos of information, technology and function exist at many sufficient staff during these times continues to be a challengeairlines. Systems have been built and deployed to handle specific for most airlines. The key to managing service disruption is morefunctions. This is particularly true when it comes to departure integrated systems and enhanced client communication.control systems (DCS). Given the operational realties of theairline, it is truly challenging for a carrier to embark upon a Passenger information is viewed by many airlines as proprietary.change in systems due to the level of disruption caused by new The issue boils down to who owns the customer and revised procedures. This represents a legitimate Airlines want to maintain and enhance the relationship,obstacle to change, but also represents the biggest opportunity particularly with their best customers. As a result the willingnessfor improvement. to share passenger information with airport partners is often limited. With the passenger embracing self-service check-in, theLegacy DCS systems often present unique challenges particularly interaction between the airline and customer often does notduring times of extended service disruptions. In some airports occur until the gate. As a result, the passenger’s perception of thethe DCS is based on Common Use Terminal Equipment (CUTE) airline can be influenced by their interaction with airport basedthat provides a platform across multiple airlines, but has limited services, that have limited knowledge of passenger requirements.or no connectivity to the airline’s PSS. Even where an airline is This new self-service reality means that the airline needs tousing a dedicated system, this technology was often created consider a more flexible policy on sharing customer informationmany years ago and lacks comprehensive capabilities requiring with their airport partners in order to improve passengermanual processes and work arounds. Newer departure control processing and enhance the customer have entered the market to solve these limitations, butintegration with the airline passenger service systems (PSS) is stillneeded to seamlessly handle passenger requirements. This new self-service reality means that the airline needs to consider a more flexible policy on sharing customer information with their airport partners in order to improve passenger processing and enhance the customer experience.
  13. 13. Navigating the Airport of Tomorrow 13Airlines have long battled the customer view of the airline asa commodity, where airline choice is based solely on price.Investments in aircraft amenities and ancillary service offeringsare ways the airlines are fighting this perception. Ultimatelyairlines want to offer services to passengers based on the valueof them as a customer. This goes beyond a simple loyalty status,but encompasses the ability to offer different services basedon the traveller’s historical travel pattern, purchasing method,trip persona (e.g. travelling on business versus with the family)and ultimately impact on incremental revenue. Understandingthe particular persona of the passenger is important as needson a business trip differ from the needs of the same passengertravelling on holiday with their family. To truly match theappropriate ancillary offerings to the right customer and matchtheir particular trip persona, it is essential that a total 360degree view of the passenger be known throughout every stepof the trip including their interaction in the airport with self-service technology or airline personnel. For example, the businesstraveller may benefit from purchasing a lounge pass, whilstthis may be impractical if they are travelling with their family.Personalising the ancillary purchase experience to match notonly customers’ preferences, but aligning with the particularcustomer persona can lead to greater up-sell opportunities.The persona of the individual is directly related to the level ofrelevance of the offer and must be part of the targeting process.With the introduction of ancillary services, the airlines are usingitems such as seat pitch, boarding priority, and club room accessto target specific travellers with amenities that influence travellerloyalty and help differentiate the airline from their competitors. With the introduction ofUltimately it comes down to having the right technology in placeto manage operations whilst satisfying passenger requirements. ancillary services, the airlinesThe lack of system integration can be severe when the DCS are using items such as seatsystem is not integrated with the PSS. A traditional disconnected pitch, boarding priority, and clubDCS lacks the customer insight and reservation detail to match room access to target specificthe right services for the right passenger at the right time. Thelack of integration of booking information with the check-in travellers with amenities thatprocess causes additional manual steps as changes in one influence traveller loyalty andsystem are not reflected in the other. This becomes a serious help differentiate the airlineproblem during times of severe service disruptions when re- from their competitors.accommodation may take days due to airport closures. At theheart of the change needed is a re-evaluation of existing businessprocesses and the implementation of technology to eliminatemanual steps and provide greater insight into customer valueat every point of customer interaction whether through airportagents or electronically. To accomplish this goal the airline mustwork with the airport, ground handlers and even complimentaryservices such as ground transportation to deliver a commonpositive experience across the entire travel eco-system.
  14. 14. 14 Navigating the Airport of TomorrowThe airport perspective Airports suffer from a lack of customer insight. This takes the form of both operational weakness as well as limitations on customerAirport automation has always involved significant investment in centric services. To counteract this lack of customer knowledgeinfrastructure. Airports strive to balance passenger comfort with some airports have launched loyalty programmes. As with similaroperational efficiency whilst striving for a unique experience programmes at retailers such as supermarkets, the loyalty effortthat reflects the specific destination. A growing global trend is is more about gaining insight into customer requirements andthe privatisation of airports. This may entail a complete shift preferences rather than simply rewarding the passenger for theirto private ownership or a government industry hybrid model airport usage. In order to increase profitability, merchandisingwhere investment from private equity firms is combined with of airport shops and services is critical. To effectively promotegovernment support. This has created a more business-centric relevant airport services to the right customer at the right time,focus on return on investment for any airport IT expenditure. customer insight is mandatory. Products and service offers needAs Low Cost Carriers continue to grow and embrace secondary to be customised to fit specific traveller preferences encouragingcity airports it puts added pressure on traditional airports to greater spend at airport shops and restaurants.modernise to effectively compete. Whether or not the airport decides to invest in new systems toAirport technology is often locally deployed. This improve passenger processing and merchandising, passengersapproach has been chosen by airport executives because themselves will increasingly demand enhanced services thatof the perceived value and control of locally installed they receive from other transportation providers and retailers. Forsoftware. With the IT industry moving to cloud based computing, example, as rail companies embrace Near Field Communicationthe idea of installing software at the airport for individual (NFC) to simplify and improve the passenger boarding process,functions is both antiquated and inefficient. This local focus not the customer will expect the same type of experience at theonly impacts the airport’s ability to execute common processes airport. Retailers such as Best Buy and Macys have implementedacross airlines and terminals, but also does not allow airports to sophisticated mobile marketing platforms offered by innovativeshare best practices by using a common platform. start-ups such as Shopkick. By implementing Shopkick, theThe reality is that today’s airport technology is highly retailer can target specific mobile promotions based on thefragmented. For example, a key component of baggage customer’s precise location in the store. As retailers offer specificautomation is the Baggage Reconciliation System (BRS). In some targeted mobile promotions to shop visitors, passengers willairports a BRS does not exist, in other airports a different BRS come to expect this same type of one-to-one marketing atexists in different terminals and in most cases the BRS is not the airport. In fact, the airport could be viewed as a shoppingintegrated with airline systems. This standalone nature of the mall and thus consumer behaviour which is being shaped byBRS is symptomatic of the bigger problem of lack of system technology such as Shopkick will be expected by the alwaysintegration within airport systems and between airport and connected traveller. Without passenger insight this type ofairline technology. electronic merchandising will not be possible. To effectively promote relevant airport services to the right customer at the right time, customer insight is mandatory. Products and service offers need to be customised to fit specific traveller preferences encouraging greater spend at airport shops and restaurants.
  15. 15. The ground handler perspectiveGiven the fact that airlines outsourcing has transferred ground Understanding whereoperations to third party providers and self-service technology, the baggage is locatedthe airline staff may not see the passenger until they areon board. Therefore the quality of service and the ultimate at all times is critical andsatisfaction of airlines passengers are often influenced by the technology such as RFIDinteraction with these third parties providers. This presents tags can play an importanta challenge for all airlines and airports. For airlines to ensure role in this process.consistent quality of service in a worldwide network, they mustfind a way to manage a series of diverse third party providersoften not linked to each other. This is complicated further asthese ground handlers often service several competing airlines.With the baggage process often outsourced to third party ground tracked in the same way as the passenger. Understanding wherehandlers, the lack of integrated technology impacts the ability the baggage is located at all times is critical and technology suchto share information between the ground handler, airline and as RFID tags can play an important role in this process. Again thisairport. The ground handler has no insight into the number of information must be seamlessly integrated with ground handlerbags being checked-in for a given flight, the overall load factor operations, airline DCS and PSS technology and airport systems.of the flight or the actions required to reconnect the passenger Centralised systems controlled by sophisticated business ruleswith their bag during service disruption. This impacts the can help airlines ’impose‘ their specific procedures regardingcompany’s ability to staff and deliver the highest quality service passenger treatment on ground handlers even if the same thirdthereby influencing the passenger’s perception of the airport party company is servicing competing airlines.and airline. This segment of airport operations is historicallya low margin business. In the end the luggage needs to be
  16. 16. 16 Navigating the Airport of Tomorrow4 Enhancing the travel experienceGiven current challenges faced in passenger servicing and IT This is only the beginning of the passenger-centric mobileinvestment, how can the airport/airline experience be improved evolution. Mobile devices are extremely personal and thustoday and what technologies should we expect in the next five passengers expect not just generic updates that distribute theyears and beyond? same message to all customers, but personalised communication that addresses their specific concerns. In order to achieve this goal, the real time information must be personalised, locationManaging passenger expectations with sensitive and context aware. (Fig 9)mobile technology PersonalisedThe mobile revolution presents both opportunities andchallenges for airlines and airports. The growth of self-service Information needs to be filtered to reflect personal preferences.capabilities has allowed airlines to reduce staff, but the It is also essential that the specific persona of the passenger besame technology that is driving greater efficiency is creating part of the messaging. A frequent business traveller on holidayan environment where passengers expectations for instant with their family needs to be treated differently to when theyinformation and knowledge is heightened, forcing the airline and are travelling on a company trip. A challenge faced by all sectorsairport to provide dynamic information to the mobile computing is the ability to collect personal information. Whether throughplatforms that inform and enhance the airport experience. These explicit means or implicit tracking, developing a holistic viewexpectations are already set as evidenced by the JD Powers of the passenger is essential. This is where integration with ansurvey which showed that close to 40% of respondents would airline’s PSS is critical to gain additional customer knowledge.use real-time updates sent to their mobile whilst 37% want real-time baggage updates. (Fig 8) Figure 8 Innovative features / services total: would use? Figure 9 Real-time mobile information 0% 10% 20% 30% 40% 50%Real time update onflights status on mobile 39,9% PersonalisedCalendar display 39,3%Real time baggagearrival update on mobile 36,7%Use mobile onboard 36,3%Receive directionson mobile (gates, etc.) 35,7% Real-time mobile informationUse mobile for booking,check-in, etc. 31,7% Location Context-Self luggage tagging 31,4% based awareAirport kiosks tobuy additional services 31,1%Pay in advance forextra services 28,5%Dynamic FFP profile 26,6% Source: Travel Tech Consulting, Inc.Get CO2 calculations on ticket 8,1% Total - Global SampleSource: 2010 JD Power’s ‘Global Airline Traveller Survey’ commissioned by Amadeus
  17. 17. Passengers expect notjust generic updates thatdistribute the same messageto all customers, butpersonalised communicationthat addresses theirspecific concerns.
  18. 18. 18 Navigating the Airport of TomorrowLocation based Figure 10 highlights a passenger named Gary Gale who is being tracked all the way to the international gate. It illustrates howThe location of the passenger in the airport provides essential passenger tracking could be enabled through NFC monitoring ofinformation to the airport and airline. Although GPS equipped passenger location. Passenger location based tracking can helpmobile phones have become standard, the ability to use satellite airlines better anticipate their passengers’ expected arrival at thelocation tracking indoors is still a challenge. boarding gate and allow them to send reminder messages to theNear Field Communication (NFC) will ultimately provide location ones who are missing.within the airport. NFC involves two pieces of hardware. One is In the near term, an alternative solution to passenger locationan RFID (radio frequency identification) chip in a mobile phone tracking available today is the use of Wi-Fi based tracking.(or other device) and the other is an NFC reader at a merchant Rather than simply thinking of Wi-Fi as a passenger serviceor transportation facility. However, NFC requires a significant for Internet connectivity, airports need to recognise that Wi-Fiinfrastructure investment and will therefore take many years to provides the infrastructure for more precise real time passengerbecome common place in airports around the world. location tracking. Figure 10 07D Mr. Gary Gale BA 0990 to Berlin 01 nov - 07:05 Source:
  19. 19. Many airlines already offer ancillary services through self service kiosks. Offering ancillary services at the point of mobile check-in or throughContext aware targeted promotions can helpUnderstanding the real time needs of the passenger is essential sell extras such as priorityto delivering effective communication. Is the passenger boarding, club room accessrunning to make their flight or able to spend a few hours at or enhanced seating.airport shops having arrived at the airport three hours early?Mobile communication is all about relevance. Understandingthe specific situation of the passenger is crucial to deliveringmeaningful information. Implementing airline prioritiesAs the pace of technology innovation continues to accelerate,the expectations and needs of the passenger will expand. The In an effort to better differentiate their offerings and providechallenge for the airline and airport is that increased use of improved customer service, airlines are implementing customerreal time mobile communication may not solve the needs of recognition strategies. Airline marketing is evolving beyondall passengers. Connecting customer service fulfilment with simple loyalty status to developing a better understanding of thepassengers who require human interaction will be further value of every customer to the airline’s bottom line. Sophisticatedenabled by allowing agents to roam the airport providing more PSS technology can provide the underpinnings for this customerflexible solutions as required. The tablet revolution provides a value calculation, but executing on this strategy requires a multi-new mobile capability for the airline agent which will change pronged approach ensuring that consistent communication isthe paradigm from the traditional queue to a more passenger sent to the passenger at all points of contact. Various marketspecific customer service approach. segments have differing requirements as well. Just as airlines execute marketing programmes to address specific segments such as groups, seniors, business travellers and families, so must the evolving communication structure reflect the specific requirements of these segments. The need to more precisely match communication with customer value is particularly relevant during times of service disruptions. By automating tasks such as delivering electronic vouchers, notifying the passenger of an automated rebooking activity, and proactively providing the real time location of the passenger’s baggage, queue waits can be reduced and passenger frustration eased. Comprehensive and interconnected passenger information is critical to achieve this vision. From the passenger perspective the airport experience is a single activity. As such, airlines must recognise the value of sharing information with the airport in order to provide integrated customer service delivery. Whilst the passenger is at the airport, the airline also has the opportunity to sell ancillary services and products whilst the customer waits for their flight. Many airlines already offer ancillary services through self service kiosks. Offering ancillary services at the point of mobile check-in or through targeted promotions can help sell extras such as priority boarding, club room access or enhanced seating. It is important to note that any customer communication needs to be on an opt-in basis, reflecting privacy concerns and avoiding the perception of spam. Airlines may also take greater ownership of airport transportation options helping the passenger locate taxi, train, bus and other options when they leave the plane.
  20. 20. 20 Navigating the Airport of TomorrowEnhancing the airport experience › Check-in with their mobile phone › Receive coupons for airport shopsNFC › Pay with their mobile phoneThe main goal of the airport is to ensure the safe flow ofpassengers from the airport entrance to the gate. Along the way, › Interact with NFC enabled advertisementsthe opportunity to merchandise airport products and services › xchange information with other travellers by simply Erepresents an essential revenue opportunity for the airport. bumping their NFC enabled phonesTechnology such as NFC will likely play a critical role in the airport › Use the phone for boardingexperience but requires a significant investment in infrastructureand a critical mass of smartphones with NFC readers. By 2015, › Use the phone for public transportation247 million smartphones will be NFC enabled. (Fig 11) NFC does require a significant infrastructure investment and a critical mass of NFC mobile phone penetration, and as a result, the move to NFC will be evolutionary. Pilot tests at airports around the world have begun, but full implementation of NFC Figure 11 NFC-enabled handsets worldwide at airports is likely to take 4-7 years.Millions 0,07 0,96 3,88 247,04 million million million million 2009 2010 2011 2015Source: technology has the potential to change every aspect of theairport experience. As NFC enabled smartphones become morecommon the same process will be enabled by simply swipingthe phone against the airport reader. By dispersing NFC readersthroughout the airport, passengers will be able to: (Fig 12)
  21. 21. Navigating the Airport of Tomorrow 21 Figure 12 NFC at the airport Boarding Interactive Mobile ads coupons Social Mobile networking payments Automated Self-service check-in baggage drop Airport entranceSource: Travel Tech Consulting, Inc. Public transportationThe importance of sharing passenger information installed systems and embrace integrated software as a service (SaaS) applications that can be accessed from any connectedKey to this effort is the ability to collect and utilise passenger device and allow implementation across terminals and evendata to gain insight into customers’ profiles and needs. For across airports. This will result in an untethered workforce ableexample, understanding where the passenger is located and to respond to unforeseen events and process passengers morewhen they need to arrive at the gate can dictate the services efficiently by having connectivity between all systems.offered to the traveller and the ability to notify the airline ofserious passenger delays. With an integrated system, gate management can be improved for the airline allowing the proper manpower to be deployedTo gain access to this data the airport and airline must work in order to support a delayed flight. Integration with airporttogether. Gone are the days when airlines needed to protect systems could deliver information on gate assignments andtheir customer data from the airport. With the increase in self changes to the airline, enabling carriers to communicate higherservice, airlines themselves may have little or no direct human quality information to their passengers. Integration with BRS caninteraction with the customer until they arrive at the gate. To proactively notify ground handlers when a flight is cancelled andachieve the vision of common passenger information, systems baggage needs to be removed from an aircraft. The possibilitiesneed to be connected to share pertinent customer data at each are endless and sharing information between systems canpoint of the airport process. benefit all parties.For the airlines and airports the key to improved processes are Combining mobile technology and integrated airport systemshighly integrated systems. With cloud computing being the has the potential to transform the travel experience intoprimary IT focus over the next five years, airlines and airports something to look forward to rather than dread. As the airportneed to revamp their systems to connect all operational of tomorrow emerges, the ability to provide betterfunctions such as flight operations and resource management communication, more efficient check-in and merchandisingwith customer communication and merchandising, all in turn offers will transform the airport experience easing passengerconnected to an enhanced airport operational database. This new frustration and providing new opportunities for revenue forinfrastructure needs to be integrated with airline DCS, PSS and the airport and airline.BRS. Airports need to abandon their traditional focus on locally
  22. 22. 22 Navigating the Airport of Tomorrow5 Forecasting the airport of tomorrowSelf-service and mobility are the key themes of the airport of the passenger. Airlines need to provide airports critical passengertomorrow. Ubiquitous connectivity means the passenger is data so they may better plan manpower needs. Baggage systemsalways online and thus expects real time communication. Simple need to provide real time awareness of location to all partiesadvances such as verifying that the passenger’s baggage is on to reduce loss and accelerate the reuniting of the baggageboard the aircraft can help minimise frustration and uncertainty. and passenger. At the centre of all this technology is customerAutomating responses to periods of service disruption where information. With comprehensive customer information allvouchers are generated automatically and delivered to mobile stakeholders can improve service to the passenger and usedevices is a key opportunity to shift this activity to a more self customer insight to market ancillary airline services and airportservice mode. Roaming agents handling severe disruptions, products and services.coming to the passenger rather than making the passenger The airport revolution has already begun. The revolution isstand in an extended queue helps manage limited resources and actually an evolution continuing today’s efforts to increase selfimprove overall efficiency. service capabilities for the passenger and communicating to theTo achieve this vision of the airport of tomorrow, airlines and traveller the status of their flight, and bag in real time whilstairports must invest in new systems that automate manual enhancing and improving their in airport experience. (Fig 13)tasks, share information and provide proactive communication to
  23. 23. Navigating the Airport of Tomorrow 23 Figure 13 Forecasting the airport of tomorrow Widespread now Widespread 2011 - 2014 Widespread 2015 - 2020 Mobile boarding pass and ancillary NFC boarding swipe Print at home service offers boarding pass Passenger Self-service Mobile payments self-service baggage drop Kiosk Electronic NFC promotions airline voucher Mobile roaming agent NFC automatic check-in Permanent Airport Long queues boarding pass operations and bag tag Location Indoor location aware baggage tracking Standalone DCS Standalone DCS Intergrated Intergrated Integrated DCS/PSS DCS/PSS Integrated DCS/PSS DCS/PSS Airport Standalone airline Standalone BRS BRS systems Airport Integrated electronic Standalone airport platform Standalone PSS PSS promotionsSource: Travel Tech Consulting, Inc.
  24. 24. 24 Navigating the Airport of TomorrowWidespread Now has arrived. This will free up airline agents to handle areas of congestion or deal with passengers experiencing problems withToday, the majority of passengers are printing their boarding the check-in process. To gain better insight on specific location,passes at home or through a kiosk. Drop off stations for airports may consider using their Wi-Fi networks for indoorcustomers who check-in online help reduce traditional long location tracking capabilities allowing the passenger to receivequeues, but despite these enhancements over the last 3-4 years, specific promotions based on their location and to enable thelong lines still persist during peak times. With most airlines airline to know exactly where the passenger is within the airport.still using a legacy DCS, manual steps still plague the check-in process. Automation adoption faces a number of barriers. For airport operations the most important advancement isAirline personnel may resist new systems that eliminate manual the implementation of new integrated DCS technology whichsteps but require a change in process. Airline management connects seamlessly with PSS to allow the re-accommodationneed to take a more holistic view of their airport operations and of passengers, particularly important over long periods ofrecognise that any significant improvement must involve their service disruptions. Over the next few years we will see theairport employees adopting new improved processes as well implementation of electronic promotions delivered to theas systems. Duplicating poor processes based on legacy DCS customer’s mobile device. The passenger will opt-in to receivesystems will not solve inherent problems. these promotions and delivery and payment will all happen electronically through their mobile device.Airports need to understand that control over technologyand housing the system locally, are no longer tied together.Computer visualisation techniques have matured to the point Widespread 2015-2020where the issue of where the technology is physically housedhas been eliminated. The connecting of these disparate airport To support the airport of the future, an integrated technologicalsystems must be a priority to enable the future passenger airport eco-system must be created. This would allow all airportexperience. BRS technology also needs to be fully integrated into functions to be unified under an integrated airport systemthis new airport eco-system, providing visibility on bag location that is tightly aligned with the airline systems to deliver ato all those who interact with the baggage. comprehensive airport experience. The self service trend will continue with the widespread adoption of Near Field Communication. NFC will be used forWidespread 2011-2014 boarding, payments and personalised promotions. Once theThere are examples today of the short term changes we will see majority of passengers own a NFC enabled smartphone, thein the airport passenger experience. The use of mobile boarding creation of methods to automatically check-in the passengerpasses will gain additional acceptance and become a standard is possible. Today, NFC requires the passenger to swipe theirfor a large segment of the travelling public. Self service baggage mobile phone against a NFC reader. As NFC becomes morecheck-in will also gain greater acceptance allowing the faster widespread, any interaction the passenger has in the terminalprocessing of passengers. could trigger a check-in. Airports may consider installing NFC readers throughout the terminal to sense the passenger’sOver the next few years we will see the growing adoption presence and provide an automated check-in notice to theof electronic airline vouchers. Advanced airline systems willautomatically re-accommodate impacted passengers anddelivery vouchers electronically to their smartphone or tablet.These vouchers will handle overnight hotel accommodation andprovide additional amenities for stranded passengers based on Airports will adopt integratedtheir value to the airline. IT solutions that provideOn the airport operational side, over the next few years we will seamless connectivitysee the increased use of tablet computers to allow airline agents between flight operations,to roam, reducing lines and addressing specific passenger needs. resource management,With Qantas implementing permanent bag tags and boarding baggage systems andpasses for domestic Australian travel, a new era in check-in merchandising efforts.
  25. 25. By improving the efficiency of the traveller and informing them of all facets of the airport experience, airlines will be able to deliver a differentiatedairlines. NFC may be combined with location based social enhanced experience thatnetworking applications such as Foursquare which enables corrects many of the passengerautomated check-in1 for favourite places. Clearly the future issues present today.airport experience will track the passenger’s location (with theirpermission) enabling a more productive experience, reducing theneed to wait in line.By this time all baggage will be location aware. Passengers willknow that their bag is on the airplane and airline and airportpersonnel will be able to easily locate lost bags, or offloadbaggage when required improving departure times. If a flightis cancelled the passengers will know when their baggage isoffloaded. Improved baggage passenger notification will save theairline, airport and ground handlers time and money reducingstaff needed to track and deliver lost bags.Underlying these new services is a fully integrated airline/airport ecosystem. Airports will adopt integrated IT solutionsthat provide seamless connectivity between flight operations,resource management, baggage systems and merchandisingefforts. At the centre of this new airport infrastructure is anoperational database that manages all customer information.This new infrastructure will be connected to next generation DCSand PSS airline systems exchanging key passenger information tohelp both airlines and airports manage passenger flows.At the heart of this technological revolution is the more informedpassenger. We are already in the age of ubiquitous connectivity.The ‘always connected’ passenger will demand information andservices delivered on their preferred personal computing devicethat is personal, location sensitive and contextually relevant. Byimproving the efficiency of the traveller and informing them ofall facets of the airport experience, airlines will be able to delivera differentiated enhanced experience that corrects many of thepassenger issues present today.1 Tsotsis, Alexia December 29, 2010 “Hitwise: Facebook Overtakes Google To Become Most Visited Website In 2010” TechCrunch hitwise-facebook-overtakes-google-to-become-most-visited-website-in-2010/