WHITEPAPER THE CUSTOMER-CENTRIC AIRPORT
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<strong>WHITEPAPER</strong><br />
<strong>THE</strong> <strong>CUSTOMER</strong>-<strong>CENTRIC</strong> <strong>AIRPORT</strong><br />
REDEFINING <strong>THE</strong> <strong>AIRPORT</strong> <strong>CUSTOMER</strong> EXPERIENCE
<strong>THE</strong> <strong>CUSTOMER</strong>-<strong>CENTRIC</strong> <strong>AIRPORT</strong><br />
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EXECUTIVE FOREWARD<br />
Our mission at Sabre Airline Solutions is to provide airlines the freedom to better market, sell, serve and operate the<br />
way they want. Through our comprehensive solutions, we continue to deliver these capabilities to our customers today<br />
and lay a long-term foundation for tomorrow. This foundation paves the way for innovative and flexible services, as well<br />
as a growing family of integrated capabilities, which provide business value to airlines across the globe. In doing so, we<br />
provide our airline partners with tools to differentiate and grow their business, as well as to lead the industry.<br />
A key element is our focus on building solutions that optimize the end-to-end journey and improve the traveler’s<br />
experience: from planning and shopping for a trip through day of travel. It is the quality of the day-of-travel experience<br />
that can make the difference between a traveler enjoying his or her trip or suffering through a negative customer<br />
experience, as well as airlines maintaining profitability or losing millions of dollars due to frequent service delays.<br />
It is here that airlines and airports in particular play a critical role in shaping the customer experience and protecting<br />
airline and airport profitability.<br />
Just as airlines are reinventing themselves to address this challenge and to tackle the broader demands of global<br />
competition, airports, too, face a similar need for transformation. In the near term, airports will continue to leverage their<br />
existing business models and innovations in technology to better serve their constituents: airlines and travelers. Over<br />
the longer term, many airports will take further steps to redefine their business value propositions — in conjunction<br />
with airlines and other partners. One change that will remain constant across all business models is that of tighter data<br />
integration between airline and airport systems for better situational awareness during service disruptions.<br />
Not surprisingly, many of these business transformations can be enabled through strategic investments in existing<br />
and emerging technology-based solutions. This includes such areas as:<br />
••<br />
Check-in automation<br />
••<br />
Passenger Self-service<br />
••<br />
Biometric authentication<br />
••<br />
Augmented reality<br />
••<br />
Service robots<br />
••<br />
Geo-fencing<br />
••<br />
Near-field communications<br />
••<br />
RF tracking and predictive analytics<br />
••<br />
Dynamic scheduling and real-time communications<br />
The spectrum of tools at the disposal of airlines and airports to enrich the customer experience is both broad<br />
and complex, and warrants a much closer look.<br />
I am excited to release this white paper, “The Customer-Centric Airport: Redefining The Airport Customer Experience,”<br />
a report designed to highlight the current challenges and opportunities that will enable airlines, and airports, to shape<br />
their customers’ end-to-end travel experience.<br />
Based on in-depth industry research, we have identified ways in which airlines can enhance the near- and long-term<br />
traveler experience. Existing and emerging technologies will both play key roles in realizing a customer-centric airport.<br />
I invite you to read the whitepaper and engage in conversation directly with our team, as well as on LinkedIn<br />
and Twitter. We very much look forward to your insights, discussion and partnership.<br />
Vinit Doshi<br />
Senior Vice President, Sabre Airline Solutions<br />
Redefining The Airport Customer Experience
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CONTENTS<br />
Abstract: Executive Summary<br />
Introduction: The Airport Of Today 6<br />
The Customer Experience Enigma 9<br />
The Intelligent Airport 11<br />
The Traveler Experience Reimagined 13<br />
Moving Toward A Customer Centric Airport 17<br />
Conclusion 20
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Redefining The Airport Customer Experience
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ABSTRACT: EXECUTIVE SUMMARY<br />
Since the beginning of commercial aviation, the airport has<br />
mirrored the prevalent cultural conditions of the time. Pioneering<br />
airports prior to the 1940s were no more than extensions of<br />
aircraft hangers for aviators. The economic revival immediately<br />
following World War II brought air travel to the public, but it<br />
remained mostly within reach of the wealthy. Consequently,<br />
airports (and airlines) provided a grand and glamorous<br />
experience that to this day is still idealized.<br />
Until the late 1970s, airlines and airports were closely regulated<br />
in the United States, Europe and Asia. Following deregulation<br />
in the United States and denationalization of flag carriers in<br />
Europe, air travel was opened to the public. This heightened<br />
competition, lowered the cost of a ticket and signaled the<br />
beginning of practical, commoditized air travel. Airports<br />
followed suit, adapting to the mass-transit needs of a rapidly<br />
growing population hungry for travel to destinations that had<br />
been previously financially or geographically out of reach.<br />
More recently, the success of low-cost carriers (LCCs) and<br />
niche airlines servicing specific regional or customer segments<br />
— while further expanding access to air travel — is defining<br />
a significant new dimension in transportation. Intense global<br />
competition and the newfound desire of many airlines to build<br />
a long-term relationship with the customer are causing a huge<br />
strategic pivot. In this new paradigm, airlines are evolving from<br />
being a basic transportation company to becoming a retailer of<br />
services. In addition, airports are beginning to embrace a similar<br />
transformation, with both travelers and airlines in mind. This is<br />
visible today as airport operators reconfigure existing terminals<br />
to be more customer centric, and as new airport construction<br />
brings the customer experience and revenue diversification<br />
to the forefront.<br />
Over the long term, airports will evolve to meet the everchanging<br />
needs of their customers — travelers and airlines —<br />
and to adapt to local and national market conditions (i.e., political,<br />
regulatory, financial). In doing so, it is clear that a single operating<br />
vision for the airport 15 to 20 years from now is not likely to<br />
succeed. One size will not fit all. In all likelihood, various airport<br />
operating models will gain favor over others based on regional<br />
requirements, competitive pressures and customer needs.<br />
Thus, we will see thriving retail airports, and smart airports,<br />
as well as disappearing airports.<br />
In the coming decades, airports and airlines are likely to rise to<br />
the challenge by deploying customer-friendly tools and services<br />
at all points of the day-of-travel experience, as well as redesign<br />
airport architecture and infrastructure to make the airport<br />
experience less stressful and more engaging. These trends<br />
are evident today and are likely to continue. The transformations<br />
are enabled by a range of new and emerging technologies<br />
designed to redefine the entire customer experience from<br />
check-in and security processing to baggage management,<br />
service recovery and post-arrival processing. Technologies<br />
that exist today can be applied to completely re-imagine many<br />
of these current processes, and in many cases, completely<br />
eliminate them. Many of these customer-centric solutions can<br />
help airlines and airports bring back the traveler’s anticipation<br />
and enjoyment and protect profitability during regular operations,<br />
as well as service disruptions.<br />
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Introduction: The Airport Of Today<br />
As global personal incomes continue to rise, more people are<br />
traveling, and they are traveling more often, especially by air.<br />
While this sustained, long-term growth in air travel is good<br />
for airlines’ net earnings, it continues to put pressure on the<br />
broader transportation industry to deliver new solutions to<br />
improve efficiency, eliminate traveler stress and significantly<br />
revamp the customer experience. This is especially critical<br />
since the majority of airline and airport customers’ time is<br />
spent queuing, watching and waiting while in the airport<br />
(Fig. 1). The crux of these pressures is most notable when<br />
service disruptions occur; not only is the passenger severely<br />
inconvenienced, but the airline and airport reacts to the<br />
situation with only a partial view of the operational effect,<br />
directly affecting the airline’s cost line on the balance sheet<br />
and its ability to deliver on its brand promise.<br />
(Figure 1)<br />
The Airport Of Today<br />
Challenges For Airlines<br />
Reinventing the customer experience has significant<br />
implications for airlines and airports, especially as many of<br />
the challenges are particularly critical on the day of travel.<br />
During the day of travel, an airline’s operational focus is on<br />
passenger movement and on-time flight departures, as well<br />
as to increase throughput and streamline processes, such<br />
as baggage processing, customer check-in and boarding,<br />
all while maximizing revenue per passenger. Regardless<br />
of an airline’s efforts to deliver an exceptional customer<br />
experience, the greatest source of customer dissatisfaction<br />
is not the shopping experience or price paid for ancillary<br />
services, rather, it is the airport experience at departure and<br />
arrival. 1 A customer’s current airport experience involves<br />
lengthy queues, repetitive and redundant processes, and<br />
a lack of communication and personalization. This is often<br />
compounded by flight disruptions, which not only add to the<br />
negative customer experience, but, it costs airlines hundreds<br />
of millions of dollars annually. 2<br />
Split Of Passenger Dwell Time At At Airports<br />
Amount Of Time Lost At Airports (Hours In InBillions)<br />
600<br />
Impact of digitalization<br />
650<br />
5%<br />
21%<br />
26%<br />
Process time<br />
Queue, watch and wait<br />
Basic needs<br />
330<br />
225<br />
330<br />
Commercial dwell-time<br />
47%<br />
Check-In<br />
Security<br />
& Passport<br />
Orientation<br />
FIDS<br />
Gate<br />
Source: Dolby & Holder, Arthur D. Little projects<br />
1<br />
Oct 2014 US Department Of Transpiration (DOT) passenger complaints report<br />
2<br />
Tnooz — Selling dreams, delivering nightmares, show airline personalization helps<br />
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Challenges For Airports<br />
Growth in air travel continues to put tremendous pressure<br />
on congested and aging airport infrastructure, and airports<br />
worldwide are struggling to keep up with demands.<br />
In Europe alone, air-traffic congestion during the next<br />
20 years will result in a 12 percent reduction in demand,<br />
or 237 million less passenger journeys. 3 Updating of airport<br />
infrastructure around the world requires billions of dollars<br />
of investment from governments, tax payers and airlines.<br />
Examples of such investments include:<br />
••<br />
The Qatar’s new Hamad International Airport<br />
(US$15.5B investment),<br />
••<br />
The new Mexico City International Airport<br />
(US$11B investment),<br />
••<br />
The expansion of the Los Angeles International Airport<br />
(US$5B investment).<br />
Perhaps not surprisingly, almost three-quarters of the<br />
world’s airports are not profitable. They face extremely high<br />
fixed costs, stringent regulation and increasingly intense<br />
competition. 4 As a result, many airports are revamping their<br />
financial models, reducing their aeronautical income (landing<br />
fees) and increasing revenues from non-aeronautical sources<br />
(retailing) (Fig. 2). 5<br />
Despite these huge figures, travelers continue to experience<br />
frequent aircraft delays, missed connections, misdirected<br />
baggage and uncomfortable crowding. Moreover, travel<br />
disruptions have become the norm. With this surge in<br />
global demand, the ability to solve, execute and recover<br />
from disruptions is compounded by the lack of integrated<br />
systems and processes, poor communication between<br />
airlines and airports, and customers armed with<br />
social-media megaphones.<br />
(Figure 2)<br />
Revenues Are Not Coming From Airlines Anymore<br />
Airports financial models are changing<br />
from aeronautical revenues to more<br />
than 40% of revenue coming from<br />
non-aeronautical sources<br />
Total Operating<br />
Revenues $16.87B<br />
Aeronautical<br />
Revenue<br />
$9.31B<br />
(55%)<br />
Non-<br />
Aeronautical<br />
Revenue<br />
$7.56B<br />
(45%)<br />
Total Non-aeronautical<br />
Revenues $7.56B<br />
Rental Cars<br />
$1.5B<br />
(20%)<br />
Parking<br />
& Ground<br />
Transportation<br />
$3.1B<br />
(41%)<br />
Hotel<br />
$105M (1%)<br />
Other<br />
$748M (10%)**<br />
Land & Non-terminal<br />
$550M (7%)<br />
Retail & Duty Free<br />
$630M (8%)<br />
Food & Beverage<br />
$533M (7%)<br />
Services<br />
$378M (5%)*<br />
3<br />
Airport Council International<br />
4<br />
Airport World Issue 3, 2013<br />
5<br />
Airport council international<br />
* Includes revenues for services such as telecommunications, Internet access, advertising, barbershops,<br />
shoeshine stands and spas.<br />
** All other non-aeronautical operating revenues earned from the non-aeronautical use of the airport<br />
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Opportunities<br />
These challenges present significant opportunities — for<br />
both airlines and airports — to remove travelers’ stress<br />
and improve the overall customer experience. There are<br />
numerous areas for improvement in the day-of-travel and<br />
airport journey today, tomorrow and in the future.<br />
In an effort to reduce the impacts of airports’ constrained<br />
facilities, airlines are challenged with developing innovative<br />
ways to increase throughput and streamline processes, such<br />
as baggage and customer check-in, as well as to focus on<br />
optimizing the customer’s end-to-end journey. In doing so,<br />
airlines can employ a host of technology-based solutions and<br />
remove significant costs from across the business, including:<br />
••<br />
The airport experience (i.e., check-in, security, border<br />
control, boarding and connections);<br />
••<br />
Enhancing the overall customer experience through longterm<br />
loyalty programs and proactive personalization;<br />
••<br />
Tackling high-cost customer issues such as redesigning<br />
the service disruption and recovery experience.<br />
Similarly, airports can deploy technologies to tailor an<br />
appropriate airport experience around the customer that<br />
‘further expands the airlines’ and airports’ share of the<br />
traveler’s wallet by creating innovative revenue opportunities<br />
without interfering with an efficient operation and an<br />
exceptional customer experience.<br />
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The Customer Experience Enigma<br />
Airports and airlines are well aware of the need to improve<br />
the passenger travel experience on the ground and to<br />
advance it from a process that has changed little during<br />
the last 50 years. As a result of increased competition,<br />
tight economic conditions, over-taxed infrastructure and<br />
ever-growing customer expectations, airline executives have,<br />
in recent years, become increasingly focused on enhancing<br />
the traveler experience while continuing to manage operating<br />
costs. 6 Many of these day-of-travel improvements are<br />
possible by addressing the gaps between processes and<br />
customer touchpoints. Adding further momentum to the need<br />
for change, airline and airport customers now expect their<br />
travel experience to be the same as their social, banking and<br />
retailing experiences — connected, context rich, convenient<br />
and personalized (Fig. 3).<br />
Gaps Between Touchpoints —<br />
The Disconnect Within Processes<br />
Travelers often experience challenges or stress at the airport<br />
due to repetitive and seemingly redundant processes.<br />
Typically, they will be asked the same or similar questions<br />
at check-in, baggage drop, security, emigration and even<br />
boarding. They will be required to present the same or similar<br />
documentation at various points in the process. It is this<br />
repetitiveness from a lack of coordination across processes<br />
and between airport, airline and agency staff that makes for a<br />
negative experience. Often these disconnects result from the<br />
dueling objectives of various service providers. For example,<br />
the airline wishes to process and board travelers and baggage<br />
as quickly as possible; the airport, on the other hand, wants<br />
travelers to spend time, and money, engaging with airport<br />
services; and, government agencies want to ensure safe<br />
and secure passage.<br />
(Figure 3)<br />
Connection, Context, Convenience<br />
Travelers are influenced by consumer<br />
trends which impact how airlines design<br />
and manage the travel journey.<br />
Smart:<br />
more connected, more informed,<br />
have a voice and use it<br />
Specialist<br />
staff<br />
Trending<br />
retailers<br />
Virtual<br />
assistants<br />
Authentic:<br />
Preplanned:<br />
seeking real experiences, connected<br />
to people<br />
need information, dislike and mistrust<br />
of the unknown<br />
Customized<br />
experience<br />
Simple:<br />
Value of time:<br />
want choice but not so much<br />
it overwelms<br />
every moment must be useful<br />
or purposeful<br />
Control<br />
center<br />
6<br />
The Future of Air Travel: Improved Personalization And Profits Through The Integrated Use of Customer Data;<br />
published by Sabre Airline Solutions and written by The Economist Intelligence Unit.<br />
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Areas For Improvement<br />
Airline executives have stated that the majority of airlines<br />
will be investing in technology-based solutions, such as<br />
self-service and mobile, – in the near future to address many<br />
of the day-of-travel customer experience challenges. 7 Both<br />
customers and airline executives agree on the top two<br />
priorities for improving the airport experience. 8 First, one-time,<br />
seamless authentication and security control for the traveler,<br />
enabled via a single biometric identification accepted at<br />
every security point along the journey. Second, accurate and<br />
efficient baggage processing, delivered through electronic<br />
baggage tags linked to the customer profile, and offering<br />
real-time baggage tracking throughout the journey (Fig. 4).<br />
Furthermore, executives and consumers agree that boarding<br />
without human interaction would yield a great improvement<br />
in the customer experience (62 percent and 58 percent,<br />
respectively). In fact, by 2020, IATA wants 80 percent of<br />
travelers to have the option of total self-service at the airport. 9<br />
(Figure 4)<br />
Top Priority For Airline Executives And Customers<br />
Top priorities for improving day-of-travel experience over the next 10 years<br />
Single biometric ID accepted at every security point<br />
along the journey<br />
54%<br />
63%<br />
Airline<br />
executives<br />
Consumers<br />
Permanent baggage tags linked to customer profile,<br />
offering real-time baggage tracking across the journey<br />
Seamless real-time trip information streamed to<br />
mobile devices from every provider on the journey<br />
33%<br />
46%<br />
54%<br />
65%<br />
Ability to order meals from airport restaurants or<br />
duty-free purchases for delivery aboard aircraft<br />
21%<br />
44%<br />
Augmented reality devices (such as Google Glass)<br />
to guide travellers through airports<br />
16%<br />
29%<br />
By 2020, IATA wants 80% of passengers to<br />
have the option of total self-ser vice at the<br />
airport. Executives agree with consumers that<br />
boarding without human interaction would yield<br />
the greatest improvement in the customer<br />
experience (62% and 58%, respectively).<br />
7<br />
2014 Air Transport Industry Insights — The Airline IT Trends Survey; SITA<br />
8<br />
The Future of Air Travel: Improved Personalization And Profits Through The Integrated Use of Customer Data;<br />
published by Sabre Airline Solutions and written by The Economist Intelligence Unit.<br />
9<br />
The Future of Air Travel: Improved Personalization And Profits Through The Integrated Use of Customer Data;<br />
published by Sabre Airline Solutions and written by The Economist Intelligence Unit.<br />
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The Intelligent Airport<br />
The ideal day of travel for many airline customers is one in<br />
which the airport experience is completely transparent and<br />
seamlessly integrated, as well as where they are in control —<br />
or feel in control — of the interaction with the airline, airport<br />
and other players. For the airline, a key element in enabling<br />
this level of experience is the empowerment of airport staff to<br />
address and resolve customer needs immediately, anywhere<br />
and at any time, especially during a service disruption. For<br />
airports, this implies a dynamic and robust communicationrich<br />
infrastructure to cope with the flexible needs of both the<br />
airline and the traveler. Thus, the airport of the future is an<br />
intelligent environment: connected, immersive, personalized<br />
and multisensory.<br />
This intelligent airport puts the customer experience at the<br />
center of the entire operation and is supported by collaborative<br />
technology-based solutions and a partner ecosystem (Fig. 5).<br />
(Figure 5)<br />
The Airport Ecosystem<br />
Governing Bodies<br />
Airports<br />
Predictive<br />
modeling<br />
Actionable<br />
information<br />
Identity<br />
management<br />
Integration<br />
Platform<br />
Passenger<br />
profiling<br />
Airlines<br />
Situational<br />
awareness<br />
Behavioral<br />
analysis<br />
Border Authorities<br />
Risk<br />
assessment<br />
Retail Partners<br />
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Airports are experimenting with this in various ways, such as<br />
tailoring the complete airport operating model to suit specific<br />
airline and traveler needs. These emerging operating models<br />
for airports — the Aruba International Airport’s biometric Aruba<br />
Happy Flow initiative, low-cost terminals (e.g., KLIA2 -- Kuala<br />
Lumpur International Airport, Malaysia low-cost carrier terminal),<br />
destination airports (e.g., Incheon International Airport, Terminal<br />
2, South Korea) — are examples of an ongoing transition<br />
toward a more personalized and effective traveler engagement<br />
process, and all the while with a continued focus on efficiency<br />
and revenue diversification. Airports around the world are<br />
embarking on major technology initiatives to connect the airport<br />
to its customers.<br />
While specific operating models look vastly different, they all<br />
utilize a common underlying technology-based ecosystem<br />
consisting of:<br />
••<br />
Adaptive architecture,<br />
••<br />
Personal engagement and sense of place,<br />
••<br />
Smooth connectivity,<br />
••<br />
Seamless intelligence,<br />
••<br />
Operational excellence to create a truly smart airport<br />
(Fig. 6).<br />
(Figure 6)<br />
The Smart Airport<br />
The Smart Airport is connected, immersive,<br />
personalized, and multi-sensory. It puts the<br />
customer experience at the center of the entire<br />
operation and is supported by collaborative<br />
technology and a partner ecosystem.<br />
Smart City Smart Building Smart Factory Smart Airport<br />
• Citizens’ needs at the<br />
heart of the process<br />
• Adaptable to<br />
changing situation<br />
• Support economic<br />
(including retail),<br />
social, cultural<br />
development<br />
• Sustainable<br />
• Comfort<br />
• Energy efficiency<br />
• Safety & security<br />
• Networked<br />
• Adaptable<br />
• Flexibility<br />
• Real-time production<br />
• Interoperability<br />
• Virtualization<br />
• Sustainable<br />
• Customer’s needs<br />
at the heart of the<br />
operation<br />
• Safety & security<br />
• Networked<br />
• Adaptable<br />
• Flexibility<br />
• Virtualization<br />
• Sustainable<br />
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The Traveler Experience Reimagined<br />
Airports across the globe are increasingly examining the<br />
airport-processing experience. An array of new and emerging<br />
technology-based solutions promise improved operational<br />
efficiency and new approaches to engaging customers,<br />
and which hold the potential for new revenues. 10 Additionally,<br />
airports are driven to find new ways to process and interact<br />
with a new generation of tech-savvy travelers such as<br />
those carrying smartphones. 11 These travelers expect<br />
instant interaction, engaging customer service and<br />
memorable experiences (Fig. 7). Furthermore, many of<br />
these enabling technologies can also lower operational<br />
costs from improved customer processing throughput<br />
and enhanced customer service.<br />
During the next 10 years or so, airports are likely to leverage<br />
and extend the efficiencies outlined in IATA’s Fast Travel<br />
initiative. This program aims to deliver self-service options in<br />
six areas of a passenger’s day of travel journey: check-in, bags<br />
ready-to-go, document check, flight rebooking, self-boarding<br />
and bag recovery. IATA estimates these initiatives will save<br />
the industry approximately US$2.1 billion while providing<br />
passengers with options for more control over their airport<br />
journey 12 (Fig. 10). IATA’s vision is that “by 2020, 80 percent<br />
of global passengers will be offered a complete relevant<br />
self-service suite throughout their journey to provide better<br />
convenience and reduce queues.” 13<br />
By implementing many of these solutions and extending into<br />
additional areas of the traveler experience, airlines and airports<br />
are poised to continue realizing incremental gains in efficiency.<br />
Moreover, these solutions will make the traveler’s experience<br />
less stressful and intrusive, and return a degree of control to<br />
the traveler, especially during times of irregular operations<br />
where the customer’s journey is disrupted.<br />
(Figure 7)<br />
The Connective Journey<br />
Internet<br />
Browsers<br />
Portals<br />
Search<br />
Social<br />
Messenger<br />
Internet of Things<br />
connects<br />
information<br />
to<br />
information<br />
connects<br />
people<br />
to<br />
information<br />
connects<br />
information<br />
to<br />
people<br />
connects<br />
information<br />
to<br />
people<br />
& commerce<br />
to people<br />
connects<br />
people<br />
to<br />
people<br />
(on a large scale)<br />
connects<br />
people<br />
to<br />
people<br />
(one to one)<br />
connects<br />
device<br />
to<br />
device<br />
10<br />
How Airports Can Improve Revenue & Profitability from Retail and F&B. Research For Travel. 2012.<br />
11<br />
Passenger IT Trends Survey. SITA. 2013.<br />
12<br />
IATA’s Attempt to Make Passenger Experience Seamless Gets Its Second U.S, Airline. Skift. September 2015.<br />
13<br />
IATA Program Strategy — Fast Travel Program, January 2015.<br />
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Redefining The Airport Customer Experience
<strong>THE</strong> <strong>CUSTOMER</strong>-<strong>CENTRIC</strong> <strong>AIRPORT</strong><br />
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Near-Term Travel Technology Solutions<br />
For airports and all their customers — airlines, travelers, retailers,<br />
ground service providers — a number of key technologies are<br />
likely to permeate infrastructure and become critical elements<br />
in the reinvention of the existing customer experience.<br />
These technologies are likely to catalyze the development<br />
of entirely new business processes. Many of these are not<br />
new; however, adoption within the travel sector is only now<br />
reaching significant levels. These include:<br />
Technology Innovation Description Airport Benefit<br />
Digital Wayfinding<br />
Wayfinding helps people orient and find their way<br />
in and around a specific location. Through a welldefined<br />
wayfinding design, a facility can construct<br />
a sense of place and ensure intuitive navigation for<br />
visitors.<br />
Maximize throughput<br />
Biometric Identity<br />
Management<br />
Biometric identification uniquely identifies a person<br />
by evaluating one or more distinguishing physical,<br />
physiological and biological characteristics. Typically,<br />
biometric identity management includes fingerprint<br />
identification, facial recognition, voice recognition<br />
and iris and/or retinal scanning.<br />
Streamline and tighten security<br />
Token-based Authentication<br />
A tracking identifier or token combines several<br />
technologies to deliver a unique identifier that stays<br />
with a person, much like a unique digital cookie is<br />
set on a personal device to identify an individual’s<br />
visits to a website. A token can be used for both<br />
access authentication and tracking.<br />
Streamline and tighten security<br />
Mobile Tracking and<br />
Proximity Sensing<br />
Tracking smartphones and other wireless devices<br />
through a unique hardware fingerprint embedded<br />
in each device, enabling businesses to monitor<br />
customers’ movements around general vicinity,<br />
identify ideal foot traffic patterns, and push<br />
notifications and offers based on location within the<br />
space.<br />
Reduce congestion and<br />
enhance customer experience<br />
RFID Tracking<br />
Reliable and efficient radio frequency identification<br />
(RFID) technologies now enable tracking and<br />
monitoring of valued assets through embedded<br />
tags.<br />
Enhance customer experience<br />
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Technology Innovation Description Airport Benefit<br />
Near-field Communications<br />
Near-field communications (NFC) share similarities<br />
with Bluetooth wireless services for inter-device<br />
connectivity. However, while Bluetooth’s range<br />
typically extends to 20 to 30 feet, NFC range is<br />
limited to around 2 to 5 inches. As a result, NFC<br />
is particularly advantageous in situations where<br />
proximity of devices is valuable, which overcomes<br />
interference with other wireless devices.<br />
Maximize throughput and<br />
enhance customer experience<br />
Geofencing<br />
Enables businesses to create a virtual, digital<br />
perimeter or fence around a location and<br />
automatically send a notification when a visitor<br />
crosses the line. In the case of geotargeting, a<br />
business can extend traditional location-based apps<br />
and consumer check-ins to deliver a full range of<br />
geotargeted services via the mobile channel.<br />
Maximize throughput and<br />
enhance customer experience<br />
High-touch, Technologyenabled<br />
Device<br />
Enable businesses to arm their staff with embedded<br />
technology that facilitates proactive service<br />
interactions with the business’s staff members.<br />
Enhance customer experience<br />
Service Robotics<br />
Supplement a business’s human staff with robots<br />
capable of one-on-one interaction with customers,<br />
providing directions and resolving a customerservice<br />
issue.<br />
Enhance customer experience<br />
Augmented Reality<br />
Advances in connectivity speeds (5G) will enable new<br />
forms of virtual reality and holographic communication<br />
through 3-D and holographic displays to create virtual<br />
views of one’s surroundings.<br />
Maximize throughput<br />
Virtual Assistants<br />
Some businesses are taking digital signage to a new<br />
level with 3-D projection and holographic imaging.<br />
This technology solution enables a business to deploy<br />
a human-sized virtual assistant in strategic positions<br />
to deliver important messaging, branding information<br />
or other promotional information.<br />
Enhance customer experience<br />
Predictive Analytics<br />
Provides businesses with the ability to mine<br />
real-time data from operations, evaluate historical<br />
behavior, leverage machine learning, and analyze<br />
current and historical facts to make predictions<br />
about future, or otherwise unknown, events as<br />
well as leverage real-time data to automate existing<br />
manual processes.<br />
Maximize throughput<br />
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Moving Towards A Customer-centric Airport<br />
Technology-enabled solutions focused in specific areas of<br />
the airport process — such as check-in or boarding — will<br />
improve the lot of the traveler, airport and airline in the<br />
short- to mid-term. However, a more strategic rethinking<br />
of the entire airport experience will bring significant<br />
improvement. In both the near and long term, all indications<br />
are that passenger traffic will continue to increase, travelers’<br />
expectations will be higher, security demands will remain<br />
and operational budgets will stay constrained. Near-term<br />
improvements in specific areas of the traveler’s journey<br />
through solutions described above will reduce business<br />
pressures and traveler stress (Fig. 11). However, beyond<br />
2025, airports, airlines, local authorities and other third<br />
parties integral to the air transportation value chain will<br />
need to innovate and collaborate as never before to redefine<br />
the entire process with the traveler at the center. As Paul<br />
Griffiths, Dubai Airports CEO, recently noted, “airports need]<br />
to completely reinvent the whole airport experience to make<br />
it more customer friendly.” 14<br />
14<br />
Smoothing the Airport Experience. Economist Intelligence Unit (EIU) , The Economist. 2014.<br />
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Redefining The Airport Customer Experience
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[<br />
[<br />
The Traveler At The Center<br />
Any new approach to airport day-of-travel services should<br />
deliver a personal experience matching with travelers’<br />
expectations. This may include removal of all process<br />
queues and uninterrupted passenger flow; invisible security<br />
processing and elimination of personal intrusions; increase in<br />
traveler discretionary time and entertainment options; custom,<br />
contextual information delivery; or transforming the airport<br />
experience to be personalized and tailored by every individual<br />
customer (Fig. 8). Just as airports have become sophisticated<br />
ecosystems covering numerous, complex business<br />
processes, traveler behavior at the airport is more complex<br />
than departing and arriving.<br />
Traveler activities at the airport fall into two broad categories:<br />
non-discretionary and discretionary. 15 Non-discretionary<br />
activities are those essential to boarding the aircraft and<br />
include: preparation, processing and queuing. Travelers<br />
regard these as necessary but stressful inconveniences.<br />
Discretionary activities are non-essential, but usually<br />
contribute to the traveler’s enjoyment and well-being,<br />
and may include consumptive activities, such as shopping,<br />
dining, social activities.<br />
A detailed analysis of these activities will give airports a<br />
customer-centric framework, enabling them to define new<br />
and engaging experiences for their travelers over the longterm,<br />
beyond focusing on optimization of existing operational<br />
processes. Additionally, airports will need to redefine, or<br />
preferably eliminate, non-discretionary activities and replace<br />
them with personalized activities weighted toward delivering<br />
a more enjoyable experience for the traveler — one that is<br />
configurable by the traveler to fit his or her specific needs<br />
and desires for the journey. Further, while discretionary<br />
activities are not directly tied to airport-processing<br />
performance, airports and airlines increasingly recognize<br />
that facilitating these is key: a pleasant airport experience<br />
is a fundamental way to stimulate airport spending and<br />
influence future air travel plans. 16<br />
(Figure 8)<br />
Putting The Customer First<br />
Products<br />
Processes<br />
Infrastructure<br />
The traditional approach<br />
to airport service delivery<br />
Technology<br />
Putting the customer at the center of the process and<br />
developing an airport experience around the customer’s needs<br />
15<br />
Towards a Taxonomy of Airport Passenger Activities. Philip J Kirk, Vesna Popovic, Ben Krall and Alison Livingstone.<br />
Queensland University of Technology, Brisbane, Australia. 2012.<br />
16<br />
Airport Council International. 2008.<br />
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Characteristics Of The Reimagined Airport<br />
Airlines and airports will continue to face challenges and<br />
opportunities in the coming decades. Air traffic is projected<br />
to double during the next 15 years (Fig. 9), and globalization<br />
will continue to drive intense global competition. 16 Seeking<br />
to protect and broaden their revenue base, many airlines<br />
will build a long-term relationship with each customer. This<br />
is driving significant change as airlines shift from being<br />
transportation companies to becoming retailers of products<br />
and services. Moreover, airports will need to embrace a<br />
similar transformation, with both traveler and airline in mind.<br />
This is visible today as airport operators reconfigure existing<br />
terminals, and as new airports are constructed to enhance<br />
the customer experience and improve, as well as diversify,<br />
airport revenues.<br />
The transformation of existing business strategies and<br />
emergence of new operating models for airports highlights<br />
a sector undergoing tremendous change. While specific<br />
operating models look vastly different, they all demonstrate<br />
two underlying characteristics: an ongoing transition toward<br />
a more personalized and effective customer engagement<br />
process, and a continued focus on operational efficiency<br />
and revenue diversification.<br />
(Figure 9)<br />
The Survival Of The Fittest —<br />
Airports Are Struggling To Stay Alive<br />
The Urban World 2030<br />
The demand for air travel<br />
is forecasted to be over 10<br />
billion passengers<br />
by the year 2030.<br />
Global City Populations<br />
Medium cities, 13.4%<br />
1M to 5M<br />
Large cities, 5.2%<br />
5M to 10M<br />
Megacities, 8.6%<br />
10M or more<br />
Top 10 World Airports By Passegers (2014) 18<br />
Total passengers; arriving and departing passengers; direct transit passengers counted once<br />
1 Atlanta, Georgia, USA<br />
2 Beijing, China<br />
3 London, United Kingdom<br />
4 Tokyo, Japan<br />
5 Los Angeles, California, USA<br />
6 Dubai, United Arab Emirates<br />
7 Chicago, Illinois, USA<br />
8 Paris, France<br />
9 Dallas/Fort Worth, Texas, USA<br />
10 Hong Kong, China<br />
17<br />
Bright Lights, Big Cities; The Economist, February 4, 2015.<br />
18<br />
Source: Airports International Council; 2014 World Airport Traffic Report, Aug 31st 2015.<br />
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Conclusion<br />
Global opportunities, demographic pressures, ubiquitous<br />
connectivity, powerful personal technologies, and increasingly<br />
demanding and savvy travelers are combining to drive airports<br />
to reinvent themselves. Over time, different operational<br />
models will emerge and succeed. Yet regardless of operational<br />
approach or business model, all airports recognize the need<br />
to deliver an engaging and enjoyable personalized travel<br />
experience. Travelers armed with ever-more sophisticated<br />
technologies and large volumes of information at their<br />
fingertips will demand it. This will require airports to respond<br />
to customers who want connection, context and convenience<br />
through an integrated suite of customer-centric services, built<br />
over a flexible infrastructure and fueled by data-rich solutions.<br />
While solutions focused in specific areas of the airport process<br />
— such as check-in, boarding or wayfinding — will improve the<br />
airport experience in the short to mid-term. A more-strategic<br />
rethink of the entire airport experience will bring a more<br />
profound improvement. Over the long term, many airports<br />
will take significant steps to redefine their missions and<br />
refocus their business value propositions — in concert with<br />
airlines, retail partners, local/regional authorities around the<br />
customer’s experience.<br />
As airports and airlines work to improve the airport experience,<br />
they will need to optimize and/or redefine two facets of the<br />
end-to-end traveler experience. The first, as we have covered<br />
at a high-level, is the standard day-of-travel experience. The<br />
second is the service-recovery experience. It is in this area —<br />
such as during a severe weather event — that both airlines<br />
and airports face a complex and potentially costly challenge<br />
that spans all aspects of the business operation.<br />
Service recovery requires proactive and timely customer<br />
interaction paired with solutions that reprocess travelers<br />
and re-allocate staff, aircraft and other airport assets. While<br />
this complexity — where resolution is imperative within a<br />
compressed timeframe — presents difficult challenges,<br />
airlines and airports can benefit from opportunities that come<br />
from successful recovery and resolution. Examples include<br />
protecting revenue and maintaining customer loyalty during<br />
service disruptions and creeping delays. Thus, we will examine<br />
this important aspect of the day-of-travel operation in detail in<br />
the next whitepaper.<br />
19<br />
Redefining The Airport Customer Experience
HEADQUARTERS<br />
GLOBAL DEVELOPMENT<br />
SOUTHLAKE, TX, USA —<br />
Worldwide headquarters for<br />
Sabre<br />
Sabre Travel Network<br />
Sabre Airline Solutions<br />
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About Sabre Airline Solutions<br />
The Sabre Airline Solutions business offers a broad range of software and data<br />
solutions to help airlines market themselves, sell products, serve customers and<br />
operate more efficiently. It provides both airline reservations systems, and a full suite<br />
of marketing and commercial planning software and enterprise operations solutions.<br />
Its data-rich software helps airlines make smarter operational decisions, personalize<br />
and retail their products to travelers.<br />
Sabre Airline Solutions services approximately 225 airlines globally including network<br />
carriers, hybrids and low cost carriers, primarily through Software as a Service (SaaS)<br />
and hosted models, providing lower cost of ownership, flexibility and scalability as<br />
airlines grow. The company also serves approximately 700 other customers including<br />
airports, cargo and charter airlines, corporate fleets, governments and tourism boards.