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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 />

[<br />

[<br />

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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4<br />

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 />

7<br />

Redefining The Airport Customer Experience


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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 />

8<br />

8<br />

Redefining The Airport Customer Experience


<strong>THE</strong> <strong>CUSTOMER</strong>-<strong>CENTRIC</strong> <strong>AIRPORT</strong><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 />

10<br />

Redefining The Airport Customer Experience


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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 />

13<br />

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<strong>THE</strong> <strong>CUSTOMER</strong>-<strong>CENTRIC</strong> <strong>AIRPORT</strong><br />

[<br />

[<br />

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 />

14<br />

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[<br />

<strong>THE</strong> <strong>CUSTOMER</strong>-<strong>CENTRIC</strong> <strong>AIRPORT</strong><br />

[<br />

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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[<br />

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 />

16<br />

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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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[<br />

[<br />

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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[<br />

[<br />

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 />

Sabre Hospitality Solutions<br />

Southlake, TX, USA<br />

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Bangalore, IN<br />

GLOBAL OFFICES<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.

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