For the past few years, the air transport industry has been left reeling from the economic, societal and structural effects of the Covid-19 pandemic. Now, airport managers are thinking beyond the pandemic to a brighter future – one where innovative technologies will take the industry to a new level.
A fully-fledged, future-proof recovery is on the horizon. But how exactly will airports go from doom to boom, maximising their potential to deliver a sustainable, efficient airport of the future? In this article, we look at six main trends that will mark the future of airport management.
Future of airport management: 6 main trends
Health and wellness will restore confidence
Restoring passenger confidence post-Covid will be pivotal. In order for the aviation industry to recover and move forward, travellers will need to feel safe. And, while the easing of the effects of the pandemic will be the main driver of this renewed confidence, there are a whole host of innovative technologies airports can implement.
It all starts with a breath of fresh air. IoT systems can have a profound effect on indoor air quality, with smart sensors that can measure and adapt ventilation and filtration based on occupancy levels. This will be key for airports in the long run, as will state-of-the-art analytics software. This kind of technology could also be used for more efficient cleaning and reporting within the airports, with integrated janitorial software enabling staff to report sanitation of common areas and facilities in real time.
In the future, touchless technology will be the standard for every airport in the world. While the likes of paperless boarding passes are already well-established, soon every step of the airport journey will be touchless – from the kind of biometric facial recognition technology that’s already used at the likes of Gatwick Airport to touchless payments at every concession stand. An entirely touchless airport experience, from check-in to boarding gate, would have a huge impact on airport hygiene and, ultimately, traveller health.
Speaking of health, an often underlooked area is fatigue and quality of rest. Instead of sleeping on the issue, many airports are thinking ahead and, with the help of innovative Finnish napsters GoSleep, sleep/nap pods in airports are now a reality, with Helsinki, Heathrow, Dubai and Munich already helping their passengers catch some much-needed rest. By 2030, sleep pods will be a common sight in airports all over the world.
Innovative new platforms will rise to the fore
The key behind the digitalisation of airports will be customer experience, as airports implement cutting-edge ‘as-a-service’ platforms to better understand and meet the needs and expectations of their passengers. With more access to real-time data, airports can have greater control over their services, products and revenue streams, providing customers with a personalised, seamless travel experience, while building a flexible infrastructure that connects everyone in the travel chain.
Virtual interlining platforms, such as the one developed by Airsiders, also make it possible to generate new revenue streams. An increase in connections and flight routes brings extra landing revenue, along with a rise in passenger traffic. This, with the fact that fewer connections will be disrupted, means more downtime for passengers – which, in turn, means more retail revenue.
Meanwhile, for the passenger, the ‘made-to-measure’ aspect of the travel experience will be like nothing they’ve ever experienced. Airports could see a blend of the nostalgic simplicity of the 50s and 60s, with the state of the art precision and innovation of the 21st century. With the help of the technology offered by emerging ‘as-a-service’ platforms, profitability, efficiency and customer loyalty will flourish.
“There is no substitute for innovation. Original, revolutionary ideas will always rise to the top.”
– Richard Branson, Founder of Virgin Group
The future of airport management will be green
During the Covid-19 pandemic, there was a 7% drop in global CO2 emissions. This is an unprecedented drop in pollution for modern times. An unforeseen consequence of lockdown measures, this dramatic decrease has given the aviation industry a wake-up call.
The future of aviation must be green. Airport management, and the wider aviation industry in general, must address the environmental impact of air travel. This can be achieved by developing deep learning models to identify and predict the pollution of certain flight routes.
Norwegian’s fuel management software SkyBreathe, for example, uses big data algorithms to analyse flight operations and reduce fuel consumption. And, while some have concerns about the carbon emissions of deep learning itself, AI will become more energy-efficient while having a major influence on the push for a more sustainable future.
It’s not just in the air where sustainability matters to the aviation industry – back on the ground, carbon neutrality remains the goal for airports too. In 2020, Sweden’s main airport operator became the first in the world to achieve carbon neutrality – across 10 different airports. Over the next decade, airports across the globe will compete to reach this standard.
Because, while health and hygiene have understandably come to the fore of public consciousness in recent years, sustainability in aviation will once again become a major talking point. For airports catching up with Sweden, switching to renewable heating and going fossil-free is the first step. Denmark is already on board, pledging to make all domestic flights fossil-free by 2030.
The age of automation will bring unparalleled efficiency
Automation will play a big role in shaping the future airport experience. The end goal for airport managers is to create a seamless journey for their customers while implementing systems and technologies that allow for optimal efficiency.
This means automated systems such as facial recognition or iris capture, both of which are replacing fingerprinting at Singapore Airport. Paper boarding passes will, of course, be a thing of the past. But its recent replacement – the smartphone QR code boarding pass – will also soon become redundant, as airports make the shift towards biometric technology, giving passengers a hands-free, walkthrough experience. And, potentially, an end to stressing about forgetting your passport!
All of this points towards a far more fluid system, with shorter queues, less waiting around and far more passenger downtime. There are, of course, privacy concerns – understandably so. Airports will have to work with tech providers and governments to find the best solution while always keeping the passenger at the centre of the story.
As passenger levels return to pre-pandemic rates, airport managers will need to integrate technology and automation to support a workforce that has seen a 60% reduction. Seoul’s Incheon, via its Smart Airport Team, is thinking ahead by using robotic temperature checkers and kiosks, while also prioritising operational efficiency. They’re also developing a big data platform to help optimise airport operations and plan to establish an AI-driven air traffic control (ATC) platform that will “bring a brand new way of working to ATC officers.”
Meanwhile, in the UK, British Airways is trialling robot guides at Heathrow Terminal 5. The polyglot bots – they can interact with passengers in five different languages – are designed to answer thousands of questions, including real-time flight queries. They even can move around the airport.
Breakthroughs in baggage handling will take the weight off
The future of baggage handling could be very different to the current model. Already, companies like AirPortr are breaking the mould, with methods that take a lot of weight off the shoulders of travellers – quite literally.
A London-based luggage technology company, AirPortr, provides passengers with a secure baggage collection and check-in service. The company’s CEO and founder, Randel Darby, predicts that in the same way that most aspects of passenger processing will be done ‘off-airport’, via biometrics etc., so too will luggage check-ins. He envisages passenger-only terminals, where baggage is self-handled as and when, then “collected from home and processed at an Amazon-style fulfilment centre”, before being loaded onto your flight.
AI X-rays are also being developed by SoftonNet, LG CNS and IIACC. By embedding state-of-the-art AI technology into the X-ray algorithm, the burden of security and detection officers is significantly reduced. Security is enhanced too, thanks to the increased rate of detection of prohibited items.
Meanwhile, in the US, the Port Authority of New York and New Jersey is investing in AI-based baggage screening equipment for both check-in and carry-on bags. Through self-learning algorithms, the machines can identify any bags that might pose a security risk, deliver them to a TSA agent to check, then return them to the aircraft or the passengers. The technology was implemented at Laguardia’s new terminal last year and will be in place in several other airports by 2025.
Finally, for self-connecting travellers, ‘virtual interlining’ will provide a breakthrough when it comes to baggage through-checks. Airsiders is a pioneer in this area. We partner with BEUMER Group, a global leader in baggage handling systems to make automated luggage through-checks simple – even when an interline or alliance agreement doesn’t exist between airlines.
Airport revenue will increase through creative sales and marketing
Since the beginning of the pandemic, European airports have suffered an estimated $73 billion worth of losses. In order for airport managers to recoup these losses and work towards exponential revenue growth, they will need to look towards ever more innovative marketing methods.
AI and machine learning are technologies at the forefront of this innovation. Predictive analysis of passenger behavioural patterns, whether visiting retail stores, VIP lounges, restaurants, or other spaces within the airport, can help to create a personalised airport experience. Meanwhile, airports will increasingly look to the creative use of space for advertising potential, with giant digital video screens and lightbox static ads just part of the interior transformation to come. This ad potential could be showcased via VR tours – just as Sidney Airport did recently, which led to an immediate increase in retail and ad revenue.
Of course, it’s not about bombarding customers with messages. To be successful, airports will balance subtle customer marketing with creative features – look to Singapore’s jaw-dropping indoor waterfall for an idea of how future terminals will captivate their customers.
Still, in order to enchant them with advertising and eye-catching features, airports must keep the customers coming. The above methods can be utilised to increase airport revenue by attracting more airlines and new routes, using dynamic MCTs and virtual interlining solutions. Encouraging passengers to purchase services before they arrive at the airport will also raise appeal and help airports develop into an ideal layover hub.
New tech & innovation will mark the future of airport management
All this points to the future of airport management consisting of far more interconnected digital infrastructure that brings efficiency, fluidity, flexibility and sustainability.
Yet, all these groundbreaking technologies – from deep learning and IoT to big data analysis and robotics – will always be in service to one central concept.
The passenger.
With the passenger’s experience at the centre of the drive for innovation, airports can be the launchpads for a new golden age of travel.
Despite the huge impact of the pandemic and the restrictions that ensued, there are plenty of reasons for optimism when it comes to the future of the airline industry.
Driven by new technologies that focus on safety, sustainability, efficiency and a smoother travel experience, let’s take a look at the emerging trends set to transform the airline industry in 2022 and beyond.
Top 8 Airline Trends for 2022
The biometric boom
According to IATA’s passenger survey, 73% of passengers are willing to share biometric data to improve the travel experience. In 2019, this number was 46%, showing just how much the public perception of this technology has shifted over the last few years.
What’s behind this change of mind? Well, for a start, there’s a willingness to compromise on sharing personal data if it leads to a safer environment. Also, following the pandemic, travellers value a stress-free, efficient travel experience more than ever. And biometric technology can certainly deliver that.
In the States, United Airlines trialled a SITA-powered face recognition system, enabling customers to sync their ID documents with their facial biometric. This meant travellers could check in and board simply through facial scanning – not a boarding pass in sight.
Of course, speed is a major factor in the biometric boom. In early trials, Lufthansa managed to get 350 passengers safely seated on board an Airbus A380 in a mere 20 minutes. In fact, it’s estimated that biometrics helps reduce check-in and boarding times by up to 80%.
Then there’s the increased security factor. Biometric systems will replace manual checks, of which human error is a factor – after scanning hundreds upon hundreds of documents, who can blame an agent for making a mistake? A biometric camera performs at an incredibly high level of accuracy for a long period of time. There’s also increased safety as, by its very nature, biometric technology is entirely touchless.
Still, while passengers are coming round to the idea, privacy concerns remain. Airlines will need to further gain the trust of their customers if these concerns are to be eased; although, for travellers, the promise of safer travel might just seal the deal.
Bag-free air travel
Let’s talk baggage. One of the key reasons travellers feel weighed down when they travel – quite literally – is the luggage problem. If we’re to ever arrive at the truly seamless, relaxing traveller experience, something’s going to have to give.
Firstly, for self-connecting passengers, collecting and re-checking luggage at their layover airport is a big pain point. Airsiders solves this issue by offering automated baggage check-thru, even when an interline or alliance agreement doesn’t exist between flight handlers.
Re-checking and re-collecting luggage may be an issue specific to self-connecting passengers, but actually carrying the luggage affects every traveller. Luckily, there are some big innovators out there keen on lightening the load. While it’s not yet part of a ‘regular’ airline service, there are already several companies tackling the inconvenience of processing luggage.
AirPortr is one such company driving the shift towards contactless, bag-free air travel. Through AirPortr, the traveller’s luggage is weighed and collected from their door, the boarding pass is printed and delivered, then the baggage is checked in at the airport and even loaded onto the plane. At the other end, AirPortr delivers the luggage directly to the traveller’s destination. All this is supplemented by insurance, live tracking and CCTV, for added peace of mind.
On a large scale, this shift points to vast Amazon-style depots where baggage is handled before being loaded onto your flight. Still, there’s a big environmental question hanging over this kind of system, with an increase in pollution from such a large scale pickup/delivery service a major factor. If companies like Dubz and AirPortr are to genuinely change the baggage handling game, they’ll need to deliver efficiency in an ecological way.
A renewed focus on sustainability
Having taken a backseat behind health as the most important consideration for the aviation industry, sustainability will come to the fore once more. This year’s SITA report shows that sustainability has moved higher on airline CIOs’ agendas – 56% have already implemented new technologies to improve sustainability, while a third (32%) plan to do so by 2024. This means that by 2024, if all goes according to plan, 9 out of 10 airlines will have set up technologies to boost sustainability.
At last year’s IATA meeting, the air transport industry pledged to reach net-zero carbon emissions by 2050. It’s a huge target and really underlines aviation’s commitment to a green future. If it’s to be met, critical medium-term solutions, as well as robust long-term solutions, will need to be implemented.
One of the key drivers of these solutions is the Aviation Climate Taskforce (ACT). A collaboration of Virgin Atlantic, Air France-KLM and Delta Air Lines, ACT aims to discover and accelerate breakthrough technologies to decarbonise aviation. Emerging innovations include synthetic fuel, direct air capture (DAC) and new zero-emissions energy sources such as electric and hydrogen.
DAC, in particular, is being touted as a major breakthrough. United Airlines certainly sees it as having a potentially groundbreaking impact, having become a partner in a project to build the world’s first commercial DAC facility, where 1 million tons of CO₂ will be sucked from the atmosphere every year.
If the zero-emissions target is to be met and our future is to be green, these kinds of innovations will be crucial.
Virtual queuing
IATA’s 2021 survey found that 55% of travellers believe boarding queues have to improve. Now, after successful implementation at sporting events, theme parks, hospitals and government agencies around the world, virtual queueing systems are set to deliver that improvement, with airlines queuing up to take advantage of this emerging trend.
Last year, British Airways trialled a virtual queuing system by tech company Qmatic at Heathrow’s Terminal 5. Customers received an online ticket and could monitor their place in the queue via their smartphone. With customers able to pre-book their slot remotely in advance, waiting times and congestion were dramatically reduced.
Meanwhile, airlines including Delta and Qantas were part of a trial at Seattle-Tacoma Airport. Implemented by Copenhagen Optimization, the trial system, SEA Spot Saver, was a huge success that saved time for 90% of customers. As a result, SEA Spot Saver is now a permanent feature at the airport.
If done correctly, virtual queueing has the potential to make a huge impact on the passenger experience. From check-in desks to boarding lines, travellers will see waiting times drop dramatically. Of course, this leads to more downtime – a chance to relax or shop.
At a time when large queueing is not just an inconvenience but a health and safety issue, virtual queueing seems a safe bet for the airline industry. As the technology improves and any early teething problems are addressed, expect to see virtual queueing systems rolled out around the world.
Flight subscriptions
In the age of the subscription model, with Netflix, Spotify and the like totally transforming the way we consume entertainment, it makes sense that the travel industry should explore how it could follow suit. In February, Alaska Airlines launched a ‘Flight Pass’ subscription program, using Caravelo’s innovative service, which offers subscription and revenue optimisation solutions for the airline and travel industry.
Airlines like Alaska Airlines are looking to convert travellers into loyal ‘subscribers’, bolstering ancillary sales and including passengers in their optimisation strategy. For frequent flyers, it offers far more flexibility and big cost reductions, while airlines reap the rewards of incremental revenue and guaranteed income. This is good news for investors too, who can predict a certain amount of income for flight operators.
The loyalty angle is certainly a big one. Having a permanent open channel of communication with their subscribers enables airlines to upsell and cross sell, while solidifying that crucial brand relationship.
Virtual interlining
As travel habits evolve, passengers are increasingly keen to take more control over their journeys. This points to the emergence of self-connected travel – an increasingly popular way of doing things. But booking two or more connecting flights independently from one another, with airlines that don’t have interlining agreements in place, has plenty of potential pitfalls for travellers in the current system.
That’s why airlines are starting to look towards virtual interlining (VI) solutions to better serve their customer base. Companies like Airsiders give airlines the ability to create a ‘virtual network’, identifying viable routes by accurately calculating dynamic MCTs (minimum connection time or door-to-gate transfer time) using advanced patent-pending technology. Amongst the factors taken into account are not only static data points like baggage MCTs, visa requirements and health regulations, but also real-time updates on shuttle bus availability and flight disruption information. Software and processes, too, enable luggage to be automatically checked through to the final destination even when an interlining or alliance agreement doesn’t exist.
What’s more, VI requires minimal technical input from flight carriers and is fully scalable – a major asset for airlines with big growth potential.
Passenger preparation and assistance
Airlines are beginning to go the extra mile when it comes to making sure passengers feel prepared for their journey. Airsiders is offering innovative services that act as a virtual assistant in the palm of your hand. Our door-to-gate solution, for instance, is used by airlines to provide passengers with personalised wayfinding as well as precise gate-to-gate connection times and transfer risk based on live data, both before and after booking a flight. Standardised airport maps and a unique wayfinding solution, which integrates the passenger’s flight itinerary as well as real-time queue times at all the possible checkpoints (e.g. passport, security), automatically takes travellers to the quickest route. Additional information such as the latest retail offers and opening times help make the most of airport downtime, too. With all of this information available in one place, passengers can rely on a single solution to manage their entire journey.
Giving travellers centralised control yet, at the same time, more personalised guidance and security, will be key to the passenger experience over the coming years. If airlines are to help shape this experience, while reaping the benefits of increased customer loyalty and conversions, they will need to get connected to passenger preparation.
Superapps
Essentially an all-encompassing platform that allows users to accomplish several different things within one central platform, superapps will be a big theme for airlines and other aviation enterprises over the next decade. In fact, they are already beginning to influence the industry.
AirAsia recently unveiled its own superapp, integrating more services up and down the value chain and offering flights of their competitors to capture a larger portion of the market. The app is based around three core pillars: media – in the form of chat and TV entertainment; commerce – in the form of a duty-free shopping and food delivery service; and financial products – in the form of AirAsia Money, which includes a mobile wallet, currency exchange and a loyalty platform. This one-stop travel and lifestyle e-commerce app allows you to book tickets (not just with AirAsia, but with hundreds of other airlines too), get deals on hotel stays, activity packages and transportation as well as buying food, health and beauty products.
The ability to cater for all these various consumer needs within one ecosystem is set to break new ground for airlines, both in terms of revenue diversification and being able to offer a new kind of travel experience for passengers.
The takeaway
As the after-effects of the pandemic on aviation gradually tail off, the travel industry has a lot to look forward to.
The most innovative airline managers will be the ones who harness the trends and technologies above, to stand out in a crowded market and play their part in creating a new golden age of travel – for passengers and airlines alike – with safety, security, efficiency, flexibility and sustainability at the centre of a push towards a brighter future in our skies.
Airsiders is already helping airlines the world over to reshape the travel experience. To discover how we can help your team today, book a demo now.
Virtual interlining with innovative solution for transfer baggage
Düsseldorf Airport and Berlin-based company Airsiders are cooperating on a new type of virtual interlining solution.
A seamless combination of flights, even without interline or code-sharing agreements, is intended to enable passengers to make completely new transfers and connections via DUS. The highlight: an innovative handling technology that automates the sorting and handling of luggage. Passengers of multi-carrier flights will be able to check their baggage in to the final destination, even if they fly with airlines that don´t have an interline agreement.
Airsiders wants to integrate offers and content from airlines and airports on one platform using an API interface. This will include ticket sales, onward carriage of baggage, flight-related insurance and minimum connection times between connecting flights without an interline agreement. Travellers thus gain a high level of transparency about flight options, maximum security for connecting flight times and a whole new experience of comfort: they no longer have to worry about their luggage until their final destination after dropping it off at the departure airport.
“We want to offer a much more flexible and convenient alternative to traditional interlining and current virtual interlining solutions,” explains Yavuz Karadag, CEO of Airsiders GmbH. “With Düsseldorf Airport, we now have a strong, forward-looking partner at our side to create new connections and enable a smooth passenger journey between point of departure and final destination.”
Düsseldorf Airport sees great potential in Airsiders technology. “We want to integrate the solutions of our new cooperation partner into the infrastructure of our airport and thus offer new added value to our airline partners as well as to our retail partners in the terminal and, last but not least, to our passengers,” explains Andreas Kraus, Senior Vice President Corporate Development at Flughafen Düsseldorf GmbH.
“Airlines can increase their capacity utilization and sell additional seats via new connections, passengers have a wider choice of routes with a consistent travel experience and they gain time because they do not have to check in their luggage again. Our store and catering trade partners can then benefit from this.”
Besides Düsseldorf Airport as one of the first airport partners, Airsiders is collaborating with airlines and major aviation partners.
The new virtual interlining offer is to be launched in DUS by summer schedule 2023.
The Covid-19 pandemic has had a seismic impact on the aviation industry. Since the outbreak, European airports have lost an estimated $83.5 billion, with the effects still being reverberating today. And while we’ve seen an upward trend in airport traffic in the last months, increasing uncertainty about the global pandemic situation means that progress will be slow for the foreseeable future.
In light of this development, airport managers are facing one top priority: how to increase airport revenue heading into 2022. This article aims to answer exactly that, looking at the new approaches and technologies airports can leverage to optimize revenue, reduce costs and reshape the customer experience.
How to increase airport revenue in the pre-travel phase
Getting passengers to invest in services before they arrive at the airport is crucial. Pre-ordering and pre-booking strategies have been implemented across hospitality and retail sectors for many years. And while the aviation industry has engaged pre-travel revenue, there’s now an opportunity to take things to the next level.
With an increased emphasis on safety, security and organization, Airports can capitalise by offering passengers useful data and information to help them plan their journey.
Attract new routes with Dynamic MCTs & virtual interlining
For airports keen to attract more airlines and new routes, dynamic MCTs and Virtual lnterlining solutions are key to strengthening their position as an ideal layover hub.
Through the implementation of dynamic MCTs, with intelligent and seamless MCT calculations that come with advanced gate prediction algorithms, airports can pinpoint layover times and baggage through check-in precise detail. Providing this data to airlines, and showcasing the airports efficiency as a transfer hub, helps them make better decisions and increases opportunities for new business.
Airports can also adopt virtual interlining systems to further improve their attractiveness as a suitable layover hub. This offers two advantages: Firstly, they can provide automatic baggage through-check technology for flights where no interline or alliance agreements are in place. Secondly, it enables airport connection guarantees to ensure passengers are rebooked in case they miss their flight due to disruptions.
The combination of dynamic MCTs and virtual interlining technology means airports can grow aeronautical revenue, by increasing routes and airline partnerships, and passenger related revenues, thanks to more traffic and better experience.
Online booking services
Airports can implement more online booking services to increase pre-travel revenue. Passengers are already well-accustomed to buying tickets using search engines and online travel agents (OTAs). In fact, OTAs have captured 40% of the global market, including hotels, airlines, packaged tours, rail travel and cruises, and the global online travel booking industry is now worth $517.8 billion.
All this speaks of incredible sell-on potential. Enabling passengers to book everything in one place – such as parking, VIP lounges, priority boarding, hotels, porter-services and reduced-mobility assistance – is essential to drive up that pre-airport revenue.
How to increase onsite airport revenue
We know that passengers are key to recovery. The Netherlands Airport Consultants (NACO) report states that almost 90% of airport revenues are passenger related. Meanwhile, a 1% increase in passenger satisfaction leads to 1.5% growth. So, it stands to reason that building an extra level of empathy for passengers, while genuinely understanding and acting on their concerns, will have a profound impact on airport revenue.
At a time of uncertainty and instability, earning the trust and confidence of passengers means going beyond standard regulations. By putting the customer front and centre, airports have the chance to construct consistent solutions throughout the travel chain.
Here are some tools, technologies and systems that airports can implement to increase onsite revenue.
Standardised maps and data
Airports can take advantage of new technologies to provide passengers with precise gate-to-gate predictions, along with standardised onsite maps integrated with flight schedules, passenger itineraries and operational data. This all serves to provide passengers with added control over their journey, instilling a peace of mind that enables them to relax and enjoy the airport services on offer.
Having the right software and automated processes in place can also bring a much-needed simplicity to luggage through-checks, even when an interline and or alliance agreement doesn’t exist. Airsiders’ collaboration with BEUMER Group – a global leader in baggage handling systems – makes all this possible. All this leads to an improved self-connecting passenger experience. This means more airport passenger traffic and happier customers which, ultimately, translates to increased revenue and customer loyalty.
Cut the queues with cutting edge tech
A large part of maximizing the passenger experience is reducing waiting times. Airports can implement AI-based deep learning technology in the form of video analytics software, to increase situational awareness, predict passenger volume and optimise airport traffic flow.
Video analytics data visualisations can track the number of passengers who travel through an airport or terminal for any length of time. This technology can also be used to maximise safety – key to avoiding bottlenecks and overcrowding during times of Covid-19 restrictions – while ensuring the streamlining of security checks, passport control, Covid-19 digital passport checks and visa control, etc. Ultimately, cutting down on passengers’ waiting or queuing time drives on-site airport revenues since they have more free time to relax, shop or eat.
Customer profiling
In order to provide a first-rate passenger experience, airports must zero in on exactly who their passengers are. Airports can use data, such as video analytics data, to not only figure out how to make use of terminal space with maximum efficiency, but to also enable an understanding of customer habits and behaviours – whether visiting retail stores, restaurants, VIP lounges or any other part of the airport.
Airports can also carry out passenger profiling by using survey data. This enables retailers to position the right kind of products in the right spaces, bringing a more personalised experience for passengers, while boosting revenues and building a loyal, long-term relationship between the traveller and the airport.
Making use of advertising space
While online ad space is now the dominant form of advertising, there are still plenty of ways to engage customers within the physical space. And, with plenty of space available to airports, creative use of advertising within the airport is a very effective way to increase revenue.
With a subtle advertising strategy that harmonises the aesthetic themes of the airport with the advertising space, airports can offer sponsors excellent opportunities to advertise their products, while engaging passengers with products that are relevant to them.
Within the context of the all-round improvement of the passenger experience, customers will be in a relaxed mindset, making them open to compelling messages. Plus, with less queuing time and more dwelling time in which to relax, the advertising space takes on more value.
Wooden benches could be engraved with logos, seats in gates areas could have upholstered advertising, waste and recycling bins could advertise new retail spaces within the airport and giant digital video screens and lightbox static ads could adorn wallspace.
Airports could even showcase their advertising potential to sponsors with a VR tour, just like Sydney Airport’s advertisers did, leading to an increase in retail and ad revenue despite an overall drop in passenger traffic.
Optimize car park occupancy
Dynamic pricing models for airport car parks are a great way to optimize occupancy and maximize revenue for airports. In fact, these models work similar to the ones deployed by Uber and Lyft, who enjoyed rapid success on the back of this exact strategy. Concerns about detrimental effects on passenger experience are legitimate, but can easily be circumvented with appropriate planning and implementation. Particular emphasis must be thus placed on customer research to establish a model and boundaries that prevent excessive and numerous price fluctuations for passengers.
What’s more, if implemented with care and combined with new technology, airports can actually improve the overall passenger experience when introducing dynamic pricing models. For instance, implementing an intuitive app that showed parking space availability in real-time would be a particularly useful customer-first feature, as would an increase in the number of payment options, including mobile pre-payments for parking spaces.
Peer benchmarking
Another important tool for improving airport revenues is peer airport benchmarking. It allows hubs to compare and contrast their on-site performance with that of other peer airports. By using comprehensive data collection and analytics, airports can thus zero in on core competencies and areas of improvement. This leads to an increased understanding of pain points, a clearer strategy for modernising and innovating, and an all-round increase in revenue and cost-efficiency.
Technology and innovation: the key drivers of airport revenue
In a post-pandemic world, airports need to look to new concepts to not only recover revenues lost since the beginning of 2020 but to go beyond. Tapping into new technologies is crucial – in terms of cutting costs and unlocking new revenue streams, but also when it comes to creating a safe, relaxing, compelling experience for the modern traveller.
By genuinely focussing on the needs of passengers and being open to new approaches and breakthrough technologies, airports can see significant revenue growth, while catering for all stakeholders across the value chain.
Airsiders helps airports boost revenues by taking the leap to the new age of travel, providing cutting-edge solutions for virtual interlining as well as airports data and maps.
To find out how our solutions can help your airport increase revenues, contact our experts here.