Ayan Das MANAGING CUSTOMER EXPECTATION FOR PASSENGER SERVICE AT AIRPORT YE201509
Ayan Das
MANAGING CUSTOMER EXPECTATION FOR PASSENGER SERVICE AT AIRPORT
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Executive summary
In the past 40 years the volume of air travel has Expanded tenfold compared with 3-4 times of world economy. Despite of huge volume in passengers increase the profitability of airlines has gone lower as the real cost of providing air transport services has fallen by more than 60%. Increase in huge volume of passengers have has also led to rise in passenger expectations exponentially .This means increasing number of customers have rising expectations about the standard of various services that an airport should
provide. The paper aims to identify the challenges of Escalating expectations of passengers who demand instant access to resources and information. Customer expectations of what technology can do to reduce travel times and to increase safety are at a high level and are to be met unfailingly. 1. The Paper would show a perpetual map on the
customer expectation and map its journey through passenger life cycle
2. The Differentiation factor –Value added service and value innovation are the cornerstone of airport industry. An airport has to maintain the innovation cycle at highest levels for product development and services
3. Types of passenger and their relationship with the airport partners. The importance of passenger data in context of customer service as it would help the airport in assessing the passenger expectations.
4. Next phase would show a light on various possible strategies to strengthen the services
5. Finally it would end with human & technology aspect
6. Case study /examples of best practices would form important part
Airports have to learn from other organizations when it comes to consistent and value-based
customer management. It would be more appropriate to use hospitality; travel; tourism; services sector and even consumer goods sector as a benchmark to develop excellent customer service @ airport. To integrate this perspective into all their actions airports have to choose the values like hospitable, efficient, reliable, inspiring and sustainable.
TABLE OF CONTENT
SL NO TITLE PAGE NO
Executive summary 2
1 Passenger life cycle 3
2 Transforming the passenger
experience
3
3 Simplified passenger responsibility
matrix
4-5
4 Strategies for reducing the gap
between passenger experience and
expectation
6-12
5 Case study 13
6 Note on human touch & technology 14
7 Conclusion-grid 15
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For almost every passenger, whether they are a leisure traveler or frequent flying business traveler, air travel is still associated with fascination, apprehension and emotional engagement.
An airport needs to steadily increase their efforts and invest more in strengthening all pre and post-Airport experiences to deepen a passenger’s emotional engagement.
1. Passenger life cycle
The passenger expectation it is what a passenger expects while travelling through an airport. Second part is more important it is what the customer’s experiences When there is mismatch i.e. Customer expectation is not matching with experience it lead to undesired state.
The airport infrastructure is like human body, the passengers are the heart & passenger perception is like a soul .Hence dealing with the perception/expectation part is the most difficult. Excellent customer service is created when an airport’s ability to exceed its Customers’ perceptions consistently. This offers promising potential to airports to boost the emotional perception of their brand, and therefore enables airports to positively influence the decision-making process for their customer.
2. Managing & transforming the passenger experience
Change of perception of Modern airports: they are no longer seen as mere transportation facilities, but are viewed as multifunctional service centers. Most important parameters for a passenger expectation priority wise are
1. Affordable ticket price & connectivity 2. On time performance of flights 3. Correct flight information and ease of way finding inside terminal 4. Expects smooth experience in critical areas - check in counters, security, immigration, customs etc. 5. Low cost travel for commuting from & to airport 6. Sense of belonging and security while travelling from an airport
7. Expect a clean and neat airport especially rest rooms. Friendly Airport staff. 8. Expects an excellent dining and retail experience 9. Expect best quality food & beverages in affordable price. 10. Regular traveler from same airport expect discount and offers 11. No over crowding 12. Value added services and add on –like extra parking time ,baggage allowance 13. Excellent airport design & ambience of an Airport. 14. Hassel free transit inside terminals 15. Certain groups Look forward to dedicated spaces like baby care room ,smoking zone ,prayer room 16. Exemplary features which keep the passengers pleasantly engaged during flight delays. 17. And many more.
To meet all above expectations two factors would be very critical. 1. The airport has relevance due its natural presence and but how it differentiates from other airport in
Terms of services is very important .If the Airport & its stakeholders are not able to differentiate its uniqueness would fade. The differentiating factors should reflect in terms of VAS (value added service) and value innovation. Many airports in India have failed to excel compared to private operated airports. Thus this Point is very important from the perspective of airport & its partner’s (Airlines, F&B, Retail etc.).
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2. Passengers are the most important stakeholder: How an airport & partners give importance to passenger is
the key .More Esteem than knowledge means “I would like to know you better “whereas more knowledge
is undesirable state which means “I know you”. In the first case airport would be liked more. Therefore the importance of passenger perceptions is a very critical factor. This point is very also important for the all individuals who work in an airport as they are ambassadors for the airport.
Therefore any vibrant global airport is successful not only due to the differentiating factor of airport operator but also due the exemplary way it partners and people operate.
3. Simplified Passenger responsibility matrix
Every Airport ambition is to be and remain best & preferred airport. Offering all of its visitors a pleasant and inspiring environment for travel, work & visit .Hence an Airport should be aware of the wishes and needs of passengers at all times. The perspective of the passenger and other users is therefore the key
during their journey. Generally passengers are classified into three categories.
High-end business travelers; seek high frequency and direct connectivity whenever possible. They are not as price sensitive but can have preferences for individual carriers and react to some degree to customer loyalty programs.
Premium economy/ business travelers; buy air travel tickets through corporate purchasing departments/travel agents that adhere to corporate travel policies, or they buy directly, mainly through websites. This customer group is relatively price sensitive and flexible to the length of travel, and they tend to react significantly to customer loyalty programs.
Individual end consumers/individuals: travel primarily for vacation or to visit friends and family. This customer group is highly price sensitive and often flexible as to length and date of travel. Large share buys via the internet either through airline websites or travel portals. Travel agents and portals are more important where air travel is sold as part of package deals including transport and accommodation. This group’s percentage share has steadily increased over the years
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-Major responsibility - Average responsibility - Minor responsibility Phase one of the chart shows the relation between types of passenger and shareholders in terms of responsibility. It is also the way by which an airport can get to know its customer in much more better way. A high end business passenger would not be visiting much of F&B outlets as passenger would have access to high end privileges like lounge facilities .The airlines responsibility in dealing with a business class passenger is the highest as they are highly profitable for them & also information is with them. A Premium economy class passenger may or may not use high end facilities. Similarly for an economy class passenger the majority responsibility would lie on the airport operator. Passengers in such category would generally be using the common facilities in an airport. They would be more in need of human touch points, signages and way finding. Such data is necessary for the Airport in realigning its strategy on type of services to be provided in retail, F&B, requirement of low cost terminal etc.
Phase two of the chart is the very important for overall travel experience and support to the first phase .It is the relationship between passenger experience and various stakeholders. All the partners have equal responsibility towards giving a great travel experience. It refers to the process part which would include emotional & Psychological engagement, feelings, wi-fi and mobile connectively; overall ambience, feel and comfort .Example cleanliness, signage’s &way finding, crowding, staff friendliness. A noisy airport would affect all classes of passenger’s .Passenger perceptions and expectations of airport service are also influenced by some other factors. Example demographic passenger characteristics like nationalities, age group (elderly, mother &child) and also by other factors such as flight (connections, flight length, time of departure, delays), carrier features, time of service, and duration at the airport. Airport should realize that operations, infrastructure & its maintenance are very important to customer experience. . Proper Slot Coordination between airlines and airport is very critical for on time performance .Slot coordination is equal responsibility of both the airlines and airport i.e. airport plays an equal important role in on time performance of flights. Therefore the major and most important differentiating factor & services remains the income group on which the terminal infrastructure & facilities should be based (phase 1 of chart). The process part of the airport & its partners should equally important to support the high world class airport infrastructures (phase 2 of chart).
Type of passengers/ Stakeholder
Airport operator
Airlines Lounges /High end services
F&B Retail Govt Bodies
High end Business class
Premium economy class
Economy class- travelers
Passenger life cycle/Stakeholder
Airport operator
Airlines Lounges /High end
services
F&B Retail Govt Bodies
Pre visit
Airport experience
Post visit
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Chennai International airport in southern India is facing stiff competition from a local airport at Trichy and Bangalore international airport. At the same time a local airport in Mysore
is facing a shutdown due to Bangalore
international airport.
4. Strategies for reducing the gap between passenger expectation & experience
The shrinking world & its economy have completely the changed traditional view that airports are not subjected to competition i.e. have Monopoly over a region and are passive service providers to airlines and passengers. The events of recent years like global economic recession, financial credit crisis, has resulted airlines reductions in seat capacity and service offerings worldwide; low cost flying have changed the entire view. The world has shrunk and there is a competition between airports at regional and international level. In the recent countries like India have proposal
of 200 small airports and other many countries are proposing to have many small local airports .These small airports would find it difficult to sustain as more passengers are traveling longer distance to nearby large regional and international airports due to improved route connectivity, facilities & services. This has triggered an increasing competition among airports to treat passengers as customers who spend considerable time at airports. In fact the competition is so much that many small airports are facing shutdown due to huge economic losses. At international level there is competition in form of hubs. Smaller airports need to realign themselves with large airport to form a cluster network to improve their route connectivity. Hence Darwin’s theory of evolution i.e. survival for the fittest can now be aptly applied for airports too. A red ocean & blue ocean strategy are very important as they would help airport better
In Understanding the competition and responding to it.
Exploring the new & best ways to drive a greater travel experience. It is important that a strategy creates commercial value for the airport along with enhanced travel experience. Airports are center of innovation & excellence. Numerous creative ideas (Blue & red ocean strategies) exists for airport operators to provide innovative amenities and increase passenger service. An airport operator must strive uncompromisingly for technical innovations to enable long term growth potential. An airport needs to maintain the innovation cycle at highest levels for product development and services.
Red Ocean Strategy Blue Ocean Strategy
Compete in existing market space .i.e. compete with airports in same level
Create uncontested market space-Every airport has a uniqueness
Focuses on better serving the existing customer-Value added services
Expand services-Value innovation is the cornerstone of blue ocean strategy
Beat the competition(Among airports) Make competition irrelevant
Exploit existing demand (know your Existing visitors better )
Create and capture new demand(Get new and more passengers)
Make the value cost trade-off Break the value cost trade –off
Differentiation or low cost Differentiation with low cost
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Redemption of rewards points can convert (–ve) experience zones into
an (+ve) experiences.
Priority lane @ check in, security check & immigration.
A free or dedicated parking spaces Complimentary services like
Free Meet & greet assistance
Discount for conference rooms rentals
Faster check in /out from hotels who tie up the airport.ie flexi timings.
Free stay in airport lounge or longer stay at terminal while travelling Complementary Services which help the airport partners in long term.
Discounts from external partners
Airline frequent flyer mileage points in terms of extra baggage, seat choice etc.
Discounts from airport tenants
1. Relationship programs/ paid memberships are one of the best ways to build a brand and acquire
customer data which can be positively leveraged to drive annually recurring revenues. Currently these
approaches are being used quite independently (separately by airlines, F&B etc.) but with the right
strategies in place, these could complement each other. Airport loyalty programs have existed which are
based on an airport card. They have been important element of airlines business however evolvement from
the airport operators point is still at a nascent stage.
What would make an airport royalty program work at first place? And do airports need it?????
Extention of Airport Loyalty programs/relationship programs Airport have all kind of ventures with
brands; best hotels ;lounges, retail shops,food
chains which are not only present at the airport
but also have good presence outside the airport .
Generally airport employees are given discount
and offers on all the shops and retail outlets. An
airport card can be purchased by paying a
nominal fee. The concept is to extend the
discounts offer /reward point outside the
airports. Wherein the airport card holders
would be eligible for discounts or reward
points to the other stores and outlets in the city
i.e. outside the airport. It would be very much
beneficial not only to the people but also to the
outlets. Whenever a passenger makes any
purchases at the airport or it would enabling him
to earn reward points or discount by swiping such
cards . More reward points should be awarded
when customer does purchasing or visits the
airport during non-peak hour. When an
customer’s uses an airport partners outlet outside
the airport swiping of same airport card would
enable him to get rewards points .Generally providing Discounts would be difficult by the retail outlets
however rewards point can be definitely be added. Such usage of loyalty program cards outside the
airport would definitely give a big boost to the branding of the airport. Such external loyalty program can
be definitely first reach airports own cities.
Redemption process-
Airports have to decide on a simplified process & nature of offer in exchange of reward points. The final onus of providing benefit should be on the airport operator not on its partners. Airport card holder need not come to the airport to redeem his points. He/She can be offered discounted tickets on the airport website. It will also ensure the passenger remains connected to the airport without being physically present . Over a period of time the airport card can expanded it into variety of others services like it could be used as debit and credit cards.
Red ocean strategy
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Some facts about airport loyalty program
More than 75% of airports world
over still don’t have relationship program. Many airports have not opted for as they
feel it not relevant to their business In nearly 5% of airports loyalty program
have been discontinued.
Airport Loyalty programs is one of the best ways which would enable airport operators to identify
their target market and then customized offerings and services. Customer must understand functional
benefits of such programs. An airport operator can serve the customer with extensive offerings merely by
committing to comprehensive partnerships with strong brands from various industries. All airports should
offer such type of consumer landscape, amenity value and entertainment which connects brands and
people. The success of these loyalty programs will also depend on how its airport provides information to
its customers. The cards user should be regularly informed through mail, newsletter or mobile on status of
point’s redemptions. Loyalty program is nothing but delivering what an airport promises to passenger for
returning again to airport which actually means what goes to customers comes back in terms of brand
loyalty and finally better revenues.
Change in Customer Information flow: Airlines at present generally has the goldmine of data in form
of passenger profiles as it comes to them first. The
airport card along with Strategic deployment of
technology would enable the airport operator to
collect and mine passenger data. Over a period
of time airport partners (Airlines &Retail) would
need to take data from airport hence there would
reversal in data flow. A passenger may change
airlines or outlets but airport usage would be
constant. Initially the management of this data
would be is an issue .It should be in line with best
practices and governmental privacy laws.
Enhanced Business Relations& comprehensive services under one umbrella – For loyalty programs
to be successful, it is necessary for both the airport operator and the airport’s commercial tenants to work as
partners with good planning to enhance the collective business. It needs to convince individual airlines in the
industry that the changes envisioned will be Profitable to them. Despite The rise of non-aero revenue to 45-
55% Airlines would remain the nerve centre of aviation, therefore all partners should take steps that are
consistent with higher airline profitability as it would bring more profit to them also.Its drive for retail
opportunities would enhance the viability of the aviation industry.
2. Linking of Airport hotels: Airport hotels are
the flavor of given times both for the hospitality
industry as well as business and frequent
travellers. This trend is only going to go to see
an upswing. Hotels connected to terminals enjoy
a higher occupancy and rates than those located
nearby. It helps avoid extra waiting time for an
airport shuttle or extra expenses such as car
rental. Also guests would be ready to pay the
premium to stay at a full service connected
airport hotel. Value added facilities’ like
express check in check out, a complimentary
cock tail in evening, baggage delivery from
Hotel room to departure counter, baggage
delivery from arrival counter to the hotel room.
Flexible timing for breakfast like (from 4 am to
11 am).When three stake holders (Airport hotel,
airport operator & airlines) tie up or forge for common alliance it would not only benefit the customer but
all the three.
3. Use of food item ordering kiosks similar to self-check in /feedback/helpline kiosks present in airport. It
would help in reduction of waiting time from order to delivery ultimately benefitting the Passenger. Sales
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per worker increases. Food waste would reduce due to reduction of wrong orders. Transactional errors will
reduce thereby Increase in efficiency of billing process. Will boost sales and reduced errors .Apart
from all this it would give more time to a passenger to relax . Airlines, airports and passengers can all
benefit more and more from self‐service solutions. Self service enables airports to use their real estate more
effectively, airlines to reduce labor costs and passengers to spend less time queuing. Waiting for food is a
major issue as time is major constrain for a passenger especially during peak hours and heavy crowds
Basically from 8 steps the process is reduced to 4-5 steps. It can be implemented in all kinds of F&B Outlets including lounges as can be customized for either self-services or staff serviced.
Every airport in the world has its own uniqueness
1. Size of airport: large; medium or small size airport 2. Geographic :varies from region to region Ex. an airport in holy city would-be different than
an airport in tourist beach island 3. Demographic of the region in which the airport is located along with type of visitor to an
airport. 1. Understanding &Promotion of education hubs & health care in the region:
Practical success of an airport needs largely development of service sector including establishment of educational and health institutions in the region. Few airports have come with strategy regarding this sectors .Generally airport experiences more passengers during festival &holiday season .similarly if an airport is situated in Educational hub, lot of students &families would be travelling to the region during non-holiday season. They generally use other form of transport like rail &road .If the airports(not necessary one airport) in the is able to tie up with the education departments ,colleges ,sector so that students ,teachers ,researchers and their families can use the services of the airport to the maximum .Similarly healthcare is a offers a huge scope .An airport located in a region of Biotechnology hub it would provide an good & unique opportunity. It is important for regional as well small airport all form a Cluster group it would beneficial in terms connectivity hub and improved route network which would be very important for such groups. Such groups are generally repetitive and price sensitive in nature.
Current system With kiosks
1.Staff seats customer (in case Outlets without self
service )
Customer self-orders & makes payment from the kiosk
2.Staff passes menu to customer (in case Outlets without
self service )
3.Staff takes orders (in case Outlets without self service )
4.Staff sends order to kitchen Order directly goes to kitchen.
5.Staff serves food Customer collects order when alerted. Can also be provided @ table in case of service
6. Staff clears the plates Staff clears the plate and provides bill if the outlets has facility of post payment
7. Staff processes payment at counter
8.Staff manually collates feedback Feedback can be provided at the kiosk
Blue ocean strategy
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Example: CSR for Enriched passenger experience: Understanding &Promotion of local community, cottage industries, goods & environment capacities are very critical and integral part of any modern airport. Ubuntu initiative by BIAL & its partner Nuance duty free; In 2012 BIAL banned all forms of plastic bags from airport. All airport partners duly obliged and shifted to paper bags. However International duty free partner Nuance went for Ubuntu @ work CSR initiative. Under this program specially crafted fabric bags were made by poor rural woman in the region who provides approximately 100,000 cloth bags
every year. A powerful way to empower rural woman and improve livelihood .It is a rare example wherein a CSR initiative has led to enriched customer experience. Among all kind of bags @ various outlets popularity & preference of fabric bags is highest by passenger especially international passengers. Salient features of the
They have distinguishing local flavor and easy to carry. Better than plastic and more preferred over paper bags. More durable, gives longer remembrance and environment friendly. Forms integral part of the branding of Nuance duty free And most important -Provided free with purchase of items
Prioritize such CSR initiatives as it involves the following five core principles of any modern airport (or company) of the world
1. CSR 2. Airport & local community 3. Sustainable &Environment friendly airport 4. Brand building for airport & its partner 5. Enriched passenger/customer experience
2. Promoting offbeat local tourism, food, traditions; music dance and myriad of other thing. These are seasonal; beautiful fascinating much kept secrets due to its variety and uniqueness which draw tourists to a region. As previously discussed earlier (page 5) many airports especially small airports are losing people as travelers travel from larger airports to attend such programs ignoring the fact that local small airports exists nearby. Smaller airports can tie up with homestay villas; offbeat accommodation; boutique resorts farm stays etc. Featuring of such properties in their website or airport would help those folks who can host guest but cannot afford to market them thereby benefitting regional people Ex. India is land of festivals where in every region has its own different kind of festival which provides a unique opportunity
for small airports .Along with this airports needs to tie with local govt. institution that can provide low cost to and fro transportation service for Tourists. Such comprehensive service would also give sense of security which is big assurance for tourists.
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3. Food & beverages: General concern of lot of passengers is that airport food is expensive. A fact as airports cannot provide less price on food items due to its structure of overheads and taxes.
Following value innovations points can be considered
Purified high quality Water as per global standards are to be provide free of cost.
Basic beverages like coffee, tea & milk (for all age groups) should be available in affordable price inside the terminal separately.
If possible provide a very very simple meal / local dish at less price(possible by tax waver; onus on airport operator &govt tax regulation)This would go a long way in terms of improving the image of airport as provider only high rate item men
BIAL has Exclusive outlets like Hatti kaapi(coffee) &Chai (tea)point @meet & greet area provides different flavor of local coffee &tea at prices similar to that in downtown. Promotional events like “Kappi trail” were done in BIAL in extensive scale. A average tea in other BIAL outlets is price( 50-200 Rs Excluding taxes) whereas these outlets provide only tea &coffee starting from (15 -55 Rupees including taxes) By using value innovation strategy (non-competition zone in low cost beverages) airport not only promotes local beverages but also makes available to visitor at nominal price. Globally in many airports local Food festivals are organized at many airports at concepts like “The Terminal Cooks” and ‘air experience’ which also includes cooking classes and lectures for local and foreign passenger are organized, such events should be marketed well in airport website 4. Airport travel portal: The most potent tool for a blue ocean strategy lies in Use of online technology,
mobility and social media. Since airports cannot be marketed like products everywhere online platform offers the best way to advertise, connecting, inform and attracting passengers.
Building an all in one web portal ATP (Airport travel portal) - Travel portal sites (Expedia; Trip Advisor; make my trip; yatra .com) offer variety of discounts on ticket and hotels. The same services can be provided by airports operators in their website. Airports have tie up with hotels, transportation and tourism department. All in one stop airport website should link with sources like tourism; hotel; transport services etc. Airports can even tie up with travel portal sites in initial stages.
Comprehensive services for special events: If a traveler wants to visit a city for concert .ATP should provide all gamut of online selling services like booking of air tickets; availing cabs, hotel booking and concert tickets. And if the traveler is having an airport card loyalty point would be automatically added.
Value added services like extra assistance/care by airport ground staff. The event management companies can coordinate with the airport for advertising and ticket sales of major event on the airport website. It would be very useful especially for first time travelers who may be coming to attend a specific event in the city; as they would book the air and concert tickets online along with transportation from the airport website. It would ensure online as well as offline connectivity. An airport travel portal should be simplified it should not push holiday.
Airport website should run various, newsletters, quiz competition &online polls for the members wherein the winner to provide with bonus point which they avail at the airport or convert them into discounts while booking hotels tickets from airport travel portal. Winners could be awarded bonus points. They should reach out to their customer online by sending them about report on bonus point’s status; events; special air ticket discounts.
Exploring options and looking for services that offer social media integration – making it easy for customers to share/exchange ideas ;information with their friends and even earn points for likes, shares and online reviews .social media is great communicator but even better influencer. However important aspect of social media like Facebook; twitter; YouTube would monitoring apart from responding to feedback
Airports world over are facing the issues of improper peak hour management i.e. reduce the load during peak hours. Promotion of Booking of tickets and shopping during non-peak hours: Purchasing of non-peak
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Salient features of Red Ocean & Blue Ocean strategies
Focus groups: Recent years one of the reasons for the aviation growth story has been due to migration of number of lower income group into middle class all over the world. They are the future customers of the industry. Generally two types of cost factors affect the travel experience of a low cost passenger in terms of price.
1. Indirect cost like Airport charges: Airport development charges vary from airport to airport. Passenger over a period
time would switch to those airports with lesser airport charges. Higher charging Airport need to convert the excess
charge to non-tangible & tangible benefit travelers by using blue or red ocean strategies (In form of reward points,
VAS, shopping discounts, incentive Etc.). It is fact that the airlines are luring this section of people with low fares however
more effort from airport operator is still required.
2. Direct cost like Transportation cost to and from Airport: At times it takes more than 50% of the air fare to travel to
the airport. I.e. travelling from airport to city gets more or equally expensive to that of travelling on flight. Price & time
sensitive travelers (students, families, Leisure) are very much aware of that. Air travel should be made swifter and easier
for the masses because as it is no longer for the elite only. The combined entities (airlines, airport operators, tourism;
transportation; hospitality) can lure this group by providing comprehensive services which would reduce certain part
of these two costs. Airport & partners should think of using transport service like easy bus/rail in Europe to transport
customers near their home at a low cost. Providing travelling concession while travelling to airport during non-peak
hours would help even the transportation services like bus &rail..
Change in Relationship status would help in improving airport capacity: Many times the concessions given by
airport operators to airlines may not pass to end user. Airports have a primary relationship /focus with Airlines and
secondary with passengers .I.e. Airports try to give sops to so that airlines to operate during non-peak hours. The airline
airport relationship is yet to reach a level of engagement which delivers a seamless travel experience to passengers.
AIRPORT AIRLINES PASSENGERS
Airports should try to build a primary relationship with customers i.e. if the airport is able to directly influence the
customer to travel during the non-peak hours (by using the above strategies which promotes sops /incentives to
passengers during non-peak hours) it would great factor in differentiating the gap between non-peak and peak hour
traffic. The Airport travel portal & loyalty programs can ensure that passengers are ultimate gainers. The same would
help in improving airport capacity thereby improving the travel experience.
AIRPORT PASSENGERS AIRLINES
Red & blue ocean strategies on such issues would be greatly beneficial to travelers as they would save money & time.
Such concepts need to be supported by passenger profiling; mobile application& social media. It would help in
strengthening the relationship between airlines & airport .The passenger due to airports efforts would go to the airlines.
Positioning the Airport brand :Both red & blue ocean strategy stress on the fact of airport brand .A airport brand
would not only support the marketing & advertising team of airport but it is also a managerial tool; if the airport
manages to define their service identity it would become easier to make decisions ;example what it is offering &
selling; whom they should hire how its communication should look and sound ;what are its quality expectation and
even what airport external and internal environment should look like. Passengers would choose to fly an airport
based on strength of value proposition such as loyalty programs if it proves consistent over period of time. Loyal
customers buy more, are often willing to pay more, which means a steadier cash flow; are more forgiving to mistakes
and also refer others your business, saving the marketing/ advertising costs of acquiring new customers. The result
would provide a much greater appeal to a wider audience, increasing airports ability to drive even greater
engagement and revenues.
hour tickets would enable customer to get benefit in terms of more reward points and discounts at all airport outlets. Advertising Campaign for usage of airport facilities; airlines during off-peak hours can help in successful implementation of such concepts.
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5. Case study –Dedicated spaces –emotional engagement-Revenue generation
The baby care rooms are present in all modern airports of the world .Since the inception of the New BIAL in 2008 baby care room were given special importance .Initially the baby care rooms provided where not up to the international standard .In order to consistently improve the
Passenger Service Standards at the Airport, BIAL decided to upgrading the Baby Care Rooms as per international standards constantly which includes dedicated rooms, good infrastructure, and hygienic area apart from the “Value Added Services” provided by the airport to the Passengers who desire of availing such services. Baby care rooms is one of the facilities which renovated upgraded most frequently .Generally BIAL receives an average 6500 infant per month in both arrival and departures .The three parties are benefitted by such association . 1. The Airport-BIAL gets revenues in form advertisements; free maintenance, high quality and upgraded
baby care products .Continuous /Regular up gradation of an important facility. Unique aspect of the venture was the turnkey aspect .Entire concept renovation, provision of items, including maintenance is paid by the bidder. Maximum compliments &excellent feedback by users.
2. M/s Himalaya -The Company which manages & maintains the baby care rooms and also pays the airport for the same. It allows it to showcase the usage of their products directly by their targeted consumer. Also the targeted customers directly comes to them without much effort .By using such spaces for the companies can give an psychological as well as direct physical attachment which leads to a longer remembrance/impact than other form of advertisement in an airport .Researches have proved that direct to direct advertising is the best form of advertising and such form of advertisement is the best among them. Hence it also benefits the companies in best possible way.
3. The customer – Mother and baby –emotional connect-wonderful and enhance experience -longer remembrance that other forms of advertisements.
Prayers room, baby care room, Reading/quiet rooms, smoking room, areas for PRM and elderly people are very critical spaces which form an important association with the visitors. Any mismatch in service level would form an important deviation from minimum service level expectation. This case of baby care room project also shows the opportunity for an airport in terms of continuously improving standards without any investment from its own side. In Such cases airport only share their space. As the percentage of elderly population in the world increases such spaces would be play more important role in future. Smoking lounges though tobacco advertising is banned in many countries there are many tobacco companies which are diversified example ITC (Indian tobacco Company) Ltd which has variety of luxury hotels. These companies can advertise the other aspects like hotels, beverages in smoking lounges. Regarding PRM spaces there are many companies &agencies dealing with hearing aids, wheel chairs elderly medicine products & support systems. Such companies can look into such places for marketing their products as well giving the customer an enhanced travel experience.
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6. Technology & Human touch –Engaging employees and customers along with Technology
Technology & people are the two most important aspects which drive Airport business. Technology is playing major role in Altering passenger expectations: Today Passengers have become accustomed to the
fact that they may not get a free meal in‐flight but increasingly looks forward to time when they would use
access Wi‐fi on board. Their demand for instant info is very high and rising. Complete timely information on
mobile. They are keen to have live streaming of in‐flight entertainment to their mobile devices. Airports alike should leverage mobile technologies to introduce changes in customer service As a result of the high penetration of smartphones there is always an opportunity to deliver a wide/new range of services to passengers through mobile platforms. Use Mobile along with GPS technology to act as good way finding tool inside airport. Drive increasing engagement through social media. Both mobile and social media
adoption today is limited. Focus on initiatives in the field of biometrics and electronic passports. It shortens the entry gate to boarding gate time as there is direct reduction in the queue waiting time.
Option1 :Manual check in counter
Option2 :Self-check using kiosks
Option3 : Biometric technology
& electronic passport
A normal check in time (3mins) with manual check counter &Manual security check with queue/immigration. Total time of 45 mins-1Hr max
A self-check in with kiosk(< one min) self-baggage tag Includes
normal Immigration & customs; Total time -max of total 20mins
A highly developed system like self-check baggage (10secs).
Biometric & electronic passport technology along with E-gate.
Total time of less than 15mins
Engaging employees is very important in fact it be would right to say customers come second. Having recruited the “right” people to join your organization, it must engage them so they remain with the organization. Researchers have proved Companies with highly engaged employees generated three-year returns to shareholders that were 200 percent higher than low-commitment companies. Fundamentally the hospitality industry is about the people who work in it. Customers build loyalty towards certain brands in part because of the way the brand has been presented, but often because of the people who carry the brand message. It means the airport branding and providing outstanding customer service goes hand in hand. All great hotels have excellent customer service; we remember names of great hotels; lounges merely by warmth of service their staff provides. Key drivers are attitude, sincerity and the consistent delivery of quality customer service. An engaged employee would take care of its clients and customers with more accountability.
Passenger feedback & airport management response is very efficient tool to improve your customer satisfaction report. The issues faced by an airport operator is very challenging as “A customer mostly
tends to equate/blame an airport (though an airport operator may not actually have direct role) with their not so good experience they had with airline; F&B; Retail; transportation services etc. There are many reasons for bad service one of them being staff not properly trained on customer orientation which actually means the problem is with the management. 88% of all tweets from travelers to airports are customer service related. An employee working @ airport should know three important things first are the types of customer. Airports have all kinds of nationalities; communities it is important that staff adopts it approach to their needs .Second would be knowledge about the product. Finally the communication skills to convince and satisfy the customer .Offering tailored Services for specific communities that struggle with local language & customs would be an increasingly effective way to attract for a better passenger experience. Implement Standards for upsizing & upselling.
Share& understanding of the airport vision by all employees (brand ambassadors) -Focus on staff Training is very important for all staffs whether they work for airlines; retails; airport operators etc. Induction of Prominent and visible Airport logos or batches in staff uniforms of all airport partners would reflect the life and spirit of airport. Promote the sense of “we “by Joint training programs thereby helping all partners to a common goal of creating a passenger friendly airport. High end technology usage in BHS is very critical for all airports and airlines. In terms of technology and manpower it is a field where both play equal role .Importance is to be paid to the welfare of handlers, other backhand people; lower down working staff .A strike by baggage handlers would literally cripple the operations .It gets
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transferred to the customer and passenger who are agitated to large extend and ultimately effect the reputation of airport and airline.
Successful F&B retail should have the flexibility and the resources to respond to passenger’s needs: The appeal of a strong customer focus and branding would provide an attractive entity for its partners. An airport has to differentiate by providing diverse retail and catering facilities, on-demand services, health and entertainment offerings. Finally providing an enhanced travel experience over period time would improve the image of quality of airport business. Good service has always been the cornerstone of the F&B industry and becoming ever more important as customers increasingly demand experiential dining. E.g. MALGUDI tiffin centers @BIAL domestic departures a very traditional designed outlet. Authenticated high quality south Indian food served by the staff dressed in traditional attire is a massive hit among customers in BIAL.
7. Conclusion –Four way grid
-Thank you-
Create Blue ocean strategy- to create better travel
experience Importance of Good passenger life cycle Passenger database & profiling. Good relationship/loyalty program which should
be engaging in nature. Comprehensive services
Raise Red ocean strategy for continual improvement of
existing services Engagement &motivation level of airport
employees. Human touch experience-humility &empathy Airport operation &maintenance standard Potential of Dedicated spaces Knowledge sharing among all stakeholders
Embrace Correct & safe Technology @ faster rate Dynamic online website ;social media ;mobility Uniqueness of the airport The Airport brand
Eliminate/Reduce Noise levels outside as well as inside airport Non availability/Poor Rest Room experience Unauthorized touts and services Improper signages & way finding.
Human touch is an aspect which would always
be needed .Airport has to motivate, engage
and covert its staff from normal employees to
brands themselves .It applies not only to the
frontline staff but to all sections of people like
engineering; security etc. Productivity, quality,
efficiency would improve& errors would go
down. The customer/ human touch point ratio
should be appropriate not too high not less.
related
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