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1 Digitalisation and Customer Experience for Airports & Airlines The risks and opportunities of digitisation for airports Detecon, June 2019
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Digitalisation and Customer
Experience for Airports & AirlinesThe risks and opportunities of digitisation for airports
Detecon, June 2019
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Airlines face diverse challenges in die digital age mainly resulting from changing customer needs and regulatory requirements.
Passenger needs
Increasing urgency for airlines to meet
customers’ expectations and preferences and to
become the loved brand.
Cost pressure
Shrinking margins force airlines to mainly focus
on minimising costs either in production or
service.
New revenue streams
Increasing competition between airlines and 3rd
party businesses demand for new revenue
streams for differentiation towards customers.
Consolidation pressureDecreasing of diversity as small and medium-
sized enterprises are acquired by large
companies in order to leverage synergies.
SustainabilityForcing airlines to innovate in terms of
production processes or materials used as well
as environmental & waste management.
Safety/Security
Answering high and cost-intensive security
standards along the entire passenger journey is
crucial.
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Being the hub for diverse stakeholders, airports face diverse challenges in the digital age demanding for innovations along the entire value chain.
Passenger needs
Increasing urgency for airports to meet
customers’ expectations and preferences for an
agreeable and repetitive stays at the airport.
Internal efficiencies
Analysing huge amounts of data gathered and
gain valuable insights e.g. for forecasting
purposes leverages efficiency potential.
New revenue streams
Offering stakeholders and customers new
products and services is crucial in order to
broaden potential sources of income.
Integration of multiple stakeholders
Acting as a hub integrating products and
services from multiple stakeholders: from shop
operators to ground staff.
Sustainability
Forcing airports and stakeholders to innovate in
terms of service processes or materials used as
well as environmental & waste management.
Safety/Security
Answering high and cost-intensive security
standards along the entire passenger journey is
crucial.
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SMART AIRPORT market
size worth
Global AIRPORT
INCOME was
Globally, retail consessions are the
strongest non-aero revenue
source with 28,8%, however
declining since 2013
Approx. 20%
resulting from
parking
business
per customer
spent in a retail area
increases retail revenue
1 min.by 2.5%
PASSENGER
TRAFFIC
+7,5% growth 2016/17
with in total 8,3 bn
passengers
AIR CARGO
+7,7% growth 2016/17
with in total 118,6 mio metric
tonnes
AIRCRAFT
MOVEMENTS
+3,0% growth 2016/17
with in total 95,8 mio aircraft
movements
Target
benefits of
investing in
digital
technology
Operational efficiencyCapacity enhancement &
enhancement operational resilience
and agility
Passenger experienceIncreasing customer experience for
entire customer journey
Cost efficiencyReduction in airport CAPEX
requirements
20%
17%
17%13%
13%
10%
7%
Implementation cost
Airport ecosystem culture
Airport technology strategy
not fully defined
Missing change readiness
Failure to satisfy traditional
ROI assessment criteria
Insufficient understanding
of digital needs
Fear of obsolescence
Terminal infrastructure
design limitation
3%
Prioritized barriers to investment in technology
Dig
ital T
ags
Bio
metr
ic ID
Mgm
t.
Art
ific
ial I
nte
llig
ence
Inte
ractive N
avig
atio
n
Busin
ess Inte
llig
ence
Trial of new
technologies by
airports in the next three
years as of 2018, ranked by type
+5,8% in 2016/17 with
161,3 bn USD in 2017
25,09 bn USD by
2025
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Airports can be categorised into four different levels – varying in their degree of automation and digitalisation.
AIRPORT 1.0
Landing Strip
AIRPORT 2.0
Basic Airport Operation
AIRPORT 3.0
Agile Airport
AIRPORT 4.0
Smart Airport
All about manual and analogic
processes
Long lag-time between resource
solicitation and the airport answer
Clean premises
Signage
Contingency planning
Basic facilities available
Full-connected with all stakeholders
Superior proactivity and reactivity to
adapt to the real-time solicitation of
the airport
Zero distance will become a crucial
competitive advantage
Open structures will enable new
partner collaboration to improve
business
Smart operations enable the airport
to make better use of all kinds of
resources
Implementation of self-service thanks
to the automation of some key flow
processing tasks (bag-drop, passport
check)
Focus on capabilities
for safe and efficient management of
landings, departures and other
aircraft operations
Several focused initiatives to
leverage digitalisation so that to
optimise flow monitoring and
processing
Centralised & shared services
strategy
Technology-enabled collaboration
Offers advanced operational
efficiency
Enables faster turn-around times
through improved customer
experience
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Passenger journey: Stakeholders can apply different levers for creating value at various touchpoints – strongly depending on the type of traveler.
Planning &
booking
Online Check-in
Travel to
Airport
Baggage
Drop-Off
Security
Check
Shopping
F&B
Lounge
Boarding
In-Flight
De-boarding
Customs
Baggage
Claim
Travel from
Airport Hotel
84%Do online research before
buying a product offline 75minIs the average time
spent at the airport
30-40%Bigger basket size
compared to offline 18%Use bag-drop station
52%Use WiFi after passing
through security
TRAVEL TO LANDSIDE (Departure) AIRSIDE / IN-FLIGHT LANDSIDE (Arrival) TRAVEL FROM
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A successful digitalisation must provide tangible and economic benefit to every stakeholder of an smart airport along a users journey.
SERVICE PROVIDERS
E.g. baggage handlers and other third-party service
providers need to be integrated in the value
chain to offer e2e services
AIRPORT
Position themselves as integrator of Airports 4.0 and need to respect
the requirements by all stakeholders
AIRLINES
Jointly with airports the need to find a modus operandi to manage the battle for consumer ownership
PASSENGERS
Demand attractive digital offers and services for a unique
customer experience along all touchpoints during the journey
BRANDS / SHOPS
Renting facilities and spaces in the airport, the have close relationship
to passengers and increase attractiveness of an airport
CITIES
Contribute to the aviation industry green effort by supporting with mobility strategies based on
digital-enabled solutions
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Travel assistent along
passenger journey3
Mobile Automated Visa
Document Check5
Robots for passenger facilitation5
Self-service terminals,
baggage drop-off, gates1
An increase in the degree of digitalisation of airports implies a change in several passenger-centred operations along the customer journey.
e-Gates and
e-Border Control5
Travel to Landside Airside / In-Flight
Integrated solutions for
intermodal travel3
Eco-friendly & Smart
airport automation1
In-flight offers5
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Achieving a digital airport vision requires the combination of a usual strategic planning approach and Design Thinking bricks.
TRULY UNDERSTAND THE PROBLEM WORK TOWARDS A SOLUTION REALIZE IT
REPEAT AND ITERATE AS NEEDED
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Detecon’s
consulting
portfolio
addresses
diverse
aspects within
airlines and
airports
businesses
CUSTOMER EXCELLENCE
• Customer Journey Mapping
• Customer Data Management
• Omni-Channel Management
• 360° Customer View
INTERNAL EFFICIENCY
• IoT Strategy
• Big Data Strategy
• Data Engineering & Analytics
• RPA & Process Automation
• Smart Factory
• Cyber Security
PRODUCTS & SERVICES
• In-Flight Connectivity
• Innovation Scouting
• Digital Business Models
• Cooperations & Partnerships
• Co-Innovation
CULTURE & MINDSET
• New Work
• DevOps
• OKRs & Target Operation Model
• Change & Rollout Management
• Agile Transformation
• Digital Learning
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We have already gained specific experience in the airport & airline segment in recent years
PIONIEERING IN-FLIGHT
CONNECTIVITY
„The European Aviation Network is the
first integrated hybrid satellite system
with an LTE ground network
component used for in-flight
communications across 30 countries
in Europe.“
Managing San Diego Airport
Innovation Lab
The DII’s is refining, managing, and
operating the first-ever Innovation Lab
and Accelerator Program of an US Airport.
Detecon supported the
program management and
was involved from project
initiation to go-live.
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Detecon (Schweiz) AG
Löwenstrasse 1
8001 Zürich · Schweiz
www.detecon.ch
Carolina Schiefer
Head of Digital Strategy & Innovation
+41 79 69 28 299
Joshua Schmidt
Consultant
+49 151 532 615 05
