SPECIAL REPORT: NEW REVENUE STREAMS
Transformational
technology Collins Aerospace’s Tony Chapman explains how new technology will help airports meet growing passenger expectations and boost their bottom lines.
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igh-end boutiques, five-star restaurants, cinemas, golf courses, even indoor parks and waterfalls … no longer the sole domain of luxury destinations, these are just a few of the amenities you’ll find in modern airports around the world. More and more, airports are transforming from traditional centres for air transit to integrated hubs for shopping, dining, entertainment and recreation. Oh, and travel. By all indications, passengers love this evolution. In fact, some will go out of their way to spend time in an airport that has more of these special features and, conversely, steer clear of the ones that don’t. And, as passengers acquire a taste for the little luxuries of a modern airport, they also expect a better overall travel experience. These gleaming venues set the tone for high passenger expectations, and when an airport falls short, the world knows about it in minutes through social media. For airport operators, this new business model means dealing with massive complexity. They’re supporting all the technical processes and functions of an airport combined with the business operations of a shopping mall. When they do it right, the rewards can be significant: These airports attract more passengers (and even non-passengers), they draw revenue from more sources, and they enjoy a stronger brand and reputational benefits. But how do you manage all this complexity? With global air travel expected to double within the next ten years, how do you meet passengers’ sky-high expectations and give them a consistently positive experience? And most importantly, how do you stay profitable? The answer to these questions, in large part, is technology. The newest information technology systems, properly applied and managed, can knit together all the component parts of the modern airport to deliver both an exceptionally positive experience for passengers and an exceptionally easy-to-manage airport operation.
Biometrics: A transformational technology One of the technologies at the heart of this transformation is biometrics. Utilising facial recognition and other biometric information to identify passengers reduces or eliminates many of the pain points associated with air travel.
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Just about every passenger survey ever conducted indicates that Pain Point No.1 is waiting in line – at ticket counters, baggage drop, security, at border control and the gate. Infusing biometrics into these check points is like straightening out the kinks in a garden hose: suddenly, the processes flow like water. Transportation security agents no longer stop passengers one-by-one, checking their photo IDs by hand. Baggage check-in is self-administered. No stops are required at the gate. Even entry into another country becomes a quick walk through Customs. Some biometric solutions even allow airport visitors to link their profile to a credit or debit card, enabling purchases at the duty-free shops, restaurants or other airport facilities with a simple verbal confirmation. And imagine what this improved flow does for the airport’s revenue. When passengers are moving faster through the check points, they’re free to spend more time and money in other parts of the airport. Simply put, lines are lost revenue. In addition to increasing efficiency, biometric systems reduce risk and cost. Drawing from government data and using highly sophisticated algorithms, these systems can quickly identify problematic individuals or unusual activities, helping security personnel narrow their focus to potential threats.
It’s all about the flow Just as biometric solutions improve the flow of people through the airport, the integration of IT systems amps up the flow of information.