Airline Industry by Taneja Nawal K.;

Author:Taneja, Nawal K.;
Language: eng
Format: epub
ISBN: 4568572
Publisher: Routledge

Takeaways

Airports have been changing their business models in four areas – general framework, low-cost terminals, customer experience, and airports as destinations.

Airports are also adapting, although at a slower pace than airlines, to the three major forces of change (and their convergence) discussed in Chapter 3 – competition, consumer behavior, and technology.

In some areas the goals of airlines and airports are the same – improve the customer experience and enhance ancillary revenues, for example. However, in some areas, the goals are diametrically opposed. Airlines prefer to move passengers through the airport as quickly as possible. Airports prefer for passengers to spend as much time as possible to increase the retail-related revenue stream.

Despite the desire of both airline and airport to enhance the customer experience, the question of which entity “owns” the customer, at the airport, remains open. Airlines and airports are still at odds, especially when it comes to sharing data and processes. This lack of communication often results in missed opportunities between the airport and the airline, creating an opportunity for disruption.

By re-designing their facilities and services, airports can not only improve customer experience but also their ancillary revenues.

The desire by the LCCs to connect to their own flights as well as with full-service airlines is bringing about dramatic changes in airports and other organizations, such as within alliances. The emergence of major hybrid airlines, requiring cost-effective connectivity, will bring about major transformations within airports.

Airports, having used vast quantities of data for operational control and effective use of assets, are beginning to use the data, coupled with analytics (particularly predictive) to engage with customers proactively and improve passenger experience and generate more revenue.

Opportunities for disruptive innovation exist in the areas of airport facilities (parking and car rental, for example), and baggage collection and delivery (through the involvement of third parties such as fast-delivery service providers).

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