The 3 R’s of Strategic

Survival and Growth

Rethinking the Model

Reinventing the Experience

Revolutionizing Revenues

FTE Vancouver

September 6th 2012

Rohit Talwar

CEO - Fast Future

rohit@fastfuture.com

www.fastfuture.com

Contents

• Presentation p. 3

• About Fast Future p. 51

• Image Sources p. 61

• Background Notes p. 66

Our Research

‘Reinventing the Airport Ecosystem’

• Drivers of change

• Science and technology

advances

• Customer expectations

• Innovation priorities

• Strategies and business models

• Surveys to test ideas and

scenarios on a global audience

• Models for managing the airport

ecosystem

Our Research suggests airports need to see themselves an

as ecosystem - An integrated portfolio of models

‘Future Proofed’ Organisations

Work on 3 Horizons in Parallel

4-10+ Years

Creating

the Future

1-3 Years

Drive for

Growth

1-12 Months

Operational

Excellence

Future Proofing the Business

Mastery

Models

Magic

Management Mindset

Muscle

Message

Markets

Markets – What are the Key Trends?

Demographic Destinies 2 billion more people in 40 years –

Demographics is Driving Economics

1998

448 691

729

5231

4216

740

1051

346

596

Source : United Nations 2011 2050

Passenger Convenience

On Board Amenities

Buy Before you Fly

Mastery – What do we

Really Need to Understand?

The World in 2020

The Ultimate in Collaboration?

Sharing of Aviation Profit Pools

Core Technologies Used by Pioneers Now Pioneered by 2015 Pioneered by 2025

Personal Technology

Mobile phones

3G / 4G smartphones

Augmented reality

Gesture recognition

Intelligent software assistants

Mind control headsets

3D displays (Glasses free)

Intelligent interfaces

Flexible screens

Digital currency

5G phones

Biologically embedded electronics

Eyewear embedded screens

Intelligent brain-computer interfaces

Streamlining the Passenger Journey

Biometrics –voice / facial / handprint

recognition

Quick-response (QR) codes

RFID

Interactive displays

Near field communications (NFC)

Temporary airports

Biometric signature – heartbeat pattern

Body language recognition

Robotics and automated services

Virtual airports

NFC integrated into all travel documents

and passports

Use of human genomic profiles

Enhancing the Passenger Experience

Social media

Passenger-polling systems

Hybrid platforms (i.e. Google Wave)

Interactive surfaces

Virtual worlds

Vertical farming (basic)

Next generation cinematic experiences:

6D and beyond

Real-time language translation

Reality mining

Wearable displays

Immersive web

3D printing

Biomimetic Design

Haptics technology

Touchable holograms

Vertical farming (advanced)

Information and Communications Technology (ICT) Infrastructure

Wireless broadband

Cloud computing

Telepresence

Big Data

Machine learning

Ambient / Embedded intelligence – the

‘Internet of Things’

Grid computing

MANETS (Mobile Ad-hoc NETworks)

Swarm intelligence

Intelligent web

Semantic web

Machine vision

Optical computers

Collective intelligence

T-Rays and The VIRTUS Chipset 1.5 - 2 gigabit / sec (~1000 x Bluetooth)

Enabling wireless display, mobile-distributed computing, live HD video

streaming, and real-time interactive multi-user gaming

Mobile Technology Advances are

Enabling Personalised Advertising

Muscle –

Key Survival Capabilities

Rapid Decision Making

Speed of Execution

e.g. Ultra-Quick Construction

Research at ‘cutting edge of technological media innovation’ e.g.

human-computer interaction, augmented reality, online gaming,

internet television and semantic text processing

Muscle – Rapid Innovation e.g. Naspers' New Media Lab

(“Fail fast and cheaply” – Koos Bekker, CEO)

Magic – Creating the Wow Factor

Magic – Ideas that Delight

E.g. Virtual Grocery Shopping –

Tesco South Korea

Next Gen Qantas Check-In

Customer

Centred

Solutions e.g.

Helsinki

Lounge

Message Impact, Innovation and Ethics

Models for Tomorrow’s Airport System

• Governing Concept

• Infrastructure

• Revenue Generation

• Financing

• Customer Engagement

• Service Delivery

The Conceptual Model

Conceptual Model - The airport of 2025 will most resemble?

A mini-city, separate from

its local surroundings

An extension of the

local city

A shopping mall with

runways

Bus Stop - A walkway to pass

through security

Infrastructure Models -

Sustainable, Fast Build, Flexible,

Modular and Temporary Terminals

Infrastructure Financing –

Access is Key

‘Usership’ vs. Ownership

Revenue Generation Models In an increasingly uncertain economic environment with volatile fuel

prices, airports will be under constant pressure to reduce or eliminate

landing charges for airlines and fund themselves through other

commercial income such as retail and leisure.

781 respondents

0%

10%

20%

30%

40%

50%

Strongly Agree

Agree Slightly Agree

Slightly Disagree

Disagree Strongly Disagree

Leveraging Customer Insight –

What retail developments would most encourage

you to do your shopping at the airport rather than

elsewhere?

Discount outlet stores Themed retail (e.g.

reflecting local region)

Greater use of discounts,

sales and best price

guarantees

Revenue Models -

the Power of Auctions

£3088 £8791.50 £81

How do you see technology being integrated into your airport

shopping experience?

Multichannel – search

online, try in store, buy via

mobile

Personalized advertisements

and discounts

QR code store windows –

purchase by mobile and

collect on return / home

delivery

Collection on arrival of goods purchased from online-only retailers

Inflight Pop-Up Shops

All Inclusive By 2025, to survive commercially, airports will increasingly try to be retail,

dining and leisure destinations in their own right and seek to attract non-

flying customers as well.

783 respondents

0%

5%

10%

15%

20%

25%

30%

35%

40%

Strongly Agree

Agree Slightly Agree

Slightly Disagree

Disagree Strongly Disagree

Leveraging Staff Expertise

Financing Models

• Ecosystem

• Community

• Public-Private

Partnership

• Securitisation

• Diaspora

Customer Engagement –

Deep Personalization

Personalization

Service Delivery Model –

Start with Customer Journeys and

Experiences

Stimulus / Search / Booking

Transport to and from the

Airport

Check in to Flight Departure

Flight Arrival to Airport Exit

Flight Transfer - Arrival to

Departure

Airport Experience

In Flight Experience

Relationship Management

<Plaza aankomst> <Picture>

Sub

process

KPI

Score

Sub

process

KPI

Score

▪ Traffic

information

▪ Traffic jams

▪ Entering Plaza

▪ Clarity

▪ Off airport flight

information

▪ Services;

rental, parking

▪ Arrival at airport by

car/train

▪ Accessibility

▪ Parking

▪ Price/Quality LT

▪ Departure from

airport by bus/train

▪ Accessibility

▪ Transport from

parking to Plaza

▪ Ease of wayfinding

▪ Retrieving car &

Leaving airport

41% 73%

▪ Leaving Plaza

▪ Clarity

91% / 90% 90%

90% / 80% 77% 77%

Mapping Customer Journeys &

Experiences

Mindset - 3 Horizon Thinking

• 12 Months

• 1-3 Years

• 4-10+ Years

Mindset – Customer in Control

Social Seating – KLM & Satisfly

Mindset – Uncertainty Tolerant, Experimental,

Curious, Sticky and Magnetic

Management - Lead or Follow?

Management - Make Time and Space for

Change and Tackle Complexity

• Customer Interface

• Process

• Organisation

• Information /

Systems

• Regulatory

• Human

Conclusions

• Huge untapped

potential

• Technology is a key

enabler

• Encourage innovation

and curiosity

• Experiment with

business models

• Work with and for

tomorrow’s passenger

About Fast Future

Fast Future –

Core Services

• Live Events - Speeches, briefings and workshops for executive management and boards of governments, investment funds, development agencies , companies, airlines, airports, hotels, venues, CVB’s and associations

• Future Insights - Customised research on emerging trends, future scenarios, technologies and new markets

• Immersion - ‘Deep dives’ on future trends, market developments, emerging issues and technology advances

• Strategy - Development of strategies and business plans

• Innovation - Creation of business models and innovation plans

• Engagement - Consultancy and workshop facilitation

Fast Future • Research, consulting, speaking, leadership

• 5-20 year horizon - focus on ideas, developments, people,

trends and forces shaping the future

• Clients

– ING, ABN Amro, Laing O’Rourke

– Marks and Spencer

– Airports - Aeroports de Paris / Schiphol Group

– Vancouver Airport Services

– Industry Associations – ICCA, ASAE, PCMA, MPI

– Corporates - GE, Nokia, Pepsi, IBM, Intel, Orange,

O2, Siemens, Samsung, GSK, SAPE&Y, KPMG,

Amadeus, Sabre, Travelport, Travelex, ING,

Santander, Barclays, Citibank, DeutscheBank

– Governments - Dubai, Finland, Nigeria, Singapore,

UK, US

– Convention Bureaus – Seoul, Sydney, London, San

Francisco, Toronto, Abu Dhabi, Durban, Athens,

Slovenia, Copenhagen

– Convention Centres – Melbourne,

Adelaide, Qatar, QEIICC

– Hotels - Accor Group, Preferred,

– Intercontinental

– PCO’s - Congrex, Kenes

Hotels 2020 – Objectives

• Identify key drivers of change

for the globally branded hotel

sector over the next decade

• Examine the implications for:

Hotel strategy

Brand portfolio

Business models

Customer targeting

Innovation

• Global strategic foresight study to help the meetings industry prepare for

the decade ahead - Industry-wide sponsors

• Multiple outputs Nov 2009 – December 2011

• Current studies on future strategies for venues and destinations

Convention 2020

Rohit Talwar • Global futurist and founder of Fast Future Research.

• Award winning speaker on future insights and strategic

innovation – addressing leadership audiences in 40 countries on

5 continents

• Author of Designing Your Future

• Profiled by UK’s Independent Newspaper as one of the Top 10

Global Future Thinkers

• Led futures research, scenario planning and strategic

consultancy projects for clients in telecommunications,

technology, pharmaceuticals, banking, travel and tourism,

environment, food and government sectors

• Clients include 3M, BBC, BT, BAe, Bayer, Chloride, DTC De

Beers, DHL, EADS, Electrolux, E&Y, GE, Hoover, Hyundai, IBM,

ING, Intel, KPMG, M&S, Nakheel, Nokia, Nomura, Novartis,

OECD, Orange, Panasonic, Pfizer, PwC, Samsung, Shell,

Siemens, Symbian, Yell , numerous international associations

and governments agencies in the US, UK, Finland, Dubai,

Nigeria, Saudi Arabia and Singapore.

• To receive Fast Future’s newsletters please email

rohit@fastfuture.com

• 50 key trends

• 100 emerging trends

• 10 major patterns of change

• Key challenges and choices for

leaders

• Strategic decision making framework

• Scenarios for 2012

• Key futures tools and techniques

• Published August 2008

• Price £49.95 / €54.95/ $69.95

• Email invoice request to

rohit@fastfuture.com

Designing Your Future Key Trends, Challenges and Choices

Our Services Bespoke research; Identification &

Analysis of Future Trends, Drivers &

Shocks

Accelerated Scenario

Planning, Timelining &

Future Mapping

Identification of

Opportunities for

Innovation and Strategic

Investment Strategy Creation &

Development of

Implementation

Roadmaps

Design & Facilitation of

Innovation, Incubation

& Venturing

Programmes

Expert Consultations &

Futures Think Tanks

Personal Futuring for

Leaders and Leadership

Teams

Public Speaking, In-

Company Briefings,

Seminars and

Workshops

Example Projects • Public and private client research e.g. :

– Reinventing the Airport Ecosystem

– Development of Market Scenarios, emerging trends and strategies for key clients

– Government and OECD Scenario Projects – e.g. Migration 2030, Future of Narcotics, Chemical Sector, Family 2030

– Scenarios for the global economy for 2030 and the implications for migration

– Designing Your Future (Published August 2008) – book written for the American Society of Association Executives & The

Center for Association Leadership

– Global Economies – e.g. The Future of China – the Path to 2020

– The Shape of Jobs to Come – Emerging Science and Technology Sectors and Careers

– Winning in India and China

– The Future of Human Resources

– Exploiting the Future Potential of Social Media in UK Small to Medium Enterprises

– Convention 2020 – the Future of Business Events

– Future Convention Cities Initiative – Maximising Long-term Economic Impact of Events

– One Step Beyond – Future trends and challenges for the events industry

– Hotels 2020: Beyond Segmentation – Future Hotel Strategies

– The Future of Travel and Tourism in the Middle East – a Vision to 2020

– Future of Travel and Tourism Investment in Saudi Arabia

Example Clients

Image Sources

Image Sources p. 1 pg

1 http://www.tnooz.com/wp-content/uploads/2010/01/suitcase-money.jpg

3 http://classroomtocubicle.com/wp-content/uploads/2011/01/CtoC-image-15-binoculars.jpg

4 http://www.amadeus.com/airlineit/resources/reinventing_the_airport_ecosystem/img/amadeus-reinventing-the-airport-ecosystem-2012-en-

infographic.jpg

5 left to right:

http://www.greek-tourism.com/attiki-athens/attiki-images/athens-airport.jpg

http://wizardistanbul.com/wp-content/uploads/2011/05/Ataturk-airport-arrivals-istanbul-turkey.jpg

http://www.kgwings.com/hawkeye/hawkeye05.jpg

6 left to right, top to bottom

http://flights.indonesiamatters.com/files/2011/12/money-airplane.jpg

http://www.shareyourride.net/images/Its_Never_Too_Late_To_Become_A_Surfer_Dude/Really_Big_Wave.jpg

http://hotindiancelebrities.com/wp-content/uploads/2008/05/surya-six-pack-abs-gallery-1.jpg

http://ricotheclownandmagician.com/IMAGES/magic-hat-stars.gif

http://www.concordsecurity.com/img/YVR_logo.jpg

http://www.successfulaffiliate.com/images/positive-mindset.jpg

http://blog.vavia.in/wp-content/uploads/2011/01/leadership.jpg

7 http://airobserver.files.wordpress.com/2011/03/money-airplane.jpg

8 http://www.un.org/esa/population/unpop.htm

9 Clockwise

http://hindifilmnews.com/wp-content/uploads/2011/05/john-abraham-sky-bags-2.jpg

http://www.guenthermetzger.com/wp-content/gallery/red-cab/red_cab_24032011_3010.jpg

http://www.defaiya.com/defaiyaonline/images/stories/apr2010/emirates%20to%20add%20100%20planes%20in%208%20years-

05072010.png

10 left to right

http://i.cdn.cnngo.com/sites/default/files/imagecache/article_large/2012/06/26/korean-air-main-image.jpg

http://img.scoop.it/6v8o_spQqTny9bjji63AJjl72eJkfbmt4t8yenImKBVaiQDB_Rd1H6kmuBWtceBJ

Image Sources p. 2 pg

11 http://boardingarea.com/blogs/lufthansaflyer/files/2012/06/osjpgg.jpg

12 http://www.shareyourride.net/images/Its_Never_Too_Late_To_Become_A_Surfer_Dude/Really_Big_Wave.jpg

13 clockwise from top and center

http://mattovermatter.com/wp-content/uploads/2011/05/vertical-farming.jpg

http://blog.engglib2.upd.edu.ph/wp-content/uploads/2009/03/newsweek4.jpg

Old people - http://batonrouge.myhomecareblog.com/files/2011/07/active_seniors4.jpg

http://www.thewatercoolercompany.com/blog/wp-content/uploads/2010/10/a-plumbed-in-water-cooler-can-make-solar-panels.jpg

http://www.imperial-consultants.co.uk/files/biopharmaceuticals.jpg

http://www.nanotechnologyinvesting.us/images/nanotechnology-480.jpg

http://cdn.lightgalleries.net/4bd5ec0d18599/images/Cocoon_05-2.jpg

http://2.images.theweek.com/img/dir_0075/37604_article_main/researchers-have-found-that-transcranial-direct-current-stimulation-can-

more-than-double-the-rate.jpg?83

http://img.timeinc.net/time/magazine/archive/covers/2009/1101091207_400.jpg

14 http://retail-guru.com/wp-content/uploads/2010/05/airport-retail.jpg

16 www.redorbit.com/media/uploads/2012/05/tech-052512-003-617x416.jpg

17 trendsupdates.com/wp-content/uploads/2011/03/Gladverts-Advertising.jpg

18 http://hotindiancelebrities.com/wp-content/uploads/2008/05/surya-six-pack-abs-gallery-1.jp

19 left to right

http://mandatemedia.typepad.com/photos/uncategorized/2007/07/10/coca_cola.jpg

http://somewordsandpictures.files.wordpress.com/2009/06/this-water-innocent.jpg

20 http://images.gizmag.com/gallery_lrg/arkhotelchangsha.png

21 http://www.cambridgemedialab.com/1%20-%20Copy.jpg

22 http://ricotheclownandmagician.com/IMAGES/magic-hat-stars.gif

23 http://www.designboom.com/cms/images/user_submit/2011/07/tescosubwaystore01.jpg

24 http://www.designboom.com/cms/images/ridg/qan04.jpg

25 http://www.terminalu.com/europe/helsinki-airports-new-lounge-is-designed-to-remind-you-of-home-literally/22379/

26 http://www.terminalu.com/travel-news/virgin-atlantics-recording-studio-at-heathrow-airport-for-the-rich-and-famous/27576/

Image Sources p. 3 Pg

27 http://t2.gstatic.com/images?q=tbn:ANd9GcQMuNhtkyt8L5IQf9EKyIDeiiXCVgOwutp941ctaqb8VhT4JMK7tjwnMdBq

28 top to bottom

http://resources1.news.com.au/images/2009/11/24/1225803/226313-best-airport-2010.jpg

http://www.venere.com/blog/images/dubai-shopping-mall.jpg

29 http://www.consultingarchitects.ab.ca/uploads/files/Cohos%20Images/Edmonton%20Airport%20Office%20Tower-rendering.jpg

30 left to right

http://www.aerotropolis-europe.com/images/stories/memphis/memphis2.jpg

http://urbismedia-ltd.com/html/images/kaitak-approachW.jpg

http://www.famedubai.com/wp-content/uploads/2010/08/Dubai-Deira-City-Center51.jpg

http://www.metromodemedia.com/images/Features/Issue%2021/tunnel-istock-350.jpg

31 http://cms.ukintpress.com/UserFiles/Image/PTT/Geneva%20mobile%20terminal.jpg

32 left to right

http://3008docklands.com.au/uploads/sEMeRagEbaLaNY5u.jpg

http://wpcontent.answcdn.com/wikipedia/commons/thumb/b/b5/Cloud_computing.svg/400px-Cloud_computing.svg.png

33 http://www.airportparking.org/wp-content/uploads/2010/08/24.jpg

34 left to right

http://static0.travelandleisure.com/images/amexpub/0011/3535/201003-w-outlet-gotemba.jpg

http://lh5.ggpht.com/-f5ECUYzyxno/Tp93MedokOI/AAAAAAAAVsw/2SfVF21D-

uU/Luxury%252520Sale%252520Changi%252520Airport%252520Terminal%2525203%25255B16%25255D.jpg

http://img88.imageshack.us/img88/2628/man04se6.jpg

36 clockwise from top

http://media.northjersey.com/images/1208B_TECH_BIOMETRICS.jpg

http://www.nfsrv.com/images/photos/multichannel.jpg

http://topnews.in/law/files/online-retailers.jpg

http://qrcodepress.com/wp-content/uploads/2011/02/QR-Codes-On-Wine.jpg

37 left to right

http://www.wired.com/images_blogs/autopia/2011/06/ana787.jpg

http://juicy.mashkulture.net/magyar/wp-content/uploads/2011/03/colette_chanel_popup_08.jpg

Image Sources p. 4 Pg

38 http://www.blooloop.com/pt/uploads/image/triotech%20800.jpg

39 anticlockwise

http://www.airlinetrends.com/wp-content/uploads/2011/11/Delta-Picks_a680x270.jpg

http://www.downloadcheapapp.com/appimg/54291/sas-crew-guide-screenshot-1.jpg

http://www.terminalu.com/europe/british-airways-cabin-crew-double-up-as-in-flight-travel-advisors/25856/

40 http://www.thedigeratilife.com/images/multiple-income-streams.jpg

41 clockwise

http://www.dexigner.com/news/22673

http://cdn.futuretechnology500.com/wp-content/uploads/2011/07/holodeck.jpg

http://www.tuvie.com/wp-content/uploads/your-life-in-2020-frog-design1.jpg

42 left to right

http://www.emailinstitute.com/sites/default/files/imagecache/emailgallery-medium-tmb/email-gallery/AA_17.png

http://www.americanairlines.co.uk/content/images/promos/aacom_fivestar.gif

43 http://www.munich-airport.de/media/images/logos/468px/infogate/counterAct.jpg

45 http://www.visualphotos.com/photo/2x4524045/businesswoman_on_ladder_looking_through_binoculars_bld005521.jpg

46 http://blog.apex.aero/prepost-flight/airline-social-seating-system-strikes-fancy/

47 http://3.bp.blogspot.com/_pte2XO66Nwg/SKxbGnqa6DI/AAAAAAAAB2I/g4HX25sx1MQ/s400/magnet%2Bman2.jpg

48 http://2.bp.blogspot.com/-EJhAZaiyA8E/TfRRHfKzDMI/AAAAAAAAAGo/JmTQLz1z0xc/s320/6a00d8341c65c453ef010536d4981b970c-

800wi.jpg

49 http://infolific.com/images/fun/metaphor-for-complexity.gif

50 http://nextnature.net/wp-content/uploads/2008/02/planes.jpg

Background Notes

Redefining the Journey

• A good way to determine what kind of additional services on the ground

passengers would be willing to pay for, is to look at stress levels that air

travellers experience at the various stages of their journey.

• Research by UK retail consultants Pragma shows that as passengers make

their way to the airport, levels of anticipation and excitement rise. However,

so do levels of stress. Anxiety rises during the transfer to the airport and as

a passenger approaches check-in.

• The multiple peaks in stress levels that air travellers perceive during their

journey provide opportunities for airlines and airports to develop value

added services.

• Amadeus suggests “…this could include making airlines travel facilitators for

these customers willing to pay for seamless travel by helping arrange

baggage handling and travel to the airport and hotels. It also could include

more involvement and cooperation with high-speed rail.”

Source: Apex Aero, February 2012 http://blog.apex.aero/inflight-services-2/airlines-airports-find-creative-ways-reduce-passenger-anxiety-generating-fresh-ancillary-revenue-streams/

Moving Towards Integration

• To eliminate the nuisance of hauling luggage to the airport and checking in,

many airlines in the United States have teamed up with a company called

BAGS, a TSA-approved remote skycap service that lets passengers check

bags from their home, office, hotel, convention centre or cruise ship. The

service, which costs USD 20, consists of a document check, weighing and

sealing of the suitcases and their secure transport to the airport.

• In Europe, TAP Portugal has teamed up with Skybags, which lets

passengers check in their bags at home or the office for EUR 25.

Source: Apex Aero, February 2012 http://blog.apex.aero/inflight-services-2/airlines-airports-find-creative-ways-reduce-passenger-anxiety-generating-fresh-ancillary-revenue-streams/

Moving Towards Integration

• In Europe, airlines such as Lufthansa and Air France have agreements with

high-speed rail operators (AIRrail and tgvair, respectively) to provide

“intermodal” journeys, which combine air and train travel in one ticket. In this

way, the train effectively works as a feeder service for the airline to its hub

airport.

• Austrian Airlines and Latvian-based airBaltic, meanwhile, have launched

their own branded taxi services in Vienna and Riga, respectively. The

Austrian red|cab service provides Austrian passengers with transfers

between Vienna and Vienna Airport for EUR 29 each way. Austrian red|cab

and BalticTAXI each offer passengers a free daily newspaper, inflight

magazine and a bottle of mineral water.

Source: Apex Aero, February 2012 http://blog.apex.aero/inflight-services-2/airlines-airports-find-creative-ways-reduce-passenger-anxiety-generating-fresh-ancillary-revenue-streams/

Personal Assistance

• American Airlines has recently made its Five Star Service, launched four

years ago for celebrities and VIPs, available to the general public. The

service assigns a personal airport assistant to help passengers find ground

transportation, assist at check-in with baggage, and expedite the security

process, among other services, and is available at nine US and five

international airports. American charges USD 125 per person per one-way

flight for the service.

• A similar premium departure and arrival service is offered by Portuguese

airline TAP under the name Personalised Assistance. Prices start at EUR 45

for help with luggage, check-in, security and boarding, and for EUR 140,

passengers are also transferred to and from the aircraft in a limousine.

• De Montfort University’s Woudhuysen summarises, “Travelling can be tiring,

confusing, disjointed and unpleasant. The opportunities to build brand

loyalty – and revenues – by easing the process are still untapped.”

Source: Apex Aero, February 2012 http://blog.apex.aero/inflight-services-2/airlines-airports-find-creative-ways-reduce-passenger-anxiety-generating-fresh-ancillary-revenue-streams/

Baggage Service

• Emirates launched its Baggage Delivery Service at Dubai International

Airport’s Terminal 3 in December 2011, meaning customers no longer have

to wait for their baggage on arrival. It is an initiative designed to ensure

comfort and convenience for passengers.

• Strategically positioned immediately after the immigration counters, the

service enhances the passenger experience by enabling the traveller to

have their baggage delivered anywhere in the UAE on arrival at Terminal 3.

Customers are charged AED200 (US$54) for up to four pieces of baggage,

for delivery anywhere within Dubai, Ajman and Sharjah, and AED250

(US$68) for delivery within Abu Dhabi, Al Ain, Fujairah and Ras Al Khaimah.

• An AED10 (US$3) charge is applicable for each additional piece of baggage

delivered to any UAE address. “The Baggage Delivery Service is working

very well, especially for families with children. We are monitoring how it is

performing in Dubai and will roll it out in other cities if we feel it is

appropriate,” commented Antinori.

Source: Future Travel Experience, June 2012 http://www.futuretravelexperience.com/2012/06/emirates-focus-on-baggage-delivery-and-self-service/

On Board Amenities

• Korean Air topped the list for sourcing its own organic farm on Jeju Island

for in-flight meals, and for its “attentive service amenities,” including a

female-only lounge at Incheon Airport, female-only bathrooms on aircraft

and the world’s first onboard duty-free showcase.

• Korean Air's Celestial Bar - there are three onboard bars and cocktails

designed by Absolut Vodka, complete with a full-time bartender.

Source: CNN Go, June 2012 http://www.cnngo.com/explorations/escape/worlds-10-most-innovative-airlines-announced-436301

Buy Before you Fly

• In a new catering program by Austrian Airlines (A Lufthansa Group Carrier),

passengers booking economy class tickets from Vienna will now have the

opportunity to order their in-flight meals from an A-La-Carte menu from DO

& CO. Eligible flights include Long Haul and intra-European flights that

originate in Vienna (except for flights to Prague, Zagreb, Budapest and

Charters).

• For €15, passengers can now select hot or cold dishes that will replace their

normal in-flight meal (For long haul flights, this only replaces your main

warm meal).

• Passengers will now have several choices instead of the “Chicken” versus

“Beef” dilemma that most passengers are often faced with.

• The a-la-carte order can be placed online up to 36 hours before departure

to as late as 1 hour before departure.

Source: Boarding Area, June 2012 http://boardingarea.com/blogs/lufthansaflyer/2012/06/28/a-la-carte-dining-with-austrian-airlines-and-do-co-order-your-meal-before-your-flight/

Building the Brand in the

Terminal • Virgin Atlantic has outfitted its Clubhouse lounge at Heathrow with a

recording studio (May 2012).

• Virgin had the production suite installed for musicians, who often travel on

its Upper Class flights from London to New York and LA, the airline says.

• The idea is that artists can record tracks while they wait to board their flight

in the airline’s Upper Class lounge, where other distractions for passengers

include a multi screen cinema, spa pool and hair salon.

• The production studio also has facilities for last-minute editing.

Source: TerminalU, June 2012 http://www.terminalu.com/travel-news/virgin-atlantics-recording-studio-at-heathrow-airport-for-the-rich-and-famous/27576/

Maximising the Crew

• Airline crew are one of the most important assets an airline has. Witness

Southwest, who is actively encouraging its employees to make a difference,

and describes them as someone “who dares to make mistakes; dares to be

different; finds a way to utilize people’s special talents; and lives a little on

the edge” (examples include a Southwest pilot who held his plane so a

passenger on his way to a funeral could make it, or the airline’s famous

rapping flight attendant David Holmes).Cathay Pacific

• Airlines such as Cathay Pacific and SAS are also putting their employees in

the spotlight. Cathay’s ‘Meet the Team’ campaign has been running for

some years now – and recently took some hitting- and introduces a dozen

of the airline’s staff through profiles and behind-the-scenes stories in print

ads, YouTube videos, on Facebook, and via an iPad app.SAS

• On a similar not SAS has just introduced ‘The Face of SAS’ on Facebook,

which highlights several of its employees every week as the airline’s

Facebook profile-picture, as well as present themselves and what they do at

SAS.

Source: Airline Trends, November 2011 http://www.airlinetrends.com/2011/11/11/delta-picks-crewsourcing/

Maximising the Crew

• SAS also publishes an annual ‘SAS Crew Guide’, a ‘crew-sourced’

guidebook consisting of recommendations by SAS cabin crew and pilots for

accommodation, shopping, dining, sightseeing and nightlife in many of the

cities served by SAS. The 350-pages guide also contains 13 personal

profiles by individual crew members and their favourite cities and is sold

online for EUR15 (or 4,410 SAS Bonuspoints) as well as in select

bookshops in Scandinavia, the UK and the U.S. The New York section of

the SAS Crew Guide is also available as a free iPhone and Android

app.Delta Picks

• The latest ‘crewsourcing’ initiative comes from Delta Air Lines. As part of its

relaunched Delta Sky Store website, Delta has added a ‘Delta Picks’

shopping list to its retail program offering. The airline has asked its flight

attendants to select their best travel products in the categories luggage and

bags, cameras and electronics, clothing and accessories, as well as golf

and other sports equipment

Source: Airline Trends, November 2011 http://www.airlinetrends.com/2011/11/11/delta-picks-crewsourcing/

Maximising the Crew

• British Airways has begun trialling a new in-flight service where cabin crew

offer passengers local travel information and advice – via an in-flight iPad

app.

• One cabin crew member on select long-haul flights is now doubling as an

‘onboard travel advisor’ – helping passengers with general travel requests.

• The scope of the service includes recommendations on local restaurants,

hotels and best shopping spots, all through BA’s new iPad app.

• The free service is being trialled on nine routes and if successful, British

Airways said it will consider offering the service on more flights this Autumn.

• Air New Zealand has hired its own ‘International Concierge’ team to board

its long-haul flights and share their local knowledge with passengers –

without the use of iPads – before they reach their destination.

• Passengers can ask for advice about onward travel, rental car and hotel

recommendations, best shopping locations and local restaurants to visit, as

examples.

Source: TerminalU, May 2012 http://www.terminalu.com/europe/british-airways-cabin-crew-double-up-as-in-flight-travel-advisors/25856/

Inflight Pop-Up Shop

• Hong Kong-based inflight concessionaire ISG has teamed up with cult

French retailer Colette to launch what it calls “the world’s first inflight pop-up

shop concept” on board All Nippon Airways. The new programme will take

effect from 1 May 2012.

• The inflight ‘pop-up shop’ will feature a collection of exclusive products

brought together under the theme of Paris-Tokyo, incorporating design

elements from the classic Air Mail letter.

• Designs will be exclusive to the project, with limited quantities, and will only

be available while supplies last and for a short time period on board.

• The product range will feature in a special ‘Paris-Tokyo’ section of the ANA

SkyShop magazine.

• It will include co-branded gift products from Colette/ANA suitable for travel

such as headphones, limited edition ladies wallets with design elements

from the Air Mail envelope, and silk scarves with a special logo.

Source: Moodie Report, December 2011 http://www.moodiereport.com/document.php?c_id=40&doc_id=29378

Auctioning Upgrades

• Travellers will soon be able to bid in on-flight auctions to upgrade to business

or first class seats if they are available once they get on their flight.

• Brett Proud, from onboard retail and payment technology company

GuestLogix, said onboard auctions would be the biggest innovation on planes

in the near future.

• One Canadian airline has already adopted the concept and he was working

with two more Chinese airlines.

• "In Canada it seems people will pay double their ticket. People who paid $1000

for their ticket seem to be happy to pay $1000 to move up.

• "The good part for airlines is it's all the money they collect goes straight to the

bottom line because those seats are already empty.

• Mr Proud also said there was strong interest from airlines on broadcasting live

sports on planes, particularly to cater to male business travellers.

• "How much would somebody pay to watch their team or country play a game

live?'' he said. Source: Courier Mail, April 2012 http://www.news.com.au/travel/news/bid-for-business-class-upgrade-in-auctions-on-plane/story-e6frfq80-1226392900586?sv=e84ff5b80d1596e13996ba609f07fbd2

Providing Value and Opening

Potential New Revenue Streams • The most widely deployed iteration of social seating comes from KLM’s

“Meet & Seat” system. Meet & Seat, which lets customers link their social

network profiles (FaceBook, LinkedIn) with the airline’s seat maps, was

recently expanded to KLM’s international destinations to and from

Amsterdam, and has been utilised more than 2,200 times as of June 2012.

• Passengers can share as little or as much information as they see fit. Once

booked on a flight, they can then see who else is participating in Meet &

Seat, and start digging into the shared details on the chance they can find a

compatible seatmate on board. KLM doesn’t make the choice; the

passenger makes the choice.

• The other major player in the social seating game is Satisfly, which recently

launched its service with airBaltic. Satisfly is different than KLM’s Meet &

Seat in that the company does the research and seat selection for each

passenger.

Source: Apex Aero, June 2012 http://blog.apex.aero/prepost-flight/airline-social-seating-system-strikes-fancy/

Providing Value and Opening

Potential New Revenue Streams • “Satisfly is a sophisticated and user-friendly solution that caters to all

passengers, social and non-social,” says Jim Loperfido, marketing director

of Satisfly. “The ‘intelligent seating’ platform ensures that everyone has the

most compatible seat neighbours.”

• With each flight, Satisfly users can select a ‘flight mood’, such as ‘business

talk’ or ‘relaxation’. In addition to the flight mood, users can fine-tune the

settings for their ‘ideal neighbour’; settings include ‘belongs to your

generation’ and ‘works in the same industry’.

• Pre-launch, Satisfly says that 50 per cent of registered users selected ‘light

chat’ as their mood, 24 per cent want to relax, 20 per cent want ‘business

talk’, and only 6 per cent of users want to spend their time working on a

flight.

• While an airline is ultimately responsible for pricing, Satisfly suggests that

airlines offer the service free-of-charge.

Source: Apex Aero, June 2012 http://blog.apex.aero/prepost-flight/airline-social-seating-system-strikes-fancy/

Outside the Box

• In 2011, ancillary revenue rose to an estimated $32.5 billion worldwide, up

43.8 percent from the estimated $22.6 billion a year earlier, according to the

Amadeus Worldwide Estimate of Ancillary Revenue.

• Airlines must learn from Amazon and “transform themselves from airline

companies to e-tailers” says Raphael Bejar, a revenue specialist at

Airsavings.

• So Air New Zealand, in what airline revenue specialists say is a first for any

airline, has ventured into banking. It is converting its frequent-flier club

members into financial services clients, giving them its OneSmart card. The

card, a debit card, stores cash as well as airline miles and foreign currency.

• “It gives us the opportunity to build a larger revenue channel, the ability to

make money from foreign revenue conversion,” said Simon Pomeroy,

director of loyalty at Air New Zealand. The airline also collects a small

percentage each time the card is used for purchases and charges a monthly

fee if the card is activated but not used. Source: New York Times, February 2012 http://www.nytimes.com/2012/02/28/business/new-airline-revenue-goes-beyond-baggage-fees.html?_r=1&pagewanted=all?src=tp

Outside the Box

• “We make money off the individual as well as the collective use of the card

every day,” Mr. Pomeroy said, pointing out that the card gives Air New

Zealand a revenue source unaffected by the tyranny of fuel prices. “If fuel

goes up, we’ll still be making money,” he said.

• In the first month after the OneSmart card was introduced in December,

100,000 people opted to activate it, a promising start, said Ben Woolsey,

director of marketing and consumer research for creditcards.com. “I can see

where this could really take off,” he said. “That’s an empowering thing for

the frequent flier to be able to access their miles instead of going online and

transferring it. It’s pretty innovative.”

Source: New York Times, February 2012 http://www.nytimes.com/2012/02/28/business/new-airline-revenue-goes-beyond-baggage-fees.html?_r=1&pagewanted=all?src=tp

Outside the Box

• Continental Airlines, which merged with United Airlines in 2011 is also taking

business ideas from the world of finance. A year ago, it began selling

options on ticket prices. The program, FareLock, lets would-be travelers

freeze a ticket price for as many as seven days by paying a small fee which

the airline keeps regardless of whether the customer ultimately makes the

purchase.

• “It’s a value to people like a stock option is a value,” said Jeff Smisek, the

president and chief executive of United Continental Holdings. It lets you buy

stock at a fixed price. Well, this is an option on a seat.”

Source: New York Times, February 2012 http://www.nytimes.com/2012/02/28/business/new-airline-revenue-goes-beyond-baggage-fees.html?_r=1&pagewanted=all?src=tp