Airport Business

AUG-SEP 2014

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MANAGING AIRPORTS TODAY August/September 2014 airportbusiness 37 airports to up their customer-service delivery and retail offerings, which has sparked the rise of the destination-targeted services being delivered in airport cities today. THE VALUE OF THE AEROTROPOLIS As aviation continues to change the face of glob- al trade—more than a third of the value of all goods transported worldwide are now shipped via plane—the most innovative and competitive cities are seeing the value and embracing the concept of aerotropolis. Urban development around a well-connected airport can help boost annual revenues and fuel regional activity and growth by: • Providing new and expanded non-airline based revenue channels such as retail, parking, con - cierge services, real estate and more, • Becoming a destination for large business meetings due to the convenience of having everything at the airport (i.e. no need for taxis, logistics, etc.), • Attracting and retaining a wide range of aviation-related businesses to their peripheries, • Creating local jobs, • Improving connections to airport from business parks, residential areas and downtown, • Improving infrastructure and mitigating congestion, • Increasing airport cargo and passenger activ- ity, and • Raising a city's profile and enhancing its rep- utation as an ideal place live, work and do business. The aerotropolis concept can help cities ele- vate their place in the global travel chain and create a true global gateway that can dramatically stimulate their local economies and allow them to become vital fiscal contributors to their region. SUPPLY CHAIN RIPPLE EFFECT As U.S. airports adopt the aerotropolis model, their suppliers and vendors will need to make changes as well. They, too, will be required to find ways to help airports maximize non-airline related revenue. One way suppliers can meet the new requirements is by offering end-to-end services that enhance the passenger experience. From parking and shuttles to baggage handling, to facilities maintenance and energy management, to passenger and aircraft services—these inte- grated programs help airports generate ancillary revenue. A great example of this is Heathrow airport. They provide a seamless range of services from passenger service ambassadors, inter-terminal bus connections, and helping passengers with reduced mobility, to concierge shopping expe- riences. Since implementing this end-to-end approach, they have seen service scores and retail sales hit all-time highs. Bundling is another way suppliers can sup- port the aerotropolis model and its demand for speed, agility and connectivity. Packaging their services and customizing an offering for the airports not only improves performance and efficiency, it provides many economies of scale that dramatically drive down opera- tional costs. HOW TO REMAIN COMPETITIVE IN THE FACE OF CHANGE THE AEROTROPOLIS is fully expected to play a huge role in American aviation going forward. It is poised to become the standard among large airports. With that in mind, competition among these major players is destined to increase. Airports seeking to differentiate themselves will have to continue to raise the bar in other ways as well: f Operational Excellence: It is essential for air- port operations, infrastructure, processes, and service offerings are all on point. Operationally, airports must run as efficiently and cost effec- tively as possible all the time. Those that excel at customer service, and orchestrate and facil- itate all facets of the airport value chain will maintain a competitive edge. f End-to-End Service: Providing an excep- tional passenger experience is still the best competitive advantage for the aerotropolis airport. Providing end-to-end services—from the time they park their cars to the time they get on the plane—is what makes passengers' transfers enjoyable and keeps them choosing your airport destination. f Destination Retail Targeting: Global airports, such as Heathrow, are offering high-end retail experiences, personalized concierge services, and other targeted services and campaigns to appeal to many types of passengers. This creates an expectation of excellent service that establishes brand loyalty and maximizes their spend in the terminal. f Technology: New technologies have fostered improvements in the quality of passenger service, security and safety. The most com- petitive airports need to stay at the leading edge of technology advances and leverage it to continually improve and grow. f Changing Customer Profiles: An airport's main customers have traditionally been air travelers and the airlines. Within the aero- tropolis model, there is a larger group of stakeholders that includes tenants, part- ners, suppliers and vendors, employees, and visitors. Airports can't afford to ignore these new customers because they are vital to increasing non-aeronautical revenue, improving operational performance, and reaching an airport's long-term goals. Marano oversees the company's growth strategy and execution while building on Air Serv's values of integ- rity and service excellence. ABM's aviation business meets the end-to-end service needs of airlines and airport authorities of all sizes—major hubs, mid-sized and regional. Thomas J. Marano, President, Air Serv Corporaton, an ABM Company ABOUT THE AUTHOR

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