Airports can strengthen their value propositions to airlines and passengers by harnessing digital transformation, concludes new Frost & Sullivan whitepaper
Dec 13, 2017
By Alexander Michael, Director of Consulting, Digital Transformation at Frost & Sullivan
Airports should embrace digital technology to better compete for passengers and new airline routes, as a sophisticated airport IT environment coupled with a strong airport management vision would improve operations and the passenger experience.
For Frost & Sullivan’s recent whitepaper, commissioned by Amadeus, Strengthening the Airport Value Proposition, we interviewed senior executives from airports, airlines and industry experts to uncover how airports can make modern technology a differentiator and build value for themselves, airlines, and for passengers.
The proliferation of IT systems, and a lack of data, is endemic in many airport environments today. However, investment in airport IT offers the potential to sweep away many of the current constraints fragmented systems. A common thread uniting most airport operators regardless of size, geography or business model is the need to modernise, increase capacity and enable smooth passenger journeys. Technology is the key component in realising these goals, but airport value propositions regularly neglect the fact that IT can facilitate significant benefit that serve to differentiate airports from their competitors.
The whitepaper outlines a range of recommendations airports to make digital transformation a differentiator that unlocks new revenues:
Make IT a strategic imperative and differentiate to compete harder: Greater competition from other airports makes it ineffective for airports to incentivise solely on costs. But this research identifies a strong correlation between IT investment, airline ground performance and passenger experience.
Quantify and communicate the value that IT brings to your airline customers: Airports could do much more to communicate their perceived value to airlines. They should demonstrate that their charges are justified because their IT drives cost efficiencies to airlines in other fronts.
The passenger is the ultimate customer: Airports are becoming increasingly connected, but a passenger’s experience can be tainted by a poor airport experience. Technology can give greater control to an airport over a passenger’s overall journey
For more insights, we invite you to the full Strengthening the Airport Value Proposition report here.
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