Global airport revenues rose to US $131 billion in 2013 and over 55% of this was from aeronautical revenue, which includes terminal space rentals for airlines, landing fees, and passenger fees for terminals and gates usage. In the business model where 45% of the revenue comes from non-aeronautical sources, airports are only now beginning to focus on this area. Simultaneously, airline companies are exploring options to increase their ancillary revenue. Digitalization and real time analytics play a major role in helping the aviation industry increase the ancillary revenues. Collaboration with service providers and airlines will lead to enhanced customer satisfaction and increased operational efficiency.
Data sharing between stake holders
It is important that airlines and airports come on the same page and start sharing data. An IATA led simplifying the business (StB) report calls for cooperation across the value chain. Sharing data effectively, airlines and airport operators together can effectively increase the ancillary revenue. By creating new ancillary products and services both airlines and airport operators can meet the expectations of connected passengers and will be able to provide them personalised service. Airlines with enhanced mobile applications can combine real-time data from airports information systems with passenger’s itinerary.
How data sharing benefits all stakeholders
If airlines and airports choose to share data, airlines can benefit through hassle free customer experience at airports and optimize operation. Airlines can use airport infrastructure for utilizing beacons for push notifications, which will help locate their customer at airport especially in IRROP situations.
Passengers can get real-time updates about estimated time to be taken at security queues, locations of specific airline check-in counters, gates and arrival baggage belts, time taken for airport transfers through rail/road services, car parking slots etc.
Stake holders (restaurants, retailers at airport, etc.) can promote their offers which will lead in increased interaction with passengers and subsequently an increase in revenue.
Airports that can manage the flow of passengers, will be able to optimise the utilisation of existing infrastructure and generate more revenue.
Such collaboration is being extended in one of the airports in the UK, where a leading LCC from the same region and the airport operator are investing in a data platform that integrates passenger information with airport information system. Information shared between the airline and the airport operator is helping them run steady and efficient operations. In addition, the airline’s mobile host app combines data from the airport’s information systems, indoor terminal maps, and other sources for a seamless experience.
It may take time to figure out what data can be shared and reach to an agreement with airline partners and other service providers. Aviation industry also faces regulatory challenges when it comes to data sharing. According to a report more than 60% of the airlines and airport consider systems incapability’s and data sharing as a major challenge. Another big challenge the industry is coping with is huge amount of data and analysing it in real time.
But it is time to develop scalable infrastructure and reusable model. According to a survey done by SITA, 80% of airports and 50% airlines would like to share the data with each other. Additionally, 55% passengers also agreed to share their personal information for better airport experience.
HCL’s capability in BI/DW analytics and complex integration will help airlines and airport to create such platforms, which will not only change entire airport experience of the passenger but also will help airlines and airports to generate more ancillary revenue and optimised operation.