Airports face increasing construction costs, funding challenges, periodic downturns affecting the industry, such that airport operators find themselves continually looking for additional revenue sources to fund projects and sustain operations. Airports also foresee a constant upsurge in the number of passengers as well as revenue and are faced with increasing levels of passenger expectations. To compete, airports will have to step up their focus on passenger experience and operational excellence.
Airports are looking ahead, expanding their facilities. A multi-billion dollar phased investment will begin this year at London Heathrow Airport (LHR) — Europe’s busiest gateway — marking the launch of the hub’s largest investment programme ever, and 100 percent privately funded. It has been described as a “once-in-a-generation” project. Such projects involving terminal and runway expansions are also taking place in Africa.
Customer experience research points to the fact that happy airport customers spend more money in the airport’s retail shops than do unhappy ones. There has been a study which shows happy passengers spend an average of $20.55 on airport retail purchases, or 45 percent more than the grumpy ones, who spend only $14.12 on airport retail shops and eateries. The spend may not be the same in Africa but the economic reality remains that happy customers spend more in an airport.
Operational excellence is a competitive advantage and it is a tool for achieving cost reduction, increased flexibility, and improved customer responsiveness. It is a critical component of an airport’s competitive advantage.
Streamlined processes, technology adoption and performance metrics are tools for improved efficiency and productivity in the pursuit of operational excellence. This will entail putting in place lean principles to eliminate waste, reduce variability, and improve flow. It will also call for leveraging technology, such as automation, artificial intelligence, and data analytics, to enhance efficiency and productivity. Another is to establish and track key performance indicators (KPIs) to measure operational efficiency and identify areas for improvement.
Achieving reliability and consistency plays an important role not only for achieving operational excellence but also for the customer experience enhancement. In this regard airports should implement standardized processes and procedures to ensure consistent and reliable operations. Develop and implement effective maintenance and asset management strategies to minimize downtime and ensure seamless operations. This is important for lifts and travelators among others. Airports should continually identify and mitigate potential risks to ensure operational continuity and minimize disruptions.
To ensure improved safety and security which are vital for operational excellence and passenger experience will entail compliance with regulations, risk assessment and mitigation as well as employee training.
Some tools for improved passenger experience are vital for operational excellence. Effective queue management strategies help to minimize wait times and improve the passenger experience. Ensuring clear and concise wayfinding and signage to facilitate easy navigation through the airport and also offering a range of amenities and services, such as free Wi-Fi, charging stations, and comfortable seating areas, are key to enhancing the passenger experience.
Airports seeking a competitive advantage leveraging on operational excellence should implement effective environmental management systems to minimize the airport’s environmental impact. They should put in place energy-efficient technologies and practices to reduce energy consumption and greenhouse gas emissions. They should also incorporate sustainable design principles and materials into airport infrastructure development.
Airports that seek to enhance the customer experience should keep in mind that today’s travellers want services that fit their needs seamlessly, and technology has made it possible to meet those demands in real time. From personalized apps to concierge services, tailored offerings are now the standard.
In enhancing the customer experience, according to Amex’s Travel Trends 2023 report, a striking 85 percent of travellers prefer personalised experiences that resonate with the local culture of their destination. And, research from Airports Council International (ACI) suggests passengers now seek more than just functionality — they are looking for emotional connections and expecting elevated airport standards to match.
By focusing on operational excellence, airports can improve efficiency, reliability, safety, and the passenger experience, ultimately gaining a competitive advantage in the market.
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