Digital trends

& opportunities
for Airports
Alexis GARDY
Roland Berger Canada
Almost all early revolutions in the next 20 years will impact the
airline industry
Impact on Impact on
Expected air transport Expected air transport
breakthrough industry breakthrough industry
Mobile internet Genetics oriented technologies
Equipments with unlimited connectivity Personalized systems with growing links
everywhere between genetics and digital technologies

Agribusiness and biochemicals Energy storage

New foods conceived to address rising Systems to store electricity and other
food demand forms of energy

Big data 3D Printers

Value-creation from mass data available At home manufacturing
from the internet

Cloud computing Smart materials

Digital data storage, management and Smarter and more efficient materials,
processing textiles…

Robotics Smart utilities

Robots with greater autonomy and Smart grids, smart cities, smart meters
operative skills

Sustainable vehicles Renewable energies

Smart vehicles in terms of driving and Renewable energy and clean tech
reduced fuel consumption development

Source: Commission Innovation, Roland Berger analysis Digital trends and opportunities for Airports_aB (2).pptx 2
All market players are introducing digital tools to positioning them-
selves in the competition for customers – Pressure on all players
Current competition

Positioning in digital
Airports
> Launch of own
competition Ground handlers
advertisement spots, loyalty > Managing of ground handling
programs and mobile apps equipment to increase
efficient utilization
> Digitalization of stores, e.g.
interactive displays > Tracking of baggage to ensure
efficient processing

Airlines Vendors or new

> Setup of digital hubs as market players
innovation incentive
> Travel retailer with own online
> Expansion of delivery options, shop or direct flight seat
e.g. gate or seat delivery delivery
> Potential threat by new
players such as Amazon or
Passengers Google
> Passengers are digital and take
their mobile device everywhere
> Global increase of online retail

Digital trends and opportunities for Airports_aB (2).pptx 3

For the immediate future, we see three key areas where digitaliza-
tion is impacting airports – Passengers, operations and retail
Specific areas for digitalization
Area Objective Digitization benefits
> Maximize time spent in shops and lounges > Push real-time travel information to passengers to help
A vs. waiting in a queue for dropping luggage them anticipate changes to their journey
or getting a boarding pass > Guide the passenger throughout his or her travel journey
Passenger
> Offer a seamless and hassle-free experience with smartphone
journey to the customer > Increase level of "self-service" (self check-in, luggage
drop-off, etc.) to save time and avoid queues

> Streamline processes to achieve better
B efficiency in ground activities, i.e. security,
ground handling, runway and maintenance
Operations operations
efficiency > Reduce operational risks causing potential
delays or incidents
> Automate ground activities, e.g. luggage management,
security checks, with potential for automated runway
activities over the longer-term
> Monitor operations in real time to quickly deal with
issues and anticipate incidents
> Optimize preventive maintenance leading to cost savings

> Maximize revenues generated through travel > Pro-actively push commercial information to customers,
C retail by increasing relevance and ensuring e.g. on special deals or tailored offers
practicality of offers > Optimize retail space to increase revenues per sqm, e.g.
Retail, > Optimize the use of valuable space at the using digital walls to order duty free products
ancillary airports > Introduce new retail overs, e.g. online order and pick-up
revenues at the airport

Source: Roland Berger Digital trends and opportunities for Airports_aB (2).pptx 4
 A Passenger journey

Throughout the passenger journey, digital technologies improve

customer experience and make airport processes more efficient
Model passenger journey
Augmented reality, sensors and digital monitoring
system, real time translation

Landside Airside

4 5
9

8 10
1 3 7
6
2 ✓
11

Real-time flight information, transport In-wallet scanning of travel documents or

synchronization, advanced booking / facial recognition, geolocation of vehicles
payment means, intelligent and people, coordination of teams and
passenger steering vehicles with real time information of
taking-off / landing aircrafts

Source: Roland Berger Digital trends and opportunities for Airports_aB (2).pptx 5
 A Passenger journey

To move into the customer journey, many larger airports have

launched dedicated apps with new customer touch-points
Airport apps selected

Changi Incheon Schiphol Heathrow

Munich Zurich Frankfurt Copenhagen

Source: Roland Berger Digital trends and opportunities for Airports_aB (2).pptx 6
 A Passenger journey

Some airports like Seoul employ dedicated apps for guiding

passengers, with integrated augmented reality retail stores
Example – Seoul airport app
Flight Information
Simple search of departure/arrival flight
schedule at the Incheon International Airport

myPlan Airport Information

Real time notification of flights Airport attractions, Augmented reality
Quick search and add of stores, facilities (AR) of store and facilities, etc.
and transportations info

Directions At The Airport P Parking Guide

Directions from the current point to My car location service, Parking fee
destination calculation, etc.

Welcoming/Meeting Translation Service

Arrival flights information English/Chinese/Japanese translation
& Arrival status in animation service

Transportation
Information on transportation to/from the
airport such as buses, rail road & taxi

Source: Press releases, Roland Berger Digital trends and opportunities for Airports_aB (2).pptx 7
 A Passenger journey

Also airlines move into the customer journey and have set up
dedicated innovation or digitalization labs
Example – Innovation lab at airlines

OBJECTIVE LOCATION OBJECTIVE LOCATION

Every passenger across the LH network Berlin Development and marketing of digital Dublin
shall come into contact with at least one travel products for the web, mobile
product deve-loped at the Innovation hub phone and future technology devices

> Investments of EUR 500 m planned by 2020 > Hiring of 160-220 people planned – Analysts, data
> First results already, e.g. app Time2Gate in cooperation experts, designers and software developers
with Door2Door, a Berlin start-up > Focus on the own ryanair.com website, the Ryanair app
and a new travel community

Quelle: Experton Group; BITKOM; Roland Berger Digital trends and opportunities for Airports_aB (2).pptx 8
 B Operations efficiency

For airport operations, a range of digital solutions is already on the

market that improve commercial and technical efficiency
Digital operations services
Innovations Technologies Examples
Flow monitoring > Wi-fi, Bluetooth or imaging based flow monitoring
and management > Wi-fi indoor geo-localization

Process > Digital luggage tagging > Facial/genetics

automation > Self-cleaning recognition

Collaborative
> Real-time operation management
decision making

Intelligent building > Real-time energy & utilities management > Data-based asset
management > Intelligent preventive maintenance management

Customer
> Digital & interactive displays
engagement

Predictive & > Automated suspects identifications though PNR1) & API2) data analysis
preventive solutions > Automated planning management for better use of resources

1) Passenger name record 2) Advanced passenger information

Source: Press research, Roland Berger analysis Digital trends and opportunities for Airports_aB (2).pptx 9
 B Operations efficiency

Adveez offers digital locating, tracking and managing the vehicle

fleet for ground handlers – Safer operations at lower costs
Example – Adveez digital fleet management
Adveez's offer overview Benefits for airports

Locate, track and manage fleet Reduction of accidents by

> Adveez Fleet and Asset Management built in shock detection
System (FAMA) provides hardware and
software to monitor fleet parameters in real Reduction of maintenance
time costs by tracking engine hours
> Tracking of all key metrics regardless of
location globally Efficient management of GSE
fleet

Increase of security by
personnel authorization
Current information on each
asset and operator
> Re-deployment of resources supporting
ground service situations
> Identification and optimization of under-
utilized resources to reduce cost

Source: Press research, Roland Berger analysis Digital trends and opportunities for Airports_aB (2).pptx 10
 B Operations efficiency

Eviate offers digital tracking and tagging of luggage – Potential to

disrupt airport operations by eliminating dedicated check-in desks
Example – Eviate digital baggage solution
Eviate's offer overview Benefits for airports
eTrack
(To be placed in the bag) No more check-in needed
> Tracks the bag anywhere
> Detects opening Decreased costs to search
and return luggage

eTag Decrease of lost items

(To be attached to the bag)
> Displays relevant flight
Increase of customer
tag once check-in is
satisfaction
done

Eviate App (App for smartphone)

> Controls eTag & eTrack

Source: Press research, Roland Berger analysis Digital trends and opportunities for Airports_aB (2).pptx 11
 B Operations efficiency

With more and more digitized and automated processes, airports

are moving towards less human intervention
Airports automation and self-monitoring trends
Area Visualization Description

Automated > Seamless passenger path from check-in to aircraft boarding, e.g. reduced to 10 min (Altran
study)
operations
> Potentially towards "trivialization" of air transport, comparable to rail, e.g. pre-seating on
Airbus aircraft pods

Airbus aircraft pods

Self- > Self-repairing materials, incl. for actual aircrafts

maintenance > Self-cleaning devices, e.g. window panes, carpets, etc.
> Engineering inspired by nature, e.g. the lotus effect for self-cleaning

Lotus effect on surfaces

Automated > Entirely connected and digitized airport management

operations > Potential already under experiment at Google, as part of the work on more efficient
airports

Google self-driving car

Source: Press research, Airbus, Altran, Roland Berger analysis Digital trends and opportunities for Airports_aB (2).pptx 12
 B Operations efficiency

Also, the airport may enter into areas currently controlled by pilots –
Automated taxiing, assisted take-offs
Ground operations trends
Automated taxiing
> Automated taxiing equipment, allowing to start the
engines later before take-off or shut them earlier after
landing
> Own energy provision, e.g. electromagnetic current via
runway tracks
> Also possible with other ground vehicles where human
intervention is no longer needed
Assisted take-offs
> Aircraft assisted take-offs using propelled acceleration
powered by sustainable sources of energy
> E.g. Airbus EcoClimb concept
> Enables steeper take-offs thus requiring shorter runway
length
> Potentially similar equipment at landing allowing to
reduce aircraft required landing gear

Further automation Extension of scope

Automated taxiing Assisted takeoffs

(Airbus EcoClimb)

Digital trends and opportunities for Airports_aB (2).pptx 13

 C Retail, ancillary revenues

Digitalization will change the face also of travel retail and ancillary
revenues
Ancillary revenue potential
Digitization of shopping experience along NFC touch
points, QR codes, pop-ups, mobile payments and
extended use of e-stores

Landside Airside

4 5
9

8 10
1 3 7
6
2 ✓
11

Sale of VIP services (parking,

Entertainment options that switch
grooming, etc.) via airport or partner
VIP site, collection of goods purchased
seamlessly between airport and airplane
online / in town, discounts depending
on airport entry time

Source: Roland Berger Digital trends and opportunities for Airports_aB (2).pptx 14
 C Retail, ancillary revenues

localz identifies passengers with iBeacon when they enter a store –

Vendors receive customer profiles on their smartphone
Example – localz digital shopping solution
localz' offer overview Benefits for airports

Address customer entering Joint solution via integration of

localz into airport app
the store
> Analyze the customer's shopping
Increase of staff efficiency in
history and enable targeted
store
advertisements on smartphone
> Guide the customer to special
products in the store
Reduction of service times for
customers

Notify vendors about arriving Collection of passenger

customers location data at the airport
> Directly segment customer when they
enter the store
> Identify customers and record their
motion by using the combination of
location service technology and
iBeacon

Source: Press research, Roland Berger analysis Digital trends and opportunities for Airports_aB (2).pptx 15
Looking further into the future, we expect a range of new, innovative
services and products coming to market for airports
Future technology with impact on airports
Impact already on airports Potential impact on airports
E-COMMERCE MOBILE CRM COGNITIVE INTERNET ROBOTICS AUGMENTED
Around 45% of European Smartphone penetration is SYSTEMS OF THINGS, REALITY
consumers are regular e- at 70% penetration in top SENSORS Technology dealing
commerce users digital markets, new Real-world
Predicting failures Allowing to remote- with design,
expectations for CRM environment digitally
and improving control industrial and construction, and
processes thanks to personal processes operation of robots in enhanced by
SOCIAL NETWORKS CLOUD data gathering and and to develop order to improve computer-generated
Social recommendations are Dematerialized information analysis predictive action- productivity, product sensory input (sound,
key enablers of purchases storage and computing taking quality and worker video, graphics, GPS
capacity is in use safety data…)

PROTOTYPING, BIG DATA RADIO 3D PRINTING RAPID PLANTS SUPER-

SIMULATIONS Storage and analysis of FREQUENCY PROTOTYPING CONNECTION
Simulations on digital customer information improve IDENTIFICATION Allows customizable, Group of techniques Connection of
prototypes optimize product customer experience (RFID) one-off production using in particular 3D machines, work
development processes Automatic with virtually no computer aided pieces and systems,
identification method, waste design data to rapidly creating intelligent
MASS CUSTOMIZATION NEW PURE DIGITAL relying on storing and and efficiently turn networks along the
PRODUCTS remotely retrieving innovative ideas into value chain that
Technology enabling
data scale models. control each other
products and services to be > E-books (media)
unique or fit precisely to > Netflix (media)
customers' needs > Uber (transport)

Source: Roland Berger Manufacturing Competitiveness Radar 2013 Survey, SNEP, RIAA, European Commission, press release, Digital trends and opportunities for Airports_aB (2).pptx 16
To give direction to their digital transformation, airports should define
their product portfolio along the customer and operations journey
Target product portfolio (example)
Involvement options

Acquisition
Airport Service for frequent
commute travelers, storage of
Startup- platform clothes incl. cleaning
contribution Food 2 Go
Apps to track
Home
baggage location
concepts
Outsourcing
Travel
Travel portal
portal
Joint-Venture
Find a Travel-
Mate
Own deve- Community
lopment1)

Planning Booking Journey to Stay at Flight to Journey Flight from Journey Follow-up
airport airport destination destination home
Customer and operations journey
1) Possible profit sharing for other airports

Source: Roland Berger Digital trends and opportunities for Airports_aB (2).pptx 17
To derive product ideas and the airport's target position in the digital
transformation, Airports have a range of digital workshop formats
Digital workshop formats
Format Description Outcome
> Systematic approach to innovation > Specific ideas and approaches
Design > Leveraging multidisciplinary teams, flexible for new products and services
1
Thinking working spaces and creative methodologies

> Visit of innovative companies in European or > New ideas for your project
2
Learning global digital hubs > Cross-functional knowledge
Journey transfer

> Testing of product hypothesis with minimal > Early-stage market exposure
3
Rapid resources > Decision to go forward with
Prototyping > Quick adjustments to product product detailing

> Collaboration of transversal experts to deliver > Valuable outsider feedback on

creative outside-in solutions your industry, your challenges
4 Hackathon and your products
> Originally for programming, now also non-IT

> Pitch of ideas in front of industry and digita- > Evaluation of marketability of
5
Proof lization experts products under consideration or
of Concept > Also, test with a panel of potential customers under development

Source: Roland Berger Digital trends and opportunities for Airports_aB (2).pptx 18
THANK
YOU