AIR TRANSPORT INDUSTRY INSIGHTSveilletourisme.s3.amazonaws.com/2016/03/SITA.pdf · 2016-03-30 · Global penetration of this initiative reached 29.2% of passengers in 2015. This fell

2016AIR TRANSPORT INDUSTRY INSIGHTS

A 360 DEGREE REPORT

THE FUTURE IS CONNECTED | © SITA 2016

INTRODUCTIONCONNECTIONS EVERYWHERE YOU GOThe combination of connected technology and connected people is helping to reshape the journey for air passengers and, increasingly, their expectations and behavior. Contextual communications via internet-enabled devices and objects will become the enabler for more seamless air travel experiences over the coming years.

It is accepted that the explosion in usage of smart personal devices (phones, tablets and wearables) will continue to gather pace. Communications technology specialist Ericsson reports that 20 new mobile broadband subscriptions are activated every second. It forecasts that smartphone subscriptions will reach the 4 billion mark this year, increasing to 6.4 billion by 2021.¹

In the same time frame there will be a surge of connected objects and devices communicating with each other, as well as us – the Internet of Things (IoT). Ericsson also forecasts that machine to machine communications (M2M) will increase at an annual growth rate of 25% up to 2021. It says a total of around 28 billion devices are expected by 2021, of which more than 15 billion will be connected M2M and consumer electronics devices.

As the vast majority of today’s global passengers carry a smartphone when they fly², smartphones are rapidly becoming the unifying technology to provide a connected end-to-end experience. This technology is reshaping travel behavior as passengers expect to be using their mobile device at more steps in their journey this year, with growth rates of around 80% or more at the check-in and boarding pass stages.³

Two fast moving examples of the speed at which expectations are growing include the desires of air travelers in Mexico and Brazil. In both countries around a quarter of them expect to be using their mobile to check-in this year and they are also open to adopting new mobile technologies at the airport. Over 60% of Mexican passengers would like to use their phones for secure ID, access or to make payments. In Brazil, 83% would definitely use flight updates to their mobiles and 72% want to receive updates on their baggage collection.⁴

2

% of passengers carrying a device

Smartphone83%

All 3devices

15% Tablet39%

Laptop46%

MOBILE DEVICE ADOPTION AMONG PASSENGERSMobile device adoption among passengers % of passengers carrying a device

THE FUTURE IS CONNECTED | © SITA 2016 3

CONTENTSINTRODUCTION 2 Connections Everywhere You Go 2

STREAMLINING TODAY’S TRAVEL EXPERIENCE 4 Technology improves passengers’ travel experience 4 Progressing Fast Travel 5 Fast Travel Program Data 7

PREPARING FOR THE INTERNET OF THINGS 8 Maturing the Internet of Things infrastructure 8 Joining up the connections 10 Who will be the first passengers to adopt new IoT apps and services? 11

MORE CONTEXT FOR THE CONNECTED TRAVELER 12 Location, location, location 13 Travel updates on the move 14 Making valued customer feel special 14 Tackling information overload 16 Staying connected wherever you go 18

FINAL THOUGHTS 20

4 THE FUTURE IS CONNECTED | © SITA 2016

The groundwork by the air transport industry to establishing the infrastructure and processes that enable more seamless travel experiences is well under way and gathering further momentum. Over the next three years the vast majority of airlines and airports are planning to invest in mobile services for passengers; in addition, most airports will also be financing self-service processes. In this time frame the International Air Transport Association’s (IATA) Fast Travel Program to provide passengers with a complete relevant self-service suite of services throughout their journey will reach a critical threshold.

TECHNOLOGY IMPROVES PASSENGERS’ TRAVEL EXPERIENCEThe industry has a receptive audience: over 75% of passengers associate positive emotions with most stages of the journey (check-in, bag-tag, bag-drop and boarding) where

self-service technology is now part of the equation, and in the case of check-in, an established part of the experience.⁵

Over half of passengers already use a self-service channel at check-in and a even more are expecting to do so this year. The fastest growing channel will be mobile devices, where usage will pretty much double.⁶ The overwhelming majority of airlines and airports are responding by investing in passenger services via mobile devices.⁷ Airlines forecast that mobile will drive the continued growth of self-service check-in over the next three years and airports forecast that mobile check-in will be the number one choice by 2018.⁸

Almost a third of passengers expect to be using bag-drop – either staffed or fully self-service – in 2016. At the moment preference is for the staffed stations as passengers gradually gain confidence in the unstaffed bag-drops.⁹ Passengers are back in their comfort zone when it comes to using self-service boarding passes. Two thirds used self-service channels last year and this is expected to increase slightly in the current year.¹⁰

STREAMLINING TODAY’S TRAVEL EXPERIENCE

Emotional extremes during the journey % of passengers feeling positive/negative emotions

EMOTIONAL EXTREMES DURING THE JOURNEY

Positive emotions

Negative emotions

9%

91%

14% 11%21%

36%25%

5%12% 9%

31%

86% 89%79%

64%75%

88%95% 91%

69%

Boo

king

Chec

k-in

Bag

tag

Bag

dro

p

Secu

rity

Pass

port

Dw

ell t

ime

Boa

rdin

g

On

boar

d

Bag

col

lect

ion

% O

F PA

SSEN

GERS

FE

ELIN

G EM

OTIO

NS

PASSENGER JOURNEY

5THE FUTURE IS CONNECTED | © SITA 2016

PROGRESSING FAST TRAVELIATA’s target is to achieve a self-service suite of services that ensures more convenience and control and a better travel experience to 80% of global passengers by 2020. These services cover six key stages in the journey: check-in, bags-ready-to-go, document scanning, self-boarding, flight rebooking and bag recovery.

Global penetration of this initiative reached 29.2% of passengers in 2015. This fell a little shy of IATA’s 35% target as a result of regulatory obstacles to introducing new services, such as home-printed bag-tags, in some regions. Consequently IATA has adjusted down its 2016 target from 50% to 40% global penetration, but says the overall vision for 80% penetration by 2020 is unaffected. It expects implementation to take off quickly once allowed by governments.

Today Alaska, Qantas, Air New Zealand, SAS and Hawaiian Airlines offer four or more Fast Travel options to at least 80% of their passengers, and more airlines and airports are planning a high level of activity, in the coming three years.

Looking at the various Fast Travel journey stages, airlines forecast continued growth for self-service check-in, with

both airlines and airports predicting that mobile will be the key channel. Bag self-service options are also set to increase rapidly.

Self-service document check is already available from most airlines and more expect to roll out this service, while airports are planning a swift deployment of information access services via kiosks. And over half of both airlines and airports plan to be using self-boarding gates by 2018.

Newer self-service processes are also likely to move towards the mainstream in the next three years. Right now, just a minority of airlines and airports provide self-service tools to help passengers get their journey back on track during disruptions and flight delays, but most are planning to have these in place in the next three years. Airline baggage recovery services will develop rapidly with a particular focus on improving communications for both passengers and staff; while airports will start to establish self-service registration of lost bags.

In Singapore Changi Airport Group is developing a new Terminal 4 that will make extensive use of technology to improve passenger experiences and enhance operational efficiency. When it comes online in 2017, it will feature

Major investment in mobile % of airlines and airports investing in mobile over next 3 years

MAJOR INVESTMENT IN MOBILE

Airlines Airports

76% Major Programs16% R&D8% No Plans

49% Major Programs41% R&D10% No Plans


a complete suite of self-service and automated options from check-in and bag-drop to immigration clearance and boarding. These initiatives will be supplemented by facial recognition technology to eliminate manual identification and fully automated processes and checks from check-in to boarding the aircraft.

To prepare for wider use at the airport, Changi Airport Group is working with its ground service and airline partners to implement self check-in, self bag-drop and self-boarding at its other terminals.

As Fast Travel continues to drive improvements to the passenger journey, airlines and airports are already looking beyond these self-service concepts to further enhance the experience for passengers and to better optimize their operations. The advent of the Internet of Things promises to enable new services for passengers and give air transport stakeholders a holistic, real-time view of their operations.

IMPROVING THE TRAVEL EXPERIENCE“Automation through Fast and Seamless Travel (FAST) allows Changi Airport Group and our partners to make better use of manpower resources to continue to deliver a first-class Changi Experience to our passengers. It also increases our efficiency and productivity in the face of growing passenger traffic.

For passengers, the check-in kiosks provide an additional check-in option. They also appeal to passengers who like to self-serve for better control over their travel experience. For some airlines, passengers with home-printed boarding passes but without check-in bags can simply go straight to immigration without needing to drop by the check-in counter, leading to a faster check-in process.

For the airlines, fewer check-in agents are needed and these agents can now focus on providing higher value-added services, such as addressing other queries passengers may have about their journeys, instead of the manual processing work they used to do.

Similarly, at the self-boarding gates, the manpower saved can be assigned to provide personalized services to passengers at the gates, or redeployed to support other flights. It is worth pointing out that the benefits reaped by using self-boarding gates increases with aircraft size.

With faster boarding times for passengers, the amount of time needed for gate holdroom operations has also reduced. The time saved provides ground handling and security agencies the flexibility to deploy ground staff for other tasks.

FAST and other related initiatives bring more of the passenger processes within the airport ‘online’, as we provide a common-use platform for them. We know a lot more about the passenger and his service times throughout the airport, and from there, through data analytics and other means, we can find ways to improve their travel experience.

SENSORS ENABLING INNOVATIONThe common platform also allows us to experiment with other sensors at various touch points to find other innovative solutions to meet passengers’ needs. One example is the installation of queue management and other sensors to alert roaming service staff to any problem areas or choke points within the airport.

Our vision is SMART – Service Management through Analytics and Resource Transformation. With more touch points and processes coming ‘online’, and more sensors placed where they are relevant, there will be more data available for our airport partners to know what is actually happening in the airport at any time.

This data-driven approach to collaborative problem solving will improve the ability of all airport partners to service our customers, be they airlines or traveling passengers. Instead of relying on increasing physical resources as a solution, information can now be used more optimally to reallocate resources where they are most needed.”

Steve Lee, Chief Information Officer and Senior Vice President (Technology), Changi Airport Group

7THE FUTURE IS CONNECTED | © SITA 2016 7

Air transport readiness for Fast Travel Program services by 2018


The proliferation of sensors connecting objects and devices with each other and us via the internet is ongoing. These devices will be communicating with each other to negotiate and organize themselves, communicating with people to take instructions or to report back.

For airlines and airports, the focus will be to manage all the physical (and virtual) “objects” that comprise their business ecosystem. For connected travelers, the Internet of Things (IoT) offers opportunities to link with the air transport industry’s IT ecosystem to manage and personalize their journey from their own smart mobile device, on the ground and in the air.

MATURING THE INTERNET OF THINGS INFRASTRUCTUREAirlines need no convincing that IoT will deliver improvements to their operations. Over a third have already committed budget to implement IoT projects and about two thirds recognize that IoT presents clear benefits today. Over the next three years more than half of all airlines expect to have IoT

initiatives up and running. Thinking about the passenger’s journey, over half of airlines predict that check-in is one of the three stages in that journey that would most benefit from IoT. Bag-drop and baggage reclaim are also in that top three. ¹¹

Airports are concentrating on building out the physical and virtual infrastructure to support IoT. Communications from local event sensors, processed by cloud servers, can help airports to measure passenger flows and prevent queues or to monitor equipment usage. Most will be investing in sensors (beacons, Bluetooth, Wi-Fi etc.,) and cloud services and around half will be using beacons for locating resources, physical environment sensors and providing operational information to passengers.¹²

Already airlines and airports are starting to use IoT to maximize the use, performance and management of their own infrastructure for operational and passenger benefits. The beacons installed across Miami International Airport include temperature gauges and one operational function currently being considered is viewing and monitoring the temperature throughout the complex. “This would allow us to follow trend fluctuations, work towards normalizing the levels, and help reduce energy consumption. We are continually evaluating prior to implementing,” said Maurice Jenkins, Director, Information Systems & Telecommunications.

PREPARING FOR THE INTERNET OF THINGS

INTERNET OF THINGS

IoT will present clear benefits in the next 3 years

86%

We have budget allocated for implementation of IoT

37%

% of airlines agreeing with above statements

IoT presents clear benefits today

67%

Internet of things % of airlines agreeing with statements


HELPING PEOPLE MAKE BETTER DECISIONS“Airports Council International (ACI) believes that the Internet of Things (IoT) is one of the key aspects to becoming more efficient, increasing collaboration and providing continuous, timely data to all airport users, with the passengers being at the centre. IoT helps with the integration of data to aid people in making better decisions and customizing their journey. Most of the key touch points of the airport passenger process provide great opportunities right now.

ACI is leading an initiative called Aviation Community Recommended Information Services (ACRIS), a framework that provides a standard to facilitate web-based data exchanges among various entities. The key is facilitating collaboration and data exchanges among industry players and being able to provide a more efficient process and agreeable airport experience. The challenge is being able to deploy a standard. Technology is evolving very fast and it is not always easy to be as fast in terms of the global perspective.

Several ACRIS projects such as Airport Collaborative Decision Making (A-CDM) or Seamless Travel use various web services to exchange data with all the entities involved in the different touch points.

One aspect of airport operations where A-CDM is already being used is aircraft turnaround. Airport departure control, operations, equipment, the handling company, the catering company, maintenance and airlines are all involved in turning the aircraft around. IoT is the tool to maximize the exchange of information to make much better decisions, inform all collaborators, be more efficient and offer better service.

Another project where real-time delivery of data plays a key role is Smart Security, a joint ACI/IATA project to develop the next generation of passenger screening. For example, checkpoint management solutions enable airports to collect and integrate real-time performance data from checkpoint lanes located in one screening area,

multiple terminals or even several airports. This enables management to monitor the health of the equipment, the throughput being achieved and performance on the checkpoint in real-time using portable devices, or to review performance historically to help plan future resources.

The networking of security checkpoints also facilitates Centralized Image Processing (CIP); the delivery of real-time images from multiple x-ray devices to a single remote screening room, away from any operational distractions at the checkpoint.

These ideas have been shown to significantly improve throughput, and are indicative of the need for connectivity throughout all airport systems. As the Smart Security project progresses into new territory, we expect to see identity management, biometrics and passenger data playing a role both in risk management and in the passenger experience. Border and security agencies can receive data in real-time in order to make better decisions, and passengers can receive up-to-date checkpoint and queue information to make their journey more predictable and stress-free.

An important step taking place right now involves airport management systems (AMS). More and more airports are deploying such initiatives. Most have a multitude of different software, applications and providers; as a result it is difficult to benefit from a global perspective because systems are not integrated. We are looking at how to integrate various databases and software to provide one global vision. This is a key step in developing a smart airport approach, improving decision making and providing the immediate benefit of IoT and the connectivity of everything.

As mentioned, the challenge is being able to deploy a standard. Previously, the discussion was focused on who owns what data – now it’s about what data we need to share to make better decisions.”

Antoine Rostworowski, Director, Airport Customer Experience and Technology, Airports Council International – World


Amsterdam’s Schiphol Airport, with KLM Royal Dutch Airlines and other partners, has invested in a Dutch start-up, Undagrid, whose technology supports the tracking and tracing of non-motorized vehicles or those not connected to the power grid, such as aircraft stairs and baggage carts. Devices on these objects transmit their location to nearby devices to communicate their position to each other, while the operator can check their location remotely via the cloud or a dashboard. “This ensures optimal use of the vehicles, so we also need less of them. Hence, it enables us to cut expenses considerably”, said Erik Swelheim, Managing Director & Chief Financial Officer of KLM.

JOINING UP THE CONNECTIONSIoT will start to deliver best value to airlines, airports and passengers when it fully achieves the ability to create and respond to a real-time holistic view of operations and the passenger experience. Having created this nervous system of sensors and actuators that make up IoT, what are the practical expectations, in the foreseeable future, to combine these real-time feeds with other business intelligence systems and predictive analysis?

European low cost carrier easyJet partnered with London’s Gatwick Airport in April 2015 to launch Mobile Host, an app that combines live data from the airport’s systems with Google indoor maps, passenger booking details, location and flight time to provide personalized instructions and updates for passengers. These include check-in reminders, directions to bag-drop, departures and gate location, plus real-time gate and baggage belt push notification direct to their mobile phones.

In November 2015, the airline appointed its first Head of Data Science, Alberto Rey-Villaverde, to assess its use of artificial intelligence (AI) to improve efficiency, revenue and customer satisfaction across areas such as flight schedules, fleet reliability, in-flight food and drink and its loyalty program. The airline will be using AI to harness the data already generated by these operations to predict and provide for future events, for example, demand for certain items of food and drink on each flight so that supplies match customer demand without running out or carrying an excess amount.

“To date analytics has been about diagnostic capability and looking backwards. Now advanced AI is more focused on predictive capability so we can better understand the future and plan for it,” said Rey-Villaverde.

The autumn also saw SITA launch its Day of Operations BI, a cloud-based business intelligence (BI) portal that harnesses complementary underlying IoT technologies such as Bluetooth sensors and Wi-Fi infrastructure. It aggregates and analyzes real-time data from passenger flow and queue wait-time monitoring from common-use platforms such as barcoded boarding passes and kiosks, to provide a dynamic view of the airport ecosystem at a strategic and operational level.

No doubt there will be increasing convergence between IoT and BI in the future to provide a real-time global view of operations and passenger experience. Although it is still early days, we can also expect greater use of these resources to help the aviation community better predict what will happen next.


WHO WILL BE THE FIRST PASSENGERS TO ADOPT NEW IOT APPS AND SERVICES?Thanks to the smart mobile devices that are now essential travel kits for the vast majority, passengers are all IoT connection points. But just how receptive are they for more mobile and IoT services?

A close look at the types of passenger, their emotions and behaviors in three key markets, the UK, USA and Australia, reveals around 60% of passengers in each country identify themselves as careful planners. These passengers are comfortable using self-service and technology to plan and process their journey, but they still like to carry documentation and have interaction with airline agents.13

In all three markets, there is an appetite among airline passengers to use more mobile services during their journey in the future.

UK airline passengers are among the highest users of technology to manage their travel experience, with the overwhelming majority using self-service booking options and approaching three quarters using self-service check-in channels. Their favorite tech tool is the desk top device for both booking and check-in; mobile is their second most popular check-in option. Many UK passengers say they would

welcome more information on their mobiles about their journey. More than half “definitely” want flight status updates and alerts, and also information on baggage collection, such as which carousel to go to and how long it will take for their bag to arrive.14

US passengers also want to use technology more – in particular their mobiles – to get up-to-date information on such things as flight status and baggage collection. Only a small percentage of US passengers used a travel agent or airline call centre to book their last flight and a good majority used technology (web, kiosk or mobile) to check in. But more of them expect to be using their mobiles for travel related services for their next flight.15

Although Australian airline passengers are happy to use technology during their journey, overall the levels of adoption are not as high as in other parts of the world. However they are ahead of the global average in their willingness to use self-service bag drop with just over a quarter of domestic passengers processing their bag themselves rather than going to an airport counter. When it comes to their next flight, more Australians expect to use their mobile for travel-related services, in fact, the usage rate for mobile check-in is expected to almost triple.16

CAREFUL PLANNER

% of country’s passengers fitting careful planner archetype

AUSUK

USA60%62%

58%

The careful planner % of country’s passengers fitting careful planner archetype


Providing connected passengers with personalized and contextual services, based on their location is an early example of the Internet of Things in action. These services are enabled by a network of sensors, such as Bluetooth beacons, which trigger the display of location-related information to the passenger’s mobile app, delivering real-time information about the progress of their journey, wayfinding assistance or special offers. Frontrunners in the airline and airport communities around the globe are already offering these services and over half of airlines and the vast majority of airports are prioritizing them to provide new mobile services in the next three years. Passengers too are eager for these new amenities.

Currently there is a stronger aspiration among airports to leverage beacons at each stage of the passengers’ journey. Over half or more of airports expect to be using them at check-in, bag-drop, security, in dwell areas, and boarding by 2018. This compares to broadly two fifths of airlines that have plans at check-in, bag drop, boarding and bag claim. There is also a lack of clarity about which are the most important journey stages to use beacons. The top two journey stages for airports are check-in and security; whereas for airlines it is bag-drop and bag claim.17

This is welcome news for passengers. Over 90% expressed interest in using new mobile services such as flight updates, bag collection updates, scanning their mobile phone for access, using their phone for ID, airport maps and directions. In fact, broadly 60% or more said they would definitely use these services.18

MORE CONTEXT FOR THE CONNECTED TRAVELER

38%

43%44%

Check-In Bag-Drop Bag Claim

% implementing by 2018

END TO END BEACON DEPLOYMENTS PLANNED

Airports

Airlines

61%55%

40%

End to end deployments planned % planning beacon leveraging initiatives by 2018


LOCATION, LOCATION, LOCATIONReal-time assistance, on your mobile device, to find your way around the airport to shops, restaurants, departure gates and more, will be available at airports near you by 2018 – most airports plan to offer this beacon-enabled wayfinding information, as do more than half of airlines.19

Mumbai’s GVK Chhatrapati Shivaji International Airport launched an advanced indoor navigation app in October 2015, complete with augmented reality features, for passengers using its Terminal 2. The T2 App offers an interactive walk-through experience where passengers can locate any outlet in the terminal. Passengers can input their flight number to also keep updated on their flight and future feature updates include international arrivals, domestic flights and taxi booking services.

Rajeev Jain, Chief Executive Officer, Mumbai International Airport Limited said: “We constantly endeavor to provide world-class facilities at T2, and always strive to make it as easy as possible for air travelers to discover them. With the Mumbai T2 app, travelers can design their own customized experiential tour with a single click. Moreover, being a ‘silent’ terminal, cutting down on public announcements, the app will be a very handy tool for passengers to keep track of their flight schedule through constant notifications.”

United customers flying through its New York Newark Liberty International hub can immediately view their location within the Terminal C complex via the airline’s app for iOS devices. The airline is piloting Bluetooth beacon indoor location technology to help customers find their way around. “Travelers are accustomed to using maps and navigation apps throughout their daily lives – and that shouldn’t end when they walk into the airport,” said Scott Wilson, United’s Vice President of eCommerce and Merchandising. “These new features of our app will make travel easier and more personal for our customers.”

Nice Côte d’Azur Airport is leveraging beacon technology to put personalized information at passengers’ fingertips through the airport’s new multifunctional app.

Using SITA’s beacons installed throughout the terminal, passengers who are using Nice Côte d’Azur Airport’s app will receive retail information and offers relevant to their specific location. The Airport Premier Club passengers using the app will automatically earn points as they pass through the airport.

Dave Bakker, SITA President, Europe said: “Beacon technology unlocks a world of opportunity for airports. With a clear view of who the passengers using the app are and where they are in the airport, Nice Côte d’Azur Airport is able

Passenger demand for new services at airports % of passengers using new mobile services in the future

% of passengers using new mobile services in the future

Yes, would definitely use

May use

72% 23%

63% 33%

57% 35%

Flight updates

Bag collection updates

Airport maps & directions

PASSENGER DEMAND FOR NEW SERVICES AT AIRPORT


TRAVEL UPDATES ON THE MOVEUsing beacon and sensor infrastructure to deliver relevant and timely travel information to passenger’s mobile apps will be a key feature for the air transport sector to create seamless travel experiences for passengers and maximize their own resources to avoid congestion.

Passengers who enter their flight details into Berlin’s Tegel Airport app receive a push notification the moment they enter the terminal building with instructions on the fastest route to their gate, while arriving passengers are welcomed at the baggage carousel and receive tips on free Wi-Fi services or information on using public transport.

At New York’s John F Kennedy Airport, passengers do not have to use an app to benefit from beacon updates. In Terminal 4, from August 2015, they have been able to keep track of accurate wait times via screens positioned at TSA Security and Customs and Border Protection checkpoints, as well as the indoor taxi queue. The wait times are driven by beacons that anonymously monitor passenger’s mobile devices as they move through the airport. The data also enables staff to identify and rectify bottlenecks before they escalate.

Gert-Jan de Graaff, President and CEO of JFKIAT. Said: “We’re probably reaching 19.5 million passengers this year in total. It’s a big operation, which is why we’re introducing innovations to enhance the operations of the building. This new system will help us manage and eliminate problem spots within the facility, and sharing the processing time with our travelers will provide them with peace of mind so they may continue to expect a pleasant travel experience. Additionally, data from travelers’ phones could eventually influence future airport design.”

MAKING VALUED CUSTOMERS FEEL SPECIALSome airlines are already piloting beacon innovation to give extra value to their frequent flyers. Cathay Pacific teamed up with the Lounge Buddy app to become the first airline at San Francisco International Airport in June 2015 to activate iBeacon technology to trial a more personalized and enhanced experience for guests using the airline’s Business and First Class lounge. On entry to the lounge, passengers with the Lounge Buddy app received customized information, such as the day’s food and beverage menu, an enhanced overview of the lounge amenities and the option to check-in on social media.

American Airlines is working to build iBeacon support into its mobile app to give a more personalized response to members of its Admiral’s Club entering its lounges and to help them avoid the queues at busy times when bad weather causes delays.

In a Diginomeca.com report from the Oracle Open World conference last autumn, Jason Newton, American Airlines’ Director of CRM and Sales Support IT, said: “You’ll need to be a member of the Club and you’ll need to opt in, but basically the way it will work is like this: as you approach the lounge, the beacons will automatically wake up your phone and the app will ask you if you plan to enter the Club. If you do, you just slide a simple bar on your phone, put it back in your pocket and walk through the door. And as you do that, another beacon will let us know you’re coming in, your picture will come up on the attendant’s screen and they’ll welcome you by name and provide you with any flight updates you might need. We’re calling this ‘Seamless Access’ and we think it’ll be an industry first.”20


% of airlines providing passenger services via mobile apps

PASSENGER SERVICES PROVIDED VIA SMART PHONES OR TABLET APPS

Airlines today

Airlines implemented by 2018

Missing baggage communication

Real-time baggage status information for passengers

Location-based notifications

Baggage location status updates

64%

63%

65%10%

10%2%

7%

70%

91%

83%30%

25%

79%

68%67%

30%

33%

27%

Passenger surveys and focus groups

Purchase of airport services

Customer relationship management

Notifications about airport status

Navigation/Wayfinding within the airport

% of airports providing passenger services via mobile apps

PASSENGER SERVICES PROVIDED VIA SMART PHONES OR TABLET APPS

Airport today

Airport implemented by 2018

Passenger services provided via mobile apps % of airlines providing passenger services via apps

Passenger services provided via mobile apps % of airports providing passenger services via apps

OFFERING A PERSONAL TRAVEL ASSISTANT TO OUR PASSENGERS“Our vision for the Internet of Things is, in essence, what can and needs to be connected will be connected. The ability to seamlessly integrate the passenger end-to-end experience is essential in today’s market. Beacons offer an opportunity to fully leverage products and services via mobile application to enhance the passenger experience, generate revenue and improve efficiencies, with enhanced customer service being of the utmost importance.

In February, we launched version 2 of our MIA Airport Official mobile app, which will provide beacon-enabled features and use location-aware technology to predict your location and anticipate your needs.

The app will allow you to scan your boarding pass or search for flights by destination, airline and flight number; subscribe to flight notifications and receive updates for flight, gate and baggage carousel changes, as well as an option to share your flight; and navigate maps that use blue-dot beacon technology detailed way-finding directions.

It will provide the traveling public with navigational capabilities throughout the airport, including the ability to locate products or services by keyword searches. Other features will include: visual directions with walk times to find your gate, shops, restaurants and more; the ability to recognize and welcome you, via geo-fence technology, whether you’re driving or flying to MIA; and a ‘near me’ feature that provides the closest dining and shopping options. Future enhancements will include push notifications for special offers from the user’s preferred shops and restaurants at MIA, the ability to reserve parking, and estimated security checkpoint wait times.

We expect that version 2 of the mobile app, integrated with our 500+ beacons, will dramatically enhance the passenger experience at MIA with its turn-by-turn directions, estimated walk times and location-aware technology, and will become a personal travel assistant for our passengers.”

Maurice Jenkins, Director, Information Systems & Telecommunications


TACKLING INFORMATION OVERLOADThe next steps for the industry will be to provide travelers with a richer selection of travel information throughout their journey – not just at the airport. But with people accessing multiple travel apps on their devices, how can the industry ensure that passengers are not bombarded with offers and that they are not overloaded with conflicting journey information? Collaborative initiatives are in the pipeline to ensure passengers receive messages about their journey that they actually trust.

ACI and IATA have collaborated to develop a joint Recommended Practice for beacons at airports, which should be formalized later this year. This document also includes the use of a centralized airport beacon registry to facilitate their access, usage and maintenance.

IATA‘s next ideas for Simplifying the Business (the umbrella program for change focused on the passenger), detailed in a white paper issued last October,21 include looking at how travel communications can improve the passenger experience by creating a set of standards that will enable stakeholders to provide their customers with accurate, trusted and timely information for their journey in a cost-effective manner.

The idea is to define a data transmission standard, to be combined with a ‘trusted source’ certification, for multiple types of information, thereby enabling developers to incorporate the information into their mobile and desktop apps, customer service systems or any other customer-facing application. When the information owner updates the original source, it will reach the customer in their preferred communication channel, without the customer having to come to them.

IATA has established several use cases on information to be exchanged and conducted a proof of concept to demonstrate the technical feasibility and in 2016 will be working on the business case to demonstrate value to all stakeholders.

The key, at the individual app level, is to provide “a single point of truth at airports” according to Matthys Serfontein, SITA VP Airport Solutions. For example, SITA worked with easyJet to directly interface departure information into its Mobile Host app according to the airport’s own business rules. This means the app delivers gate status and baggage reclaim information at the same time as it is available locally on airport screens. This service went live as a proof of concept at London’s Gatwick Airport in March 2015. Edinburgh Airport was subsequently added and the overall plan is to roll out the service at the airline’s top European airports.


SITA launched its Day of Travel Services in 2015 which offers a complete solution for developing location-aware airport apps and combining data services. The range of application programming interfaces (APIs) and directly sourced data includes airport navigation, real-time flight status, wait-time at security, retail offers and nearby restaurant information. It also offers driving routes to the airport, estimated driving times, live traffic updates, destination weather forecasts and taxi/public transport information at the arrival airport.

To be effective, the personalized app experience must be relevant to the individual user according to Matthys Serfontein. “If you identify that someone is standing outside a restaurant, you could send them an offer if they come in within the next 10 minutes. If you can take into account they only have 10 minutes before they are due to go to the gate, there is no point sending them an offer. If you have

information on their movements and you know they have spent 45 minutes in another restaurant, there’s no point sending them a voucher. So the more precisely you can target offers, the more likely they will be converted,” he said.

Meanwhile, under the ACRIS initiative, ACI is working with Munich Airport to address the issue of app overload facing travelers. “One of the first steps is to see if when using one airport app, I could benefit from an app offered by another airport without having to download that app. This is a key point for the future: minimizing the number of apps but making APIs (functionalities) available through the app that allow access to other apps. This is done using ACRIS standards,” said ACI World Director, Airport Customer Experience and Technology, Antoine Rostworowski.


STAYING CONNECTED WHEREVER YOU GOIncreasingly passengers want to stay connected wherever they go, including onboard, where around 60% or more would definitely access entertainment on their own tablet, send emails, access live flight information and access live streaming of content.22

How can a beacon-enabled environment support these desires? While there are potential opportunities to utilize beacons onboard the aircraft to help passengers and crew, as beacons are transmitting devices, they need to be certified for in-flight use / permanent installation on-board an aircraft.

The more immediate opportunity, according to François Rodriguez, Chief Strategy and Marketing Officer, SITAONAIR, is to increase awareness of connectivity services onboard. “We are always looking for ways to use technological advances to make it simpler to stay in touch when you’re flying. Beacons are already beginning to be used in operation by airports across the world, transforming the passenger experience by providing gate information, help with airport navigation and retail offers. We are now planning to use them to increase awareness of in-flight Wi-Fi and, combined with our new portal, to make access even simpler to use,” he said.

SITAONAIR is developing APIs to further enrich the user experience. “We are using Developer.aero, the SITA API platform, so that developers can use SITAONAIR’s in-flight connectivity as the basis for new applications for both

passengers and airlines. The API is designed to encourage in-flight Wi-Fi usage by enabling airlines, GDSs and other agents to sell Wi-Fi sessions as part of the booking process and also during the flight. The In-flight Wi-Fi Voucher API provides a promotional code which the passenger uses to activate the internet session once they are on the plane,” said Rodriguez.

Wearable tech is still in its infancy – most airlines and airports are taking a wait and see approach. But one front-runner Air New Zealand has launched the Airband for children traveling alone. The wristband is embedded with a chip which is scanned at key stages of the journey to trigger text notifications to up to five nominated contacts.

“We know that having your child travel on their own can be a nervous time for both children and their guardians. While our staff have always taken great care of children traveling solo, we identified that there was an opportunity to enhance the experience for kids while at the same time giving caregivers further peace of mind and visibility of their journey,” said New Zealand General Manager Customer Experience Carrie Hurihanganui.

“We believe this is the first time this type of technology has been used by an airline anywhere in the world for the purpose of providing caregivers greater peace of mind when their child is traveling alone. We have been trialing it across our network over recent months and the feedback from parents and guardians has been very positive with many welcoming the additional reassurance of knowing where in the journey their child is.”

Airline & airport plans for wearables by 2018 % implementing

AIRLINE & AIRPORT PLANS FOR WEARABLES BY 2018

Airports

Airlines

62%62%

17%23%

% implementing

Major program

Pilots/trials

Major program

Pilots/trials

11%31%

10%22%


As the air transport industry focuses on delivering accurate timely information, is it missing another trick? Are airlines and airports giving enough weight to managing passengers’ expectations by telling them what will happen next on their journey? If they do so, they will relieve stress and anxiety and passengers will be more receptive to engaging with IoT.

ELIMINATING STRESS AT EVERY STEP OF THE JOURNEY“We’re continually looking at ways to enhance the experience our customers have at all stages of their journey and remove pain points. We see technology playing a key role in this. We keep an eye on trends and technologies and evaluate each on its merits, potential uses for our business, and importantly how it can enhance our customer’s experience.

There has been a lot of success in the US and the UK with beacon and positioning technologies to enhance a customer experience and it’s something we are keeping across. At Air New Zealand when a customer is traveling through the airport, we already have good visibility of where they are in their journey – for instance we know when they are checking in, entering our lounge or boarding our aircraft – and we use technology to communicate with them in a way that’s relevant for that point in their journey, and appropriate for a great experience.

Our mobile app is available on smartphones and on the Apple Watch, and has been incredibly popular, with 600,000 downloads and counting. It will push notifications to

customers about their flight and it invites them to order their favorite coffee when they enter certain lounges. The coffee ordering function also alerts customers when their coffee is ready, saving precious time at the airport. The feature has proven popular with customers and in fact, we recently received our one millionth order via the app.

Airband uses Near Field Communication to help parents monitor the progress of children traveling alone through their journeys. Introducing an airline-wide initiative such as Airband was not without its challenges – notably the wide use of mobile technology, with in-house designed and built apps for our staff, used to serve our customers directly, and ensuring teams right across the business and around the world understood the changes required of them to ensure the roll-out was successful. Again, there has been a real focus on the experience for our customers, and our staff.

We have received positive feedback from both caregivers and children about Airband, with many specifically commenting on the additional level of reassurance and peace of mind it provides.”

Carrie Hurihanganui, General Manager Customer Experience, Air New Zealand


FINAL THOUGHTS

In the next three years, more passengers will be enjoying seamless self-service travel experiences as airlines and airports scale up their self-service implementations across more stages of the passenger’s journey. The air transport industry can expect a welcome reception for these efforts as passengers feel positive about using self-service technology to manage their journey and are, for the most part, expecting to make more use of technology on their next flight. The key driver for increasing passengers’ use of self-service processes will be their ability to access or process these services on their mobile devices.

Beyond seamless self-service, the air transport industry’s ambition is to deliver a more connected journey that allows them to maximize their resources and performance for both operational and passenger benefits. Right now airlines and airports are building out their Internet of Things (IoT) infrastructure and some front runners already have IoT initiatives under way to enable better decision making. Best value will be delivered once airlines and airports fully achieve the ability to create and respond to a real-time holistic view of operations and passenger experiences. Down the line, there will be increasing convergence between IoT and business intelligence to deliver that global view and we can also expect greater use of these resources to help the air transport industry better predict what will happen next.

Providing connected passengers with personalized and contextual services, based on their location is an early example of the IoT in action. Both airlines and airports have plans to utilize beacons and sensors to provide relevant and timely information to passengers’ mobile apps by 2018;

although they each have slightly different perspectives on the way forward. Airports have stronger aspirations to leverage beacons at each stage in the passengers’ journey and there is a lack of clarity between airports and airlines about which are the most important journey stages to use beacons.

Providing mobile services will be critical for increasing passenger engagement. Passengers have a healthy appetite to use their mobile to access journey information, to scan their mobile for access and to use their phone for ID. However, as they enjoy richer information services and improved interaction with aviation stakeholders, it is vital that passengers are not overloaded with conflicting messages. Collaborative initiatives are already underway in the air transport industry to ensure passengers receive information they actually trust.

But are airlines and airports giving enough weight to managing their passengers’ expectations by telling them what will happen next on their journey? The more they can relieve anxiety and stress, the more receptive their passengers will be to engage with IoT.


THE FUTURE IS CONNECTED | © SITA 2016

NOTES AND REFERENCES

22

1 Page 2

Ericsson Mobility Report, published 17 November 2015

2 Page 2

Passenger IT Trends Survey 2015: 83% of passengers carry a smartphone (up from 81% in 2014); 46% travel with a laptop; 39% with a tablet; and 15% have all three devices with them when they fly.

3 Page 2

Passenger IT: In 2016, passengers increasingly expect to be using their mobile devices to help them self process their journey, with a 39% increase in usage forecast for flight booking; 79% for check-in; and 110% for boarding pass.

4 Page 2

Passenger IT: More than half of passengers surveyed in Brazil checked in at a desk, but 24% said they would use mobile check-in on their next flight. In Mexico, mobile check-in will more than double from 10% last year to 24% in 2016.

5 Page 4

Passenger IT: 86% of passengers experience positive emotions at check-in; 89% at bag tag; 79% at bag drop; and 88% at boarding.

6 Page 4

Passenger IT: 11% of passengers used mobile check-in in 2015 and 21% expect to be using it in 2016.

7 Page4

Airline IT Trends Survey 2015: 92% of airlines plan to invest in services via passengers’ smartphones, split between 76% investing in major projects and 16% undertaking R&D work; 85% will be allocating resources to services via passengers’ tablets, 63% of them planning major programs, 22% pilots.Airport IT Trends Survey 2015: 90% of airports are planning investments in apps for passenger mobile services, split between 49% preparing for major initiatives and 41% R&D projects.

8 Page 4

Airline IT: 9% of passengers used mobile check-in 2015, but airlines expect this to increase to 24% by 2018, when self-service and automatic check-in will be used by 72% of passengers.Airport IT: 60% of airports say mobile will be the top self-service check-in option by 2018.

9 Page 4

Passenger IT: 16% of passengers used dedicated (staffed) bag-drop stations in 2015, with 23% expecting to use them this year; 4% used unstaffed self-service stations last year, and 8% expect to use them in 2016.

10 Page 4

Passenger IT: 67% of passengers used self servicing for their boarding passes in 2015 and more expect to do so in 2016 when 71% will use self-service channels.

11 Page 8

Airline IT: 37% of airlines have allocated funds to implement IoT and 67% say IoT presents clear benefits today; by 2018 57% expect to be running IoT programmes. 56% of airlines say check-in is one of the three stages in the passenger journey that would most benefit from IoT. Bag drop and baggage claim are also in the top three according to 40% and 30% respectively.

12 Page 8

Airport IT: 80% of airports will be investing in sensor technology over the next three years; and 79% will be investing in cloud services, such as infrastructure-, software-, and desktop-as-a-service. By the end of 2018, 74% will be using beacons to provide operational notices to passengers; 58% for locating resources; and 48% for environmental sensing.

13 Page 11

Passenger IT: 62% of UK passengers, 58% of American passengers and 60% Australians perceived themselves as “careful planners”.


14 Page 11

Passenger IT: 94% of UK passengers used self-service booking channels in 2015, 76% of them using a desktop or laptop. 70% used self-service for check-in: 49% via a web browser, 11% via mobile and 10% via kiosks. 61% of UK passengers definitely want flight status updates and alerts, and 52% also definitely want information on baggage collection.

15 Page 11

Passenger IT: 72% of US passengers definitely want to receive flight updates on their mobiles and 63% want bag collection information. Only 5% booked their last flight via a travel agent or airline call center; and 63% used kiosks, web or mobile to check-in. Booking flights with a mobile is also projected to increase from 29% of passengers in 2015 to 38% in 2016. 19% of American passengers intend to use mobile check-in for their next flight, compared to 13% who used it for their last, a growth of more than 40%.

16 Page 11

Passenger IT: 13% of Australian passengers booked their last flight with a travel agent or airline call center, compared to the global average of 10%; similarly 46% used an airport check-in counter compared to 43% globally. However, 26% used bag-drop technology, well ahead of the 20% global average. 11% intend to use mobile check-in for their next flight, nearly three times the current usage rate of 4%.

17 Page 12

Airport IT: 61% of airports are planning to have beacon or sensor initiatives at check-in; 55% at bag drop; 61% at security; 56% at dwell time areas; and 57% at boarding.Airline IT: 38% of airlines are planning to have beacon or sensor initiatives at check-in; 44% at bag drop; 36% at boarding; and 43% at bag claim.

18 Page 12

Passenger IT: 96% of passengers are interested in bag collection updates, with 63% saying they would definitely use this service; 95% are interested and 72% would definitely use in flight updates; 91% are interested in and 60% would definitely use scanning their phone for access; 92% are interested and 59% would definitely use their mobile for ID; and 92% are interested and 57% would definitely use airport maps and directions.

19 Page 13

Airport IT: 80% of airports plan to offer beacon-enabled wayfinding information by 2018.Airline IT: 57% of airlines expect to be using beacons for wayfinding services in the next three years.

20 Page 14

Reported by Diginomica.com, 27 October 2015http://diginomica.com/2015/10/27/milestones-on-american-airlines-passenger-experience-journey/#.VpzE2zYuc5Q

21 Page 16

IATA Simplifying the Business Annual White Paper, published October 2015.

22 Page 18

Passenger IT: 67% of passengers would definitely access entertainment onboard via their own tablet; 60% would definitely send email and text messages onboard; 60% would definitely access live flight information; and 56% would definitely access live streaming of content.

For further information, please contact SITA by telephone or e-mail:

Americas+1 770 850 4500 [email protected]

Asia Pacific+65 6545 3711 [email protected]

Europe+41 22 747 6111 [email protected]

Middle East, India & Africa+961 1 637300 [email protected]

SITA AT A GLANCE

The air transport industry is the most dynamic and exciting community on earth – and SITA is its heart.

Our vision is to be the chosen technology partner of the industry, a position we will attain through flawless customer service and a unique portfolio of IT and communications solutions that covers the industry’s every need 24/7.

We are the innovators of the industry. Our experts and developers keep it fuelled with a constant stream of ground-breaking products and solutions. We are the ones who see the potential in the latest technology and put it to work.

Our customers include airlines, airports, GDSs and governments. We work with around 430 air transport industry members and 2,800 customers in over 200 countries and territories.

We are open, energetic and committed. We work in collaboration with our partners and customers to ensure we are always delivering the most effective, most efficient solutions.

We own and operate the world’s most extensive communications network. It’s the vital asset that keeps the global air transport industry connected.

We are 100% owned by the air transport industry – a unique status that enables us to understand and respond to its needs better than anyone.

Our annual IT surveys for airlines, airports and passenger self-service are industry-renowned and the only ones of their kind.

We sponsor .aero, the top-level internet domain reserved exclusively for aviation.

In 2014, we had consolidated revenues of US$1.7 billion.

For further information, please visit www.sita.aero

© SITA2016 All trademarks acknowledged. Specifications subject to change without prior notice. This literature provides outline information only and (unless specifically agreed to the contrary by SITA in writing) is not part of any order or contract.

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Documents

AIR TRANSPORT INDUSTRY INSIGHTSveilletourisme.s3.amazonaws.com/2016/03/SITA.pdf · 2016-03-30 · Global penetration of this initiative reached 29.2% of passengers in 2015. This fell