Why airports need to invest in IT solutions

As airports struggle to appease various stakeholders – from airlines to customers - a new study says investment in IT solutions will build stronger airport value propositions.

According to a report from Amadeus and Frost & Sullivan called “Strengthening the Airport Value Proposition,” modern technology is key in improving both operational efficiency and passenger experience.

Viewing the passenger, in particular, as the “ultimate customer” in these endeavors will improve the dialogue between all stakeholders, the report finds.

“In the airport environment, there are multiple stakeholders including airlines, ground handlers and passengers, often with differing needs and objectives,” says Alexander Michael, director of consulting, digital transformation, at Frost & Sullivan.

“This is why one of the key findings of the report was to focus on the passenger as the ultimate customer, as this creates a shared incentive for greater collaboration and cooperation, shared KPIs between airlines and airports and a much better understanding of how airport stakeholders can positively affect each other’s business.”

In addition to focusing first and foremost on the needs of passengers, airports should consider the following to strengthen their value proposition:

• Making IT a strategic driver of value for airlines in key areas such as passenger experience. Processes - such as seamless operations and improved ground experience - increasingly factor into airline choices 
• Harnessing the potential of technology to secure competitive differentiation by improving operational efficiency
• Using technology to enable new revenue streams and process innovation. For example data analytics can help better understand how airports and airlines affect each other's business and optimize revenue streams
• Supporting airlines and increasing airline satisfaction by using technology - such as cloud-based solutions - to increase agility and remove complexity
  
  

Crucially, the report states, airports and airlines – typically grounded in tradition - must be amenable to change.

If airports and airlines invest in and allow IT departments to assume a strategic role, airports and their customers will be all the more competitive.

"In the past, when faced with competition, we have seen airports compete predominantly on financial terms. However, the reality is that this is no longer enough," says John Jarrell, head of airport IT at Amadeus.

"Airlines have more complex needs than ever before, and using financial incentives no longer has the impact it once did."