Airport Experience® News - Customer Service Issue 2023

CUSTOMER SERVICE ISSUE 2023 / V21 N250

AIRPORTS, OPERATORS MAKE HEADWAY ON DATA SHARING

CONCESSIONAIRES TRACK AND OPTIMIZE CUSTOMER SERVICE

AIRPORTS SHARE GUEST SERVICE INITIATIVES

AIRPORT WAYFINDING GOES DIGITAL

We have the brands. We have the innovation. What pulls the entire traveler journey together is the undeniable hospitality delivered by our associates every day in our restaurants and retail stores. Experience Our Hospitality

paradieslagardere.com

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14 Data Optimization More data can mean better insights into how to serve the traveling public. While airports and concessionaires agree on that point, they’re not always in lockstep as to how, if and which data should be shared. 18 Experience Track Concessionaires are committed to optimizing the customer experience, but how can they – and their airport partners – know what’s working and where they fall short? Tracking, in various forms, shows just which efforts resonate and which ones are better left behind. 24 CX Strategies Virtually every commercial service airport in North America has a program - or multiple programs - focusing on the customer experience. AXN highlights unique approaches at six airports, each a part of a comprehensive customer service program. 32 Digital Wayfinding Makes Headway Wayfinding has come a long way from the static signage that once guided passengers through the airport terminal. Digital is increasingly commonplace, and new technologies are further changing the passenger interface with the airport.

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3 Letter From The Editor 4 Data Check A Fitch Ratings report shows just how much airports are expected to invest in new infrastructure. Because of high demand, ratings aren’t expected to be impacted. 6 Latest Buzz Palm Springs International Airport is in the midst of a concessions expansion and gate hold refresh. The improvements are expected to ease congestion and crowding as growth continues.

37 Sustainability Snapshot Airport apiaries are gaining traction as a small way airports can combat rising carbon levels.

40 Advertising Index 41 Before You Take Off

10 Director’s Chair Patrick Carreno, the new

director at Dallas Love Field, is leading an effort to maximize traveler amenities in the space constrained airport.

One airport concessionaire is offering stress relief via adaptogenic beverages – in this case, coffee made with mushrooms.

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TEAM

Desiree Hanson Chief Commercial Officer Melissa Montes Vice President/Publisher Carol Ward

Editor-in-Chief Nicole Watson Business Development Manager

Andrew Tellijohn Senior Reporter Sally Kral Contributing Writer Sarah Beling Contributing Writer

Barbara McCarter Portfolio Manager Chad Wimmer Senior Editorial Art Director Rae Lynn Cooper Production Manager Amanda Gochee Vice President, Marketing Strategy Katy Welch Senior Marketing Manager Tessa Mullins Marketing Coordinator Tristan Lueck Marketing Coordinator

Airport Experience ® News Is a Division of CLARION Events 6421 Congress Ave., Suite 107 Boca Raton, FL 33487 Phone 561.257.1026 Fax 561.228.0882 To subscribe visit https://airportxnews.com/subscribe/ ISSN: 1948-4445 Russell Wilcox Executive Chairman Lisa Hannant Chief Executive Officer, Clarion Events Greg Topalian CEO, Clarion Events North America and Left Field Media Liz Irving President, Clarion Events North America Copyright © 2023 Airport Experience ® News, all rights reserved. Any reproduction of this magazine is strictly forbidden without prior permission from Airport Experience ® News.

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CUSTOMER SERVICE ISSUE 2023

Dear Readers,

CUSTOMER SERVICE ISSUE 2023 / V21 N250

Welcome to AXN’s first issue focused on the customer experience and customer service. We all know the importance of ensuring the best possible experience for passengers – most of you live than mantra every day in your working lives. This issue of AXN highlights some of the most impactful customer experience initiatives in the airport and concessions businesses. On the airport side, we highlight six unique programs underway, all designed to ensure travelers have a pleasant, stress-free journey through the airport. A few of those programs focus on front line workers because, as several sources noted, those individuals are ambassadors for the airport. This issue also highlights how concessionaires track and react to customer service challenges and how airports are investing in high tech wayfinding to ease the traveler journey. Within the industry, the call for data sharing and enhanced data collection strategies is getting louder each day. This issue highlights some progress made on data sharing between airports and concessionaires, as well as some choke points in the process. All this and much more can be found in the following pages. Finally, Team AXN is beginning the review process for nominations for our annual AX Awards. Thanks to all of you who nominated - we were overwhelmed with submissions right up until midnight on November 10! Finally and as always, a big thank you to all our readers and advertisers who are crucial to our ongoing efforts to connect the industry. We appreciate the continuing support and hope you enjoy this issue of AXN!

AIRPORTS, OPERATORS MAKE HEADWAY ON DATA SHARING

CONCESSIONAIRES TRACK AND OPTIMIZE CUSTOMER SERVICE

AIRPORTS SHARE GUEST SERVICE INITIATIVES

AIRPORT WAYFINDING GOES DIGITAL

All the best,

Carol Ward Editor-in-Chief

Airport Experience News carol@airportxnews.com

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DATA CHECK

Comparison of Passenger Traf c Levels: Large-Hub Airports Traf c: 2023 Versus 2019 (January–July) (%)

Detroit O'Hare SFO Minneapolis San Diego Atlanta JFK Houston LGA Charlotte EWR Dallas-Ft Worth Denver

BIG SPENDING, BIG DEBT U.S. Airports Push Forward On Capital Programs, But Ratings Impact Is Minimal, Fitch Says -20 -10 0 10 Portland LAX Philadelphia

20

Source: Fitch Ratings, Fitch Solutions, airports

BY CAROL WARD

Comparison of Passenger Traf c Levels: Large-Hub Airports Traf c: 2023 Versus 2019 (January–July) (%)

($ bil.) Airport Capital Program Size

Detroit O'Hare SFO Minneapolis San Diego Atlanta JFK Houston LGA Charlotte EWR Dallas-Ft Worth Denver

10 12 14

0 2 4 6 8

LAX

Portland LAX Philadelphia

SFO

MSP

DFW

Detroit

Atlanta

Denver

MWAA

Portland

Houston

Charlotte

San Diego

Philadelphia

-20

-10

0

10

20

Chicago O'Hare

Chicago Midway

Source: Fitch Ratings, Fitch Solutions, airports

Source: Fitch Ratings, Fitch Solutions, airports

ith U.S. passenger traffic now firmly entrenched at pre-pandemic levels, major U.S. Airport Cost per Enplanement Projections: 2023 Versus 2027

(JFK) and LaGuardia (LGA) airports are at the higher end given major redevelopment works. Other airports anticipating the largest increases over the next decade include Chicago’s O’Hare International (ORD), Los Angeles International (LAX) and San Francisco International (SFO), Fitch said. However, the ratings agency does not anticipate the uptick in debt to drive credit pressures for most airports. “Operating revenues from airlines/ non-aeronautical sources, coupled with other airport revenues, should be able to keep pace with the higher financial obligations to service debt,” said Lehman. “Airports are constantly challenged with rising budgets for capital spending needs to meet current and future demand so the ability to execute such plans with little impacts to their respective financial profiles has served the sector well.” Philadelphia Reagan National Atlanta Houston Detroit MSP Charlotte 2027 0 4 8 12 16 20 ($ mil.)

W

Airport Debt Balan

($ bil.) Airport Capital Program Size

airports are moving ahead with capital programs to meet rising travel demand. Fitch Ratings says in a new report that these programs will come with higher costs but it does not anticipate the increase in debt will drive credit pressures for most airports. Federal grants will make up a portion of the capital program funding, though Fitch Senior Director Seth Lehman said that the bulk of the financing will come from tapping the debt markets. “Additional debt, coupled with general inflationary pressures facing airports, will cause the cost per passenger enplanement at large hubs to continue to rise,” said Lehman. The costs at the terminal facilities at New York’s John F. Kennedy International Houston Charlotte Philadelphia Detroit Chicago Midway 0 10 20 30 40 50 LAX SFO Portland San Diego Midway ($)

2023

10 12 14

0 2 4 6 8

DFW

LAX

SFO

DFW

LAX

Dulles International

SFO

MSP

DFW

Atlanta

Denver

MWAA

Portland

Source: Fitch Ratings, Fitch Solutions, airports

Source: Fitch Ratings, F

San Diego

Chicago O'Hare

Source: Fitch Ratings, Fitch Solutions, airports

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Airport Debt Balances: 2019 Versus 2027 Projections

Airport Cost per Enplanement Projections: 2023 Versus 2027

LAX

SFO

MSP

DFW

Detroit

Atlanta

Denver

MWAA

Portland

Houston

Charlotte

San Diego

DATA CHECK

Philadelphia

Chicago O'Hare

Chicago Midway

Source: Fitch Ratings, Fitch Solutions, airports

Airport Debt Balances: 2019 Versus 2027 Projections

Airport Cost per Enplanement Projections: 2023 Versus 2027

2019

2027

2023

2027

($ mil.)

10 20 30 40 50 ($)

12 16 20

0 4 8

0

LAX

SFO

MSP

DFW

Detroit

Atlanta

Midway

Portland

Houston

LAX

SFO

Charlotte

MSP

DFW

San Diego

Detroit

Atlanta

Philadelphia

MWAA

Midway

Portland

Houston

Charlotte

San Diego

Reagan National

Philadelphia

Dulles International

Source: Fitch Ratings, Fitch Solutions, airports

Source: Fitch Ratings, Fitch Solutions, airports

Uneven Recovery The Bureau of Transportation Statistics’ year-to-date data through June 2023 shows U.S. passenger levels at 98.6% of the same period in 2019. When comparing a sample of about half of the 30 largest Fitch-rated U.S. airports, the median traffic level for 2022 was about 84% of the 2019 passenger levels, and the latest forecasts provided by the airports indicate a 94% and 100% recovery by year end 2023 and year end 2024, respectively. Miami International (MIA), Denver International (DEN) and Dallas/Fort Worth International (DFW) are among the airports in the Fitch sample that have led the recovery and now stand well ahead of 2019 passenger levels. In contrast, Portland International PDX), LAX and Philadelphia International (PHL) still are well off their 2019 traffic levels. “In certain markets, particularly for the West Coast airports, Asia-linked operations and passenger traffic through early 2023, still drove weaker than average recovery levels,” Fitch noted. While growth rates are expected to vary significantly, that sample of 15 airports is expected to turn in growth of 5.3% collectively in 2024, and a further 3% increase in 2025. CAPEX On The Rise Airports, and particularly large hub airports, will spend tens of billions of dollars on capital projects over the next five to seven years, the Fitch report noted. Most of the projects continue to employ the traditional approaches for financing and project delivery, where the airport authorities are leading the steps to finance and procure design-build (or design-bid-build) contracts. Some of the high-profile exceptions are the multiple terminal redevelopment projects at JFK Terminals 1, 4 and 6/7). The terminals are privatized under separate long-term concessions with leaders in transportation infrastructure development covering equity sponsorship, construction and operations. LAX, ORD, SFO and ATL each plan to spend in excess of $10 billion updating and expanding their airports, the Fitch report said, with many of the capital programs spanning at least the next five years. Other airports are spending multiple billions of dollars as well.

Projected Traffic Growth – Select Large-Hub Airports Airport 2024 (% growth)

2025 (% growth)

Ronald Reagan Washington National

0.8

0.8

Dulles International

2.9

2.8

Dallas/Fort Worth International

2.6

2.7

Hartsfield-Jackson Atlanta International

6.0

1.9

George Bush Intercontinental (Houston)

4.5

2.2

Minneapolis-Saint Paul International

5.6

5.3

Charlotte International

1.8

1.8

Portland International

13.5

7.4

San Diego International

5.3

3.2

Detroit Metropolitan Wayne County

6.0

4.4

Philadelphia International

10.3

7.7

San Francisco International

15.7

8.2

Los Angeles International

16.9

8.6

Chicago Midway International

1.5

1.0

Denver International

3.0

3.0

Median

5.3

3.0

Source: Fitch Ratings, citing Airports, feasibility reports

CPE Impact The impact on airport costs per enplanement will be significant, Fitch predicts. LAX, for example, is expected to see its cost per enplanement rise to nearly $50 in 2027, versus under $30 this year. Among the airports in the Fitch sample, SFO, PDX, SAN, Midway (MDW) and Dulles International Airport (IAD) are all expected to have CEP in excess of $20 by 2027. In addition, Fitch said that while the privatized aspect of many New York airport terminals means the debt load is lower, the costs are at the higher end give the major redevelopments underway.

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LATEST BUZZ

THE PALM SPRINGS DRAW With Passenger Numbers Rising,PSP Is Adding Concessions, Renovating Gate Hold Areas

BY SARAH BELING

he sunny, vacation-friendly ambiance at Palm Springs International Airport (PSP) is

noting the need for terminal upgrades to accommodate the growth. Known globally as a popular vacation destination, travelers also flock to the greater Palm Springs area for its convenience to Joshua Tree National Park, the Coachella Valley Music and Arts Festival, the American Express PGA Golf Tournament, a variety of food and wine conferences, and the Palm Springs International Film Festival. Noting that their 2022 seat numbers were 22% higher than in 2019, Meier and the PSP team hope to create a more modern

T

Above: Rising passenger numbers prompted Palm Springs International’s gate hold and concessions expansion, a move that is expected to ease congestion and crowding as growth continues.

about to get a major upgrade in both form and function as the bustling facility embarks on a series of renovations at the gate hold rooms of the Sonny Bono Concourse, as well as the installation of new, locally focused concessions and retail facilities. Having clocked nearly 3 million passengers through its gates in 2022, “We’ve grown a lot since Covid,” says Daniel Meier, PSP’s deputy director of aviation,

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service from the Nothing happens at SSP America without people—people who serve from the heart with sincerity and attention to every detail. We’re taking a moment to salute the thousands of food travel experts making it happen in airports across the continent. Thank you for your PASSION and commitment to the team.

LATEST BUZZ

Right: PSP captures a sense of place with its indoor/outdoor facilities. New concessions offerings will enhance the local feel.

passenger space for their growing travel population through a design update to the Sonny Bono Concourse gate hold rooms. “While the footprint of the building is still going to stay the same, it was opened in 1999 and it hasn’t really been renovated until now,. It just screams ‘90s,” laughs Meier. To remedy the retro design, the PSP team is working with architects from Gensler to create additional passenger circulation areas, put in new flooring, and lighting and rearrange and add gate podiums. “It’s not a total renovation, but it’s a nice rehab,” says Meier of the construction, which is set to be completed in early 2024. “We’re bringing the area into looking more like it’s 2023.” Gensler’s vision “was to reflect the mid-century modern architecture found in Palm Springs by capturing the iconic roof profiles — specifically the ‘butterfly’ roof profile within the design of the new gate podiums,” says Neil McLean, senior associate at Gensler. “Additionally, the podium profiles emulate the local mountains that surround the Coachella Valley, forming the backdrop for the city and airport.”

Materials selected by Gensler were chosen to “reflect the local modern architecture with clean, defined lines and textured areas applied to the podium, much like the application you see on modern buildings across the city,” he adds. The design in both the original terminal building and the landscaped central courtyard “is intended to reinforce the history and vacation friendly experience of Palm Springs by recalling the architecture and natural environment travelers experience during their visit,” says McLean. In addition to concourse upgrades, the PSP team plans to overhaul its other popular amenities, spending $4.1 million on a locally focused retail buildout and $11.3 million in concessions updates. The combination of

Covid-closed restaurants and increased passenger traffic necessitated a new vision for PSP’s retail and dining program, says Meier, noting that “we had times that passengers would show up to the airport wanting to grab something to eat before they got on the plane, and the wait to get a table was sometimes up to an hour and a half. You can’t wait an hour and a half just to get your table and eat and still make a flight.” After a previous vendor left during Covid 19 shutdowns, Paradies Lagardère stepped in to operate the airport’s concessions, Meier says. In 2022, the PSP team sent out an RFP for both dining and retail, agreeing to work with Paradies Lagardère and Marshall Retail Group ( WH Smith ) to renovate the airport’s existing restaurants as well as develop a new portfolio of food and retail offerings. “The overarching theme that was really important to the airport commission and our city council was making sure that our airport felt like Palm Springs and the Valley,” says Meier of the concessions program, which will be rolling out new concepts throughout the next year. In addition to new restaurants — the bar Cactus to Clouds, named after the hiking trail by the area’s Mount San Jacinto, as well as a Palm Springs Aerial Tramway inspired bistro featuring Joshua Tree Coffee Company and The Shoppe Ice Cream — Palm Springs locals will recognize airport outposts of area favorites Trio, El Mirasol, and Coachella Valley Coffee Company. PSP’s current restaurants are being rebranded, too. Gate 20’s Buzz by Bar Fly will become Coachella Valley craft beer haven Nine Cities Craft, while the PSP Coffee House and Wine Bar will transform into new restaurant and wine bar Vino Volo. “We really want to put an emphasis on

Left: Like most of the new concessions offerings at PSP, retail stores Hey Joshua and Uptown Essentials draw heavily on the Palm Springs sense of place.

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AX NEWS CUSTOMER SERVICE ISSUE 2023

LATEST BUZZ

local inclusion — not just Palm Springs, but the Coachella Valley and a greater regional area, which also includes what we call the High Desert,” says Meier of the airport’s new vendors. On the retail side, this means opening the Hey Joshua boutique — which will replace current boutique Desert News and features goods found in the national park — as well as a PGA pro shop and Uptown Essentials, a store featuring signature mid-century modern goods from businesses in the Uptown Palm Springs neighborhood. “In total, there are over 40 local regional businesses that are included in some way shape or form within the airport,” says Meier, who adds that the team is also in the process of installing its first-ever duty-free shopping area and several commemorative “I heart PSP” photo opportunities. “We have a lot of fun, local Palm Springs items and many Instagrammable moments.” Acknowledging the airport’s rise in popularity as both a leisure and “bleisure” destination, the PSP team is also in the process of putting together a future view master planning process to further modernize the airport, says Meier. In conjunction with local officials, the airport is currently requesting public feedback on a possible expansion. In the meantime, they’ve also started planning for a $29 million dollar baggage claim renovation, funded in part with $5.7 million from the 2023 Bipartisan Infrastructure Law and expected to begin construction in 2024. The team believes that the continual evolution and modernization of PSP will cement its long legacy as a leisure travel destination far into the future, says Meier. Expanded retail, dining, and passenger areas will also increase

Right, Below: Nine Cities Craft and Vino Volo are being added to the concessions mix at PSP, replacing two existing concessions offerings

airport revenue, he adds, noting that “just having enough restaurant capacity so people actually can eat instead of skipping eating because a table is an hour and a half away,” will greatly improve both revenue and passenger experience. Local leaders agree, adding that they believe an updated PSP will add to the city’s visitor draw. Colleen Pace, chief sales and marketing officer for Visit Greater Palm Springs notes that the tourism group is “thrilled about the upcoming enhancements to the Palm Springs International Airport and the local

experiences that will be offered to visitors.” Citing that PSP was previously named one of the Best Small Airports in the U.S. by The Points Guy Readers’ Choice awards, “these new hyper-local offerings will help to make our airport an even more vibrant and inviting place when traveling to Greater Palm Springs,” she adds. “The expansion and revamping of all restaurants and shops at Palm Springs International Airport embodies our dedication to preserving our city’s character,” adds Palm Springs Mayor Grace Garner. “Emphasizing local involvement ensures that our community is reflected throughout the airport, crafting a welcoming atmosphere that captures the warmth and authenticity of Palm Springs....” Creating that warm, authentic atmosphere in all the airport’s spaces is a sentiment that Meier and the PSP team hope to carry into all of their future planning. “We want to make sure that people feel our Valley’s vibe and experience from the time they step off the plane to when they get back on!”

Left: Cactus To Clouds is one of the new restaurants being added to the Palm Springs International lineup as the airport seeks to right-size its concessions program.

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DIRECTOR’S CHAIR

THE DALLAS LOVE SQUEEZE New Director Patrick Carreno Ushers In More Growth Despite Gate Constraints

BY CAROL WARD

ditor’s Note: Dallas Love Field (DAL) sits in the shadow of Dallas/Fort Worth International Airport but has carved out a unique niche as an alternative airport serving the massive Dallas metro market. Up until 2014, flights to and from DAL were governed by the Wright Amendment, which limited interstate air travel from the airport in an effort to protect DFW from competition. A decade ago the Wright Amendment was repealed, but the airport is still limited to 20 gates and domestic traffic only. That’s become challenging in recent years, the pandemic years excepted, as demand has flourished. Patrick Carreno is the new director in charge of guiding DAL forward. Earlier this year, the city of Dallas appointed Patrick Carreno as director of aviation to oversee DAL, Dallas Executive Airport (RBD), and the Dallas Vertiport (JDB). Previously, Carreno served as assistant director of operations and interim director. AXN’s Carol Ward spoke with Carreno about his goals for DAL going forward. E

WARD: You’ve been leading DAL for about a year, first as interim director and now as director. What were your key objectives when you took over the leadership role, and what progress has been made thus far? CARRENO: Really, it’s been about providing some strong leadership stability. We were going through a transition – we’d had a director who was here for a long time. I looked at our strengths and weaknesses, or opportunities where we can grow, where we can improve. I’ve had quite a bit of time to be able to focus on that, especially during the interim process. I’m big on the team dynamic and creating a cohesive culture. I want people to feel engaged and motivated to work here, Obviously I want the airport to grow, to be efficient and provide stability to the organization. Also, I’m big on communication. I want to strengthen our relationships with our stakeholders, with our partners, with our passengers.

WARD: How is your passenger traffic trending? Have you fully rebounded from the pandemic? CARRENO: We definitely are in growth. We rebounded pretty quickly, being gate constrained. We typically have more business than we can handle. And the airlines continue to make some changes and continue that growth. We’ve exceeded 2019 levels, now we’re growing again. That’s us working with the airlines, that’s the customers in this area, and I think it’s reflective of the growth of the Dallas-Fort Worth area in north Texas. WARD: Remind me, what constraints are currently in place for DAL? CARRENO: We’re legislated by Congress, under the Wright Amendment Reform Act. We are capped at 20 gates and no commercial international flights. The airlines find ways to continue to grow under those constraints. We have the highest gate utilization in the country, so they definitely maximize the use of those 20 gates.

Above: Patrick Carreno, director of aviation, Dallas Love Field.

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DIRECTOR’S CHAIR

WARD: Acknowledging that DAL’s terminal can’t grow in physical size, do you have any major capital projects underway? CARRENO: We recently completed reconstruction of one of our two runways. We’re and older airport and we’re kind of cleaning up the airfield. [We’re also addressing issues] from a landside perspective [with plans to revamp roadways]. We’re an urban airport and we’re looking to enhance the corridor around the airport. We’re doing that what we call streetscape project with new lighting, landscaping, artwork, all on that [landside] corridor. So that’ll eventually probably continue around the airport, but that’s a big project. We’re also undertaking a terminal area master plan right now. WARD: Turning to the passenger terminal, tell me about your passenger experience goals. Is there anything fun or innovative that enhances the passenger experience?

CARRENO: We’re looking at what we can do. We have very congested terminals and part of the allure of Love Field is the ease of use. We’re a pretty big airport now, but we want to make sure we continue that [easy] experience. One of the things our team’s working on is an augmented reality art program - we call it Art at DAL. I think the first airport in the U.S. to have an augmented reality museum experience. It’s engaging, entertaining and educational all at the same time. You don’t need an app, you can just look at these priceless international famous works of art while you’re waiting for your flight, and there will be brain teaser games tied to it. That’s going to roll out soon. Also, last year we did [an experience] called the HeArt Cart, which is a portable mobile art cart that goes around the terminal engaging

Top, Above: With demand high, DAL is asking concessionaires to look for technology that may allow more passengers to be served.

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DIRECTOR’S CHAIR

kids to do projects. It was a really cool idea that our team came up with. Then we’re always looking for accessibility, inclusivity, [with things like the lactation pods and the Hidden Disability Sunflower program]. WARD: How are your in-terminal concessions performing? CARRENO: That’s really been a standout. We’ve had $150 million in sales in the last 12 months. We’re a gate-constrained, small facility so we really have to get creative about how we maximize our concessions. We’re really focused on how we make improvements within the small footprint that we have. We’re overhauling it right now. We have some really good partners and we’re doing some rebrands, some remodeling. The question is, how do we improve the customer experience with a program that people want, with brands that people want, but at the same time throughput people quicker? I hate to say but we’re

almost capped on how much revenue we can generate. So, how do we get past that cap? Our peak day is really all day, every day. We’re always busy because of our constraints, but how do we prevent people from waiting 30 minutes at the Chick-fil-A line? We have a really great partnership with our concessionaires and I think they’re really tuned into the customer experience and bringing the right changes in. WARD: Who are your prime concessionaires? CARRENO: We have HMSHost and Hudson, then a bunch of smaller ACDBEs. We also have Star Concessions and SSP [America]. It’s a great mix. Our biggest problem now is trying to ensure people are able to get to the concession [in a reasonable time]. People don’t want to wait in long lines, and that’s what we have sometimes. We’ve got to think of technology solutions so we’re able to accommodate everybody that wants to purchase something. WARD: Switching gears, I’ve read that DAL has new technology that captures wind from jets and converts it to electricity. Can you tell me about that or any other sort of sustainability-focused efforts you have underway? CARRENO: We’re tuned into sustainability. This effort of our latest one, partnering with Dallas-based JetWind Power Corporation. We think it’s revolutionary, [technology that captures and converts wind generated from an aircraft into clean and sustainable energy]. It’s in the pilot program stage, but it’s something that we think an airport like Dallas Love can scale up and get significant benefits.

Above: The DAL team launched a customer service initiative designed to appeal to the airport’s junior travelers: a mobile cart that encourages art projects on the go.

Left: Dallas Love Field is limited by law to just 20 gates. With demand high, the airport is struggling with busy concessions and crowded gatehold areas.

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Check out our new 20 Years, 20 Voices series of the AX INSIDER podcast as we celebrate 20 years of the Airport Experience Conference.

TO LISTEN TO THE AXINSIDER PODCASTS, VISIT AIRPORTXNEWS.COM/AXINSIDER

DEMAND

FOR DATA

Airports Push For It; Partners Want Transparency And A Two-Way Street

BY ANDREW TELLIJOHN

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Collaboration between airports and stakeholders, ranging from concessions operators to the Transportation Security Administration, reached new levels during the pandemic as everyone worked together to ensure the survival of both individuals and businesses. Now, with the pandemic in the past, the industry solidly into recovery mode and technology advancing all the time, some airports are making a push to formalize and require data sharing going forward. Stakeholders aren’t necessarily saying no, but they have expressed concerns about just exactly what data is being shared and how the sharing takes place. They also want transparency and a two-way street. Good For The Experience One airport upping its efforts to improve the flow of data between partners is Phoenix Sky Harbor International Airport (PHX) . Executives there say that information can positively influence the customer experience. “Transaction level customer data helps us better understand occupancies and customer preferences to ensure we are providing the right services to the right customers at the right time,” says Heather Shelbrack, deputy aviation director at PHX. “We strive to continuously improve the customer experience. We’re looking at the customer journey and want to produce a seamless experience for our customers. This data sharing will allow us to keep up with our customers’ expectations.” Helps With Efficiency While the country and industry are well into recovery from COVID, there are still labor shortages, capacity issues, difficulties in delivering flights on time, decreases in the availability of bonding and other challenges that trickle down into airports that are still getting back to normal. “That’s going to mean that some of these service pressures are going to stay with the industry for some time,” says Steve

Van Beek, director and head of North American aviation with Steer . “So, what that ultimately means is you’ve got to find a way to operate your facility more efficiently in the meantime, unless you’re going to have a bunch of miserable customers.” Therein lies the need for the data, Van Beek says. “Where can you get data from to try to use your facility more efficiently?” he asks rhetorically, pointing at the companies that manage parking and ground transportation, concessionaires, airlines, ticket counters, gates and the Transportation Security Administration among them. Getting that data can help with maximizing personnel, making real-time adjustments to staffing or merchandise mix or better utilizing gates. “There is more real-time data today,” he says. “Cars are tracked on the curb, the numbers of people through checkpoints and occasionally monitoring of people movements through cellphones, cameras and other real-time monitoring. “This makes facilities, such as roadways, curbs, terminal space and gate hold rooms able to be managed better and allows all of the stakeholders to right-size their workforces or look to technology solutions to replace human resources.” Gaining Traction PHX isn’t the only airport seeking to make data sharing mandatory at some level. Many are in various levels of doing so or planning to. An industry consultant provided AXN with snippets from three documents: • A standard lease provision from Ra leigh-Durham International Airport (RDU) requiring authority-approved computerized point-of-sale system. Oper ator’s must “provide the Authority with real-time access to such system.” • A March 2023 Food Service RFP issued by Albuquerque International Sunport (ABQ) requiring concessionaires to make available transactional data for all sales transactions, on a continuous, real-time

basis, using their point-of-sale system. The city will provide the interface to facilitate the data transaction “to ensure the data is received in a secure and timely manner.” • A lease at Fresno Yosemite International Airport (FAT) that says “City shall have the right to: (a) examine during business hours the total of any POS used on the premises and to inspect such POS for compliance with this section; (b) imple ment an hourly or daily reporting system with which Concessionaire shall comply; and (c) implement a common-use POS, in which event, Concessionaire, must, at its cost, purchase and install the neces sary equipment, train its employees and thereafter use, such equipment to take part in such a system.

Above: The use of technology-generated data can be a huge catalyst toward improving customer experiences at airports, says Oris Dunham, founder of the Dunham Group.

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The Fresno lease item also includes a requirement that concessionaires ensure the POS allows for the installation of airport or airport partner applications that can be integrated to exchange data and make possible future opportunities to support passengers and airlines with vouchers, coupons and other mutually beneficial marketing programs. The American Association of Airport Executives also is working on data sharing through its Airport Consortium on Transformation program. The organization has been putting together pilot programs to test initiatives across several areas of the industry, particularly over the last few years, and one of its working groups is studying technology and data sharing, says Carter Morris, executive vice president. The organization’s digitization working group is working on several initiatives relating to sharing data among airports and between airports and their partners, he says. There are no pilot projects in play yet, but “that group right now is in the formative stages in identifying what data feeds and data elements would be the most helpful,” he says. “There are a number of paths they’re going on.”

Almost Inevitable In some ways, with improvements in technology and the ability to monitor passenger movements in nearly real-time, the seeking of data to maximize potential makes sense. It has some big-time supporters. Oris Dunham was a director at three large hub airports, head of ACI World and remains in the industry as managing partner of the Dunham Group. He acknowledges that, for example, Delta Air Lines probably isn’t eager to share customer data despite the advantages it might provide for airports. But with technology, starting with smart phones that create so much usable data, he believes sharing it is the best way to improve on the experience. “I think this is probably our future for our we are going to make things better,” he says. “I really do believe that technology and AI (artificial intelligence) is going to be interesting. It scares a lot of people, but I just think it’s going to be one of the most interesting things that’s going to happen in the next 10 years.” The Oliver Wyman consultancy agrees. In a recently published article on the evolution of airports, the company called

Above: Phoenix Sky Harbor International Airport is working with partners to determine how to better collect and disperse data to understand its travelers better and improve their experience.

Above: Travel Retail Partners Founder Stu Holcombe loves using data but wants to make sure when its shared with airports, the parameters of use are defined and that the flow goes both ways.

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Left: Roddy McOwan, chief development officer at WH Smith North America, says he believes data sharing can be helpful for all parties, but cautions about the need to protect customer information from hackers.

Left: Pat Murray, deputy CEO at SSP America, says that while data sharing can be helpful, it needs to be handled safely and parsed responsibly once in an airport’s hands.

technological innovation one of five major disruptors that will cause the airport industry to evolve in the future – and adds that its data sharing that will maximize such innovation. “The enormous potential of technology will not be realized without alignment and collaboration between regulators and the industry on data sharing,” the company wrote. “Maximizing the value of new technologies requires airports, regulators and other members of the travel ecosystem to design and operate according to open architecture that allows seamless data sharing across multiple stakeholders, while maintaining safety and security.” Not Without Concerns While nearly all stakeholders are aware of the desire and push for greater sharing of data, the topic brings with it some reservations. Concession operators, consultants and other stakeholders have mixed feelings. Some don’t mind the idea of sharing data but would like to exercise some control over how the data is transferred. Others want to make sure that their sharing data comes with some benefits in the end. “We have no problem in data sharing with any of our clients in the grand scheme of things and, in fact, all stakeholders should be vested in doing so to help improve the overall customer experience,” says Roddy McOwan, chief development officer at WH Smith North America , which is comprised of Marshall Retail Group and InMotion. Such sharing of profit and loss information at certain agreed upon times, he says, helps all sides understand the impact of airline movements, consumer buying habits, trends, competitive activity and the ongoing ability of the operator to achieve or exceed projections.

On the cautionary side, McOwan notes that sharing directly from point-of-sale systems to airport IT departments creates the possibility of security or data breaches. “I personally believe there are other methodologies for reporting information in a more controlled manner without risk of access by third parties or hackers,” he says. McOwan would also like to get a couple things in return. First, he’s found it difficult to get from airports historical sales data during an RFP process – which he says dilutes competition and creates a benefit for incumbent operators “which does not set an RFP process up for transparency or success.” Seeking In Return … As these data sharing requests evolve, McOwan would also like to see the industry adopt a uniform process. “It would be great if the airports could adopt a standard around the minimum data elements required, the format and the method of delivery of reporting data,” he says. “We end up recreating essentially the same data for each airport in a different format.” Stu Holcombe, founder of Travel Retail Partners , says he loves data and finds it useful, for example, in helping specialty retailers make sure their locations are or will get enough foot traffic to justify a store. When it comes to sharing it with airports, he’s open-minded, but also a bit skeptical. “The real question that comes to me is they’ve never really clarified why,” he says. “What is it that we want to do and what do you want my data for and how am I going to help you engage customers. To me that’s an unknown.” Airports, he adds, in many cases already have the capability of gathering a lot of useful customer data on their own using beacons and other technologies -

investments many made years ago. Yet, on the other hand, there is data the airport is collecting that it won’t share with partners. “They can’t tell me right now how many people are going into airline clubs and third-party clubs,” Holcombe says. “Yet the information is there. It seems to be a one-way drive and not a sharing.” Pat Murray, deputy CEO at SSP America, says it’s a complex issue. All passenger data, he says, has some value from a commercial standpoint and, much like airlines don’t want consumer information shared, concessionaires want to have control over how their data is used. He agreed with others’ concerns about the security of data as it’s transmitted and wondering what is going to happen with the data once the airport has it. Customer information, he says, must be protected. “Once you’ve provided the data, that’s the scary part,” he says. “If you’re American or Delta, you don’t want the competitor to have all that information. So, how could the airport get the information and agree to only bifurcate it or segregate it in some capacity?” Van Beek, from Steer, agreed the process of data sharing needs to benefit all parties. And PHX officials, who provided written answers to questions, agreed the data being shared should be transparently agreed upon and useful. PHX is in the early stages of negotiating specifics with tenants on how to implement the sharing efforts. But Shelbrack adds that data is or has in the past been used to provide weekly passenger forecasts to retail operators so they can plan staffing and for analyzing passenger flow from the curb to gates so the airlines can plan load balance where possible and improve efficiencies. “Data sharing will allow us to work with our operators to meet our customers’ expectations,” she says.

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THE CUSTOMER SERVICE IMPACT Concessionaires Are Prioritizing The Guest Experience Like Never Before

BY SALLY KRAL

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Perfecting the traveler experience has become a pinnacle goal for airports and their concessionaire partners, an ambition that goes far beyond simply providing a safe and seamless journey through the airport to the plane. Any opportunity to ease stress, eliminate or reduce friction and provide extraordinary service to passengers who are dining or shopping is a win for the airport and its concessionaire partners. In fact, according to customer experience consulting firm CXE ’s 2023 Airport Customer and Employee Experience Survey, customer experience in the airport is overwhelmingly of the highest importance to survey responders, which included airport officials, airport food and beverage operators, airport services providers and more. Additionally, nearly 80 percent of these responders currently have customer experience identified in their strategic plans. “We’re noticing that brand experience has become paramount to airports,” notes Lise D’Andrea, president and CEO of CXE. “And we also see concessions teams adopting a mindset of this brand experience across their entire program in an airport, which is really exciting.” This could be a holdover from the height of the pandemic, when public safety and satisfaction were top of mind for operators as customers started returning to travel and dining, but it doesn’t seem to be changing even as pandemic worries are largely behind us. “I think more so than ever customer service is the differentiator for hospitality providers,” says Kim Condon, guest services manager for Areas USA . “Yes, good quality food and beverage are important, but if the service was terrible, you have lost a customer.” Coupled with this focus on customer service is a greater concern for employee experience, especially considering how difficult it has become to attract and retain talent since the pandemic hit, plus the fact that good service ultimately depends on the employees providing it. From surveys and audits to training and incentives, concessionaires are using various tactics and strategies to ensure that the synergistic relationship between employee and customer is in a positive balance. Analyzing The Data Virtually all airport concessionaires have ways to collect data on how or whether they are meeting guest expectations.

Paradies Lagardère, for example, uses “a variety of methods and tools to monitor customer service and our efforts are ever evolving as technology continually offers new options,” says Nikki Tinsley Harland, chief operations officer. One way – common among concessionaires – is simply providing a customer survey link on the bottom of receipts that allows travelers to share feedback on their experiences. “These are monitored daily and results are shared directly with the appropriate operation or department,” Tinsley Harland says. Areas USA’s main tool for measuring customer service and satisfaction is Net Promoter Score (NPS) surveying, as well as comments received through its guest email box. “We have QR codes on receipts and on tables, and some of our concepts print larger signs to encourage guests to complete the survey,” says Michele Garcia, director of learning and development. “In addition, some of our branded concepts, such as Wendy’s , survey our guests, so we also take that information into account.” Delaware North has a “Voice of Guest” survey that is available at each of its airport locations. “The survey has a closed-loop feedback system and notifies team members by email and a mobile app,” notes Kathleen Batten, director of customer insights. “Its capabilities help guide the program and manage guest contact to both resolve service failures and celebrate service excellence.”

Above: The best customer service often begins with proper training. In August Areas USA launched its “Brilliant at the Basics” guest experience program, which focuses on four key service standards.

Michael Svagdis, CEO of SSP America , identifies three main tools that the company leverages to measure customer service and satisfaction. The first is called the “EatontheMove” program, which collects data through 1-800 and web-based comments. “This information is then tabulated and reported to our COO and regional vice presidents, who are required to respond within 24 hours and address any challenges, celebrate success and provide training when needed,” he says. “I love to post particularly positive remarks on my social media feed.” The second tool is an Online Reputation Management (ORM) platform that aggregates passenger feedback on business review sites, and the third tool is SSP

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Above, Right: HMSHost associates and managers are trained to listen for verbal cues and be observant of non-verbal cues that may indicate a guest is unsatisfied. Guests may also share feedback on comment cards available at each of the operator’s locations or via a QR code printed on every receipt.

America’s own surveying. “In 2022 we conducted the largest Global Customer Survey in our history, interviewing 18,000 customers across 25 markets and collecting approximately 3 million data points,” Svagdis says. “SSP surveys its customers approximately every two to three years. The resulting data helps us understand consumer preferences and we were able to identify seven customer segments and six need states to understand customers’ expectations. All segments exist in all markets, and there are more similarities than differences between markets.” HMSHost has a variety of ways to capture guest feedback, both during their dining experience and after they have left their restaurants. “To measure customer service and satisfaction in the moment, associates and managers are trained to listen for verbal cues and be observant of non-verbal cues that may indicate a guest is unsatisfied,” notes Richard Bennett, executive vice president and COO. “For those guests who opt to share feedback after their visit, they can do so via comment cards available at every location, a QR code survey printed at the bottom of their receipt, the guest feedback form on our website or social media. By consistently tracking these interactions over time, we can identify areas for improvement and celebrate successes to

reinforce customer service excellence.” Tastes on the Fly also utilizes QR codes on tables, receipts and check-out stations to promote and collect guest surveys, with participants receiving a $5 discount to be used at any of the operator’s restaurants for completing the survey. “The guest survey is hosted by a third party company called Integrity Defenders , which collects the data from these surveys, as well as from social media and online reviews, and provides an immediate notification to our teams, including our front-line managers, directors of operations and me,” says Tastes on the Fly CEO Edie Ames. “This immediate notification helps us either reward the team or diffuse the situation in real time—often before the guest even leaves our doors. Integrity Defenders also provides weekly reports and a 24/7 dashboard to help our managers focus on any trends that might need to be addressed. These reports are in addition to our restaurant managers who are on the floor at all times reinforcing our mission.” Social Media Impact Measuring the guest experience through direct feedback is crucial, but it’s also important for companies to keep tabs on what customers are saying about them on third-party sites. Several airport concessions

companies use third-party solutions to track what their customers are saying online. Whether monitored internally or collected through a third-party site, comments made on review or social media sites can inform companies of where they’re excelling and where they fall short. “Utilizing and monitoring social media channels is an excellent way to gain real-time service results,” says Paradies Lagardère’s Tinsley Harland. “Customers share feedback with us directly on our own platforms, including Facebook, Instagram, and X (formerly Twitter). “Additionally, we are fully aware that travelers provide opinions on more broad based sites like Yelp, Tripadvisor, and Google,” Tinsley Harland continues. “To capture as much of that earnest feedback as we possibly can, we utilize a third-party customer review management solution, which allows us to review tailored reports that centralize customer reactions from a variety of sites so that we may review, analyze, and respond. We can then accurately evaluate our services levels, interact with customers if necessary, and share positive feedback with our associates, which we love to do.” For reviews posted online, Delaware North uses an all-in-one review management system to leverage actionable review insights and to understand what customers are saying about their experiences. “Through

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