Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction (2014)

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90 This chapter discusses the human engineering factors that encompass human behaviors and the emotional processes behind them as pertaining to passenger purchases at airport terminals. Analyzing these human engineering factors has revealed a distinct set of needs and priorities for airport customers based on changing needs at various times during their visits. 4.1 Human Engineering Concepts To the airport customer, the different needs can be divided into two distinct and often very different experiences: landside (all actions taken before completing security screening) and airside (post-security screening). Landside, customers’ behavior and mindsets are focused on accomplishing two tasks: check-in and security. Airside, behavior varies according to individual needs and preferences, frequency of travel, and trip type (business or leisure). Airport owners and operators can increase customer satisfaction both landside and airside. Improving sales performance presents primarily airside opportunities. While human factors and preferences are universal throughout all commercial and public spaces (such as the need for clear navigational signage), airports present two unique challenges. The first challenge is to alleviate stress and anxiety, as well as cater to basic customer needs. Airport customers enter the space with a heightened need state, increased stress levels, and, depending on their frequency of travel and familiarity with the airport, anxiety about the airport visit process. The second challenge is to accommodate the need to increase physical space and comfort. Airport passengers have a bigger “body bubble” than they normally would because they are navigating spaces while strapped with backpacks and pulling rolling luggage. Passengers desire to speed up their check-in processes and avoid ever-growing airline check-in luggage fees. Accommodating these mental and physical needs and providing needed/wanted customer products and services to improve the customers’ experiences are the key challenges of the airport operator. 4.1.1 Airport Customers The traditional business and leisure traveler split has continued to be supported by studies as two clear groups with distinct needs and behaviors. Though most airport customers fall into these two major behavior patterns, the landside airport environment also encompasses a third user: those accompanying departing passengers or waiting for arriving passengers. These customers are a key demographic for retail and food concession operators. Human Engineering Considerations C H A P T E R 4

Human Engineering Considerations 91 4.1.1.1 Business Travelers Business travelers plan the least amount of time for their airport visit and are most familiar with the offerings available at the airport. As such, they will explore the airport less, and their retail and food spending is commonly planned (if not outright restricted by per-diem and receipt-keeping restraints). For these customers, increasing satisfaction often means increasing efficiency and minimizing delays. The vast majority of business travelers are alone, with only a fraction traveling with colleagues and even fewer with friends or family. Additionally, they travel light, move fast, and exhibit predictable and consistent airport behaviors. 4.1.1.2 Leisure Travelers In contrast, leisure travelers plan the most time for their airport visit, arriving far earlier than business travelers, and are more interested in shopping retail and food concessions. These segments offer a better opportunity to improve revenue performance at the airport as their increased time at the airport and interest in concessions can result in higher sales. When considering human factors related to leisure travelers, a key difference is that the leisure travelers are most likely to be traveling with others, with the majority traveling with friends or family. Group travelers move more slowly and crowd tight spaces inadvertently; this is a consideration that should be taken into account when designing spaces for these travelers. 4.1.1.3 Landside Guests These non-travelers were the most likely to plan to visit food and retail options at the airport. They were also the most likely to state that “sitting and relaxing” was a part of their plan for their airport visit. Although non-travelers compose a small portion of the total airport customer base, airport design should still consider this group by offering lounges or comfortable seating areas, adjacent casual shopping, and food and beverage concessions. 4.1.2 Landside Behavior Landside behavior is largely procedural with an emphasis on completing check-in and security. Landside behavior showed little opportunity to increase concession sales and airport revenue from customers visiting the airport for departing flights; in surveys, passengers responded that they preferred to wait until after security to visit any retail or food concessions. Departing passengers cited the most stressful parts of the airport experience as check-in and security. Therefore, by minimizing the anxiety of these two processes, the landside does offer an opportunity to improve overall customer satisfaction. 4.1.2.1 Check-in Of all the activities that add stress to the airport experience, check-in was cited by respondents as the most stressful. Unsurprisingly, check-in counters and kiosks were the first destination of nearly every departing passenger; this process was the sole task that passengers felt needed to be completed landside. As airlines increasingly require passengers to complete more of this process themselves, with kiosks for check-in and drop-off points for baggage, check-in has become a larger source of anxiety. Especially for the inexperienced traveler, the check-in process can be intimidating and require assistance from airport personnel. To reduce anxiety, airport terminal planning and design should focus on wide areas for self-check kiosks that accommodate baggage and groups. Long rows of check-in desks should also feature easy-to-spot signage that clearly calls out the airline operators and is visible from afar.

92 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction Open sightlines to baggage drop and clear signage to security also alleviates these top sources of anxiety. Landside, passengers spend the majority of their time at check-in. In an observational study, few passengers visited any retail or food concessions, and surveyed passengers showed little interest in offerings here (15). When asked why they choose not to purchase food or retail landside, most passengers responded that they preferred instead to complete the next big obstacle: getting through security. In planning for retail and food offerings landside, the design should primarily focus on the small number of non-traveling airport customers who are waiting for arriving guests. As non- travelers are the most likely users of these services, these spaces should offer relaxing places to wait (in view of an arrivals/departures FIDS), and include snack and beverage products, rather than full-service meals. 4.1.2.2 Security Following the first destination of check-in, two-thirds of airport customers typically head directly to security (15). In fact, few customers visited any landside area other than check-in and security. With customers’ tunnel-vision toward completing their primary tasks of check-in and security, there is little opportunity for the airport to increase revenue. However, by focusing on their immediate needs, proper airport design and signage can increase customer satisfaction. The most stressful aspects of security are long waits and seemingly slow-moving lines. Terminal designs and informational displays should work to alleviate the uncertainty of the wait time. One best practice is the use of display signage that explicitly states the average wait time at certain points, as this helps customers plan and, in turn, alleviates anxiety. For example, while the long lines at Orlando International Airport can appear daunting to customers, the airport has borrowed from the neighboring theme parks to offer static signs that read, “15 minutes wait from this point.” Not only do these signs alleviate anxiety among passengers, but they also manage expectations—a key factor in increasing satisfaction. Like check-in times, wait times at security are often overestimated by departing passengers. The perception of long wait times are more destructive to satisfaction than actual line queue waits themselves, and reducing the perception of time spent waiting can help to reduce anxiety. In addition to communications regarding line queue timing, airport operators can integrate television screens and digital signage in the security and line queue areas for other programming. Best practices in other industries, from banking to grocery, have shown that giving customers screens to watch or signs to read while in line can reduce the perception of time spent in line. For airports, offering a map of retail and food concessions to the queue can perform a double duty; it allows shoppers to plan their next moves, and it also increases revenue at concessions. The signage allows shoppers to have a clear plan of action for their remaining time. 4.1.3 Airside Behavior Overall, airport customers spend over two-thirds of their total time in the airport airside. Customers spend most of their landside time focused on the check-in process, and once in airside, their behavior is more varied. Customers often plan to visit concessions; sit and relax; use the restrooms; shop retail (including duty free); or read books, magazines, and newspapers. The activities airside passengers pursue post-security highlight that, once the anxieties of check-in and security have passed, travelers are open to exploring the airport. This exploration represents the greatest potential of their visit to capture additional sales and increase airport revenue.

Human Engineering Considerations 93 4.1.3.1 First Destinations Universal behavior at transit hubs (for example, airports and train stations) nearly always involves passengers looking to establish their bearings. The first stop, invariably, is the departure board. More than 85 percent of travelers in any airport or train study have begun their journey at this point (15, 16, 17). Anything located before the departure board is generally ignored, and it is not until customers have confirmed the status of their flight and the gate location that they begin to look at food or retail concessions. The departure board (post-security) marks the point at which visitors check their watches, evaluate the retail and food concession offerings, and plan their journeys. Airport operators should use the departure board as a road map for passengers by offering clear directions to gate areas, estimated times to travel to the gates, and a guide to concessions and retail offerings for passengers. Passengers surveyed about their needs post-security screening stated that food and drink was most often the first priority (15). Decisions on where to eat and shop are most likely to be made at this point in the trip; consequently, the options not presented here are the least likely to be considered by post-security airport customers. 4.1.3.2 Need To Be at Gate Passengers’ anxiety is at its lowest while at the gate. In fact, departing passengers spend the longest amount of airside time at their gate, and over half cited the desire to “sit and relax” at the gate before their flight as something they hoped to do. Comfortable seating options would decrease anxiety and, in turn, increase satisfaction. Notably, leisure travelers were more likely than business travelers to desire sitting and relaxing before their flights. However, seating has traditionally not accommodated leisure travelers, who tend to cluster in groups. While long rows of seats accommodate the solo business trav- eler well, they ignore the realities of groups, particularly families. Families do not naturally sit in rows. cluster seating at JFK, shown in Figure 4.1, utilizes beanbag-style seating to provide a comfortable alternative to the standard holdroom seating. Airports should accommodate group travelers with flexible seating options that allow passengers to move seats into clusters that face each other. Similarly, passengers who purchased food were likely to bring this food to the gate, yet few tables exist outside the clustering of restaurants. Accommodating passengers’ Source: AirProjects, Inc., 2013 Figure 4.1. Cluster seating at John F. Kennedy International Airport, Terminal 5.

94 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction existing behavior by including tables at the gates would increase passenger comfort and satisfaction. The human behavior factors that cause passengers to wait at the gate may be the same ones that drive passengers to consistently check the departure board as soon as they enter; passengers feel the need to track their flight statuses and complete all required tasks. As airports move to create concession clusters in more central areas of the airport, accommodating this need to view the departure board is essential to prevent customers from abandoning these clusters until they are required to be at their gate. An abundance of departure FIDS—within retail outlets, at waiting areas, and even at individual tables—allows passengers to keep control of the situation and continue exploration of the airport. Further, as passengers make more use of mobile phones as a departure board, the opportunity to create smartphone applications (“apps”) becomes more prevalent. In addition to offering departure information, mobile apps should offer a road map of services available or even the closest outlets available. Push notifications that alert passengers when they need to be at their gate would give them the reassurance that they can continue shopping and exploring rather than sitting idly in the gate area. Alternatively, if passengers need to be at the gate, concession products can be brought to them. In Copenhagen’s Kastrup Airport, for example, many retail outlets are among the holdrooms, offering seats adjacent to cafes and shops, as shown in Figure 4.2. As passengers board the air- craft, they are led to a lower level below the retail concourse. Waiting at the gate is waiting among concessions, and one does not prevent access to the other. Also shown in Figure 4.2, in New York City at LaGuardia’s Delta gates, airport concessions have iPads stationed at tables throughout the gate areas that allow customers to access the Internet, as well as place orders from the nearby café and have them delivered to customers’ seats. (a) Holdroom concessions (b) iPads in gate area for placing concession orders Source: Envirosell, 2013 Figure 4.2. At-the-gate concessions in (a) Copenhagen’s Kastrup Airport and (b) LaGuardia Airport.

Human Engineering Considerations 95 4.1.4 Planning for the “Backward Stroller” When considering human factor engineering, airport operators face a unique challenge of needing to provide space that is accessible to people who are unaware of their personal space. Passengers are often pulling a “backward stroller” of luggage behind them. A parent pushing a stroller is aware of the space they are occupying, but people pulling luggage are largely oblivious to their spatial mass. As airlines continue to charge for checked baggage, passengers find ways to carry more with them to avoid the airlines’ fees. Aisles throughout concessions need to be wide and account for these customers, so as to not impede traffic flow or the spatial needs of others. 4.1.5 Food Service and Retail Concessions Currently, both airport and train research shows that most departing passengers plan their food and beverage purchases ahead of time (15, 16, 17). Those who purchase food without planning cited, “I realized I was hungry/thirsty” as the primary reason for adding this to their trip. An airport operators’ objective should include making food service concessions easy to find, catering to those who plan ahead, and offering fast service for those who may be making an unplanned stop. To aid the pre-planned visit, airport operators should consider alerting passengers to the food service offerings prior to their arrival. With more cities planning light rail travel to the airport, such as the light rail that links the city of Minneapolis to the airport, messaging within the train provides the airport with an ideal opportunity to present food service options that departing passengers will soon encounter. Retail shopping among airport customers was less frequent than food service purchases. Certain factors add to the likelihood that airport visitors will choose to shop. Primarily, the longer the customer’s wait at the airport, the more likely they are to shop (shopping is not always a cure for boredom—these long-wait visitors were very likely to have planned to shop at the airport). 4.1.5.1 Increasing Revenue at Food Service Concessions Freshness and price are typically customers’ top food service needs. In planning food service concessions, focusing on these two needs will accomplish both goals of increasing sales and revenue as well as customer satisfaction. Conversely, the actual behavior of customers showed they are most likely to visit food service concessions that have (1) short lines and (2) clear options. Both allow for smooth transactions that enable passengers to better plan their limited time in the airport. Long lines with indeterminate wait times were a deterrent to food service establishments and often received the lowest satisfaction ratings from passengers. Despite citing a desire for freshness, passengers also gravitate toward fast-food options, citing them for speed and ease of ordering. One often overlooked element in planning for human behavior is the effect of the queue on the storefront. While storefronts may (and should) be designed to be open, drawing in interest from passing traffic, in reality long queues often become a negative aspect for the establishment. For example, at the Dublin airport, deli cases were often used to display food and convey a sense of freshness. However, long queues blocked views to the deli cases, and customers were unable to make purchase decisions until they reached the counter. This further delayed the process and elongated the queue, leading to increased walkout rates. Food service establishments must plan for waiting customers. Even the best-run establishment experiences crowding at peak hours. Keeping storefronts open and visible, providing menus that are visible before joining the queue, and offering a perception of freshness are important factors in achieving high customer satisfaction.

96 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction Another problem in food service establishments came from menu boards that were often not complete (or simply not offered), which confuses the ordering process and further elongates the queue. As airports move toward offering more local and branded food service establishments, ensuring that passing customers can easily determine the menu is important. All restaurants should have easy-to-read menu boards to aid in customer selection. Lastly, managing perceptions of pricing is an important step in meeting passenger needs and increasing shopper conversion within establishments. London Heathrow’s Terminal 5 promotes “High Street” pricing and Portland International Airport offers “street pricing” to combat the perception that the airport is inflating prices. Outside of duty free, customers rarely feel that they “got a deal” (a feeling that increases customer satisfaction) in airport establishments. 4.1.5.2 Increasing Revenue at Retail Concessions Leisure travelers were the most likely to plan long dwell times at the airport before their flights, so some retail may carry products that would appeal to those on vacation. As certain demographics (such as leisure travelers and women, who tended to spend more time shopping) exhibit different behaviors, retail concessions that can adapt to changing conditions in the airport through the week or day may best serve passengers’ needs. For example, showcasing products for leisure travelers on Sundays and business travelers on Mondays may maximize the sales potential of retail concessions and generate higher revenue for the airport operator. One of the challenges for airport retail concessionaires is that airport shoppers are on the go. Despite carrying luggage, they lack much, if any additional space to carry items purchased and they are typically limited to the reserve space in their luggage or simply their hands. Airline restrictions may even prohibit passengers from taking a newly acquired shopping bag full of pur- chases onto the plane if their carry-on limit has already been reached. In many ways, the retail concessions need to conform to this limitation. Many of the products offered should be small, portable, and light. However, it appears that in an era of Internet shopping where customers are “showrooming” traditional retail outlets (viewing products in a store and ordering online), there is an opportunity to encourage using the stores as showrooms. New product categories, such as electronics or housewares, may be showcased at the airport, purchased, and shipped home. Moving beyond souvenirs and travel pillows, the airport concessions could offer the same full browsing experience that shoppers seek at large retailers. Whereas retail outside of the airport has seen a convergence between the online and in-store sectors, retail in airports seems to have a limited to non-existent online presence. Airport operators may benefit from becoming more connected to online retailing by adopting practices such as allowing customers with travel plans the ability to pre-shop duty-free options; they could also allow customers to pre-order items to be ready for pickup upon arrival. Such an online presence can make airport retail operators more competitive with their off-airport counterparts. Cathay Pacific begins the duty-free experience online with a preview of the items available for purchase. 4.1.6 Arriving Passengers While most airport food service and retail concessions appear to be aimed at passengers coming to the airport to depart on a flight, less consideration is given to those who are arriving and passing through the airport upon arrival. For passengers arriving at the airport, concessions should be fast and easy. A purchase should be something that can be accomplished within a similar amount of time as it takes for checked baggage to arrive. Following the same guidelines for all airport concessions—easy-to-read menu boards, efficient operations, and short lines—should also benefit these customers. Food service

Human Engineering Considerations 97 options should be easily portable—to the train, to the city, the taxi ride to the hotel, or the drive home—as well. 4.2 Conclusion The more airport terminal design reduces anxiety and uncertainty among airport customers, the more customers are open to the idea of exploring food service and retail offerings, resulting in increased sales and ultimately, additional revenue. Additionally, providing opportunities for customers to stay updated on the status of their flights throughout the terminal will make them feel more comfortable to wander from their gate areas. Strategically locating maps or directories that outline the full array of concessions in the terminal aids customers in making informed purchase decisions, thereby further reducing uncertainties and resulting in enhanced passenger satisfaction. Unlike when they visit off-airport establishments, airport passengers are carrying more than just a purse or umbrella. The addition of a carry-on bag and/or briefcase or backpack means that their maneuverability is compromised. Wider aisles and organized queues are important in help- ing passengers gain access to concessions and manage their space, resulting in higher satisfaction for them and their peers. These physical limitations may also restrict passengers’ ability to make retail purchases. Items that do not fit in their accompanying bags may not be bought, and shipping options should be offered. Finally, flexible seating options should be offered that account for the variety of travelers visiting the airport—from those that want to be alone to those traveling with extended family or a group.