Improving the Airport Customer Experience (2016)

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57 This chapter examines the types of passengers and their key characteristics. For the airport customer service manager, understanding the airport’s customer profile and demographics (including the nature of the passenger traffic) is important in planning and prioritizing cus- tomer service improvements and concessions (including new services and amenities), as well as in successfully responding to the needs, wants, and expectations of each customer market segment that the airport services. This chapter discusses the following classifications of airport customers: • Domestic passengers, • International passengers, • Non-passenger customers, • Families, • The aged and aging, and • Customers with special needs. The chapter then discusses clarifying and understanding customer needs. Airport customers often fall into multiple categories. Depending on the type of customer service enhancement that the customer service manager is contemplating, it is important to consider these categories and other customer demographics such as the customer’s gender and socio-economic and cultural profile to adequately assess the needs, wants, expectations, and satisfaction gaps of the specific customer types who may use the service enhancement and compare it to its revenue potential. Figure 4-1 shows passengers classified by their status (domestic or international), purpose of travel, airline class of service, direction of travel (arriving or departing), origin, frequency of travel, length of trip, whether special assistance is required, and their mode of access to the airport. Three passenger profile examples are shown in Section 4.7. 4.1 Domestic Passengers Domestic passengers are divided into two categories: business and leisure. 4.1.1 Business A small number of business travelers tend to account for a high number of trips. Business travelers tend to be more frequent travelers than leisure passengers. The most frequent travelers are likely to belong to airline clubs. Business travelers are on a schedule and therefore spend less time in the terminal, both prior to departure and after arrival. They are more likely to be carry-on passengers and to bypass C H A P T E R 4 Customer Service Needs and Expectations by Customer Type

58 Improving the Airport Customer Experience arriving concessions. Because they have a limited amount of time, they tend to make purchases near the departure gate or along their routes to the departure gate, and they are less likely to wander, browse, and shop casually. Business travelers are less price sensitive than other passengers, are likely to be on an expense account, and (depending on the amount of time available) may be more likely to purchase a meal in a restaurant than fast food to take away. They are good purchasers from convenience retail units, where they buy newspapers, magazines, business publications, mints, gum, water, and other items. They are unlikely to be accompanied by family or friends, and only a small percentage is likely to be traveling with business associates. Business travelers value their time more than other passenger segments. They appreciate free Wi-Fi to stay connected and power outlets to stay charged, and they like quiet places where they can work, such as study carrels (with power outlets) at or near the gates. Business travelers appreciate the amenities in private clubs, thereby transferring much of the airport customer service experience to club management (typically the airlines). As frequent travelers, they value quality food and have the means or expense accounts to pay for it. They have occasional need for a business center where they can print their documents or send express packages. As frequent travelers, they have more experience with flight delays and cancellations, where the things they appreciate take on even greater value. 4.1.2 Leisure Leisure travelers are more price and value sensitive than business travelers. They are typically traveling with others, such as family members. They spend more time at the airport, and are therefore more likely to explore the concessions and services and to make purchases related to their trips. For leisure travelers, the travel experience is a treat. They are not going or coming from a business meeting so they are not as rushed as a business traveler. They are also more likely to be accompanied to the airport by a well-wisher. They are sometimes burdened with carry- on baggage in order to avoid additional airline fees, and, as less frequent travelers, worry more about missing their flights. They also tend to worry more about the length of queues at ticketing and security, and they are much more dependent on signs and airport staff to assist them. Depending on the airport, family travel may be highly seasonal, a factor which should be considered when planning cultural events like music and museum displays. If leisure travelers Figure 4-1. Classifying and understanding passengers.

Customer Service Needs and Expectations by Customer Type 59 are traveling with children, they are likely to be burdened with equipment such as strollers, car seats, diaper bags, and toys. 4.2 International Passengers International passengers constitute a smaller percentage of passengers at U.S. airports com- pared with most airports of similar activity levels in other countries, but they are an important segment. International passengers are high in value for the airport, their airline, and the local community. Studies have shown that new international air services will stimulate substantial new business opportunities and have a high economic impact for the community. 4.2.1 Departing International Passengers Departing international passengers are the most lucrative and demanding of all categories of passengers. International passengers will, on average, spend the most time in the terminal since the fre- quency of flights by airlines to their destinations is usually less than for domestic destinations. The cost in time, money, and aggravation if the customer misses an international flight is high relative to a domestic passenger. The international passenger is also eligible to patronize the duty-free shop and purchase mer- chandise on a duty- and tax-free basis. However, not all departing international passengers are alike. Foreign visitors are much more likely to spend in duty-free shops, often by a factor of 2 to 5 times that of the U.S. passenger. Overseas passengers’ purchasing habits in airports, particularly for higher-end tax-free and duty-free merchandise, are closely related to the tax structures of their countries of origin. Chinese, Korean, Japanese, and Brazilian passengers are much higher spenders due to the high excise taxes, value-added taxes, and import duties in their home countries. The duty-free average spend rate for a departing international passenger at an airport serv- ing multiple international destinations may range from $4 for an East Coast airport serving Caribbean or Mexican destinations to close to $30 for a West Coast airport serving a mix of destinations that include Asian and European destinations. With average duty-free percent- age rents of 20% to 31%, the revenue from duty-free concessions will exceed all other terminal concessions on a per-international-enplanement basis. In addition, international passengers are strong specialty retail and convenience retail customers. Foreign visitors do not find U.S. sales taxes burdensome on a relative basis and may find items they are looking for (such as souvenirs or packaged gift boxes of chocolates) in specialty retail shops rather than in duty-free shops. International visitors enjoy art and museum displays and have more time to enjoy them. On the whole, they: • Spend the most time in the terminal; • Spend the most money in concessions, particularly duty-free and other retail; • Use services and amenities more than other passengers; • Possess the highest per-capita incomes; and • Spend the most time in food and beverage facilities. International passengers can also be classified as business or leisure travelers, and they dis- play some of the same characteristics as domestic business and leisure travelers. International business travelers are more likely to use an airline lounge or patronize a pay lounge, and they appreciate electrical outlets, quiet places, workstations, and other services typical of domestic business passengers on their outbound legs of their journeys.

60 Improving the Airport Customer Experience International leisure travelers, like their domestic counterparts, are looking for a positive, even fun, experience, and will be more likely to wander and take advantage of concessions, services, and amenities. They are also more likely to be accompanied to the airport by friends and family. 4.2.2 Arriving International Passengers Arriving international passengers are likely users of currency exchange services and ATMs, which allows them to convert money or withdraw it from home accounts. They are also more likely to use showers and luggage storage services, purchase flowers, rent mobile phones, and buy food and beverages than an arriving domestic passenger. Arriving international passengers tend to bring more meeters and greeters to the airport, and they also use more limousine or transportation network company drivers. 4.2.3 Connecting International Passengers Because duty-free purchases are limited to international departing flights, a passenger making a domestic connection for an international departure can only purchase duty free at the airport where the international flight departs. Therefore, the connecting international passenger can be an important contributor to non-aeronautical revenue for airports. On the return trip, a passenger making an international-to-domestic trip will be more likely to take advantage of the arrivals concessions and services as well as concessions and services typical of a departing domestic passenger. 4.3 Non-Passenger Customers Non-passengers include meeters and greeters, who come to the airport to meet an arriving party, and well-wishers (sometimes called “farewellers”), who go to the airport to see their party depart. These non-traveling passengers form a small percentage of the airport’s total visitors but are also users of the airport and likely customers of concessions pre-security on departure and on the arrivals level as they wait. They are predominately local citizens with an interest in the airport. They are also persons who are likely to be traveling in the future. Their perceptions of the airport as non-traveling visitors help to shape their perceptions of the airport’s brand. 4.3.1 Meeters and Greeters Meeters and greeters have a singular focus when visiting the airport: to meet their party as soon as possible. The number of meeters and greeters generated per passenger and their typi- cal practices while at the airport depend on variables such as the passenger’s reason for travel and demographics. This phenomenon is also true of well-wishers discussed in the next section. Meeters and greeters who meet passengers in the terminal tend to concentrate as close to the exit from security or FIS areas as possible (sometimes creating congestion during busy periods or when large aircraft are deplaning passengers). They do not want to miss meeting their passenger so tend to stay close. The primary needs of these passengers are: • Proximity to where passengers exit the secure area; • Availability of restrooms; • Convenient parking;

Customer Service Needs and Expectations by Customer Type 61 • Comfortable, nearby seating; and • Use of a snack, coffee, or other food and beverage concession or purchase of gifts such as flowers, if proximate to their waiting area. Some meeters and greeters prefer to collect their passengers at the curbside. This can cause congestion and impede traffic and the loading and unloading of passengers. For this reason, many large airports have developed cell phone lots, which are remote parking areas where meeters and greeters can wait until their passenger arrives and calls or sends a text message that he or she is at or near the curbside. Cell phone lots create goodwill. Users can: • Avoid paying parking fees, • Not have to worry about being asked to move on by police or other airport personnel when sitting at the curbside, and • Avoid having to worry about meeting their party inside the terminal. Cell phone lots have become a source of non-aeronautical revenue for those airports that have implemented concessions at them. 4.3.2 Well-Wishers Well-wishers—people who accompany departing passengers to the airport—cannot enter the secure area and are therefore more likely to use food and beverage concessions in the pre-security area. Well-wisher behavior can be influenced by culture. In Asia and Latin America, it is common for family members to accompany a member of the family to the airport to say goodbye, and it is often a big event. This is seen among Asian communities in the United States as well. Many Asian airports have extensive pre-security restaurant programs to serve the large number of well-wishers who come to the airport. These passengers will check in early and have a meal with friends and family. For example, Singapore Changi has 21 restaurants in pre-security locations, exclusive of food courts and fast-food units. Well-wishers are also likely to park, often in the premium, short-term lots, generating parking revenue for the airport. Between the potential concession revenue and parking revenue, well- wishers are a market segment that should not be overlooked. And, like those meeting flights, their perceptions of the airport are influenced by their non-traveling experiences. 4.3.3 Employees Employees of the airport, airlines, service companies, ground transportation companies, and concessionaires are another group of customers, ones that are often taken for granted. Com- pared with domestic terminals, international terminals will have a higher proportion of employ- ees to passengers, including employees of U.S. Customs and Border Protection, ground handling companies, public health organizations, and airlines. Employees can be an important segment, particularly for food and beverages, especially coffee, and for gifts during holiday periods. Many airport concessions offer discounts to airport employ- ees and special offerings for employees during the holidays. Although employees may not spend in concessions every day, they are typically present in the terminal 5 days a week. A customer’s location in the terminal will heavily influence the amount of time and money spent and should be taken into account when planning customer service improvements.

62 Improving the Airport Customer Experience 4.3.4 Visitors Other than meeters and greeters and well-wishers, most airports have relatively few visitors. However, this group can include those: • Coming to do business with the airport, airlines, and other tenants; • Coming to the airport for meetings at an airport conference center; • Coming to arrange travel for another day; • Coming to the airport to obtain airport IDs, apply for TSA, Trusted Traveler, ✓™, or other documentation; and • Coming to the airport to apply for employment with the airport, airlines, or other tenants. These individuals are part of the everyday mix of people using the airport. They may be users of parking facilities, pre-security concessions, or other services. Collectively, they may be a group worth remembering, but not necessarily planning around. As airports evolve, however, they might become more than that. The “airport city” concept has gained much traction in recent years as conceptual framework for airport planning. Under this concept, the airport city is the land inside the boundaries of the airport, while the “aerotropolis” is the larger area around the airport that includes a variety of land uses and activities that are primarily or secondarily related to the activities of the airport. At some of the larger airports outside the United States, the airport city concept is exemplified by developments in and around the terminal area that take advantage of the proximity to services and transportation links and provide income for the airport in the form of office rentals, confer- ence centers, showrooms, corporate regional headquarters, and other developments that, while not core to the functioning of the airport, provide additional revenue and economic benefits. These airports generate a large number of visitors who are coming to the airport for purposes unrelated to passenger movements. These employees and visitors form a market that allows for other types of development to cater to their needs. Two examples of this type of development are seen at Amsterdam Schiphol and Munich airports, which are discussed in the following chapter. Schiphol and Munich airports have developed office buildings, conference centers, shopping plazas, and a range of services to cater to the needs of the employees and visitors who otherwise would not be at the airport. This actually may spur additional activity in a vir- tual circle of economic development. These airports and others have created airports that are multipurpose destinations in their own right that receive large numbers of visitors. As more U.S. airports embrace the airport city approach, there may be more development in, around, or above terminals to take advantage of this potential. 4.4 Families Family travel tends to be clustered around the summer months, major holidays, and local school break periods. Leisure travelers are out to have a good time and to enjoy the travel expe- rience. Family travel has built-in stress from juggling children and their equipment such as car seats, strollers, and diaper bags, which make it difficult to move around. For these harried pas- sengers, a kids’ play area can be a godsend. Co-locating a play area with, say, a coffee kiosk can provide a welcome break for both parents and children. Family travel is particularly stressful at the security checkpoint, where families are likely to slow down the process for other passengers and have to manage children and their accessories through inspection. Wait times with children can also seem longer. Families traveling together are likely to prefer food courts to other types of food and beverage outlets since these allow for different preferences to be accommodated.

Customer Service Needs and Expectations by Customer Type 63 4.5 The Aged and Aging As the U.S. population ages, older passengers are likely to form a larger share of the customer profile. ACRP Synthesis 51: Impacts of Aging Travelers on Airports identifies a number of challenges facing the elderly at the airport: • Wayfinding. Unfamiliarity with the complexity of the airport, unclear informational and directional signage, and difficulty understanding the meaning and terminology used on signs; • Fatigue. Standing in lines at check-in, security screening, bag claim, or curbside; long walking distances in the terminal, parking garages, and surface lots; and handling heavy bags; • Technology. Problems understanding self-service devices; using escalators and moving walk- ways; and • Amenities. Difficulty using toilet facilities; using congested retail and food service units (Mein et al. 2014). Efforts designed to help the elderly were identified at a number of U.S. airports. These include: • Staffed information kiosks or touch-screen displays; • Visual paging systems; • Smart phone wayfinding applications; • Signage audits/inventories; • Increased availability of wheelchairs; • Seating in areas where passengers are made to wait (bag claim, check-in, curbside) and along lengthy connectors between terminals and concourses; • Motorized carts; • Remote and off-site bag check; • Parking products offering drop-off at the customer’s car; • Shuttle buses with low floors for easier boarding and alighting at curb level; • Lounges for use when waiting for ground transportation; • Customer service personnel assisting at self-service devices; • More elevators, ramps, and sloped floors as alternatives to escalators; • Audible caution alerts for escalators and moving walkways; • Wider toilet stalls that allow baggage to be secure; • More family toilets; and • More room to access concessions and concession seating areas easily and without obstruction. 4.6 Customers with Special Needs Airports must deal with a range of exceptional passengers in the everyday course of business. Some of these types of passengers include: • High-status individuals, such as politicians, celebrities, and VIPs; • People traveling with guide dogs or therapy animals; • People afraid of flying or with medical or emotional disabilities; and • Those with no ability to speak English, especially those who do not speak a major language found in the United States. Some passengers with special needs may require assistance when traveling, such as wheelchair assistance. Others may have developmental disabilities that make the stress of travel emotionally challenging. Others require ADA-compliant facilities and may be frustrated during busy periods if facilities, such as restroom stalls capable of accommodating wheelchairs, are not available.

64 Improving the Airport Customer Experience Finally, these passengers may have to wait an excessive amount of time for airline-provided services such as wheelchairs, which reflects on the airport as well as the airline. 4.7 Profiling the Airport’s Passengers Understanding the airport’s customers is important for successfully enhancing customer sat- isfaction. For example, knowing the needs, wants, and expectations of the airport’s passengers (the largest customer segment using the airport), including the reason for their travel, their likely behaviors, and how they will interpret clues and signals in the environment, is important in customer experience planning and prioritizing future investments and service offerings that will significantly improve customer satisfaction and may improve non-aeronautical revenues as well. It helps everyone involved in customer service to understand how each of the passengers and other customers who rely on the airport every day have different needs and perceptions. Figure 4-2 illustrates a profile for three types of passengers using the classification shown in Figure 4-1. With survey data, a weighting of passenger profiles can be developed that will help airport management and staff involved in customer service understand each passenger type. • Example 1. A local businessperson who is a frequent traveler, is making a same-day trip to another city, parks in the airport’s parking structure, and is unaccompanied. This passenger will be in and out of the airport quickly and has no checked baggage. She may use concessions if they are convenient to her gate or are located on the way to her gate. She will want Wi-Fi (preferably free) and a comfortable place to sit and work before her flight. • Example 2. A local passenger going with his family on a vacation to an international destination, accompanied to the airport by other family members who parked at the airport long enough to see them off. This family includes children and has a lot of luggage that must be checked. Control- ling the children and getting through check-in and security is something of an ordeal during peak hours. They would love to see a children’s play area, decent restrooms, and a food court where they can satisfy everyone’s preferences. They are at the airport to begin an adventure, and they want to have fun, circumstances permitting. • Example 3. A visitor from overseas, a frequent business traveler, traveling home in first class after visiting for a few days. He arrived at the airport by taxi or limousine and will use an airline lounge if one is available, or might use a pay lounge, if available. After checking in at his designated area, he will stop by the duty-free shop for his favorite single-malt Scotch and will pick up something for his wife and some chocolates for the family. He values quiet and efficiency. Figure 4-2. Profiling the passenger—three examples.

Customer Service Needs and Expectations by Customer Type 65 4.8 Market Segmentation Customer needs will vary with the demographics of the key customer segments. For planning purposes, segmenting the customer base provides insights into the types of customers using the airport and is helpful in planning customer services such as concessions, cultural programs, and amenities. The demographics of customers also influence their behavior, the amount of time and money they spend in the airport, and their preferences for dining, retail, and services. Demographic information can be gathered by customer interviews and surveys. Demographic information valuable to customer service planning may include: • Age of customer, • Nationality, • Airline, • Whether alone or with family or associates, • Household income, • Origin/destination, and • Average spend rate by type of concession or service. Additional survey research can be performed to develop the demographics of passengers and other customers of the airport, including breakdowns by age, nationality, residence, income, typical spending rates, and what types of services they would like to see. Denver International Airport has done extensive research in segmenting its customers to understand their motivations, needs, and wants. The airport publishes market demographics on its website and makes them available to current and prospective concessionaires and others with an interest in doing business at the airport. An excerpt of the airport’s customer segmentation is shown in Figure 4-3. The Denver airport brand statement is “Live Life. Travel Well.” Its published brand experience principles include: • Accessible urbanism, • Naturally dynamic, • Enjoyably productive, and • Modern west spirit. Source: FlyDenver.com/bizops/documents/DEN_Customer_Experience_Overview.pdf. Figure 4-3. Excerpt of Denver International Airport passenger market segmentation.

66 Improving the Airport Customer Experience Each brand experience is defined in terms of what it means (“streamlined operations and well-designed environment”) and does not mean (“a focus on hyper-efficiency”) (Denver Inter- national Airport, no date). The airport classified its market into six segments, with the first two being important target segments for customer service planning. The classifications and keyword descriptors are as follows: 1. Explorers. Optimists, love travel, open-minded, like to share thoughts and opinions. 2. Elites. Frequent travelers, value status, career and family oriented, demanding, want access to options. 3. Experts. Think travel is routine, see themselves as experts and advice givers, not easily impressed, and want a streamlined and productive experience. 4. Escapists. Welcome travel as a treat and a break, infrequent travelers, excited and optimistic, appreciative. 5. Aspirers. Stressed by real life, struggle to maintain balance in interests, careers, and children, but will indulge on occasion. 6. Early birds. Infrequent, anxious, find travel stressful and filled with unexpected hassles, want it over with as quickly as possible.