Improving the Airport Customer Experience (2016)

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67 This chapter presents overviews of customer service programs at five leading international airports outside the United States. The chapter also describes some of the fundamental differ- ences between U.S. airports and the well-known and highly regarded mega-hubs that are often used as standards for comparison; the differences with U.S. airports are significant and should be taken into account. The chapter presents a brief description of each airport, reviews its ownership and governance structure, and presents a summary of each airport’s most important airlines and characteristics of their passenger traffic. Summaries of each airport’s strategic vision and customer service man- agement approach are presented based on a review of annual reports, shareholder briefings, and other documents produced by each airport. These leading international hubs may not be directly relevant benchmarks for the reader’s airport. However, the scope, scale, and diversity of services and the airports’ commitments to customer service may offer useful insights for customer service managers at airports in the United States. All of these airports are strategically driven with well-developed brands. All are on the right side of the airport customer experience management continuum shown in Figure 2-2. Additional details of the extensive range of customer services at each of these international hub airports are included in Appendix A, which is organized under the headings of: • Transportation; • Terminal Configuration; • Services; and • Culture, Entertainment, and Education. The airports presented in this chapter are: 1. Singapore Changi Airport, named the world’s best airport for 2015 by Skytrax and second best airport in the Asia-Pacific Region in the 2014 ACI-ASQ awards. To attract transfer pas- sengers, Changi uses technology, nature, art, and architecture combined with an enormous array of services, attractions, and distractions. 2. Seoul Incheon International Airport, named the world’s second best airport for 2015 by Skytrax, and a perennial first-place finisher in the ACI-ASQ awards. Incheon airport is known for extensively incorporating cultural features into an airport that is spotlessly clean and planned to the smallest detail. 3. Amsterdam Airport Schiphol, named a four-star airport by Skytrax, features expansive commercial and cultural offerings combined with a single terminal for ease of transfer. C H A P T E R 5 Customer Experience Management Approaches and Customer Service Programs at Leading Non-U.S. International Airports

68 Improving the Airport Customer Experience 4. Munich Airport, named by Skytrax as a five-star airport, the third-best airport in the world, and the best airport in Europe for 2015. Munich’s two terminals surround the Munich Airport Center, a huge mixed-use, multipurpose facility that gives meaning to the term “airport city.” 5. Vancouver International Airport (YVR), named a four-star airport and the best airport in North America for 2015 by Skytrax. YVR has a unique sense of place and features the art, nature, and natural materials of the Pacific Northwest and British Columbia. 5.1 Differences—U.S. Airports Versus Leading Non-U.S. International Hubs U.S. airports are often criticized for their shortcomings. In 2014, The Economist published an article critical of U.S. airports and their “soggy pizza, surly security staff, and endless queues. American airports offer a shabby welcome to the greatest nation on earth” (The Economist 2014). The Economist estimated that 2⁄3 of international passengers departing from a U.S. airport arrive at a better airport (as based on the Skytrax ratings). Comparing major international hub airports with U.S. airports is not a completely fair com- parison. Most international departures from the United States arrive at one of the well-known mega-hubs that are predominately international in nature. The economics of passenger travel are such that international passengers are far more profitable than domestic passengers. The airports repeatedly named among the world’s best all have something in common: intense competition with other airports (and those airports’ hub airlines) for lucrative international transfer passengers. These world-leading airports are then rewarded with a larger share of international passengers and far greater revenues than those of domestic passengers, further strengthening their mega-hub status. 5.1.1 Competition for Passenger Traffic For most of the large international airports, competition for passengers drives much of their business planning. They have built reputations around the high levels of service offered to inter- national transfer passengers, who generally have a choice of airlines and connecting hubs and value a great customer experience. U.S. airports are unable to compete for this type of business. Under current policy, the inter- national-to-international connection is highly limited at U.S. airports. A foreign transfer pas- senger (other than those coming from a country in the visa waiver program) is required to have a U.S. visa and must undergo customs and immigration inspection upon arrival. Airports like those in New York (Kennedy), Miami, Los Angeles, San Francisco, and Seattle would be ideal connecting points for millions of passengers making connections between continents. However, U.S. airlines have no reasons to build schedules to carry international-to-international traffic. If U.S. airports were able to compete, service levels would undoubtedly improve. U.S. air- ports are not without competition, however. Some major hubs compete for domestic connecting traffic. (Atlanta, Denver, Chicago O’Hare, Dallas/Fort Worth, and Houston Intercontinental are examples.) Some airports have local competition (the San Francisco Bay Area has three commer- cial airports) or compete with airports within driving range (Tampa and Orlando, Austin and San Antonio, Milwaukee and Chicago). The mainly domestic nature of the traffic, however, does not provide the same financial incentives as the long-haul international passengers. 5.1.2 Different Traffic Mixes In a list of the top 20 airports in the world ranked solely by international passengers, the United States has only one—New York’s John F. Kennedy International Airport, which is ranked 17th.

Customer Experience Management Approaches and Customer Service Programs at Leading Non-U.S. International Airports 69 The next highest-ranked airport is Miami International (MIA), which is ranked 28th. Table 5-1 shows the number of international passengers for the top 20 international airports and the per- centage that international passengers represent as a share of total passengers. By comparison, leading airports [Amsterdam (100%), Dubai (99%), Hong Kong (100%), London Heathrow (93%), Seoul Incheon (99%), and Singapore Changi (99%)] have few to no domestic passengers. These top 20 airports also have high proportions of international passengers, with many of the airports exceeding 90% international. Kennedy airport, the only U.S. airport to make the top 20, had the lowest share of international passengers, at 53% of the total. 5.1.3 Revenues Airlines flying international routes pay higher user fees, and their passengers are generally richer and more free-spending than domestic passengers. When volumes are sufficient, they can support VIP processing, luxurious pay lounges, and other services that are demanded by international pas- sengers. The competition for international passengers provides financial incentives for these airports to offer a wide range of customer services to encourage use of their airports. This is particularly true for international connecting hubs, which often compete directly for transfer passengers. In the United States, residents consider duty-free shopping a take-it-or-leave-it proposition as taxes on luxury items are not a major revenue source for the government. However, passengers from most of the rest of the world live under a different system that taxes consumption more than income. The high taxes on luxury goods in most countries make duty- and tax-free pur- chases real bargains from their perspectives. For passengers from China or Brazil, where import Derived from ACI and individual airport reports. Table 5-1. Top 20 airports—international passengers only.

70 Improving the Airport Customer Experience duties and excise taxes of 40% or more are typical on imported luxury goods, airport duty-free shops offer meaningful savings that generate high revenues for the airport. Seoul Incheon provides an example. On its $2 billion in annual duty-free sales, Seoul Incheon airport receives over $600 million annually in net duty-free revenue, an amount that exceeds the total operating revenue (airline and non-airline) of Hartsfield-Jackson Atlanta International Airport, the busiest in the United States. Seoul Incheon, while a top performer, is not alone in producing such high revenues from duty-free and retail sales. Dubai International Airport also achieves $2 billion from duty-free sales, while London Heathrow is not far behind with its outstanding duty-free and extensive specialty retail program. In 2013, Munich Airport Group (Flughafen Munich Gmbh, or FMG) had total revenues of €1,229.2 million ($1,619.6 million), an amount greater than the total operating revenues of Chicago O’Hare, Hartsfield-Jackson Atlanta, and Phoenix Sky Harbor airports combined. Munich Airport had less than 20% of the combined passenger traffic of these three U.S. large hubs, 38.7 million versus 201 million. FMG operates a number of subsidiary companies, and the U.S. airports do not. This comparison demonstrates how FMG’s integrated business model allows it to earn revenue across the range of activities that occur at its airport and why the competition for lucrative international passengers among the world’s mega-hubs is so intense. Relative airport annual operating revenues for the airports described in this chapter and select U.S. airports are shown in Figure 5-1. 5.1.4 Security and Inspection U.S. airports do not perform the security inspection function or hire, pay, and schedule security staff, unlike airports in most other parts of the world. Airports that control security inspection have the ability to manage work schedules to meet travel peaks, limit time spent in queues, and create Derived from published airport financial statements. Figure 5-1. Annual operating revenues for selected airports (USD millions for years indicated).

Customer Experience Management Approaches and Customer Service Programs at Leading Non-U.S. International Airports 71 a less intimidating, less stressful experience. Long lines and unpleasant staff are not conducive to spending or customer satisfaction and are a particular focus of customer experience management. An examination of the Skytrax ratings shows that TSA and customs and immigration inspections at U.S. airports are not well regarded, particularly by citizens of other countries. While U.S. airports are not directly responsible for the work performed by federal agencies, the impression made at secu- rity inspection reflects on the airports. In the minds of customers, the airport is the sum of its parts. 5.2 Skytrax Leading International Airports Skytrax rates airports using a star rating system, with 5-star being the highest level. Ratings are based on a worldwide online survey of more than 13 million airline passengers. Only five airports received the highest rating as of mid-2015, as shown in Figure 5-2. Of these, four are in Asia and one is in Europe. Only 34 airports received 4-star ratings, with two U.S. airports, San Francisco and Cincinnati/ Northern Kentucky International, making the list. The five airports that were chosen for review represent airports with outstanding reputations, which are affirmed by their Skytrax rankings. Singapore Changi, Seoul Incheon, and Munich air- ports ranked first, second, and third in the overall Skytrax rankings, while Amsterdam Schiphol was ranked 9th and Vancouver 11th. Vancouver airport was the highest-ranked airport in North America. The five airports were also chosen based on geographic diversity and a mix of old and all-new airports. Source: http://www.airlinequality.com/ratings/4-star-airport-ratings/; http://www.airlinequality.com/ratings/5-star-airport-ratings/. Figure 5-2. Skytrax 2015 4-star and 5-star airports.

72 Improving the Airport Customer Experience Skytrax also produces a ranking of the world’s predominantly domestic airports, as shown in Figure 5-3. On this list, U.S. airports perform reasonably well, with three—Cincinnati, Denver, and Seattle–Tacoma—occupying the 4th, 5th, and 6th positions on the list. These U.S. airports stack up extremely well when compared to airports with similar traffic, scale, and resources and, along with others, provide meaningful and realistic benchmarks for customer service. The five leading international airports are profiled in the following sections. Details of their extensive customer service programs are included in Appendix A. 5.3 Singapore Changi Airport Singapore Changi Airport (SIN) is a major Asian hub that served over 54 million passengers in 2014. SIN ranked 16th in the world for 2014 in total passengers and sixth in the world in international passengers. The airport is served by 65 passenger airlines, and another 35 serve through code shares. According to the airport, the airlines serving Changi serve 300 cities in 70 countries. Changi was named the world’s overall best airport by Skytrax in 2013, 2014, and 2015 and is the perennial runner-up to Incheon in the annual ACI-ASQ Best Airport award in the Asia-Pacific region. 5.3.1 Ownership and Governance SIN is operated by Changi Airport Group (CAG), which was created in 2009 and is wholly owned by the government of Singapore. Prior to 2009, the airport was operated by the Civil Aviation Authority of Singapore (CAAS). After corporatization, CAAS retained regulatory responsibility while CAG focused on airport management and development. 5.3.2 Key Airlines and Traffic Overview Changi is the primary hub of Singapore Airlines (SIA), which ranks 10th in the world in inter- national passengers carried. The airline is part of the SIA Group and is 56% owned by Temasek Holdings, which is the investment arm of the government of Singapore. SIA Group also owns SilkAir, a regional airline operating mostly short-haul routes, and Scoot, an ultralow-cost air- line started in 2012. The SIA Group, including SIA (32.1%), Silk Air (8.3%), and Scoot (2.7%), together account for a 50.5% market share at Changi. Source: http://www.worldairportawards.com/Awards/airport_award_winners_2015.html. Figure 5-3. Skytrax 2015 World’s Best Domestic Airports.

Customer Experience Management Approaches and Customer Service Programs at Leading Non-U.S. International Airports 73 With a home market of only 5.5 million, Singapore Airlines’ long-haul success has historically relied on superior in-flight service and an industry-leading hub airport to compete. Since the 2008 financial crisis, however, the airline has seen a 12% decline in passengers, the largest drop among the major full-service Asia-Pacific carriers. Changi and SIA face tough competition from other Asian hubs and airlines, including Hong Kong (Cathay Pacific), Seoul Incheon (Korean Air and Asiana), and Bangkok Suvarnabhumi (Thai Airways). Fueled by oil-rich governments, Middle East airlines like Emirates Airlines, Qatar Airways, and Etihad Airways, operating at hubs in Dubai, Qatar, and Abu Dhabi, have further eroded Singapore’s long-haul markets. Qantas Airlines recently moved its off-shore “kangaroo route” hub, connecting cities in Australia and Europe, from Changi to Dubai. Meanwhile, low-fare airlines such as Jetstar and AirAsia have provided price competition that has further eroded Singapore Airlines’ market share. While Singapore Airlines’ traffic has declined, Changi Airport has seen a 44% increase in passengers since 2008, as its O&D traffic has grown faster than its connecting traffic. Off- setting the loss of long-haul transit traffic is increasing regional connectivity from airlines like Jetstar. 5.3.3 Strategic Vision and Customer Service Management Approach Changi Airport Group (Figure 5-4) has well-defined mission and vision statements, a defini- tive statement of core values, and a clear statement of its customer service approach embodied in its “Changi Service DNA.” “Mission Statement: To be the world’s leading airport company, growing a vibrant air hub in Singapore and enhancing the communities we serve worldwide. Vision: Exceptional People, Connecting Lives. Values: Integrity is at the heart of everything we do. • We value our people. • We are committed to our customers. • We are the best in our business. • We succeed with our partners” (Changi Airports International, no date). Changi Airport Group has defined its approach to service quality management for its stake- holders, business partners, and airport staff through its “Changi Service DNA.” The attributes of the Changi Service DNA are shown in Table 5-2. The quality service management approach is built on the three key tenets shown in Table 5-3. Figure 5-4. Singapore Changi Airport logo. P.S. I Love Changi Personalized Every customer is unique Stress-Free To provide customer peace of mind Positively Surprising To create fond memories for every customer Be welcoming Be interested Be attentive Be knowledgeable Be resourceful Be responsive Be involved Be enthusiastic Be creative To serve versus to engage To deliver versus to anticipate To satisfy versus to delight Source: Changi Airport Group website, www.changiairportgroup.com. Table 5-2. Changi Airport Service DNA.

74 Improving the Airport Customer Experience 5.4 Seoul Incheon 5.4.1 Ownership and Governance Seoul Incheon International Airport (ICN) is owned by the South Korean government and operated by the Incheon International Airport Corporation (IIAC). ICN opened in 2001 after 8 years of construction that included reclaiming seabed between two islands and the construction of a major highway and suspension bridge serving automobiles and express trains. The government has announced its intent to partially privatize the airport, but no progress has been made to date due to political opposition. The government continues to own all of the shares in IIAC. ICN replaced Gimpo International Airport as the major international airport serving South Korea. Gimpo continues to operate as a largely domestic airport with limited short-haul inter- national service to Japan, Taiwan, and China. Gimpo is now the third busiest airport in Korea after Incheon and Jeju International Airport. IIAC is developing the area south of the airport as Air City, a large-scale development area that includes hotels, several multistory office buildings, a driving range, car wash, medical center, and several shopping centers. IIAC has also developed a 72-hole golf club near the airport. IIAC recently entered into a memorandum of understanding with the Connecticut-based Mohegan Tribe of American Indians, owner of the Mohegan Sun Casino, to develop a destination resort and casino with 1,000 rooms, a 20,000-seat arena, an amusement park, and a fixed-base opera- tor physically connected to the resort. The development is expected to cost $4.6 billion and is targeted toward gamblers from China. 5.4.2 Key Airlines and Traffic Overview ICN handled 40.7 million passengers in 2014, nearly all international. Only 1.3% of ICN pas- sengers were domestic. ICN ranked 23rd in the world in total passengers and 8th in the world in international passengers. The ICN logo is shown in Figure 5-5. 1. Service Process Management Changi experience is by design and not by chance! This involves rethinking, redesigning, and realigning airport processes to meet the growing expectations of the customers. We are steadfast in creating a Changi Experience that brings delight to the customers we interact with, and to achieve a consistent level of service in our daily operations. 2. Learning & Development People competencies are imperative in the development of a successful service organization. We are determined to train and equip our workforce to deliver excellent service to each and every customer. Emphasis is put into inculcating the Changi Service DNA to all new staff joining the Changi family. Our core service skills training program is designed to equip every individual with the skill sets to deliver the Changi way of service. Continuous learning efforts are an integral part of the learning and development road map for all airport staff. 3. Service-Driven Initiatives Feedback from our customers sets the foundation for the work we do. We listen to what our customers are telling us and seek to improve our service standards. Through our service-driven initiatives, we seek to connect, communicate, commend, and collaborate with our airport community to drive service excellence. These initiatives address the following: • Creating a high level of service awareness • Promoting every individual’s contributions through awards and recognition • Seeking out collaborative opportunities through agency engagement. Source: Changi Airport Group website, www.changiairportgroup.com, accessed June 1, 2015. Table 5-3. Changi Airport Group quality service management approach. Figure 5-5. Incheon Airport logo.

Customer Experience Management Approaches and Customer Service Programs at Leading Non-U.S. International Airports 75 ICN is the headquarters and principal base of operations of Korean Air and Asiana Airlines, which operate extensive long-haul services to destinations around the world. Korean Air and Asiana together handled 62% of total passengers in 2014. The airlines operate from the main terminal. After the airport opened in 2001, there was considerable growth in transit passengers, reach- ing 18.5% in 2013. However, transit passengers declined by 460,000 in 2014 due to increased competition from Chinese and Japanese hubs for long-haul flights. Korean Air and Asiana are the two largest foreign airlines operating in China. Korean Air alone serves 22 cities in Mainland China. As the two local carriers’ worldwide route system expanded into China, the airport responded by improving and expanding the range of services and ease of transfer for connecting passengers in order to strengthen ICN as an international connecting hub for Asia. 5.4.3 Strategic Vision and Customer Service Management Approach Vision Statement: “Incheon Airport, Loved by the World, and Airport Corporation, Loved by the People.” Core Values: 1. Customers—We are dedicated to efficiency, safety, and convenience. We plan to become a world best air hub by providing unparalleled services. 2. Investors and shareholders—Our partnerships are based on trust, collaboration, and creation of new value. 3. Community responsibility—We are founded on transparent corporate management, contribu- tion to local society, and national development. We promise to be a responsible public enterprise. 4. Employees—Incheon Airport is founded on creativity, passion, and flexibility. No challenge is too great, through continuous development. Main Strategies: 1. Ensure safety and convenience. 2. Strengthen the hub network. 3. Expand new infrastructure. 4. Gain trust and respect as a public corporation. Customer Charter: • We will prioritize the safety of customers as top priority. • We will become a convenient, comfortable, and impressive airport. • We will faithfully fulfill social responsibilities. • We will take care of the customers like our family. • We will reflect the opinion of the customers in our management. In order to fulfill this commitment . . . we will establish a concrete service standard and put it into practice (www.airport.kr/co/ko/file01/2015_Green_report_ENG.pdf). 5.5 Amsterdam Schiphol Amsterdam Airport Schiphol (AMS) is the 14th busiest airport in the world based on total passengers and the 5th busiest in Europe. In 2014, AMS ranked 14th in total passengers and 5th in international passengers. AMS was named a 4-star airport by Skytrax. The Schiphol logo is shown in Figure 5-6. Figure 5-6. Amsterdam Schiphol Airport logo.

76 Improving the Airport Customer Experience Schiphol has been a leading airport in terms of customer service for several decades, long before the rise of the Asian and Middle East hubs and the improvements at major hubs in Europe. With a home market of only 5.5 million, Schiphol, as KLM Airlines’ major hub, had to rely on drawing connecting traffic from other parts of Europe to thrive. The Schiphol terminal has a pier/finger design and has grown over the years. The airport company has also developed office buildings and hotels in the terminal area. 5.5.1 Ownership and Governance Amsterdam Airport Schiphol is a subsidiary of Schiphol Group, which is organized as a commercial corporation although it is primarily government owned. Shareholders include the Dutch government (70%), the municipalities of Amsterdam (20%) and Rotterdam (2.2%), and Aeroports de Paris (8%). Shareholders are paid dividends from year-end profits. Schiphol Group also owns Rotterdam The Hague Airport and Lelystad Airport and has a major- ity interest in Eindhoven Airport as well as an 18.72% share in Brisbane Airport in Australia. It is also 100% owner of Schiphol USA, which owns JFK IAT, Inc., owner and operator of Terminal 4 at John F. Kennedy International Airport. Schiphol USA was a minority partner in the public–private partnership that built Terminal 4, and it later bought out its partners. Schiphol has a subsidiary company that operates most of its duty-free liquor, tobacco, and confectionery shops. The company is 40% owned by Schiphol Group and 60% owned by Gebr Heinemann, a major European and international duty-free operator with shops in 77 airports. 5.5.2 Key Airlines and Traffic Overview In 2014 Schiphol handled nearly 55 million passengers, almost 100% international. The Amsterdam metropolitan area has a population of only about 1.6 million, which is a small population to support a major connecting hub. Like Singapore Changi, Schiphol airport relied on offering superior service and an attractive connecting experience to grow traffic. The major airline, KLM, is now part of Air France/KLM group, although KLM continues to operate independently. About 70% of KLM passengers make a connection at Schiphol. The business strategy of the airline and airport has been to attract passengers needing to make a connection from other European countries by offering a superior experience. Europe accounts for 68.9% of passengers, followed by North America (10.4%), Asia (8.0%), Africa (4.9%), and South America (4.5%). The five largest markets are London Heathrow, Barcelona, Paris Charles de Gaulle, Rome, and Copenhagen. 5.5.3 Strategic Vision and Customer Service Management Approach Schiphol Group’s mission statement: • Connecting the Netherlands. Permanently connecting the Netherlands to the rest of the world in order to contribute to prosperity and well-being in this country and elsewhere; • Connecting to compete and to complete. We conduct our domestic and international operations in a balanced manner and in doing so reflect our key values: reliability, efficiency, hospitality, inspiration, and sustainability (Schiphol Group 2014). The Schiphol Group strategy is summarized in Table 5-4.

Customer Experience Management Approaches and Customer Service Programs at Leading Non-U.S. International Airports 77 5.6 Munich Airport Munich Airport (MUC) is the 7th busiest airport in Europe and handled 39.7 million passen- gers in 2014. Munich Airport passed Frankfurt (FRA) as the top domestic airport for Lufthansa. It is the only European airport rated 5-star by Skytrax as of mid-2015. 5.6.1 Ownership and Governance Munich Airport is owned and operated by FMG, a government-owned, limited liability com- pany whose owners are the Free State of Bavaria (51%), the Federal Republic of Germany (26%), and the City of Munich (23%). Although government owned, FMG is organized as a corporation with shareholders and a corporate governance structure, including numerous subsidiary com- panies. Figure 5-7 shows the airport’s two terminals surrounding the Munich Airport Center. The airport logo is shown in Figure 5-8. Top connectivity Maintaining and expanding the network of destinations, in collaboration with our home carrier and other airlines, is our most important duty. Thanks to its network Schiphol ranks among the five major hubs in Europe. The development of Eindhoven Airport and Lelystad Airport supports Schiphol's Mainport function. Good road and rail access is essential for ensuring the connectivity of our airports. Excellent visit value We aim to offer the best quality for an attractive price to airlines, travelers, and all other users of our airports. We invest in sufficient high-quality capacity and a high- quality range of commercial products. The appreciation shown by our customers for our facilities and services serves as the compass guiding the upgrades we carry out. Competitive marketplace Our airports are attractive business and visitor locations. If we are to remain a competitive business location, we must provide a competitive marketplace where businesses can share and combine knowledge and skills. We tailor the range of facilities and real estate to demand and aim to continue developing Schiphol into a cargo distribution hub. Sustainable performance Schiphol Group is a financially solid enterprise that conducts its business in a socially responsible manner, consciously weighing people, planet, and profit aspects. Our airports can only grow by balancing their interests with those of the local communities. We continue to invest in a good relationship with administrators, local residents, sector partners, and the government. Source: Schiphol Group website, www.schiphol.nl/SchipholGroup/Company1/Strategy, accessed June 4, 2015. Table 5-4. Schiphol Group strategy. Figure 5-7. Terminal complex at Munich Airport. Figure 5-8. Munich Airport logo.

78 Improving the Airport Customer Experience FMG has an unusually high degree of control over the services provided to the public, airlines, and other tenants through its subsidiary companies, some wholly owned and others partly owned, that provide services and operate concessions and facilities at the air- port. While most airports’ staff have limited direct contact with passengers, Munich Airport and its sister companies have direct contact with passengers at check-in, security inspection, food and retail concessions, passenger services, baggage services, and often at the departure gates. Thus FMG has a high degree of control over the entities that have direct contact with customers. Some examples of the range of services provided directly by FMG are listed in the following. • Aerogate is a wholly owned subsidiary that provides ticketing, check-in, and passenger handling services for airlines. • Aeroground is a wholly owned subsidiary that provides airline ground handling services. • Allresto operates the public staff restaurants in the terminals and the airport hotel. • CAP provides guards and security inspection services as required by law. • Eurotrade operates retail shops in the terminal, including duty-free, luxury specialty, and gift and souvenir shops. It is a franchisee of the luxury brands offered at the airport, includ- ing Chopard, Dunhill, Omega, Piaget, Ferragamo, and Versace. Eurotrade is wholly owned by FMG. • Terminal 2 Operating Company is jointly owned (60%) with Lufthansa (40%) and operates Terminal 2 used by Lufthansa and Star Alliance member carriers. • MediCare provides medical services and operates the airport clinic. 5.6.2 Key Airlines and Traffic Overview Of the 39.7 million annual passengers, 4.3 million (22%) were domestic travelers, 11.2 million (57%) were going to or from destinations in the EU or other countries in Europe, and 4.2 mil- lion (21%) were international passengers traveling outside of Europe. The top European markets were London Heathrow, Paris Charles de Gaulle, Madrid, Amsterdam, Barcelona, Istanbul, Palma de Mallorca, Rome Fiumicino, Antalya (Turkey), and Vienna. The top intercontinental markets were Dubai, Newark, Chicago O’Hare, Abu Dhabi, Doha, Tokyo (Narita and Haneda), Washington Dulles, Beijing, Toronto Pearson, and Shanghai Pudong. Originating/destination passengers accounted for 63% of total passengers, and transfers were 37% of the total. Like many European airports and legacy airlines, airlines and airports in the Middle East are providing stiff competition for the long-haul intercontinental passenger. Dubai, Abu Dhabi, Istanbul, and Doha have all become major destinations in recent years. 5.6.3 Strategic Vision and Customer Service Management Approach Brand Statement: Living Ideas: Connecting Lives. Brand Attributes: “Passionate: We’re passionate about what we do. As a team we create exciting moments in an extraordinary atmosphere. Appealing: We inspire—with attractive ideas, offers, and services that keep creating new surprises. Farsighted: We’re the experts. With our many years of experience, we offer orientation and are always thinking ahead” [Munich Airport, no date (a)]. Munich Airport defines its brand values as shown in Table 5-5.

Customer Experience Management Approaches and Customer Service Programs at Leading Non-U.S. International Airports 79 “Corporate Strategy: Munich Airport’s corporate strategy 2025 is based on the principle of sustainable develop- ment. It consists of five fields of action, which address the key strategic opportunities and chal- lenges for Munich Airport. These are underpinned by a strategic foundation, which provides the basis for all strategic business decisions and for future development within the fields of action. Implementation of the strategy ranges from the picture of the future at the very top level down to individual fields of action and the associated strategic objectives. These are allocated to the divisions and broken down into initiatives and measures. Our strategic fields of action: 1. Air traffic development, 2. Landside access and traffic development, 3. Seamless Travel, 4. Expansion of non-aviation business, 5. Off-campus growth, and 6. Strategic foundation” [Munich Airport, no date (b)]. 5.7 Vancouver International Airport Vancouver International Airport was voted the top airport in North America in the Skytrax sur- vey for 2015 and all the five previous years. It is the second busiest airport in Canada (after Toronto Pearson). While not handling near the volume of SIN, ICN, AMS, or MUC, Vancouver Interna- tional Airport has a strong reputation for customer service, sense of place, and ambience, and it competes for connecting international transfer passengers between the United States and Asia. YVR conducts quarterly customer satisfaction surveys. According to the airport, its 4.3 cus- tomer satisfaction rating for 2014, based on 2,952 separate surveys taken over four quarters, was the highest rating ever and matched the 2013 rating, with 91% of airport users either satisfied or very satisfied with the airport. 5.7.1 Ownership and Governance YVR is operated by the Vancouver Airport Authority, which took over operation of the airport from Transport Canada in 1992. The airport is leased to the authority by the federal government. Partnership Our airport functions only through the closely coordinated interaction of all service providers. Teamwork with each other and with partners is the centerpiece of our business model. We see ourselves as a team at our home location and beyond it. Expertise Our expertise is based on more than 20 years’ experience. At our location and in the airport industry, we have positioned ourselves as a successful operator and developer. Entrepreneurship is at the focal point of our work – now and in the future. Responsibility We assume responsibility – for employees, the region, and our environment. We strive for a balance between business success and the economical use of resources, on the one hand, and environmental protection and a commitment to society and the common good, on the other. Innovation Progress is never-ending: We have a long tradition of constantly developing our business. We want to be more than just one of many – we want to lead. Innovations are essential for the successful development of our company. Source: http://www.munich-airport.de/en/company/konzern/marke/index.jsp. Table 5-5. Munich Airport brand values.

80 Improving the Airport Customer Experience YVR is focused on a 10-year gateway strategy intended to “build a world-class, sustainable gateway between Asia and the Americas” (YVR, no date). The Airport Authority is building new expedited transfer facilities that include additional baggage systems and capacity to minimize bag- gage transfer times, a new international-to-domestic transfer facility, and a new A–B connector to improve the functionality of the domestic terminal. In 1994 the Authority created YVR Airport Services, which became active in airport priva- tization and contract management projects around the world. YVR Airport Services has been rebranded as Vantage Airport Group and is jointly owned by the Airport Authority and Citi Infra- structure Investors. Vantage Airport Group holds management contracts and equity positions at airports around the world. Its portfolio includes Pafos and Larnaka airports, Cyprus; Santiago, Chile; Montego Bay, Jamaica; Nassau, Bahamas; and Kamloops, Fort St. John, Hamilton, and Moncton airports in Canada. The airport’s logo is shown in Figure 5-9. YVR also developed BORDEREXPRESS automated self-service passport control equipment to speed up passport inspection. YVR has since sold 600 kiosks to 23 airports in the United States, Canada, and Aruba in the Caribbean. 5.7.2 Key Airlines and Traffic Overview YVR handled 19.4 million passengers in 2014. It is served by 53 airlines serving 110 non-stop destinations. Its most traveled destinations are Toronto, Calgary, Edmonton, Los Angeles, Victoria, and San Francisco. The airline serves as a hub for Air Canada, Air Canada Jazz, and Air Transat. 5.7.3 Strategic Vision and Customer Service Management Approach YVR’s customer service management approach is as follows. “Mission Statement: Connecting British Columbia proudly to the world. Vision: A world-class sustainable gateway between Asia and the Americas. Values: Safety, teamwork, accountability, and innovation. Strategy: As a world-class and sustainable airport, YVR will grow to 25 million passengers in 2020 by creating a connecting hub between Asia and the Americas, advancing air policies, deliv- ering remarkable customer experiences, and bringing economic and social benefit to the people of British Columbia” (Vancouver Airport Authority 2015). 5.8 Overview of Customer Experience Management at Leading Non-U.S. International Airports The five airports described in this chapter share some common attributes. 1. All have an extensive range of customer services—many free, some on a pay basis. All have well-defined mission statements, vision statements, and business strategies that stress the importance of customer service. The development of these airports as international leaders has been decades in the making, and their business strategies are well documented in various annual reports and reports to shareholders. 2. A heavy-rail transit system or mainline rail service connecting the airport with the city center. All five airports have heavy-rail transit systems connecting their airports with the city center. Some are part of local transit systems (Singapore Changi, Vancouver, Munich) while others are part of a national or regional rail service (Amsterdam Schiphol, Seoul Incheon). Rail connection to the city center is common in Europe and in many places in Figure 5-9. Vancouver Airport Authority logo.

Customer Experience Management Approaches and Customer Service Programs at Leading Non-U.S. International Airports 81 Asia. Some U.S. airports may also have heavy-rail connections (e.g., New York Kennedy, San Francisco, Chicago O’Hare), while others have or are developing light-rail services (e.g., Denver, Los Angeles, San Diego). 3. Premium services for high-end customers, including special lounges, private lounges, escorted arrival and departure services, and premium close-in parking. Because all five of the airports profiled in this chapter are major international gateways and connecting hubs with high levels of international passengers and large numbers of first- and business-class pas- sengers, there is a demand for high-end passenger services. These affluent passengers, mostly business travelers, are making long trips and are willing to pay for services that maximize the use of their time while traveling. 4. Extensive and informative websites, most offering terminal maps, guides, and other collateral materials for free download. 5. Extensive range of restaurants, duty-free shops, and other retail shops and services. All have extensive food and beverage and retail programs, with most having multiple conces- sionaires competing for business. The high percentage of international passengers creates substantial demand for opportunities to provide duty- and tax-free shopping to customers from high-tax environments. While most concession development is post-security, particu- larly in international departure areas, all of these airports also have extensive developments in their arrival areas to serve arriving passengers, meeters and greeters, and employees. 6. A strong sense of place, with local culture incorporated throughout the terminals. Vancouver airport is routinely cited as a leading example of an airport providing a sense of place through its use of Northwest native culture, local materials, and architectural styles. More modernist airports like Munich and Amsterdam use local culture to strengthen their sense of place, including concession offerings (Amsterdam Avenue at Schiphol and an archetypical Munich beer garden at Munich Airport). Seoul Incheon airport incorporates Korean culture, design, and materials throughout its terminal complex and offers cultural and educational offerings to transit passengers in order to create a strong cultural identity. 7. Extensive commercial development in and around the terminal. Most of the profiled air- ports have multiple hotels and office complexes on airport property (Amsterdam, Seoul, Munich) in addition to in-terminal transit hotels (Singapore, Seoul). 8. Extraordinary attention to detail. All five airports have excellent reputations for offering comprehensive customer service programs designed to meet the needs of all types of passen- gers, although with particular emphasis on international transfer passengers. Each of these airports has competition for connecting international traffic, which drives their attention to detail and high standards. Each also has strong working relationships with national carriers: Singapore Changi with Singapore Airline Group carriers, Amsterdam with KLM/Air France, Munich with Lufthansa, Seoul Incheon with Korean Air and Asiana, and Vancouver airport with Air Canada. 9. All five airports routinely and consistently get the basics right. 10. All five airports have major terminal expansion projects under construction to add capacity and maintain service levels.