Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction (2014) / Chapter Skim
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From page 17... ...
17 This chapter describes some of the basic planning and design considerations that have a significant influence on increasing revenue generation and customer satisfaction when configuring new or renovating existing airport terminal facilities. 3.1 Terminal Environment The first factor to consider when planning an airport terminal environment is the users of the airport terminal: passengers, visitors and employees.
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18 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction This constraint also applies to the specific locations where concessions may be placed, due to pre-existing impediments inherent from the original design. To focus the user of this Handbook on the most important aspects in the planning and design of a terminal's concession program, the remainder of this chapter is organized into six primary sections.
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Terminal and Concession Planning and Design Considerations 19 a change would allow airports to market and capitalize on additional shoppers in the secure, airside areas of the terminal, much as they had prior to September 11, 2001. A more likely scenario is that non-fliers enrolled in known traveler programs, such as TSA Pre✓™ or CLEAR with their faster SSCP processing rates, would be allowed to pass through expedited lanes into secure areas of the terminal.
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20 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction landside and secure airside area of the terminal (each with its own distinct ramifications to the types, number, size, and location of concessions)
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Terminal and Concession Planning and Design Considerations 21 can speed passengers through the SSCP process and/or reduce passengers' stress levels are beneficial to the concession program. 3.2.1.2 Domestic Arriving Passengers The domestic arriving passenger is in many cases not a major target for concession operators, because these passengers have reached their destination and have no reason to dwell within the airport terminal.
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22 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction 3.2.2 Visitors As previously mentioned, visitors are not typically the primary purchasers at airports, but they should be taken into consideration when developing the concession program in the terminal to ensure customer satisfaction. Airport visitors can be separated into two primary categories: meeter/greeters and well-wishers.
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Terminal and Concession Planning and Design Considerations 23 3.3.1 Single versus Multiple Terminals The first stage of planning a new terminal at a high-passenger-volume airport is deciding whether all of the future passenger traffic will be accommodated in a single processing building or if it will be decentralized into multiple processing buildings. These buildings are typically referred to as "unit" terminals.
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24 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction As Table 3.1 indicates, most of the top 10 large hub airports contain multiple terminals, with the exception of Denver International Airport (DEN) which has a single terminal for both domestic and international passengers, including three midfield concourses.
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Terminal and Concession Planning and Design Considerations 25 connection at the centroid of satellite concourses. As such, the location of the APM station becomes a primary location for concessions and services.
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26 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction these international facilities to their domestic flights that minimize the connection times for both passengers and their baggage. These arriving and connecting passenger pathways have a significant impact on a passenger's dwell time and route of travel, which affects the location and type of concessions in the terminal facilities.
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Terminal and Concession Planning and Design Considerations 27 many examples of centralized, single terminal processing facilities in the small and medium hub airport categories. Among the case study airports examined in this project, SAV, BUD, PIT, and PDX fall within this category.
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28 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction • Simplifies wayfinding resulting in higher customer satisfaction: – From a macro-wayfinding perspective on the landside, there is only one location at which passengers arrive and depart, which typically simplifies the ground access infrastructure and decision making on approaching or departing the airport and terminal complex. There is less opportunity for passengers to show up at the wrong terminal since there is only one centralized terminal destination, resulting in fewer missed flights.
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Terminal and Concession Planning and Design Considerations 29 accessed from multiple points of entry from the landside as illustrated by MSP. Thus, a single terminal can sometimes have similar operational characteristics to a decentralized terminal within a single structure.
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30 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction Source: "Considerations for Selecting a Terminal Configuration," David A Daileda, FAIA, FAA White Paper.
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Terminal and Concession Planning and Design Considerations 31 3.3.5.2 Pier Terminal Concept The pier concept consists of a single centralized passenger processing building with either a single concourse or multiple double-loaded concourses attached to the terminal. In this configuration, aircraft are parked on either side along the spine of the concourse or concourses.
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32 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction A classic example of a single-pier terminal is one of the case study airports, SAV, shown in Figure 3.6. The terminal processing functions are organized in a straightforward manner with passengers first going to ticketing and check-in, then going to security, and then out to the secured concourse holdrooms.
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Terminal and Concession Planning and Design Considerations 33 Source: "Considerations for Selecting a Terminal Configuration," David A Daileda, FAIA, FAA White Paper.
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34 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction Source: "Considerations for Selecting a Terminal Configuration," David A Daileda, FAIA, FAA White Paper.
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Terminal and Concession Planning and Design Considerations 35 Figure 3.10. Pittsburgh International Airport.
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36 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction 3.4 Aircraft and Passenger Considerations It is important that non-aviation revenues from concessions be taken into consideration from the outset when developing a new terminal or renovating an existing terminal. However, for a new greenfield terminal, some primary aspects of airport terminal planning must occur prior to planning for in-terminal concessions.
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Terminal and Concession Planning and Design Considerations 37 offering is one of the key terminal plan and design attributes that can increase concession revenue. Concurrently, there are critical passenger satisfaction and convenience factors that must be considered.
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38 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction single-terminal approach. However, it should be understood that the decision regarding the type of terminal concept brings with it certain innate performance characteristics relative to passenger volumes, enplaning passenger splits, and walking distances that are presented in the following section.
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Terminal and Concession Planning and Design Considerations 39 factors of a typical narrow-bodied aircraft, a Boeing 737-800. This example shows five primary inherent characteristics: • Single footfall path: There is a single passenger corridor for departures in a single path direction.
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40 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction Figure 3.13. 20-gate, dual-pier terminal example.
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Terminal and Concession Planning and Design Considerations 41 concept has a maximum passenger walking distance to its farthest gate of almost 1,320 feet with an average walking distance of 755 feet. 20-Gate, Dual-Pier Terminal Concept.
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42 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction concessions that will each be exposed to some percentage of O&D passengers. This 20-gate, dualpier terminal concept has a maximum passenger walking distance to its farthest gate of just over 1,300 feet, with an average walking distance of 1,000 feet.
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Terminal and Concession Planning and Design Considerations 43 aircraft gates only 75 feet from the arrivals and departures curbs of a single-level terminal facility, depicted in Figure 3.15, and consisted of three separate and virtually identical unit terminals. When the FAA mandated the security screening of all departing passengers in 1973, this design concept became functionally flawed right after the facilities opened.
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44 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction as a replacement. A single unit terminal concept is being considered because it could help reduce airport operating costs, increase concessions revenues and enhance customer satisfaction by increasing the number of concession offerings to a larger, concentrated flow of passengers through a single, consolidated terminal facility.
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Terminal and Concession Planning and Design Considerations 45 Figure 3.17, would consolidate the passenger and aircraft operations from the existing three unit terminals into a single replacement terminal to be built on the current location of Terminal A 3.4.4 Customer LOS Factors The most critical LOS factors include passenger walking distance, number of level transitions, quality of wayfinding and navigation aids, and amount of wait times.
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46 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction fully utilizing the moving walkways. If concessions are placed adjacent to moving walkways, passengers may decide to bypass these concessions entirely, reducing concession sales and revenue.
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Terminal and Concession Planning and Design Considerations 47 spatial LOS is generally a universally accepted standard for terminal design, IATA-based LOS has many limitations. It does not consider passenger wait time, passenger stress levels, amenities, or wayfinding.
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48 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction much of the science involved in integrating a concession program into the plan and architecture of the building focuses on the "consumption behavior" of the customer. In most cases, this focus is on the departing airport passengers and their movement through the spatial configuration of the terminal/concourse facilities.
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Terminal and Concession Planning and Design Considerations 49 It is possible to determine from any given point within a specific volume of space what can be seen by the human eye. This single volume of space is defined as an isovist.
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50 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction to fill a temporary unit, capture sales from an event (Olympics, Super Bowl, etc.) , or generate seasonal sales.
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Terminal and Concession Planning and Design Considerations 51 allowing passengers to avoid longer queue times associated with full-service ticket counters. Separate remote bag drops are also assisting passengers to reach SSCPs.
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52 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction The following sections provide additional insights into each of these key passenger processing trends and their influence on concession revenue generation and customer satisfaction. 3.6.1 Check-in Trends The process of passengers checking into an airport in order to obtain a boarding pass has changed significantly over the last several years, as new technologies have assisted in shortening the time passengers spend at check-in at an airport.
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Terminal and Concession Planning and Design Considerations 53 Several equipment vendors are considering combining self–bag tagging with self-induction of the tagged bag into the baggage handling conveyor system. One such manufacturer is Bag-Drop Systems, which has developed a one-step check-in module that allows passengers to check in, print boarding passes, self–bag tag, and drop off checked baggage at a single module.
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54 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction which uses cameras to photograph and identify individuals in the queue, periodically recording their progress; this allows the system to predict anticipated time in the queue. Other systems apply the same principal, using Bluetooth signals from passenger phones to determine location in the queue and then providing displays with an anticipated wait time.
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Terminal and Concession Planning and Design Considerations 55 More recently, there has been an effort to maximize the use of expensive terminal and concourse space by allowing for multiple uses throughout the passenger journey. To justify the high cost of conditioned holdroom space, their utilization capabilities need to be maximized.
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56 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction Source: Courtesy Gensler Architects Figure 3.24. Open holdroom configuration, San Francisco International Airport, Terminal 2.
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Terminal and Concession Planning and Design Considerations 57 3.6.3.3 Call-to-Gate Holdroom Procedures Another style of boarding procedure and holdroom configuration that has seen increased popularity at European airports is call-to-gate. In this operational concept, a large area of common public seating and the overall concessions areas of retail and food and beverage act as a common space for holding passengers until they are called to their gate.
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58 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction United States, with passengers being informed about what gate number their aircraft is departing from many hours before departure. Once management moved to late gate announcements of just 40 to 50 minutes prior to flight departure, the airport's mezzanine-level food and beverage sales improved some 5 to 10 percent.
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Terminal and Concession Planning and Design Considerations 59 Source: London Heathrow Airport Figure 3.27. Call-to-gate seating arrangement with movement areas and circulation, London Heathrow Airport.
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60 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction Within the broad food service and retail categories are subcategories that further delineate the type of product being sold or the manner in which it is sold (i.e., duty-free retail, specialty retail, convenience retail)
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Terminal and Concession Planning and Design Considerations 61 Coffee concession operators focus on providing premium, freshly brewed coffee and espressobased drinks. Their menu often includes teas, juices, pastries, and pre-packaged salads, sandwiches, and snacks.
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62 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction to occupy the largest amount of concession space among the food service operations and require full kitchens and larger seating areas. Figure 3.31 presents two U.S.
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Terminal and Concession Planning and Design Considerations 63 Table 3.7. This higher space allocation is required to accommodate the larger footprints that casual dining restaurants need for kitchens, seating, and bars.
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64 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction convenience retail concessions may also now incorporate a limited amount of food service, such as freshly brewed coffee, pre-packaged sandwiches and salads, and snacks. Figure 3.34 presents examples of convenience retail concessions from the case study airports.
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Terminal and Concession Planning and Design Considerations 65 unavailable for the case study airports outside of North America.) The top-performing food service program, as measured by food service sales per enplanement, was JFK's Terminal 5, which generated over $8.40 per enplanement and had 74 percent of the food service concessions allocated to proprietary brands and 26 percent allocated to national brands.
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66 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction The branding among specialty retail programs was also analyzed among the case study airports. The results of this analysis are presented in Figure 3.37.
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Terminal and Concession Planning and Design Considerations 67 Compiled by AirProjects, Inc., 2013 Figure 3.36. Food service brands among case study airports.
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68 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction International Airport were the most satisfied with the variety of the food service concessions based on a recent passenger survey. There are also significantly more food service concepts at MSP compared to the other case study airports.
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Terminal and Concession Planning and Design Considerations 69 Similarly, clustering food service concessions typically offers multiple benefits to the airport operator and customers alike. If the food service concessions are operated by different concessionaires, clustering promotes competition, which tends to improve customer service, influence pricing, and generally encourage optimal performance.
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70 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction Source: Pittsburgh International Airport Figure 3.41. Pittsburgh International Airport, central concession core layout.
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Terminal and Concession Planning and Design Considerations 71 FIDS monitors are another core airport function that often becomes a destination for passengers. Since passengers are drawn to FIDS monitors for information, they tend to create a natural congregation point for passengers.
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72 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction terminal/concourse configuration, and anticipated sales per square foot and sales per enplaned passenger. Chapter 5 of ACRP Report 54 presents an in-depth review of this topic.
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Terminal and Concession Planning and Design Considerations 73 Source: Minneapolis–St. Paul International Airport Figure 3.46.
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74 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction Source: Pittsburgh International Airport Figure 3.48. Pittsburgh International Airport central core.
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Terminal and Concession Planning and Design Considerations 75 Source: Budapest Liszt Ferenc International Airport Figure 3.50. Budapest Liszt Ferenc International Airport central core.
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76 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction In the past, when there was often a single food service concessionaire operating in an airport, there would be a centralized food preparation kitchen (a commissary) where food would be prepared and packaged or prepped so that it could be quickly finished in the concession units in the concourses.
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Terminal and Concession Planning and Design Considerations 77 3.7.5.3 Impact of Airport Operational Procedures on Space Needs Airports with call-to-gate boarding operations maintain a large, central public holding area for passengers waiting to board their flights rather than individual holdrooms. Passengers from all departing flights remain in the central area until their flights are ready for boarding.
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78 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction the case study airports for which food service sales were reported. The results are summarized in Figure 3.53.
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Terminal and Concession Planning and Design Considerations 79 The food service concessions at PDX yielded the third highest food service productivity levels with sales of $5.90 per enplanement (similar to MSP's Terminal 1) and just under $800 per square foot.
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80 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction Source: Portland International Airport Figure 3.56. Location of central food service concessions at Portland International Airport.
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Terminal and Concession Planning and Design Considerations 81 There is a high allocation of specialty retail at this airport. This high allocation contributes to the higher sales per enplanement since there is a good variety of specialty concepts available, increasing the likelihood that passengers will be enticed to make a purchase.
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82 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction Source: Portland International Airport Figure 3.59. Convenience retail locations, Portland International Airport.
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Terminal and Concession Planning and Design Considerations 83 duty-free store after exiting each of the SSCPs. They are not given the option to bypass the dutyfree concession, but must walk through the store in order to enter the Skycourt that contains other retail and food service.
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84 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction flow-through duty-free stores that require customers to walk through the duty-free unit to access their final destination point within the terminal. 3.7.7 Concession Signage The key to the identity of each concession location is the signage that is used at the entry to the store.
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Terminal and Concession Planning and Design Considerations 85 (a) Static (b)
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86 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction of concessions in the post-security area. A correlation between signage and customer satisfaction with the availability of concessions could not be determined at other case study airports, as survey data was not available.
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Terminal and Concession Planning and Design Considerations 87 In addition to the sustainability criteria from the case studies airports, airports such as Chicago O'Hare International Airport have developed indoor vegetable gardens. These gardens grow herbs and vegetables that are used in airport restaurants.
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88 Improving Terminal Design to Increase Revenue Generation Related to Customer Satisfaction 3.7.10.1 Self-Service Trends While it is generally accepted that passenger self-service is a rising trend in the airport check-in process, F&B concessionaires are only beginning to recognize the potential benefits. These benefits include enhanced user control, reduced queue times, and cashless payment systems.
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Terminal and Concession Planning and Design Considerations 89 By evaluating how passengers interact with their environment, airports operators can respond by developing strategies that increase revenue as well as customer satisfaction. By effectively communicating through signage, advertisements, and mobile applications, passengers are quickly able to understand how, when, and where to meet their needs.
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