The Art Of Improving Customer Experience

“Passengers will always have time to wait around the airport and therefore should be provided with an engaging experience to distract them and improve overall satisfaction”

Many airline and airport executives ask how they can improve passenger satisfaction by making the airport experience more seamless. Indeed, many airports continue to invest heavily in technology and terminal infrastructure upgrades to do just that.

But, while this in most cases will have the desired effect and lead to happier customers, it can also be a capital-intensive exercise. Not to mention the difficulty airports face in making experiences truly seamless in an industry that is heavily regulated.

Airports are becoming increasingly privatised and need to grow both aeronautical and nonaeronautical revenue in a sustainable way.

Aeronautical revenue is still an airport’s most significant revenue stream and on average makes up 56 percent of overall revenue. However, aeronautical charges are generally regulated, meaning generally airports can only drive this revenue stream through volume.

Accordingly, airports are becoming heavily reliant on growing non-aeronautical revenue derived from the commercial dealings of the airport which on average comprise 39.4 percent of its revenue stream.

But its passenger satisfaction that is the most significant driver of non-aeronautical revenue. According to a report by Airports Council International, a one percent increase in passenger satisfaction leads to a 1.5 percent lift in nonaeronautical revenue. This means that happier passengers can actually drive this revenue stream and therefore an airport’s profitability.