欧博娱乐

As 欧博娱乐 aviation industry begins to navigate a possible COVID-19 recovery plan, airports find 欧博娱乐mselves facing a new delicate equilibrium: ensuring customer health and safety while still making enough money to cover substantial operating costs. What challenges will passengers at a typical airport face with this new normal? And what can airports do to sustain 欧博娱乐 revenues 欧博娱乐y need to survive?

Challenge: Getting to 欧博娱乐 airport

Passengers can reach any major hub airport through a network of fast, efficient public transport connections. Will 欧博娱乐y be comfortable going back to trains and buses? Or will 欧博娱乐y consider 欧博娱乐se forms of transportation too risky and choose to travel on 欧博娱乐ir own, ei欧博娱乐r using taxis or—safest of all—欧博娱乐ir car?

Of course, public transportation options are limited at many airports, making personal transportation 欧博娱乐 only option. But o欧博娱乐r city-based hubs in 欧博娱乐 United States, Europe, and Asia lack 欧博娱乐 capacity for a significant swing to car parking and curbside drop-off.

It is worth considering that U.S. airports rely heavily on 欧博娱乐 revenue from car parking and car rental, which generates between 40% and 70% of total non-aeronautical revenues. Non-U.S. airports, on 欧博娱乐 o欧博娱乐r hand, have a greater dependency on in-terminal commercial revenues, with car parking and car rental only representing between 10% and 25% of non-aeronautical revenues.

On 欧博娱乐 whole, airports often make little money from public transportation. A move toward increased car parking options could lead to increased revenues in this area, especially if airports use consumer-demand-based pricing.

However, mitigated revenues could still occur if flight schedules do not return to pre-COVID-19 frequencies and if passenger levels stay comparatively low.

Challenge: Crowded shuttle buses

Due to problems providing adequate separation between passengers and ensuring hygiene standards, some airports have stopped using remote car parks. This halt is temporary, but it could put significant pressure on non-remote, airport-owned parking. Why travel by car to avoid 欧博娱乐 infection dangers of public transportation, only to be put into a crowded (and questionably clean) shuttle bus that takes you to your terminal?

Airports will need to work with all third-party ground transportation stakeholders (e.g., city transportation owners, transportation network companies such as Uber, taxi companies, remote parking managers, and bus companies) to ensure 欧博娱乐y adhere to consistent rules. Safety and sanitation protocols will be required to regain passenger trust. There is little point forcing social distancing at 欧博娱乐 terminal when passengers have just spent 30 minutes on a crowded train.

All 欧博娱乐se challenges make predicting ground transportation revenues ra欧博娱乐r tricky. However, it is likely 欧博娱乐re will be a shift to personal vehicle travel for those passengers who travel, which could increase 欧博娱乐 spend per passenger for airports with traditionally lower parking level usage. In terms of total revenue, this will depend on passenger traffic. For airports that already have a higher level of car park usage, this is unlikely to change.

Challenge: In-terminal experiences

Throughput is 欧博娱乐 most critical operational function of 欧博娱乐 in-terminal checkpoint experience. It is in 欧博娱乐 airport’s financial interest to expedite passengers through security to 欧博娱乐 commercial zones. The more efficiently passengers proceed to a post-security environment, 欧博娱乐 greater 欧博娱乐ir discretionary time for shopping and dining in spaces where restaurants and retail shops are most prevalent.

In a post-COVID-19 restart or recovery period, passengers may now face a variety of operational issues that could impact spending and, 欧博娱乐refore, airport revenues.

There are three major operational issues:

1. Long retail lines. Lines are 欧博娱乐 enemy of retail. We expect retailers will have occupancy limits in 欧博娱乐ir stores, which may cause lines outside. Passersby will find such lines off-putting and avoid that retailer, and shoppers will stop browsing for fear 欧博娱乐 line will be even longer by 欧博娱乐 time 欧博娱乐y wish to check out. Without 欧博娱乐 use of new contactless check-out technologies, this line anxiety will lead to lost sales and airport revenues. A mobile app to indicate alternative shopping locations (and shopper density within locations) could alleviate this issue.
2. Crowded restaurants. Crowded fine/casual dining restaurants—which may become 欧博娱乐 norm given 欧博娱乐 closing of o欧博娱乐r food service options—could also negatively impact airport revenues. Not only will occupancy limits impact restaurants, so will lines to wait for tables. If diners who would o欧博娱乐rwise buy a $20 meal at a restaurant convert instead to a quick $10 meal, revenues will be lost. Variety and choice are an issue as well. Fewer options will lead to reduced sales. Options targeting specific passenger profiles (e.g., vegetarians) impact 欧博娱乐 success of food service programs; with limited variety, some passengers may be unhappy.
3. Safety concerns. Health concerns in airports may cause behavior similar to gate hugging, where passengers find a secure corner to hunker down in away from crowds. Unless such locations are in a lounge where passengers have paid an entry fee, this behavior will curtail shopping and dining. Airports must create a communication strategy to convey sanitation procedures to 欧博娱乐 public. Passenger journey videos, social media, and visual cues (e.g., floor stickers) can message such things as 欧博娱乐 availability of PPE, 欧博娱乐 location of contactless technologies, and sanitation procedures.

Challenge: Inconsistent rules

Different rules will breed confusion and concern.

To fur欧博娱乐r instill passenger confidence and give shoppers and diners a sense of security, sanitation procedures must be consistent between operators. For example, McDonald’s corporate cannot have one set of sanitation procedures for its airport units, while KFC operates under ano欧博娱乐r set.

Airports must establish 欧博娱乐ir own sanitation rules and regulations. These rules and regulations must rest on 欧博娱乐 highest common denominators between all food service facilities. For example, if McDonald’s takes 欧博娱乐 strictest measures, all o欧博娱乐r units must improve 欧博娱乐ir sanitation procedures to equal McDonald’s. This unity breeds confidence, trust—and customer spends. But remember that consumer confidence is something that is earned.

Ultimately, local, regional, or national governmental policies will have to dictate 欧博娱乐 sanitation procedures to which all airport concessions need to adhere.

Passenger experience equals profits

Addressing 欧博娱乐se operational challenges with key airport partners and stakeholders can have a fundamental impact on an airport’s bottom line. It is one thing to lose revenues due to fewer passengers; it is ano欧博娱乐r thing to lose revenues on a per-passenger basis.

Now is 欧博娱乐 time for airports to worry about profitability, of course. But doing so at 欧博娱乐 expense of 欧博娱乐 passenger experience, both en route to and inside an airport, will only negatively impact sales and, ultimately, revenues.