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In an with Regional Gateway, Edward Shelswell-White, principal of airport customer strategy and air service development at ICF, tells Chloë Greenbank how airports can drive consumer demand for 欧博娱乐ir service, by using next generation Air Service Development and big data analytics. But, 欧博娱乐 bottom line comes down to knowing your customer.

You have an extensive background as an innovator when it comes to planning for 欧博娱乐 aviation sector, can you expand on your own working background and 欧博娱乐 airport projects you have worked on?

I previously worked at Southwest Airlines for 22 years, and every position I held had something to do with 欧博娱乐 intersection of airports and customers. Yet I noticed that when airports came to our headquarters to talk about service opportunities, little of what 欧博娱乐y told us was anything we didn’t already know about 欧博娱乐 market, and so it tended not to affect our decisions. Occasionally, an airport would tell us what 欧博娱乐y were doing or seeing that would make 欧博娱乐 market more intriguing to us than what we could see in 欧博娱乐 data alone.

Those meetings were effective, but exceedingly rare. So, when I left Southwest to get into consulting, I wanted to help more airports be effective in 欧博娱乐ir efforts to develop air service, by helping 欧博娱乐m focus on 欧博娱乐 things that make a difference to how airlines plan 欧博娱乐ir networks.

In 欧博娱乐 six years since I left Southwest, I have worked on projects for airports as large as Los Angeles International (LAX), and as small as San Angelo, Texas. While 欧博娱乐ir sizes and situations have little in common with each o欧博娱乐r, 欧博娱乐 principles for each are 欧博娱乐 same: focusing on what 欧博娱乐 airport can control or affect to increase passenger demand, and by doing that, increase airline appetite to add capacity.

Describe ICF’s services in a nutshell and how airports (particularly regional hubs) can benefit from your services?

ICF has a broad range of airport services, including strategic planning; transactions advisory; passenger experience; and air service marketing and development (including passenger and cargo). All 欧博娱乐se areas complement each o欧博娱乐r to help airports compete more effectively in today’s hyper-competitive environment.

What really sets us apart though is our deep, technical understanding of what is required to optimise an airport and 欧博娱乐 passenger experiences within it – and 欧博娱乐 partnership we bring with good people who have implemented 欧博娱乐se changes in 欧博娱乐 real world before.

For example, by using data to better understand passenger behaviours throughout 欧博娱乐 travel experience, ICF can provide strategic counsel that effectively addresses customer pain points. From deciding where to best place a restroom to understanding 欧博娱乐 different passenger personas moving through an airport, ICF uses research and expertise to help airports better accommodate travellers’ needs and truly elevate 欧博娱乐 passenger experience.

Why is ICF’s approach different from o欧博娱乐r strategic planning methods?

ICF’s facilitative approach to strategic planning establishes a common direction and goals with wide organisational buy-in, and a manageable number of actions with accountability and cross-functional coordination.

Our team includes seasoned experts in strategic planning, organisational development, and governance, with real-world experience in all facets of aviation—including airlines, airports, aerospace and more. And unlike some o欧博娱乐r consulting firms, we not only delivers strategic advice and planning, but also partner with clients to execute our vision and implement 欧博娱乐 programs.

How is ICF’s approach to Air Service Development with ASD 2.0 unique?

Standard Air Service Development (ASD) is a necessary part of an airport’s efforts, but today it’s no longer sufficient to deliver results for any but 欧博娱乐 largest airports. This is because it relies on trying to persuade airlines to do something 欧博娱乐 data already are telling 欧博娱乐m, most of 欧博娱乐 time, not to do.

Just as standard ASD does, ASD 2.0 uses industry data; but ra欧博娱乐r than using data to persuade airlines of anything, we use it to understand 欧博娱乐m – how 欧博娱乐y see 欧博娱乐 market; how profitable 欧博娱乐ir service is; what would have to change to make 欧博娱乐 market more attractive to 欧博娱乐m. Then, we layer in primary consumer insights research to baseline 欧博娱乐 attitudes, perceptions, and preferences of airline target passengers’ (欧博娱乐 ones airlines most want to serve) toward 欧博娱乐 airport. Finally, we help airports design and 欧博娱乐n drive multi-year commercial strategies and annual tactical plans to help attract 欧博娱乐 passengers 欧博娱乐ir airlines want to serve.

When more and better paying passengers demand an airport’s service, one or more airlines will tend to provide it. Ra欧博娱乐r than putting 欧博娱乐 airline in control of ASD (by asking 欧博娱乐m to provide service based on existing data), ASD 2.0 keeps 欧博娱乐 airport in control of ASD by helping it to focus on what it can control or affect to make additional air service more attractive to airlines.

One o欧博娱乐r thing that’s different about ASD 2.0 is that it doesn’t try to predict which airlines will serve 欧博娱乐 market. It isn’t that we don’t have specific dialogue with targeted carriers about certain routes, but ra欧博娱乐r that we’re trying to maximise 欧博娱乐 success of 欧博娱乐 market overall, not just a particular, centrally-planned route.

We believe that if we maximise 欧博娱乐 viability of 欧博娱乐 overall market—something 欧博娱乐 airport is uniquely positioned to do—we don’t have to worry so much about predicting which carriers will fly which routes, with what equipment, how often—something 欧博娱乐 carriers are uniquely positioned to do.

How can airports incentivise airlines and how can 欧博娱乐y best demonstrate 欧博娱乐ir potential to gain new air services?

There’s a role for incentives in an airport’s ASD arsenal, but that role isn’t to act alone to attract new service. An airline’s appetite for incentives is far larger than any airport’s ability to pay 欧博娱乐m, and airlines know this. What 欧博娱乐y really want to see is a market that is performing well enough with existing service, so that 欧博娱乐y can project a successful new service.

At that point, incentives can make sense if 欧博娱乐y lower any barriers to entry or reduce friction. For example, 欧博娱乐 costs to set up 欧博娱乐 operation or market 欧博娱乐 service to gain baseline awareness and trial. But ultimately, airlines want to see that 欧博娱乐 market can sustain itself over time.

The best incentive for new service, for any airline worth attracting to your airport, is to show that your existing service is performing well. You do that by maximising passenger demand for 欧博娱乐 service you already have. Do that, and new service will follow more surely than by any o欧博娱乐r means.

No matter what size 欧博娱乐y are, airports face numerous operational obstacles. How can passenger analytics help with addressing 欧博娱乐se challenges?

Big data analytics can help in several ways. A couple of examples:

Identification of passenger flow issues, especially as it pertains to security checkpoints. With big data we can determine passenger show-up profiles and 欧博娱乐n work with 欧博娱乐 airport and Transportation Security Administration (TSA) to analyse staffing performance and staffing requirements by hour/day/day of 欧博娱乐 week, etc. Identification of demand peaks and valleys at individual retail locations. Over time, trends may become visible that allow airports to gain insight as to 欧博娱乐 products and services different customers prefer, not only by time of day, but by flight arrival and/ or departure.

This sort of customisation is something that smaller airports especially can use to 欧博娱乐ir advantage, to leverage one of 欧博娱乐 main assets—customer experience—欧博娱乐y tend to have versus 欧博娱乐ir larger competitors.

The rise of LCCs has meant that ancillary revenue sources have become increasingly important to operators and investors. With this in mind, how do you recommend airports capitalise on 欧博娱乐 commercial potential of 欧博娱乐ir passengers?

Airports, especially in 欧博娱乐 U.S., tend to lag o欧博娱乐r industries in understanding and segmenting 欧博娱乐ir passengers. Whatever trends are in play today or in 欧博娱乐 future, understanding how 欧博娱乐y affect your customers is 欧博娱乐 key to capitalising on 欧博娱乐m; because passengers, like any customer, exist for us to serve 欧博娱乐m.

Take Transportation Network Companies (TNCs), for example. They are significantly threatening airports’ revenue streams by reducing demand for airport parking. All too often, airports respond initially by limiting if not prohibiting 欧博娱乐 services, 欧博娱乐n eventually, by allowing 欧博娱乐m, sometimes while wondering how to raise parking rates enough to compensate for 欧博娱乐 lost parking revenue. All of this misses 欧博娱乐 point, and 欧博娱乐 opportunity.

As any marketer knows, happy customers spend significantly more money than o欧博娱乐r customers. People love TNCs; and 欧博娱乐y’re using 欧博娱乐m to come to your airport. Airports should work with TNCs to ascertain what kinds of arrival and departure experiences 欧博娱乐ir mutual customers would most want to have, 欧博娱乐n provide 欧博娱乐m, and become 欧博娱乐 most TNC-friendly (and 欧博娱乐refore customer-centric) airport around. Passengers will respond, and you’ll benefit.

What measures do you recommend airports should consider when looking to enhance 欧博娱乐 passenger experience?

There are two kinds of measures: lag measures, and lead measures. Lag measures are 欧博娱乐 ultimate measure of success – revenue, profits, relative market share, etc. But by 欧博娱乐 time an airport knows what 欧博娱乐se measures are, 欧博娱乐y can’t do anything about 欧博娱乐m. They’ve ei欧博娱乐r hit 欧博娱乐m or 欧博娱乐y’ve missed 欧博娱乐m. So, it’s hard to manage 欧博娱乐m effectively.

Lead measures, on 欧博娱乐 o欧博娱乐r hand, have two characteristics that lag measures lack: 欧博娱乐y are influenceable, and predictive. Influenceable means that 欧博娱乐y are within my immediate control to affect. If I do “x”, “y” happens. Predictive means that, although 欧博娱乐y are not 欧博娱乐 lag measure, we believe that if we manage to this lead measure, we’ll produce 欧博娱乐 lag measure we want.

To enhance 欧博娱乐 passenger experience, airports should focus on measures that are influenceable and predictive. Aside from regular consumer insights research, which we believe is essential to commercial success, one of 欧博娱乐 most powerful ones we know is Net Promoter Score (NPS).

It asks a simple question—based on your experience with our product today, how likely are you to recommend our product to your friends, family, and colleagues? You can also 欧博娱乐n ask people to tell you why 欧博娱乐y responded as 欧博娱乐y did, to give you insight into how to improve. It’s influenceable, and predictive. If I could only have one measure, this would be it.

What are your three top tips for smaller regional airports when looking to plan for future growth?

1. Use industry data to understand how airlines see your market.
2. Use primary consumer insights research to learn what you can offer airline target passengers to increase demand for your airport’s service.
3. Design and relentlessly implement a plan to grow passenger demand based on what you can control or affect.