Budget Airlines will feature self check in counters, first class & business class will have full service check-in, I can easily redesign the ecosystem to double the revenue

May 24, 2012, 9:21 a.m. EDT

New Industry Study Calls for a Fundamental Rethink of the Airport Ecosystem

‘Reinventing the Airport Ecosystem’ reveals how airports could adopt Mini-city, Walkway, Bus Station, and Shopping Mall operating models to meet consumer demands and drive non-aviation revenue

MADRID, May 24, 2012 (BUSINESS WIRE) — –New study follows ‘Navigating the Airport of Tomorrow’ which was launched in 2011 and explains how travelers would like the airport experience to evolve and how the airport ecosystem will be reinvented through partnership
Amadeus, a leading travel technology partner and transaction processor for the global travel and tourism industry, today unveiled a major new study, ‘Reinventing the Airport Ecosystem’, identifying consumer frustrations with today’s airport experience and mapping how airports will reinvent themselves up to 2025, with new operating models, driving revenues beyond traditional aviation income.
The report provides a comprehensive overview of the most advanced developments at airports today with 11 airport case studies including Incheon, Singapore Changi, London Gatwick, Berlin Tegel, and New York JFK.
It also looks ahead to travel 20 years from now to paint a realistic picture of how emerging technologies and social trends will lead to new operating models that will reinvent the traveler experience.
“A range of macro-trends including increasing traveler demands, new technologies, and the immediate requirement for the industry to create new revenue streams are driving the need for a fundamental rethink of the airport ecosystem,” said Julia Sattel, Senior VP Airline IT, Amadeus. “Imagine an airport where the retail experience is so impressive you choose to shop there without even flying or using an in-flight app to make purchases you can pick up once you’ve landed. It’s an exciting future but airports, airlines, and the whole ecosystem need to make cooperative decisions to unlock this potential.”
“Based on the research in this report, we can expect the airport ecosystem to change dramatically over the next 20 years as players accelerate their pursuit of new sources of revenue – such as retail, dining, leisure, and real estate,” said Rohit Talwar, CEO of Fast Future Research, and the report’s co-author. “What’s also clear is that whichever model an airport adopts; new technology means we’re heading towards an intelligent, data-intensive, knowledge-rich, adaptive, and responsive airport environment that will greatly benefit travelers.”
“This study underlines how rapidly this critical part of the travel chain is evolving. At Amadeus, we are passionate about supporting the development of airports and are totally committed to bridging the IT gap that has historically existed between airports and airlines. Indeed, it is only through closer collaboration that this new airport ecosystem can truly become a reality. I hope this report provokes both discussion and debate within the industry and offers at the same time a glimpse of how the overall traveler experience will be improved to 2025 and beyond,” said John Jarrell, VP and Head of Airport IT, Amadeus.
Traveler perspectives on the future
The research identified ‘a stress-free airport experience’ as the number one priority for travelers, with a clear 72% of global respondents saying they thought the core passenger journey from check-in to boarding was currently inefficient. Sixty-nine percent of travelers are seeking improved security processes. Passengers also expect airports to give a sense of place that reflects local culture and makes the airport destination and flight part of their total trip experience (81%).
Travelers view technology as increasingly important to their airport experience. Many want to control their entire airport journey through the use of mobile phones to navigate through key touch points (63%), use frequent flyer cards as permanent boarding passes (59%), benefit from permanent electronic bag tags (57%), and to automate the full range of airport processes including baggage drop (48%).
Social media is also seen as a vital tool for the real-time exchange of ideas, information, and feedback with travelers while at the airport. Consumers want their improvement ideas to be heard (69%), to receive important information (66%), to provide real-time feedback (53%), and to be rewarded as frequent travelers/shoppers (51%).
Designed to stimulate discussion and provide insight into the future of the airport sector, ‘Reinventing the Airport Ecosystem’ has been developed through primary field research and supplemented with over 70 qualitative interviews with industry experts from airports, airlines, and suppliers including technology providers and airport designers. These interviews were subsequently tested using a global passenger survey of 838 respondents from a range of markets around the globe including across Europe, North America, and Asia.
To download a copy of the ‘Reinventing the Airport Ecosystem’ report, please visit: http://www.amadeus.com/airportecosystem
Notes to the editors
Amadeus is a leading transaction processor and provider of advanced technology solutions for the global travel and tourism industry.
Customer groups include travel providers (e.g. airlines, hotels, rail, ferries, etc.), travel sellers (travel agencies and websites), and travel buyers (corporations and individual travelers).
The group operates a transaction-based business model and processed more than 947 million billable travel transactions in 2011.
Amadeus has central sites in Madrid (corporate headquarters), Nice (development), and Erding (operations — data processing center), and regional offices in Miami, Buenos Aires, Bangkok, and Dubai. At a market level, Amadeus maintains customer operations through 73 local Amadeus Commercial Organizations covering 195 countries.
Amadeus is listed on the Madrid, Barcelona, Bilbao, and Valencia stock exchanges and trades under the symbol “AMS.MC”. For the year ended December 31, 2011, the company reported like-for-like revenues of EUR2,712 million and EBITDA of EUR1,039 million. The Amadeus group employs around 10,000 people worldwide, with 123 nationalities represented at the central offices.
To find out more about Amadeus please visit http://www.amadeus.com

To visit the Amadeus Investor Relations center please http://www.investors.amadeus.com
SOURCE: Amadeus 
——————————————————————————
What are the sources of revenue? My estimates on a $10 TRILLION MARKET
Airport services including terminal services with increases of travellers including airport tax?
Shopping and dining including rental from real estate
Other services planned including a mini-city for temporary transit passengers with temporary lodging, spa facilities
Differentiating the flow between high paying and budget travellers
Full conceirge services to link to transport and hotel services
Additional commission from limousine and hotel
Budget = No frills minimum services
First & Business class = Total services
Expected increased revenues of more than 50% from the above sources
Airport to include services from travel agents? Possible links
Present Budget Airline terminals costs too high, need automation with fewer staff to lower costs, No-frills is the best approach, with minimum investments, where expanding the services and investments for full services airports to include First & Business class, whereby lowering the demand for Economy classes, which is a sandwich class. Due to high fuel costs, the Economy class is going to be expensive, by correctly PRICING the difference between ECONOMY and BUSINESS class, where the difference is less than 25%, more people will chose to travel BUSINESS class instead, creating less demand for ECONOMY class.
Therefore I can easily tweak Demand And Supply to fix any scenarios, creating New Real Demand that will save all the airlines in the world from a downfall.
– Contributed by Oogle.  

Author: Gilbert Tan TS

IT expert with more than 20 years experience in Apple, Andriod and Windows PC. Interests include hardware and software, Internet and multimedia. An experienced Real Estate agent, Insurance agent, and a Futures trader.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s