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system architecture and infrastructure, data governance, budget, business value proposition/return on investment (ROI) , and performance and success measures.
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As a result of this alignment of mission, vision, and values, airport concessions technology programs will be more successful in enhancing an organizational culture that values innovation and collaboration and fosters smoother technology adoption by concessionaires. Additionally, better alignment will improve passenger experience by utilizing technology to streamline exist ing processes, personalizing offerings, and enhancing passenger satisfaction.
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In summary, by fostering a culture that aligns with the airport's mission, vision, and values, airports can leverage technology programs to enhance the passenger experience, streamline operations, and generate more revenue within the airport concessions space. 4.2 Considerations for Concessions Contracting Models Certain management methodology approaches are believed to be more conducive to employing concessions-related technologies than others (Airports Council International 2022)
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This is the most common airport concessions management model in the United States at this time. Three airports currently using this approach are Southwest Florida International Airport (RSW)
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If the independent operations are primarily joint ventures or subleases to affiliate companies, the operator/manager is, in effect, operating most or all of the program, turning it into a master concessionaire contract in disguise. Airport Operator The largest barrier to entry to airport concessions is the cost of participation in an airport program, followed closely by the lack of knowledge of how to do business in an airport environment.
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the fee manager model does not directly affect the deployment of technologies in concessions programs
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Fee manager Airport Will follow the direction The airport is likely involved in of the airport; does not project establish policy but management/implementation. could influence the airport's decisions with research and recommendations.
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Concessions Management Model Direct Multiple Master Airport Operator/ Technology Leasing Primes Concessionaire Developer Operator Manager Mobile preordering X X X X X X Delivery services X X X X (e.g., At Your Gate, Uber Eats) Self-checkout (e.g., X X X X X X MishiPay, Just Walk Out, Hudson Non Stop)
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Figure 8 illustrates the following strategies to get airport business units to collaborate with stakeholders on airport concessions technology programs: 1. Focus on shared goals and benefits: – Focus on the bigger picture.
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Offer ongoing technical support to address any issues that arise after implementation. Following these strategies can create a more collaborative environment in which airport business units and stakeholders can work together to develop and implement successful airport concessions technology programs.
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By following these steps, airports can better ensure a smooth rollout of their concessions technology program that maximizes its benefits and minimizes potential disruptions.
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4.4.1 Role and Impact of Personas in the Airport Ecosystem Personas serve a critical role in contextualizing passenger journeys within the airport eco system. They allow for the mapping of unique passenger experiences and for catering to the distinct ways in which different customers interact with brands, services, and technology.
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On the basis of the findings of the various passenger personas, the research team identified the following opportunities for airports to consider as they develop airport concessions technology programs: • Communication and engagement. Improve strategies to ensure timely and relevant passen ger information.
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passenger experience. these individuals do not media)
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An airport concessions technology program can involve a complex interplay between different systems, either existing or new. As a result, it is important for an airport to ensure that it has a robust, flexible, scalable, and adaptable system architecture.
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– It should handle fluctuations in passenger traffic and concessionaire operations. • Security: – Robust data security measures are essential to safeguard sensitive passenger data, financial transactions, and critical airport operations.
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– This enables data-driven decision-making for optimizing operations and passenger experience. – Data analytics tools can be integrated to glean valuable insights for optimizing operations, resource allocation, and passenger experience.
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– Connecting with ride-hailing services or ground transportation providers can offer bundled travel and shopping packages. By integrating these key system components via a well-defined system architecture, airports can create a robust and user-friendly omnichannel digital marketplace that enhances the passenger experience, generates additional revenue streams for concessionaires, and fosters a more connected airport ecosystem.
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Following are some key considerations for airport IT infrastructure when a concessions technology program is being developed (see also Figure 13)
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Airport IT groups are now focused on establishing data governance programs. Thus, airport concessions programs likewise require data governance to support their use of technology.
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Here are some steps that airports can take to apply data governance to technology in airport concessions programs (Nandan Prasad 2024) (see also Figure 14)
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4.7.2 Data Governance Elements Data stewardship, transparency, and accountability are fundamental principles that work together to support a data governance framework to ensure the successful and ethical imple mentation of airport concessions technology programs. Data Stewardship: The Foundation Data stewardship is the hands-on execution of the data governance framework (Figure 15)
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Together, data stewardship, transparency, and accountability create a robust framework to support data governance in airport concessions technology programs. This fosters trust with stakeholders, protects passenger privacy, and ensures data-driven decision-making that benefits the airport, concessionaires, and, ultimately, the passengers.
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This could include reductions in labor costs, paper usage, or energy consumption. Poten tial cost savings may also include "soft" costs, such as favorable impacts on users (e.g., reduced wait times)
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The goal is to strike a balance between up-front costs, ongoing expenses, and the potential for long-term cost savings, revenue generation, and improved passenger experience. 4.9 Business Value Proposition/Return on Investment A key factor in getting an airport concessions technology program approved and budgeted is demonstrating to airport senior management that the business value obtained far outweighs the airport's investment in the program (Figure 17)
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Some airports may have already deployed similar technology and may share their positive business value outcome and ROI. By following these steps and considering both quantitative and qualitative factors, airport operators can make informed decisions about the business value proposition and potential ROI on airport concessions technology programs.
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– This transparency builds trust and fosters a culture of data-driven decision-making within the organization. 4.10.2 Identifying and Defining Measurements Defining performance and success measures during the planning stages of a technology program is highly recommended, for the following reasons: • Clarifying program goals.
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However, significant changes warrant a review of the program's overall direction and potential resource allocation adjustments. 4.10.3 Possible Areas to Measure Although specific performance measures will vary depending on the goals of the airport's concessions technology program, the following are some recommended performance measures and success measures that can be considered and categorized into different areas, as applicable (Pierangeli 2020)
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Track the number of new concessionaires expressing interest in joining the program because of the implemented technology. 4.10.4 When to Establish Measurements Defining performance and success measures during the planning stages of a technology program is highly recommended.
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