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Wednesday, October 9, 2019

A Customer Value Mindset in Asia’s Airlines Business by Michael Santonino * [8]



                      Photos by Michael D. Santonino III/Kim Pei Lu travel photography

Asian airports are transforming the airlines industry by creating value for customers in convenience, availability, and access with a multitude of services. The top airports in the world offer customers a travel experience with a “Disney-like” park feeling as airports display picturesque rainforest waterfalls, lush landscape, open glass designs, cultural artwork, sustainable operations, luxurious amenities, connectivity, and selection of dining and shopping preferences for passengers. Airports (and airlines) are creating value in the Now Economy with Speed, Service, Solutions, Selection, and Sociability (the 5-S model) in many Asian countries (i.e. Singapore, South Korea, Japan, and Hong Kong). 

The United States with its aging airport infrastructure has not been a passenger’s preferred choice in comparison to these Asian countries airports, as many of the service quality performance measures used by the various industry rating agencies exclude the aged US airports. The airlines have equally transformed their businesses with new aircraft, new cabin configurations, and extended ancillary services/fees (baggage, seat upgrades, fast-boarding, in-flight meals, WiFi, cancellation/changes, etc.).

Maximizing Value Attributes in Airport Layouts 
Suvarnabhumi Airport, in (Bangkok) Thailand, offers an excellent example of convenience, accessibility, cultural art, open-glass design, and luxurious amenities. It is strategically designed with seamless passenger movement flow to gates, multiple access points for shopping and tax refunds, and cultural art photo stop points, and is one of the most tourist-friendly airports in the world.

What a Jewel!

The Jewel located at Changi Airport in Singapore is creating value in the Now Economy with airport solutions and product selection for customers. The Jewel has an amazing sustainable architectural design with an integrated nature-themed entertainment park known as the Canopy and a retail mall complex. Value attributes of experience differentiations (product/services that tap into the five human senses) can be found throughout this airport complex with its customer interactive activities (walking trails, explorer slides, water mists, flower garden, and other family-centric fee paid services). 

The Jewel is strategically designed between terminals with seamless passenger movement flow to gates, shopping, dining, scenic photo taking areas, play-stations for kids, and interactive-themed park experiences for visitors, passengers, and local Singaporeans. Changi is ranked the number one airport in Asia and the world for its outstanding customer service. 

Changi Airport provides a mere glimpse of the future with technology and innovation as it relates to products (or services) in the pre-introduction stage of the product life cycle with artificial intelligence (AI), robots, virtual reality (VR), blockchain, and real-time data analytics. Expect fully autonomous aircraft or other global transportation vehicles as the technology evolves.


Creating Value with Technology for Better Passenger Experiences
Airports and airlines are incorporating technology to improve the overall passenger experiences. The use of virtual assistant holograms are being utilized by more airports to help arriving passengers make that transit to the next departure (or arrival hall) a better experience. Airlines are increasingly offering more extra room seating cabins for better comfort, as Air Asia Behad offers “hot seats” (with red headrest seats) for an upgraded fee. Tray tables and cabin bins are prime shelf-space designs for airlines (from the traditional supermarket shelf-space for products) as airlines expose passengers to new routes, tours, and other advertisements to its captive audience. Airlines are transforming cabins with newer aircraft designs that include the blue-red-yellow mood change lighting for improved cabin comfort. Airlines are upgrading the in-flight entertainment (IFE) systems to offer more TV channels, movies, games, and other IFE services for improved in-flight experiences throughout the entire journey.

The Now Economy is dominated by the services sector with an emphasis on creating exceptional customer experiences for the digitally-savvy customers. Sustainability, holistic perspectives, and personalized platforms are value attributes that digital-native customers are sensitive toward the future of airports and airline travel. The airline industry in Asia and worldwide is rapidly changing to build a competitive advantage through flexible production, innovative business models and strategies, hiring the best people, speed-to-market, and collaboration with the right business partners.  

 * Dr. Santonino is Associate Professor, College of Business, Embry-Riddle Aeronautical University Worldwide. Contact him at Michael.Santonino@erau.edu






7 comments:

  1. I've never been to an asian airport myself but the way you describe them is intriguing. I understand that they're making it a consumer experience to take a flight but it could be overwhelming to the customer if they are just trying to get a flight. Do you think this would work well in a western culture?

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  2. The US is finally seeing some large investment dollars in airport transformation project (i.e. JFK). JFK-LAX-ATL-ORD are the largest concentration of international traffic, so the Asia airport model is slowing influencing the Western culture.

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  3. As someone who is from Singapore, it is exciting to see people talking about how innovative the country is. I think the quality of airports can really reflect how an area feels about its tourists and immigrants. As our world becomes more diverse and international travel becomes more accessible, it is important that we facilitate comfortable transportation as much as possible. Airports are often the first impression of a country, and travelers that are in airports even for layovers will often want to come back if their experience was pleasant. Tourism is a huge point of income for many countries and I suspect it will only grow. So it is essential to update airports and think of travelers when planning the layout and amenities.

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  4. I am pressed for how technology is progressing . It is a very good idea to use it to improve the experience of customers, at the end of the day, everything you invest in your company will be reflected in what you earn at the end of the month or year. I would love to visit one of the best and entertaining airports in the world.

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  5. I agree with your viewpoint that Asian airports have the upper hand on creating a better travel experience for the customer by incorporating numerous amenities and technologies. As a frequent traveler to Asia, I have experiences the increased attention to detail in international airlines firsthand. Airlines such as Emirates and Etihad have a quality that US airlines do not come close to. The Changi Airport in Singapore is a great example of the multitude facilities that Asian airports provide, including the infamous Water Vortex and Butterfly Garden, that maximize customers' experience as soon as they arrive at their destination.

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  6. I can't believe that U.S. airports have fallen behind so much when compared to other parts of the world. It's even crazier to think that the U.S. had a tremendous head start in the aviation industry too. I believe one of the biggest problems comes from U.S. companies becoming complacent with their success. They always seems to have a "that's good enough" mentality. When you compare some of the offerings and features that asian airports have, it's no wonder that asian airports obtain such a high level of respect. I once watched a documentary of someone on YouTube that travelled and reviewed various airports around the worlds. When he reviewed some asian airports, that comment that stuck out to me the most, and I think gives you a good idea about the quality of asian airports, was "you could literally live in these airports. There isn't anything you need that you won't find here".

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  7. Upon reading this post I’ve started to really think about technological advancements that airlines and airports have out in place. As the world around us advances there is no doubt that technology will too. The airports and airlines have invented technology to make sure that their clients are comfortable. For example, Delta airlines offers screens behind each seat that comfortably lets the passengers watch movies. Another example of this technology is the “pods” that are placed in some airports. These pods act as a room which people can rent, that offer a shower and bed during those long layovers.

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