Editor's Note: The following was written by Michael Taylor is Sr. Director, Travel & Hospitality Intelligence at J.D. Power.
While a dwindling generation of travelers may remember the glamor days of air travel nostalgically, there are a dozen or so airports across North America that have made great strides in creating "destination environments" that have brought a sense of excitement and wanderlust back to the equation.
In so doing, they are not only elevating customer satisfaction levels but are also driving new profitable revenue streams that have set new standards for airport management.
A review of North American airports that have scored near the top of customer satisfaction ratings in J.D. Power surveys shows the power of leaders who have consciously connected the airport experience to the unique attributes of the local scene.
Over the past decade, leading airports - such as Atlanta Hartsfield in the mega category, Portland International Airport (PDX) in Oregon for the large airport category, and Buffalo Niagara in the medium category -- have parted with the practice of working exclusively with big-name national food and retail chains by introducing local restaurants and retailers that make travelers feel like they are having a unique regional experience.
It has provided an exciting transition point for travelers arriving at their ultimate destination and has served to create an attractive environment for layover passengers.
PDX has done as much as any airport to establish an enhanced experience for passengers traveling to - or through - their gates. Portland Port Authority officials responsible for the modernization of the facility a decade or so ago broke new ground when they elected to negotiate directly with retailers and restaurateurs in their geographic area. Eschewing the industry convention of working with intermediaries that leveraged long-standing relationships with national food and retail brands across their airport customers was a bold move that has paid off handsomely.
PDX officials rebalanced their concession portfolio with an array of eateries - including local distilleries and microbreweries, and vegetarian cafes - and shops that carry a distinct Northwestern motif. The move has been a critical success internationally and has emerged as a source of pride for Oregonians locally.
Tipping the Experience from Good to Great
The decision by airport authorities to pursue strategies like this is not without risk. There is plenty that can go wrong in negotiation with concession partners and the thousands of variables that must be addressed in the execution process. Moreover, tackling this opportunity only makes sense when every other aspect of airport operations is operating at peak performance.
Our J.D. Power data indicate that the food, beverage, and retail options only account for approximately 10% of value that goes into calculating how satisfied travelers feel about their airport experience. But success with that 10% is what makes a good airport "great."
A tremendous amount of hard work, talent and leadership is needed to secure "good" scores in J.D. Power satisfaction surveys. These efforts revolve around the basics of the airport experience:
- Making it easy and efficient to get in and out of the airport;
- Signs and directions that create efficient and reassuring wayfinding;
- Optimizing the TSA process, keeping the flow of travelers moving through the bottlenecks that can easily stress a traveler and cause missed flights;
- Perhaps most important is the general appearance, upkeep and cleanliness of the facility. Any facilities that are damaged or worn will be perceived as dirty, no matter how antiseptic they might be.
On that last point, we can attest that it is impossible to score well on customer satisfaction surveys when an airport has dirty bathrooms. Addressing these - and other - logistics and management challenges are the table stakes of airport operations.
And finally, there is the whole question of whether or not local and regional economic conditions are in place to create exceptional experiences through cultural localization initiatives. Airport officials have a range of questions to answer before moving forward with this kind of an airport modernization project, such as:
- Can the airport identify the kind of local partners that bring a differentiating local flavor to the facility?
- Is the passenger volume in place to allow a unique regional experience to be financially viable on the airport?
- Can the airport deploy the executive and management talent needed to support the strategy?
These and other important issues must be resolved as airport authorities plan the future of their facilities. But with all that said, it is important to note the counter-intuitive nature of the value proposition of pursuing a regionalization strategy.
While one of the biggest complaints voiced by consumers about their airport experience is that "everything costs too much," the operations that have gone from "good to great" have done so by creating a unique offering that travelers can't get anywhere else; as a result, consumers feel more than willing to part with their money and feel very good about doing so in the process.
Across all J.D. Power studies, we've observed one key tend: those brands and businesses that understand their target market - and deliver what that target market desires - do very well in the rankings and succeed financially. The first step is to identify your passengers' priorities and deliver on those priorities.
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