Over the past few decades' airports have evolved from mere infrastructure providers to hubs of commercial activities. Many airports have therefore extended their service offerings, focusing increasingly on providing a holistic customer experience with the passenger central to both strategic and commercial decisions. Proper management of airport parking activities has a defining impact on the customer experience, as the parking premises form the first physical point of contact at the airport for point-to-point passengers. In this article, François-Joseph Van Audenhove and Aurelia Betatti of Arthur D. Little, discuss ways to maximise customer experience and create added value from airport parking activities.
For those of us who live and work in big cities – well over half the world’s population today, a figure projected to increase to 70% by 2050 – metro railways are an ever-present part of daily life. Today there are 148 cities with metro operations carrying over 150 million passengers per day, with about one-third in Asia, one-third in Europe, and the rest split between the Americas, the Middle East and Eurasia. Metros are critically important assets for the world’s cities in order to meet the huge challenges of maintaining urban mobility in the coming decades. In this article, Rick Eagar, Russell Pell and Philip Webster discuss the five key challenges for urban railways to meet future mobility needs.
For those of us who live and work in big cities - well over half the world's population today, a figure projected to increase to 70% by 2050 - metro railways are an ever-present part of daily life. Today there are 148 cities with metro operations carrying over 150 million passengers per day, with about one-third in Asia, one-third in Europe, and the rest split between the Americas, the Middle East and Eurasia. Metros are critically important assets for the world's cities in order to meet the huge challenges of maintaining urban mobility in the coming decades. In this article, Rick Eagar, Russell Pell and Philip Webster of Arthur D. Little, discuss the five Cs for urban railways to meet future mobility needs: Customers, Capacity, Cost, Co-innovation and Cooperation.
As the market grows at a compound annual growth rate of over four percent up to 2020, line maintenance, an integral part of airlines' daily task is moving away from in-house to being outsourced globally. Creating efficiencies within line maintenance is imperative to the industry with aircraft checks regularly conducted on the tarmac in between flight operations to ensure airworthiness. Andrew Smith, Principal at Arthur D. Little is quoted as saying, "Changes in foreign ownership rules that pertain to airlines and their subsidiaries may have contributed to the growing tendency of airlines to outsource their maintenance activities to third-party providers."
In this article, Arthur D. Little's new report on Aviation Alliance Strategy is discussed. The report says that the new alliance world is not just about making different airline models work together but that deeper cooperation with suppliers will also be important. It says that distribution strategy will become the new competitive background and that relationships between airlines and third-party channel providers will grow in importance. It also says that ownership of passenger data will become a key source of competitive advantage, with those retaining control better able to conduct targeted marketing and embed the customer relationship.
Continuous operational efficiency gains, the rise of low-cost airlines and the growing convenience of flight booking have all contributed to the ongoing commoditization of air travel. Despite China's economic slowdown, the International Air Transport Association (IATA) still expects global passenger volumes to more than double by 2034, reaching 7bn, which will drive demand for incremental aircraft and generate value in the aftermarket. Similarly, while there may be early signs of softening demand, Boeing's long-term market forecast for 2015-34 also foresees the number of aircraft in service doubling. Such growth is expected to see the global MRO market expand from $51bn in 2011 to $71bn by 2021. In this article Russell Pell, Andrew Smith, Delphine Knab and Willem Romanus of Arthur D. Little, discuss delivering long-term value in a transformed aftermarket.
More than 50% of global air traffic today travels through privatized or commercialized airports. Roughly half of that traffic travels through airports that are stock exchange listed, while the remaining half are privatized but not listed. This article discusses why Arthur D. Little believes that airports are becoming a huge industry and how the domination of public companies is coming to an end.
This online feature discusses Arthur D. Little’s new global mobility study which has shown there are still significant challenges to overcome before mobility and car sharing become mainstream. The study sheds light on the three megatrends of autonomous driving, electric mobility and car sharing. Wolf-Dieter Hoppe, associate director of the automotive practice at Arthur D. Little is quoted saying, “OEMs face a huge communicative challenge in convincing their reluctant customers about autonomous driving, even though in the long run, autonomous driving will significantly increase the amount of driven-passenger kilometres.”
This online feature discusses Arthur D. Little’s new global mobility study which sheds light on the three megatrends of autonomous driving, electric mobility and car sharing. The study reveals consumers are very skeptical concerning the industry’s biggest trend, autonomous driving, and only one-third say they would use an autonomous car. The study also shows that the meaning of mobility in consumers’ minds is changing profoundly, particularly in the global megacities, where current problems may no longer be solved with classic concepts. Car-sharing and driving services will therefore play an important role in these areas. For a long time, one of the key assumptions of this development has been that the role of the car as a status symbol would decrease and the use of car-sharing services would increase. However, Wolf-Dieter Hoppe, associate director of the automotive practice at Arthur D. Little is quoted saying, “Car sharing won’t replace the private vehicle – it is still best seen as an additional mobility option.”
Passengers expect a wide range of entertainment offers when they visit airports. “Shopping miles” and restaurant and visitor platforms are already common. Airports are on the verge of becoming adventure worlds for passengers. The German newspaper Wirtschaftswoche examined the country’s 10 biggest airports and how the offers fit into the self-image of airports. The airports in Frankfurt, Munich and Hanover were listed at the top of the ranking, while the capital’s airport, Berlin-Tegel, failed in the categories comfort, processes and flight offerings and was listed in the bottom position.
Experts have little doubt that additional offerings that improve customers’ comfort, such as shopping and restaurants, are the future of aviation. Aurelia Bettati, partner at Arthur D. Little, highlights that some airports earn more than 50% of their revenues from retail. This development is forecast to increase within the next years. Modernizations and new concepts are meant to make the customer experience more pleasant. Airports will also focus more on business people. Lounges, conference rooms and office services are among the services of the future.