Airport

Commercial Digital
Transformation
Best Practices

2024
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Airport Commercial Digital Transformation Best Practices

Copies of this publication are available from:

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ISBN 978-1-990290-63-3

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©2024 Airports Council International (ACI) World. All rights reserved.

 Acknowledgements

We extend our sincere appreciation to the current and former members of the Working
Groups of the Sub-Committee on Non-Aeronautical Activities and Revenues of the ACI World
1 2
Economics Committee (ANARA) for their valuable contributions.

Pictured top left to right:

1 Vikas Gupta
Gupta, Chief Executive Officer, GrayMatter Software Services, Leader of the
3 4 ANARA Working Group 1: “Digital”
2 Neeraj Manoria,
Manoria Assistant Vice President and Head Digital Strategy, Bangalore
International Airport
3 Stephane Geffroy,
Geffroy Head of Retail, London Gatwick Airport
5 6
4 Tod Yankee
Yankee, Senior Manager, Global Aviation Commercial Advisory, ICF
5 Stephen Hay,
Hay Global Strategy Director, Collinson
6 Lucio Benavente,
Benavente Retail Manager, Lima Airport Partners

7 8
7 Peter Burns,
Burns Director of Marketing, Digital and eCommerce, Heathrow Airport, past
Working Group 1: “Digital” Leader
8 Dr. Slava Cheglatonyev
Cheglatonyev, Director, Economic Policy and Sustainability, ACI World
9 Leena Faraj,
Faraj Vice President, Corporate Strategy and Support, Bahrain Airport Company
9 10
10 Chris Hartman,
Hartman Director, Digital Experiences, Airport Dimensions
11 Jérôme Lepage,
Lepage Global Transport Marketing & Business Development
Director, JCDecaux
12 Arturs Saveljevs,
Saveljevs Member of the Board, Riga Airport
11 12

We extend our sincere gratitude to the ACI World Airport IT Standing Committee (WAITSC)
and Sarah Nebbal, Manager, Airport Technology and Operations, ACI World, WAITSC
Secretary, for their thorough review, and valuable feedback.
 Contents

INTRODUCTION 7

Introduction 8

UNDERSTANDING WHY DIGITAL IS IMPORTANT

AND THE SOURCES OF VALUE 10

2.1 The case for change 11

2.2 What are the levers of digital growth? 14

2.3 Commercial digital business models 18

A VISION FOR THE FUTURE 20

3.1 One platform that powers revenues and loyalty 22

3.2 Seamless digital customer experience 24

3.3 Multi-touchpoint digital marketing 25

3.4 Case studies from three airports 26

CREATING YOUR COMMERCIAL DIGITAL STRATEGY 28

4.1 Commercial digital maturity framework 31

4.2 Commercial digital foundations 35

4.2.1 Direct to consumer 35

4.2.2 Unified customer view 36

4.2.3 Customer purchase journey 37

 4.3 The opportunity in retail 39

4.4 The opportunities in advertising 41

4.5 The opportunity in ground transportation 44

4.6 The opportunity in services 46

ENABLERS FOR SUCCESS 48

5.1 Customer engagement and

performance management 49

5.2 Minimizing commercial risks 55

5.3 Fixing internal business challenges 56

5.4 Better use of data 58

5.5 Creating internal business cases 60

5.5.1 KPI considerations 61

5.5.2 Channel strategy 61

5.5.3 Approach to funding 62

COMMERCIAL DIGITAL ORGANIZATION STRUCTURE 63

6.1 Modified and new airport functions

needed to support digital 64

6.2 Marketing, passenger engagement and traffic 65

6.3 Commercial digital 65

6.4 Distribution 66

6.5 Data and analytics 67

6.6 Cross experience commercial teams 67

6.7 Digital development 68

6.8 In-house versus outsource of

commercial digital solutions 68
AIRPORT DIGITAL TRANSFORMATION
KEY CHALLENGES AND RISKS 70

7.1 Change management 71

7.2 Strategic planning 71

7.3 Collaboration 72

7.4 Costs 72

7.5 Security and privacy 72

7.6 Tax and regulation constraints 73

7.7 Challenges related to suppliers and tenants 73

7.8 Overcoming these challenges 74

CREATING A COMMERCIAL DIGITAL ROADMAP 75

8.1 Commercial roadmap template 76

8.2 Immediate priorities 79

Introduction
8 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

Introduction
“Commercial digital acceleration is now
a key priority for airport leaders.”

Commercial digital transformation aims at creating a seamless and efficient

ecosystem that enhances the passenger experience and optimizes non-aero
commercial revenue potential for the airports.

Digital technologies and digital product adoption are driving significant consumer
behaviour change in the travel, hospitality and transportation industries. Digital
adoption for food booking, cabs, parking, and similar services has become the new
normal. Travellers are used to these technologies in their day-to-day life and expect
airports to provide similar solutions to make their travel seamless and personalized.
This change in passenger behaviour is also an opportunity for airports to leverage
and expand commercial offerings at the airport and beyond.

Airports have made considerable investments in digital transformation to drive

operational excellence, but they are far behind in adopting commercial digital tech-
nologies compared with industries, such as retail and hospitality. As the technology
continues to evolve, airports across the world are expected to increase their invest-
ments in commercial digital solutions to meet the changing demands of passengers
and maximize revenue potential.

Commercial digital transformation covers the application of digital technology to

enable passengers to pre-order such products and services as: ground transpor-
tation; retail; food and beverages (F&B); duty free, meet and greet; fast track; and
help information and wayfinding. This will create contextualized shopping options
for passengers, accessible via each airport’s digital estate, including e-commerce
websites, apps, kiosks, customer relationship management (CRM) and loyalty
communications and distribution via third parties. It excludes any application of
digital technology to drive operational, workplace or cost efficiency.

End-to-end airport digital transformation is a broad concept and delivers change

across the whole airport ecosystem with a significant focus on four key areas:

• Operations: The passenger experience is improved from check in to the

boarding enabled through biometric technologies, self-service kiosks,
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 9

self-baggage drops, personalized flight information and real time flight

updates, resulting in better dwell time.
• Commercial: Commercial offerings are enhanced through digital commerce,
enabling the preordering of F&B, retail, and duty free, accelerated rewards
and smart car parking solutions. Digital signages and augmented reality
(AR)-based wayfinding solutions are also driving revenue increases.
• Infrastructure: This involves implementing robust high-speed connectivity
throughout the airport, 5G and private wireless networks, cloud infrastructure,
digital twins, asset lifecycle management, supply chain efficiency and sustain-
able practices to manage resources efficiently. It also encompasses the
use of artificial intelligence (AI) for resource optimization and an enhanced
passenger experience.
• Corporate: Key business functions, such as human resources and finance
can be digitalized to drive operational efficiency and reduce human errors.

This paper, created by commercial and digital experts from a range of ACI member
airports and partners, focuses on the opportunities for an airport’s commercial digital
transformation and optimization, to close the increasing gap between passenger
expectations and their actual airport experience. It is aimed at airport executives to
help guide strategy and create the right roadmap for growth.

This paper answers five key questions:

1. Why is driving change in your digital commercial and passenger offer import-
ant and what benefits will it bring?
2. What does the future commercial digital airport passenger experience
look like?
3. How do you benchmark your airport’s commercial digital maturity and create
a case for change?
4. What foundational pillars do you need to get right to deliver benefits?
5. How do you organize your business internally to deliver commercial
digital change?
Understanding
Why Digital is
Important and
the Sources of
Value
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 11

2.1

The case for change

“The inconvenient truth is that for most airports, a relatively
small percentage of their passengers currently engage with
their digital products and services.”

The digital landscape has many facets and components. For example, Chinese
consumers do not have the same digital environment as Europeans or South
Americans. However, there are key common drivers that lead to digital adoption
and, in return, growth.

Looking at early digital success in other industries, there were three key drivers:
convenience, price and customer service. The likes of Amazon, Expedia or WeChat
built their reputations on these pillars, quickly gaining leadership positions in their
respective markets. This was the era of pure play digital, and it started just 15
years ago.

Consumers still cherish these three pillars. However, the new generation of
internet-first consumers value additional fundamentals: they want to work with
brands they trust, online and offline, and those that demonstrate their commitment
to a higher purpose, especially sustainability. Digital is no longer a different world
with its own set of values. From a consumer’s perspective it is fully integrated and
interconnected with real life.

As a result, continuity of experience, from offline to online and vice-versa, is vital.

Consumers expect the same level of attention when shopping online as they do
in-store. They don’t see a divide; a seamless, straightforward digital experience is
essential for building trust and fostering engagement.

Airports are no different to major brands but many do not yet offer the same level
of digital journey consumers expect and experience in their day-to-day lives. Some
major hub airports offer a more advanced digital experience but have strengths and
weaknesses in different areas. Many medium to smaller airports have some digital
products and services, but they are usually disconnected and not part of a wider
digital strategy. This is often because of legacy business models, where building
infrastructure and physical operational performance have been seen as the core
12 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

drivers of an airport’s value. But passengers continually state that they want a
simple, seamless and stress-free journey.

The result is that, for many airports, only a relatively small percentage of passen-
gers engage with their digital offer. Most digital engagement is direct with the airline.
This represents a huge opportunity for airports, to drive incremental revenue,
improve passenger satisfaction and build longer term relationships through the
better use of data.

The shift to a more commercial and passenger-focused digital business accelerated

during the pandemic. The trend towards e-commerce continues to gain traction at
airports.

Given accelerated consumer behaviours, a current lack of digital reach and engage-
ment and an industry with considerable opportunity, it is critical to build or revisit an
airport’s commercial digital strategy.

A summary of changing passenger behaviours in relation to digital

CONSUMER BEHAVIOURS COMPETITIVE LANDSCAPE

• Increasing consumer expectations of a • Airlines are increasing their use of data

digital experience based on use in other and digital models, creating a challenge
industries. to traditional airport revenue streams.
• Consumers want to be in charge and buy • Airline onboard connectivity improve-
anywhere, anytime and anyplace. ments and direct passenger relationships
• Consumers expect better use of their will drive increased onboard revenues.
data and personalized experiences while • Global digital players (e.g., Google)
protecting their privacy rights. are creating strong travel platforms,
• Value propositions continue to be chal- which, if monetized, could create further
lenged given real time price comparison challenges.
of online versus physical stores. • Similarly, online travel agents are
• Mobile is reshaping traveller behaviour – increasing direct passenger relation-
they are more connected and want to be ships to take a greater share of their
more engaged. travel wallet.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 13

KEY TAKEAWAYS

• The core pillars of digital growth 15 years ago still apply today: convenience, price
and customer service.

• Consumers expect a seamless offline and online experience when they interact
with brands.

• Many airports are yet to deliver that seamless experience through digital, often
constrained by legacy business models.

• As a result, relatively few passengers engage with an airport’s digital offer and are
more likely to build digital relationships with their airline.

• Digital passenger behaviour has accelerated since the pandemic, especially where
there is a high volume of leisure passengers.

• There has never been a more important time to build or revisit a commercial digital
strategy to drive revenue and passenger satisfaction.
14 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

2.2

What are the levers

of digital growth?
“At the airports there are three main
value drivers: reach, dwell and offer.”

The first step for any airport is to decide where the key sources of value are in
the implementation of a digital experience. This is best achieved by looking at the
end-to-end passenger journey from departure, through to arrivals based on three
core areas:

1. Added value: Creating value for money, convenience, a simpler journey,

personalization and exclusive dinning and retail experiences.
2. Relieving journey pain points: Navigating through the terminal with ease
reduces stress and anxiety. A relaxed passenger is likely to spend more at
the airport, resulting in a higher transaction count and Average Transaction
Value (ATV).
3. Specific jobs to be done: This includes booking parking, planning the trip,
accessing a lounge, upgrading to fast track security, F&B ordering, Wi-Fi
permissions and more.

The three main value drivers, especially when focusing on how to drive non-
aeronautical revenue by better use of digital, are:

1. Reach: Airports traditional commercial models either reach passengers at the

point of purchasing a core product or service, such as car parking or ground
transportation, or when they are in retail areas in the terminal pre-departure.
Reach is further limited as most passenger data sits with the airline and the
main airlines are yet to support business models that involve better commer-
cial data sharing with airports. By using digital channels and distribution,
especially upstream pre-arrival, airports can talk to many more passengers,
increasing the opportunity to convert revenue and service opportunities.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 15

2. Dwell: Dwell at an airport has historically been physical and limited to the time
a passenger has pre-departure to shop, eat and engage in other services.
Because this physical dwell is limited, it only generates value for a limited
time and requires passengers to manage their experience. Digital extends
dwell to any point during the journey, especially when mobile or app driven.
Passengers can order, buy and get services at any point in their journey.
3. Offer: Finally, digital enables airports to extend their offer more efficiently.
Products and services no longer need the cost of physical infrastructure.
Whether it is adding new digital-only retail experiences, remote live chat and
digital customer service, or an airport app that walks passengers through their
journey, all can be delivered at a fraction of the cost of legacy approaches.

While working through the end-to-end passenger journey, the following is a list of
initiatives that could drive value through additional business or risk mitigation. It
isn’t exhaustive but shows that there are a wide range of opportunities for all sizes
of businesses to consider.

Before arriving to the airport

EXAMPLE INITIATIVES BENEFITS

Engagement is key: Focus on providing appropriate information, and Lower stress, more
offer the possibility to chat with people who know the airport so that propensity to spend.
passengers’ stress levels are lowered.

Make a commercial offering through a mobile website or app: Turn the Increased dwell
time before travel into dwell time – and segment passengers to cross time.
sell efficiently when at the airport.

Include transport options into the marketplace: This brings additional Add revenue
revenue thanks to a new distribution channel. opportunities
through third
parties.

Cooperate with travel agencies / airlines: Travel agencies and airlines Increase the
know the customers before they travel. It is another way to engage penetration rate
before they reach the airport. Business models may vary, ranging from / Passenger
a pure advertising model (pay per click) to a revenue share model. Spending Rate
(PSR).
16 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

Car park revenue management: Enhance revenue, and efficiently Increase PSR
compete with off airport offers. Segment passengers before their and develop the
arrival at the airport. customer database.

One ID: use of a single token to move around the airport and transact, Increase effective
making it secure, seamless and efficient. dwell time and
reduce stress.

At the airport (departing)

INITIATIVES BENEFITS

Use 2D barcodes to localize information and get in Relevant information and lower stress
touch with passengers in a relevant manner. levels.

Leverage Generative AI and chatbots to interact Relevant information. Lower

through natural language. stress levels and engagement with
passengers.

Allow F&B to preorder and deliver in waiting areas. Reduces stress and congestion.

Allows higher productivity for F&B

outlets. Increases PSR.

Provide orientation tools that integrate commercial Advertising revenue from operators
content (drive to store). (less intrusive than push messages).

Build cooperation with retailers: Increase the performance and

motivation of operators, leading to
• Share content with retailers to attract more
PSR.
passengers to shops (e.g., promotional content
to be reflected on airport apps / mobile sites). Sell high value insights based on
• Collect data to segment more efficiently (Point of data (horizontal analysis – shopping
Sale data related to destination is a good start- journey).
ing point).
Develop the customer database.
• Track passenger activity through tokenization
(anonymous ID related to the payment method
and boarding pass), understand the shopping
journey and create profiles via algorithms.
• Provide retailers with a horizontal understanding
of their customers.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 17

• Give inbound passengers a reason to engage Increase PSR.

with your digital channels (the most efficient way
to do so that is low cost and touches 100% of Develop the customer database.
passengers is to provide baggage on belt wait
time. Passengers will be more likely to purchase
F&B at the baggage hall).
• Preorder duty free on arrival / other services
available.
• Transportation.
• Cooperate with downtown tourism offices
for content.

KEY TAKEAWAYS

• Airports should first decide where the value is for their commercial and passenger
experience in the use of digital.

• Start with your end-to-end journey and look at how digital can add value, remove
pain points for passengers or improve how passengers get specific jobs done, such
as parking or navigation.

• Digital provides value in three core areas: by reaching more passengers before
and during their journey; by extending dwell time via the use of digital and mobile
channels; and by improving the airport offer with new digital-only products
and services.
18 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

2.3

Commercial digital
business models

Before building a new or revised commercial digital strategy for an airport, it’s
important to understand the different business model structures that can be used.
A digital business model is a form of creating value for passengers based on devel-
oping benefits that use digital technologies, platforms, applications, websites, social
media networks, and more.

Digital business models have four main characteristics:

1. Value created via the internet

2. Provision of goods, services or information to the customer
3. Direct or indirect monetization
4. Creation of a unique digital selling proposition

There are a diverse number of models to be considered, depending on the object-

ives. Most digital revenue will come from a more traditional e-commerce model but
that shouldn’t ignore other revenue sources. The following is a brief description of
the most common models:

1. Free-model (advertising-supported model): This model is based on offering

services for free by having advertisers finance it. The design must be sensible
to visibly portray advertisers. This is one of the most difficult models to run
since a basic need must be created to develop a vast number of users and
then it must be kept relevant. Some examples are Google and Facebook.
2. Freemium model: this model is based on offering for free a sample version
and if the user requires more features or resources, they can choose to
upgrade and pay. Some examples are Spotify, Dropbox and MailChimp.
3. On-demand model: This model offers the opportunity to use a service for a
limited time for a price. Some examples are Amazon Video and Apple TV+.
4. E-Commerce model: This is probably the most common of all, where the
user purchases a physical product via an online shop and has it delivered
to the location provided by the user. Some examples are Amazon and Aldi
Grocery Delivery.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 19

5. Platform model: This model has a third party used by the sellers and buyers
to trade goods or services. Some examples are eBay, Uber and Airbnb.
6. Ecosystem or full-experience model: The model is the most complex of all
as a powerful digital business model orchestrates a vast number of services
and encourages the user not to leave the ecosystem. Some examples are
Amazon, Google and Apple.
7. Access to ownership model: this model allows the user to pay for a
service, product or offering for an amount of time. Some examples are Zipcar
and Airbnb.
8. Subscription model: This model is especially used for content, software and
memberships. It also includes movie rental. Some examples are Microsoft
Office 365, Netflix, Disney Plus and ESPN Star+.
9. Hidden revenue generation model: The users of this type of model do not
necessarily know how the company generates its revenues. This model, in
a way similar to the advertising supported model, is dependent on having a
growing number of users and keeping the experience relevant. The company
then generates revenues from the data used by the users, which is sold to
interested parties. Some examples are Google, Facebook and Instagram.

When thinking about a new business model the priority is to think about passengers
and the unique value proposition that the airport can deliver. It is also important
that a successful business uses several models as it evolves over time. However,
the immediate opportunity for airports lies in both the e-commerce and platform
business models.

KEY TAKEAWAYS

• It’s important to understand digital business models before you create a new airport
digital strategy.

• There are many models, but e-commerce and platform / marketplace will drive the
most immediate value for airports.
A Vision for
the Future
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 21

3.0

A vision for the future

“Airports will create digital marketplaces that will bring
key stakeholders together to provide relevant services to
passengers.”

As airports around the world continue to make progress through investments

and focused efforts towards enhancing the digital customer experience in their
respective facilities, some common trends are expected to emerge over the next
five years.

We believe that airports will gain ever-increasing sophistication in key areas of

enablement:

• Data gathering
• Marketing strategies
• Technology implementation
• Artificial intelligence

Airports will more effectively collect passenger data from various sources and will
utilize marketing tools and techniques to get a better understanding of consumer
behaviour and influence those behaviours. They will also implement appropriate
technologies to enhance commercial experience and use AI to predict consump-
tion trends.
22 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

3.1

One platform that powers

revenues and loyalty

Airports will create digital marketplaces that will bring key stakeholders together
to provide relevant services to passengers. A variety of airport stakeholders will
share passenger data and business intelligence to benefit from this capability,
both collectively and individually. Digital marketplaces, such as Uber, eBay, Airbnb
and Amazon are the best known. Marketplaces in the physical sense are nothing
new, and airports have for decades created value through physical marketplaces,
bringing consumers, retailers, airlines and other services together in one place.
The extension of this model to digital is a natural progression though few airports
are yet to offer this level of sophistication.

Some examples of sources of data are airlines, ground transportation service provid-
ers, car park operators, F&B concession operators, retail, convenience, and duty
free outlets. Using their data in conjunction with the passenger data airports already
collect from their movement through different parts of the airport will lead to much
more powerful business intelligence than each dataset would provide individually.

The use of AI will give airports the insight and predictability needed to make informed
decisions that will maximize revenues, significantly improve the passenger experi-
ence and optimize airport and business partners’ efficiency. Passenger data
collection and analyses gives the airport the opportunity to understand customers’
behaviours, needs and expectations well enough to offer different types of services
and offerings. For example, business travellers or frequent travellers have different
needs from leisure travellers and tourists and their willingness to pay also differs.
That is why it is crucial to evaluate customer data. One example could be dynamic
pricing–a pricing strategy that is based on a specific customer’s willingness to pay.

Airports will also increasingly work with airlines to share data and information
for their mutual benefit, a model that is rare in the industry. Certain airport data
could help airlines enhance the onboard experience for their customers. Similarly,
airline data could help airports to enhance the airport experience and yield higher
revenues. For example, airports and airlines could partner for non-competing lines
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 23

of businesses, like parking and ground access services, by co-marketing these

services. Airports and airlines could then share some of the additional revenues
generated through these services.

Another example is concessions, retail, convenience, and duty free operators shar-
ing their point-of-sale data with airports, which could integrate that information with
passenger flow data and airline data to better predict consumer trends and staffing
needs during different times of the day.

Benefits for each stakeholder

AIRPORTS AIRLINES BUSINESS

PARTNERS

Prolonged passenger Wider product assortment. New sales channels and

engagement within customer base.
the airport shopping
ecosystem.

Increased revenue and Additional revenue share Increased revenue.

additional sales channels. (commissions, etc.).

Additional traffic generation. Saved space on the aircraft. Increased customer loyalty.
24 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

3.2

Seamless digital
customer experience

An airport’s digital marketplace should be designed to allow passengers to manage

all aspects of their end-to-end airport journey from home to gate and back in a
seamless manner. They would only have to register once to access all services
and products from all participating stakeholders. In the absence of such a capabil-
ity, the passengers would need to manage a wide variety of digital solutions with
stakeholders offering their own platform, resulting in only a few of them being fully
used by the passengers.

The digital marketplace will also allow for easy access to relevant and accurate
information to browse, select and pay for various services offered throughout the
airport journey in real-time, such as parking, ground transportation, accelerated
check-in, F&B, and retail.

Digital marketplaces provide the opportunity to build additional loyalty by offering

special services and products, accordingly to the past purchasing behaviour of
the traveller, recent trends or other factors. Consequently, discounted goods or
services can be offered to those who use the platform. Loyalty programs can also
allow travellers to accumulate points that can be redeemed in a flexible manner.
Effortless, tailored access to services and special offers result in higher conversion
rates and basket sizes.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 25

3.3

Multi-touchpoint digital
marketing

Airports will build a better understanding of their travellers by investing in data collec-
tion and other sophisticated marketing research techniques. They can establish
one-to-one relationships with customers and develop the ability to market to them
directly based on their preferences.

The use of more connected CRM software will help airports manage, coordinate
and collate data on their customers – a stepped approach to build customer data
and understand the journey and the needs, and then develop a relevant and person-
alized offer before beginning engagement. CRM will help to monitor passenger
interactions and allow airports to connect with passengers at the right time with the
right message – when a passenger is planning the journey, on his/her way to the
airport, at the airport, during the flight and at the destination.

But digital visitors will not automatically arrive, so it’s necessary to consider invest-
ment for digital marketing with strong performance metrics, to generate traffic.
26 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

3.4

Case studies from three

airports

Auckland Airport

In 2018, Auckland Airport created a ‘multi-retailer mall’ that enables aucklandairport.co.nz

international travellers to purchase retail products and airport servi- /shopping
ces via mobile and online. Since then, the airport has expanded
its offer to the domestic market to give local people access to
airport retail without the need to travel internationally. The mall
lets users shop from their favourite airport retailers anywhere, at
any time, and purchase in a single checkout. Users can enjoy the
convenience of planning and paying for their purchases in advance
of their travels with one seamless pick up in the international or
domestic terminal.

The solution additionally provides passengers with the option of

shopping at over 200 participating retailers in downtown Auckland,
while simultaneously being able to save 15% New Zealand Goods
and Services Tax (GST), plus additional duty on selected products.

Toronto Pearson Airport

Toronto Pearson Airport has become the first Canadian airport to shopsatpearson.com
launch a new e-commerce platform, called The Shops at Pearson.
It allows customers to access a selection of premium designer
products that were previously only available to travellers at Toronto
Pearson Airport. Customers can get their items delivered straight
to their homes. Travellers can reserve parking, reserve and collect
duty free items, browse menus and order food, book a lounge,
order currency, and book meet and greet VIP services, all from
the convenience of their smartphones or computers.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 27

Amsterdam Airport Schiphol

Specific to operational performance, but with commercial benefits, Schiphol is using

real-time data from throughout the airport to make data-based decisions.

In 2019, Schiphol was the third busiest airport in Europe with over 72 million passen-
gers. The airport needed to accommodate rapidly increasing passenger volumes,
avoid safety breaches, comply with changing regulations, keep staff happy, expand
capacity and ensure that passengers enjoy a pleasant airport experience. Schiphol
implemented a solution that helps the airport manage performance with data-driven
certainty. With real-time visibility of passenger flow, the airport can keep security
processing quick, but also make holistic decisions on how to create more efficient
and more meaningful customer experiences throughout the airport. It has proven to
be valuable, as it provides continuous airport-wide flow visibility and measurements
– a feature that other systems do not provide, as they are not able to measure flow
for longer periods or through multiple stages of the journey.

KEY TAKEAWAYS

• In five years, leading airports will be strong in four core areas: data gathering;
marketing strategies; technology implementation; and AI.

• An airport marketplace digital platform will be the key enabler for growth.

• Airports and airlines will share data for joint incremental value, in a way they do
not today.

• The platform will enable a seamless experience through a single source of

passenger help and information.

• Airports need to invest in digital and off/online marketing and skills to drive
awareness and use of their new digital platform.
28 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

Creating Your
Commercial
Digital Strategy
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 29

Creating your commercial digital

strategy
“Extend airports’ existing physical platforms
into the digital space for commercial benefits.”

Airports stand to gain significant revenue advantages by implementing well-designed

commercial digital transformation strategies. The key strategic implications are:

Increased revenue streams:

• Pre-ordering and e-commerce: By allowing passengers to pre-order F&B

and duty free items, airports can capture additional revenue during peak travel
times and reduce missed sales opportunities.
• Data-driven advertising and promotions: Leveraging passenger data to
personalize advertising and promotions can lead to higher click-through rates
and conversion rates for airport retailers and concessionaires. This can be
achieved through targeted messaging and highlighting relevant products
based on passenger demographics and travel patterns.
• Optimized retail space allocation: Data analytics can reveal which products
and brands resonate most with specific passenger segments. This allows
airports to optimize their retail space allocation, maximizing revenue per
square foot.

Enhanced operational efficiency:

• Reduced labour costs: Self-service kiosks and mobile app functionalities for
pre-ordering and information access can streamline passenger processes,
reducing the need for manual staff intervention for sales. This frees up staff
for higher-value interactions and improves overall operational efficiency.
• Improved customer satisfaction: Frictionless experiences with shorter wait
times, easy access to information and personalized recommendations lead
to happier passengers. Satisfied passengers are more likely to spend money
during their layover, translating to increased revenue.
30 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

Strategic advantages:

• Competitive differentiation: Airports that embrace a digital transformation

will be better positioned to compete in a crowded marketplace. A seamless
and engaging commercial experience can become a significant differentiator,
attracting passengers and airlines alike.
• Future-proofing the business model: The digital landscape is constantly
evolving. By investing in a digital transformation now, airports can ensure they
are equipped to adapt to future trends and passenger expectations.

Overall, a well-executed commercial digital transformation strategy is not just

about convenience for passengers. It's a strategic investment that unlocks signifi-
cant revenue potential, operational efficiency gains and a competitive edge in the
ever-evolving airport landscape.

Case study

Leading drinks brand Martell ran a highly successful data-enabled campaign at

Singapore Airport driving passengers to visit the duty free concession depending
on the time available before their flight departure.

Flights to eight Chinese cities departing within two hours to 45 minutes were
displayed on digital screens with a message encouraging passengers to make
the most out of their waiting time by discovering the Martell New Single Estate at
the nearest duty free store. To push engagement with the brand further, the digital
screens were equipped with beacons which displayed the exact location of the
screen in the airport, encouraging passengers to interact with Martell.

The convergence of online and offline commerce with cross-channel fulfilment

functionality, including purchase online and collect at store, collect from pick up
zone, endless aisle, delivery at boarding gate, and deliver at address of choice,
is the future of retail at airports. Airports must evolve their business model to this
new normal.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 31

4.1

Commercial digital maturity

framework

To create the right development roadmaps, it is important to benchmark commercial

digital capability. This should be done in relation to both competitors and related
industries where customers spend time. Benchmarking is best completed either
using a survey to key internal stakeholders, workshops with a group of key internal
stakeholders or by using an independent third party that can give a more balanced
perspective.

A benchmark should be viewed through two lenses. A product management lens

shows progress in terms of the core products and service and the benefits a digital
investment will bring to passengers. A business capability lens shows progress
in terms of internal ability and culture to activate the digital opportunities in your
business.
32 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

Product management lens

Business Stage > Starting Scaling Optimising Evolving Transforming

Digital Flying from Flying from Flying from my My airport’s My airport offers
Technology my airport my airport airport works online me helpful new
Foundations requires can be done seamlessly experience digital services
many different online quickly across is better than to improve my
I can access websites, & easily in the devices. other airports & experience
everything I apps, & same place My airport personalized to
need online, all services knows who I am me throughout
in one place my journey

Mobile Flying from Flying from my My airport My airport’s

my airport is airport requires knows who I online
My airport journey complex on one app & is am & provides experience
is enabled & mobile & uses the same on real-time works best on
works best multiple apps any device information for my mobile/app
on my phone my journey

Distribution I can only I can buy I can buy I get the best Other
buy airport some airport all airport deal through companies offer
I can buy products products online products online personalized me convenient
airport products online directly from other from other pricing when ways to buy
& services or physically companies companies buying through airport products
whenever I want via other other companies in the apps/sites
companies I use the most

Website & App It is hard to get I can easily Airport Airport My airport
the information get airport information is information is predicts the
My airport I need online information relevant to me personal to me information I
gives me the when flying online in one through my & delivered in need for my
information I need from my airport place, which entire journey real time when I individual
for my journey makes my need it journey &
when I want it journey better inspires me
to fly

eCommerce Buying online Buying from My airport My airport My airport

from my airport my airport gives me makes it easy predicts what
Shopping at my requires can be done offers, to pay for I need for my
airport is easy many different online quickly promotions, my shopping individual
& inspiring websites, & easily in one & added however & journey &
apps, shopping basket value online whenever I inspires me
& services to make my want to buy
journey better

Data & Audience My airport My airport My airport My airport gives My airport

doesn’t recognizes gives me a me the same regularly offers
My airport knows know who I am the type of personalized personalized new digital
who I am & passenger I am experience experience services that
what I want online when I interact are relevant &
throughout my online & helpful to me
journey physically

Etc.…
 Internal Capability Action Required to Deliver each Capability

3 Digital Ethos 3 Top leadership 1 Design & branding 3 Ways of working are 4 Behaviours & 3 Innovative
champions & are prioritized as a iterative & agile incentives are aligned risk-taking
Digital leadership prioritizes digital
core to competitive advantage to customer needs & long-term
company strategy thinking
are rewarded

2 Customer-Centred 3 Governance guides 2 KPI goal-setting, 3 Investment in learning 2 KPIs aligned & 3 Roles &
Operating Model best practice reporting, & represent meaningful responsibilities
accountability customer outcomes defined to drive
Teams aligned cross-function
to prioritize delivery
Business capability lens

the customers

2 Data Intelligence 1 Holistic integrated 2 Analysis leads to 1 Advanced 4 Data democratization

omni-channel data the prioritization of capabilities exist to enables data-driven
Data broadly is available high-value segments develop insight for decisions
accessible & insight new business
informs decisions

2 Human-Centred 2 A clear understanding 2 High-quality UX is 3 A/B testing, customer

Design of customers & their defined by tracking co-creation, &
journey is established & measuring prototyping drive
Design & measure performance experience innovation
experiences that
deliver for customers

3 Scalable Content 3 Dynamic content 3 Iterative & 3 Content is based 2 Customer experience 3 Scalable
Content is available allows for 1-2-1 collaborative on consumer “templates” content
omni-channel content creation wants & needs employed for scale taxonomy
across any touchpoint personalization can be
& based on individual accessed by all
customer needs

2 Experience 1 Personalization 2 Decision logic is 3 Cohesive CX 1 Automation helps to

Activation nurtures customers optimized to ROI is executed scale opportunities
closer to their goals across channels
Cohesive end-to-end
customer experience,
automated for ROI
ACI World - Airport Commercial Digital Transformation Best Practices, 2024

1 2 3 4 5 Your airport today

Low High
33
34 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

Although there are many ways to benchmark digital maturity, these methods are
practical and will allow an airport to articulate the key benefits that digital investment
will bring to passengers and the internal change required to activate those benefits,
the latter usually being the hardest to deliver for most organizations.

KEY TAKEAWAYS

• Airports should map their current digital maturity as an organization before they
create a new strategy or roadmap.

• A product management lens maps the maturity websites, apps and other products.

• A business capability lens maps the maturity of an organization based on key

pillars of success.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 35

4.2

Commercial digital foundations

“Airports should build a strong commercial digital technology
foundation.”

In this paper, the intention is not to provide detailed assessments of technology

providers or capabilities as this will differ depending on an airport’s digital maturity
and roadmaps. It is, however, important to think of technology, focusing on business
goals, passenger needs and current products and services.

4.2.1 Direct to consumer

Airports for the most part are business-to-business-to-consumer (B2B2C) businesses,

with the concessions generally interfacing directly with the travellers. Any digital plat-
form almost certainly implies a pivot towards an airport branded B2C relationship.

This comes at a time when major global concession operators are outlining their
own plans for their own multi-airport digital and relationship strategies, representing
some risks to the airport.

Any such pivot does not imply a wholesale change in the nature of the relationship. But
it does suggest that B2C will become a growing part of the mix, facilitated by a platform
that is sophisticated enough to offer flexibility to passengers and options to conces-
sions. With a single entity, the airport, managing the relationship, airports are more
likely to see wider and stronger engagement and a single and structured dialogue.

Any digital transformation needs a clear strategy which will balance out the following
high-level relationship needs, addressing issues of data privacy, data sharing and
customer ownership.

• B2C relationship between the airport and the traveller.

• Serving concession-owned customers across a single digital ecosystem.
• Serving third party-owned customers across a single digital ecosystem.
• Serving customers of third party airports accessing the platform.
• Managing customer preferences, including desires to transact anonymously.
36 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

It is less likely that an airport can control all the relationship touchpoints, though some
may have this ambition. All parties need to recognize that growing B2C is part of the
future hybrid approach, and the need to work together to ensure that relationship
owning and management strategies are developed and administrated in an approach
that, first and foremost, benefits the passenger.

4.2.2 Unified customer view

A unified customer view is created for commercial purposes:

• Improved customer retention and loyalty.

• Increased marketing efficiency and customer outreach.
• Better conversion rates.
• Leveraged upsell and cross-sell opportunities.
• Improved Recency, Frequency, and Monetary (RFM) customer value.

The following diagram shows how different digital assets and services can enrich
customer data for commercial use:

Website Retail Stores

Web eCommerce
Ad (e.g. Parking)

Social Loyalty
Media Program

Customer
Influencers Customer Data Platform Services

Digital Passenger
Advertising help in
Terminal

Customer Segmentation

Marketing Automation Data

Marketing Automation Decision Engine CRM

Software
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 37

4.2.3 Customer purchase journey

Once the commercial digital ecosystem is built, the customer purchase journey can
be linked with the passenger airport journey. Taking a classic view of a sales funnel
from initial engagement to purchase, to retention and loyalty, it can be seen how each
of the different technology systems support different parts of the purchasing journey.
This recognizes the importance of one technology over another. An IT team or agency
will have systems architects that will have technical and detailed versions of this
systems architecture that will enable the overall commercial digital system to operate.

1. Engage and Reach 2. Interact and Convert 3. Retention

ACTION

Identify Cross-Up
Attract Acquire Welcome Engage Convert Amplify
and Profile Sell

Data-driven lead Integrated Digital & Physical Always-on Engagement

generation Conversion

Customer Data Platform

Marketing Automation
CORE

Decision Engine

Social Media
Consumer CRM
Management

Terminal Help & Information

Websites
PRODUCTS & SERVICES

eCommerce

Mobile & App

Customer Service & Contact Centre

Retail Stores

Loyalty

Retention
38 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

KEY TAKEAWAYS

• Airports should build a commercial digital technology architecture with a unified

customer data platform at the centre.

• Different commercial products and services offerings will likely have different
underlying technology. Airports need to ensure these are all interconnected for an
enhanced purchase experience.

• Marketing automation software is necessary for marketing efficiency and customer

outreach to uplift commercial revenue.

• Do not underestimate the importance of ensuring that any digital technology estate
needs to be maintained and constantly updated to be relevant.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 39

4.3

The opportunity in retail

“With digitally enabled retail, the traditional constraints of
passengers, including location, time and space are removed.”

Airports have the perfect opportunity to take advantage of incremental revenue from
better digital retail. In the next decade, airports will become digital hypermarkets,
able to offer almost everything in and around their vicinity both in the airport and
the wider neighbourhood.

Factors that will enable this rapid transformation for airport retail include experience
personalization, operations digitalization and supply chain integration. An online
and offline model can immensely affect non-aero retail revenue through increased
penetration, higher conversion rates and an increase in average transaction value.

The online and offline retail strategy is a perfect mix of speed and experience. The
approach creates a seamless customer experience at all stages – before, during and
after the purchase. It enables omnichannel commerce with multi-channel marketing
opportunities. Airports can provide a seamless experience with options like in-store
pick-up of items purchased online, allowing items purchased online to be returned
at a physical store and orders to be placed online while at a physical store.

With digitally enabled retail the traditional constraints of passengers, including loca-
tion, time and space are removed. The customer to airport retail marketplace can be
passengers travelling through the airport and non-passengers, if local government
and tax regulations allow. This gives an opportunity to non-fliers to experience the
airport retail experience digitally. The customer can view and buy products at his or
her own leisure, thereby removing the bottleneck of limited time spent at the airport.
Airport retailers can also sell products without any physical space constraints for
in-store inventory.

New business and revenue opportunities through a digital retail marketplace are
immense. Below are a few examples of the drivers for new business and revenue
opportunities in airport retail:
40 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

• Advertisements on digital platform: In the same way that airports generate

revenue from physical estate advertising, online advertising revenue can be
part of the airport’s digital marketplace platform. Airport ecosystem business
partners can advertise on the platform as well. There is also the opportunity
for revenue from advertainments from all types of B2C providers not directly
related to airport, such as credit cards, hotels and tour operators.
• Endless aisles for additional business: Concessionaires can increase the
depth and width of product offerings via an airport digital marketplace without
the need for extra space at the airport. The constraint of space availability
limitation is removed and cost efficiency is enhanced. These savings can be
channelled by retailers into improved customer experience offerings.
• Revenue enhancement from upsell and cross-sell: Customer data
and information can be leveraged to increase revenue through upsell and
cross-sell advanced sales models. An airport’s marketplace platform can
engage passengers through capturing and analyzing real time customer
actions to make various real time recommendations while browsing, during
cart review or abandonment and before or after check-out. The technology
can empower recommendations to be made via various customer touchpoints,
like in-app notifications, email, text message, or social media. This increases
retail sales through increased participation and average transaction value.
• Onboarding concessionaires not at airport: The digital platform can also
be made hyper-localized to have products from brands and retailers well
established in the city in which the airport is located but which don’t have a
presence at the airport. It will increase revenue through onboarding conces-
sionaires outside the airport and expand products and service offerings.
• Transact and deliver outside airport: Where local tax regulations allow,
customers can choose delivery options outside the airport, which can increase
transactions like gifts even when customers are not travelling. For fliers, it will
be a great service that allows them to choose a product to for home delivery
to avoid the need to carry it during their journey. This model also supports
time-poor travellers who can still shop even though their physical terminal
dwell is limited.
• Marketing campaigns to drive higher penetration and transaction value:
The digital platform must also have a campaign management solution that
enables a more relevant passenger experience through the digitalization of
offers and promotions to passengers.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 41

4.4

The opportunities in advertising

The digital revolution is transforming airport advertising from static displays to
dynamic, interactive experiences. By leveraging emerging technologies, airports
can create a more targeted and engaging advertising environment for brands while
simultaneously enhancing the passenger experience and providing flight related
information with appropriate alerts and notifications. The following trends are shap-
ing the future of airport advertising:

Emerging technologies with high advertising potential:

Augmented reality (AR): AR can create highly interactive and immersive advertis-
ing experiences. Imagine passengers using an AR app to scan a product displayed
on a billboard, triggering an animation or video showcasing the product in use. This
can significantly increase engagement and brand recall compared with traditional
static ads. AR can also be used for:

• Virtual product placements: Passengers could virtually place furniture in

their homes or try on clothing with the help of AR apps, all while viewing ads
for these products.
• Interactive wayfinding: AR overlays on smartphone cameras can guide
passengers to specific stores or restaurants, highlighting promotions or
special offers along the way.

Data-driven targeting and personalization: AI and machine learning will play a

crucial role in personalizing advertising content. Airports can leverage anonymized
passenger data (purchasing behaviour, demographics, travel patterns) to tailor ad
content to individual preferences. Passengers might see ads for:

• Duty free products based on their past purchases or browsing history.

• Restaurants or cafes catering to specific dietary needs or preferences gleaned
from social media profiles (with passenger consent).
• Travel and leisure options relevant to their final destination or interests.
42 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

Contextual advertising with real-time triggers:

• Sensor data from various airport locations (dwell times in specific areas, foot
traffic patterns) can inform contextual advertising strategies. For example:
• High foot traffic near a specific gate could trigger targeted ads on digital
displays in that area for a nearby cafe or shop.
• Passengers waiting in a specific queue might see ads relevant to their
estimated wait time, such as entertainment options or quick shopping
suggestions.

Programmatic buying and real-time bidding: Airports can adopt programmatic

advertising platforms, allowing advertisers to bid on ad space in real-time based on
factors like passenger demographics and location within the airport. This dynamic
approach ensures advertisers reach the most relevant audience and maximize
advertising revenue for airports.

Strategic considerations for advertising success:

• Privacy by design: Building trust with passengers is paramount. Airports

must prioritize data privacy by implementing clear data collection and usage
policies, ensuring anonymization of data whenever possible.
• Focus on the passenger experience: Non-intrusive and engaging advertis-
ing experiences are crucial. The goal is to create a dynamic and informative
environment, not an overwhelming influx of advertisements. There is a need
to balance revenue generation with passenger comfort.
• Collaboration is key: Partnering with advertising technology companies and
airlines can leverage expertise and resources. This allows airports to access
advanced solutions without substantial upfront investment.
• Measurement and optimization: Airports must regularly measure the effect-
iveness of advertising campaigns through click-through rates, brand recall
surveys and sales data. These insights can be used to continuously refine
targeting strategies and optimize advertising content for maximum impact.

By embracing these trends and implementing them strategically, airports can trans-
form advertising from a static annoyance to a dynamic and personalized experience
for passengers. This not only leads to increased advertising revenue but also
creates a more engaging overall airport environment, benefiting both passengers
and brands.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 43

KEY TAKEAWAYS

• Digital offers a significant opportunity for airport retail revenue through increased
penetration, higher conversion rates and an increase in average transaction values.

• Digital removes the traditional physical constraints of airport retail, enabling

propositions, such as home delivery, virtual retailers, extended ranges and the
ability to cross and upsell.

• Airports can further increase revenue through better application of data to their
traditional terminal physical advertising estate.
44 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

4.5

The opportunity in ground

transportation
“Customer data and information can be leveraged to
increase revenue through upsell and cross-sell.”

Digital ground transportation management delivers a unified service for all airport
transport categories. It helps improve the passenger experience and enhances the
planning and management capabilities of the airport with real time and historic data
analysis and patterns. This greatly increases revenue and reduces operating costs.
Digital drives ground transportation commercial growth in four areas:

1. Car park revenue management.

2. Ground transportation marketplaces.
3. Cross and upsell.
4. Best in class website and apps.

Car park revenue management uses real time data to optimize the price and yield
of car park reservations. Conventional wisdom says that, on average, the gain could
be up to 5%, depending on the environment, the scale of implementation and the
elasticity of the demand. The traditional revenue management solution requires
a dynamic pricing engine for revenue optimization through demand calibration,
demand forecasting and price optimization. Revenue management methodol-
ogy uses a number of data sources, including supply-side constraints where car
park inventory is limited; demand-side constraints, such as seasonality and other
important trends events; passenger volumes; and the use of data science models
for price recommendations.

There are also simpler implementations of conversion optimization using a dynamic

pricing engine based on algorithms. Such tools can be calibrated to optimize overall
revenue. They have the merit to be easier to implement and require much less daily
management than the standard revenue management model.

An online ground transportation marketplace can significantly enhance an

airport’s non-aeronautical revenue. The platform provides new business and
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 45

revenue opportunities and can be part of an airport’s wider platform or marketplace

offer. Such a sales channel can effectively provide all options to passengers for travel
to and from the airport as well as simplified onward travel options for arriving passen-
gers. Passengers will be able to view all categories of transportation including bus,
taxi and train and compare with car access. A single platform will allow passengers
to easily buy any of these services and make online payments. The airport can
capitalize on the revenue share from the concessionaires of these services.

This technology is usually expensive to deploy and maintain so the business case
must be carefully assessed prior to launching the project. It mostly fits larger airports,
where ground transport is widely available.

Revenue enhancement from upsell and cross-sell: Customer data and informa-
tion can be leveraged to increase revenue through upsell and cross-sell— selling
ground transportation from other products, such as retail, and vice versa. Engaging
customers on an e-commerce platform allows personalized recommendations. The
technology can empower suggestions at various customer touchpoints like in-app
notification, email, text message or social media contact. Through the passenger
itinerary and various data points, effective customer segmentation can be achieved
to offer the most suitable products and services, thereby increasing income per
passenger.

A considered digital and data driven approach is the most appropriate solution for
airports to manage revenue and differentiate their offer. It would enable airports
to adjust the pricing structure to optimize the base revenue; use data science to
create advanced revenue management algorithms; use digital to drive tactical
discounts and personalized offerings; and support all of the above with targeted
digital marketing investment.
46 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

4.6

The opportunity in services

The range and magnitude of services that can be offered at an airport are immense.
With the increase in disposable income, passengers are willing to pay for conven-
ient and/or enhanced experiences. Elderly passengers may be willing to pay for
assisted travel while a corporate executive may be willing to pay for faster curb
to gate access; and the holiday traveller may be willing to pay for VIP experien-
ces. This can be a substantial revenue earner for an airport, giving a big boost to
non-aero income.

A seamless omnichannel booking flow with curated combos and bouquets of servi-
ces enabled through single-click ordering is the key success metric. Service delivery
plays a very critical role as these services are highly experiential but manpower-
intensive. Feedback at every stage plays a pivotal role in improving service offerings.
Seamless integration between the systems and clear and transparent communi-
cation to the passengers and ground staff are key for experiential service delivery.

Key service offerings that airports may consider including but not limited to are:

Meet and greet, fast track, landside porter, passengers requiring assistance
– B2B and B2C, buggy, valet parking, personal shopper, medical ambu-
lance, baggage wrap, left luggage, lost and found, accessibility lounges,
baggage delivery, lounges, limo to city, car spa, travel concierge, flower
booking, luggage insurance, pre-security courier delivery, excess baggage,
spa, restaurants, travel tourism, meeting room booking, airport taxis and other
ground transportation, SIM cards, foreign exchange, local tourism/city tours,
private jets/charter flights, VIP terminal, premium car parking, special meals,
golf cart parking to terminal, medical tourism, pet care service.

The key to creating memorable passenger travel experiences via services is to

proactively identify the ever-changing needs of the traveller and continually redefine
the services offered.

Digital technology plays a pivotal role in connecting passengers to an airport’s

service offerings through a seamless omnichannel interface (app, web, kiosk, POS,
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 47

contact centre, B2B marketplaces, etc.). Adding services to an airport’s marketplace

platform should include browse and book services, enabled through a single cart
and payment option.

The latest technology should be leveraged to optimize resource utilization, which will
lead to increased revenues. The whole process of forecasting demand and manag-
ing the people roster and allocation should be done using best-in-class predictive
models. A close coordination with IT departments will help in the selection of the
right tools and technologies.

In conclusion, service offerings can bring in considerable non-aeronautical revenues.

Services are mostly offered as a standalone product and not as a combo or à la carte
end-to-end service offering, which can be pre-booked to drive convenience and/
or experience. There is an opportunity to capitalize on the potential of technology
platforms for better passenger experiences and revenue maximization.
Enablers For
Success
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 49

5.1

Customer engagement and

performance management

Building a digital infrastructure across the airport is critical to improving performance

and driving wider engagement with passengers. However, any digital ecosystem is
only as good as an airport’s ability to attract passengers to the platform.

A digital platform without users and without a level of promotional engagement is

very unlikely to show the desired performance. Although recognizing that digital
tools need to serve a wider set of needs than purely commerce, this section focuses
on initiatives that look to drive spend and commercial performance across the
digital platform.

Promotion and awareness – filling the funnel

The e-commerce industry talks about a ‘funnel’, channelling prospective customers

in at the top and progressively qualifying and advancing them to an eventual sales
transaction. Without traditional bases of accessible customers, it is important for
airports to give consideration to growing sources of new traffic, consumers with the
potential to travel and access services online, across the journey. This is particu-
larly important where purchasing decisions, such as booking parking, are typically
made in advance of travel.

Although general forms of digital awareness and marketing, such as paid search
and digital advertising, have an important role to play, airports should develop strat-
egies to identify and access partner customer bases and promotional mechanics to
channel those customers to the airport’s digital platforms. Potential target partner
categories may include:

• Airlines: Large bases of travellers with known frequency and forward

travel bookings.
• Banks / card issuers: Typically looking for promotions and programs.
• Online travel agents: A good promotional source and distribution channel
for airport services.
50 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

• Large scale membership programs: With access to a qualified audience

of known travellers
• Transportation entities: With large user base transportation options, like
train, buses and ferries.

Each potential organization will have different rules and policies for working with
partners. The following will typically need to be considered and addressed as part
of negotiating and working with potential partners:

• Commission on sales / access fees: Partners will expect to be financially

compensated for providing access.
• Data usage and ownership: Clarity is needed on access, usage, and reten-
tion of customer data.
• Brand alignment: Ensure services promoted align to the brand and values
of the partner.
• Communication: Policies are needed on the approach to and content of
communication with the partner’s customers.
• Exclusivity: There will be expectations around exclusivity and competi-
tive needs.
• Reciprocity: There should be agreement on driving mutual benefits in both
relationship directions.

Establishing a dialogue

E-commerce and one-to-one marketing are perfect partners. The marketing drives
passengers to purchase and the online purchase then triggers the next step in the
dialogue with the customer.

Today’s dialogue is almost exclusively digital in nature and increasingly driven by

marketing automation platforms that mine customer data to identify and trigger the
next opportunity or the next step in the dialogue.

The primary objective of most online marketing is to drive new and incremental
sales. However, airports need to ensure that their communication efforts find the
correct balance between several core relationship objectives. These are likely
to include:

• Driving and shaping spend across the digital platforms and the airport more
generally.
• Supporting the customer on their airport journey.
• Communication of travel advice statutory or contingent information for
the journey or the relationship.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 51

• Building awareness for the airport brand and related services and facilities.
• Encouraging feedback, deeper engagement and a closer relationship with
passengers.

Typical promotional dialogue

There are a number of common dialogue and communication initiatives that can be
triggered at exactly the right time in the traveller journey or the relationship. These
might include:

Where a passenger drops out of a purchase transaction,

ABANDONED
immediately following up to re-engage and to motivate /
BASKET
incentivize the purchase completion.

Analyzing spend category data to identify new categories

CROSS-SELL to introduce to the passenger. For example, encouraging a
passenger who only buys parking, to also purchase duty free.

Growing basket size or frequency of purchase within a category.

UPSELL This may also be used to promote a more premium product or
service over the usual purchase.

LAPSED / Re-activating passengers who have stopped engaging or not

ACTIVATION made a purchase for a measured period of time.

Encouraging and incentivizing target travellers to introduce new

REFERRAL
prospects to the platform.

Requesting performance feedback and reviews on products and

FEEDBACK
services purchased.

The above may be considered a priority, but there may be other needs, and each
airport should develop a communication strategy based on an analysis of their own
goals and objectives.

Selecting the channel

There are a number of digital channels that airports are likely to develop to engage
with and communicate with travellers. These include:
52 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

The foundation to most online relationships, although sometimes

EMAIL performance is negated from abuse by spammers and inbox
fatigue from customers.

A universal approach that creates immediacy and cut through.

Often better used for high priority and service messages, SMS
SMS
is also being supplemented by messenger applications such as
WhatsApp or WeChat.

IN APP Where the airport has developed a native mobile application, this
MESSAGING PUSH will facilitate push notifications to customers.
NOTIFICATION

TARGETED ONLINE Targeting of messaging and content within digital or web assets
BANNERS / accessed by the customer, ranging from passive content to more
CONTENT disruptive pop-up banners and messages.

Maintaining respect and best practice

The key to high performance communication with customers is maintaining respect

and always adopting best practices.

• Use of data: Ensure that all data is collected, maintained and used in accord-
ance with prevailing data privacy legislation and best practices.
• Targeting: Target your messages to avoid spam and inbox clutter and fatigue.
Over targeting the customer may result in the airport brand becoming irrel-
evant or perceived negatively.
• Personalization: As far as possible, personalize messaging for better results
and maintaining relevance.
• Control: Ensure that the customer can maintain control over the dialogue
and is able to modify or stop communication as they wish.
• Frictionless: Make it easy for customers to access and purchase from promo-
tions by removing access barriers and unnecessary restrictions.

Building sustained and structured loyalty

Structured loyalty programs are now ubiquitous across many industries, particu-
larly the travel industry. It is therefore not surprising that as airports pivot towards
increasingly direct and digital relationships with their passengers, they are also
considering the opportunities that more formal loyalty programs can offer.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 53

Summary of approaches to loyalty

APPROACH SUMMARY EXAMPLES

REWARD Offering points accrual for spend HKAirportRewards

or other behaviour, which can be
collected and saved for redemption https://www.
for airport services, vouchers or other hkairportrewards.com/
rewards. en_US/home

RECOGNITION Typically, tier-based service benefits Changi Rewards

based on value delivery.
(Offering both rewards and
Often combined with rewards and recognition)
increasingly bringing in other forms
of behavioural recognition https://rewards.
changiairport.com/

PAID Access to an annual bundle of Airport Club at Dublin Airport

service benefits based on a paid
subscription, often tier-based with https://www.dublinairport.
different benefits for each tier. com/enhance-your-journey/
airport-club

REGISTERED Arguably, not a traditional loyalty Gatwick Airport

RELATIONSHIP program, but a structured and formal
branded relationship, engagement, https://www.gatwickairport.
and benefits around a registered com/passenger/account/
customer profile. Linked directly login
to a wider digital ecosystem and a
relationship that is being formally
managed.

Benefits

Programs bring potentially many benefits to organizations, including:

• A structured approach to incentivize and reward desired spend behaviour.

• Sustained relationships through brand affinity and the ability to build relation-
ship equity and barriers to exit.
• A mechanism to differentiate the management and experience for high value
customers.
• The creation of a single view of the customer behaviour and spend.
54 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

Considerations

Although programs have many benefits there are important factors to consider
before embarking on such as approach. These include:

• The typically larger initial investment required and a clear business case to
support that investment.
• The longer-term commitment required to ensure the program performs and
grows, along with challenges in exiting from an underperforming program.
• The economic context and ensuring that the margin on sales and frequency
of travel would support an attractive and compelling reward proposition.
• The exclusive nature of programs, which can sometimes only address the
needs of a niche group of customers.

KEY TAKEAWAYS

Engagement and relationship management are a core part of a wider digital airport.
Some key learnings and takeaways:

• Use partner relationships to access new audiences and funnel them to the
digital platform.

• Understand acquisition partner needs and restrictions and be prepared to

negotiate/compromise.

• Build a passenger dialogue beyond promotions to include service, support, and

wider awareness.

• Adopt best practice performance communication and build into your customer
engagement strategies.

• Consider all types of loyalty approaches and develop a solid design and business
case before moving forward.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 55

5.2

Minimizing commercial risks

Large IT infrastructure and transformation projects carry significant risks. There are
risks of sub-optimal implementation, with missing and sub-optimal functionality and
weaker commercial performance.

Any project scope and plan should develop steps to minimize risks. These include:

• Clear stakeholder engagement and collaboration on the project from the start.
• Establishment of defined commercial and passenger goals and outcomes.
• Setting clear standards and protocols with concessions across the airport
and ensuring key concession support for pilot or minimum viable product
propositions.
• Identifying and prioritizing initial quick wins that drive compelling passenger
benefits, driving widescale adoption and usage.
• Phasing implementation to de-risk and progress investment based on clear
milestone performance.
• Ensuring that digital platforms work hand-in-hand with engagement and
marketing programs, both on and off the airport.
• Prioritizing interfaces to B2B2C partners that can drive traffic and volumes
across the airport digital platforms.
56 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

5.3

Fixing internal business challenges

“Digital technology implementation is the easy part.
Integrating it into your wider business is the biggest
challenge, but brings the biggest opportunities.”

Commercial digital transformation usually requires both a clear business model and
strategy and the implementation of new technology. Although technology migration
can be complex, it is in many ways the easy part. The real value for a business
and passengers is embedding a better digital experience into the wider business.
The business model should also consider any challenges in operating new digital
products and services.

1. Organization capability to change

The structure of an organization may not allow digital to evolve and foster inefficient
workflows and traditional points of view. Harvard Business Review Analytic Service
Survey showed that out of the eleven top barriers for digital transformation, nine
were people and organizational related. Reduced decision-making capability and
siloes within organizations create further complexity.

Planning for people and organizational change is the key challenge to break through
an effective digital transformation and develop a new digital business model.

2. Limited technology and skills

As digital transformation speeds up, finding internal digital talent is a considerable

challenge. Areas where there are currently more limited resources include product
management, data science and analytics, enterprise architecture and cybersecurity.

Airports should consider bringing in outside experts and consultants to supplement

the in-house team as a way to resolve this situation. They can also strengthen
partnerships with technology service providers that have an existing digital busi-
ness offering.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 57

3. Lack of a properly defined strategy

What are the company goals? The priorities? Is the organization aligned with the goals?
Who are the customers and what are their needs? Who are the stakeholders and their
needs? These are just a few strategic questions that management must address and
align to make digital transformation a fundamental part of the business and develop
the right digital business model.

Commercial digital transformation and its resulting business model must also have
strong sponsorship from the airport executive committee and board.

4. Lack of customer centricity

For many airports there remains a lack of focus on the customer / passenger beyond
the lens of operations. Business to consumer propositions may be relatively new based
on a legacy of B2B models, and customer loyalty will often sit with the airline not the
airport. A lack of centralized customer data also prevents a more detailed understanding
of needs and behaviours.

Delivery of commercial digital change requires examination of customer journeys for

key passenger segments and the creation of a product management approach to digital
to drive value.

There will be many more challenges once the process to implement a digital business
model begins – technology vendors, employees, customers and board members will
present options or alternatives that were not previously considered. By clearly devel-
oping goals, establishing milestones, and the strategies to achieve them while putting
together the right structure, the business model will come to life and evolve naturally.

KEY TAKEAWAYS

• Airports should not underestimate considerable challenges in their operating models to

make digital change a success. Technology is usually not the issue; broader changes
will be needed in both people and the organization.

• Airports should also look at how they can become more customer / passenger centric
to deliver new digital propositions.
58 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

5.4

Better use of data

“Data is a key enabler for commercial digital transformation.
Airports should focus on solid foundations.”

Much is said about the use of data in business and the application of big data and
AI. But for airports starting on building a better commercial and passenger facing
digital proposition, the steps needed to make better use of data are straight forward.
It’s important to focus on the foundation to enable better use of data and not get lost
in more “blue-sky opportunities” that will take years to implement.

Data can reveal key performance indicators (KPI) and trends to enable better
decision making for all functional areas within the commercial department. Data
can provide:

• Role-based comprehensive performance management for every level of

decision maker across the commercial business.
• Necessary and relevant insights after detailed analysis of KPIs of every func-
tion in the organization.

The following are various business subject areas to be considered for data
infrastructure:

Commercial business • Daily customer acquisition, sales and activity trends.

performance for • Financial KPIs.
management and key
• Leaderboards for top performing products and services.
stakeholders

Recommendation • Dynamic service pricing recommendations.

engine • Personalized offer and promotion recommendations for
the members.

Net promoter score • Measurement techniques to accurately score customer satis-

faction for feedback.
• This impacts repeat business from a customer and new or
repeat business from their social media circle.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 59

Segmentation, life-time, • Computation of member life-time value (LTV) and recency,

recency, frequency and frequency and monetary (RFM) value of transactions by
monetary value customer to help the marketing team.

Member behaviour • Member interaction with e-commerce platform.

• Pattern for customer behaviour, such as time spent on passen-
ger application, clicks and pages viewed.

Concession • Concession leaderboard.

performance

KEY TAKEAWAYS

• Data is a key enabler for commercial digital transformation. Airports should focus
on solid foundations.

• Audit commercial data sources and create a roadmap to make them usable as part
of a central data repository.

• Digital and web analytics should be a core pillar of data strategy and used to drive
day-to-day trading and digital revenue performance.

• Ensure the digital estate meets all global privacy regulations and that it is reviewed
on a regular basis.

• Commercial data infrastructure should be built after appropriate discussion and

agreement with IT and other stakeholders to avoid creating data silos.
60 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

5.5

Creating internal business cases

“Airports can struggle to understand and fund digital
initiatives if their funding is heavily built on physical
infrastructure and capital expenditure.”

Any major investment in digital transformation needs a clear business case to

support the cost of deployment and activation. It is important that airports look at
any business case as a strategic investment in a future airport rather than as a new
concession. Concession-led approaches to digital transformation risk the estab-
lishment of a patchwork of services, which can be harder to integrate and lead to a
weaker experience and more limited adoption.

Any business case should consider:

• The cost of the digital deployment along with any cost savings related to the
automation or removal of services.
• The costs, where appropriate, of operating both digital and physical services.
• The incremental revenue that the platform generates from revenue retention,
recovery and upsell / cross-sell.
• The costs and benefits associated with increased dialogue and engagement.
• The costs and revenue benefits of providing B2B2C partners access to
the platform.
• The benefits derived from building an enhanced data model of passengers
and performance across the airport.
• The impact of changes to the concession operating and commercial models.
• The overall enhancement of the passenger experience from improved and
more accessible services.
• The risks to the airport of concessions taking disproportionate control over the
relationship and possible fragmentation of the airport experience.
• The overall reputation and preference of the airport providing a world class
digital experience, and, conversely, the risks of not doing so.
• The cost of new or ancillary functions needed to support the transformation.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 61

5.5.1 KPI considerations

Revenue levers: As per earlier chapters discussing how to find value in the airport
digital experience, airports should consider specific digital KPIs to drive value. KPIs
unique to digital that could be considered include:

• Increased customer reach: Use of digital marketing and a better digital offer
will enable airports to reach more passengers directly pre-arrival, increasing
the ability to sell products and services.
• Improved conversion: Better digital experience, websites and apps will
increase online conversion rates and increase revenue.
• Improved average transaction value: Achieved through bundling, cross
and upsell including online only promotions.
• Improved targeting: Use of data to identify key passenger segments and
languages and promoting more relevant offers will increase revenue.
• Research online, purchase offline: ROPO is a common practice. Research
shows that up to 90% of consumers will do this for certain retail categories
before purchase. This applies to airports also. However, it can be difficult to
measure. For that reason, ROPO is often excluded from digital business cases
but should be considered as a key driver of value.
• Revenue protection: Shifting consumer demand to digital booking channels
means that if a best of class digital experience is not offered, existing passen-
gers will move to competitor products or access an airport’s products through
third party distribution providers that offer a better digital user experience.
This will affect current revenue. This is hard to forecast but should be a key
consideration in any investment case.
• Satisfaction measures: Research shows that passengers who engage in any
airport digital service rate their overall airport satisfaction higher. This should
be considered and measured as part of any business case.

5.5.2 Channel strategy

As part of your annual and longer-term business planning you should have a channel
strategy for each of your products and services. This looks at the current sources
of revenue based on booking channel and forecasts where they should be in the
future. Booking channels usually fall into several categories:
62 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

• Direct booking: usually website, app, or phone.

• Staff booking: by staff in airport, such as sale of onward train tickets.
• Agent booking: including travel agent or third party supplier.

Consideration should be given to both the extensive reach third parties can provide
versus the cost of any booking fee or commission, and the impact of direct and
digital booking on more efficient operations and reduced headcount. It also import-
ant to consider where digital booking is not appropriate or is more costly to deliver,
thereby reducing profit margins. A clear and aligned channel strategy will ensure
key stakeholders in a business understand and support digital growth.

5.5.3 Approach to funding

Airports may struggle to understand and fund commercial digital initiatives if their
funding is heavily built on physical infrastructure and capital expenditure. A new
funding model for digital must be built to be successful and move at pace. This might
mean reworking existing capital governance procedures and considering how to
get the right mix of capital and operating budget expenditure to enable speed and
the implementation of foundational digital projects.

Funds secured for commercial digital project should also be aligned with overall
airport digital initiatives and have support from other key stakeholders like IT, finance
and operations. This will ensure synchronization in the digital evolution plan.

KEY TAKEAWAYS

• Use traffic, average transactions and conversion metrics to build KPIs for the digital
business case.

• Ensure there is a booking channel strategy for each digital product and service
and that stakeholders across the business are aligned to help deliver business
objectives.

• Confirm the return on investment through tangible and/or non-tangible gains from
the project.
Commercial
Digital
Organization
Structure
64 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

Commercial digital organization

structure
This section recommends an organization structure for success in commercial digital
initiatives. The commercial organization should operate in close cooperation and
coordination with other departments, including IT, operations, and finance.

6.1

Modified and new airport

functions needed to support
digital

In the development of a digital ecosystem, new functions and services may need
support for their successful deployment and performance. These include:

• Customer care: A care function, which can be partially automated, will support
the fast end effective use of the platform and commerce transactions.
• Advertising: Enhanced digital advertising across the airport can sync with
and support digital propositions and promotions.
• Data: Airports will need the tools, skills and capability to support the analysis
of the volumes of data that the transformation will generate.
• Concession management: A revised approach to concession management
and contracting will ensure concessions can comply with, participate in and
benefit from the new digital platforms.
• Partner management: The ability to cultivate and manage partnerships
with organizations that can flow traffic and customers to the airport’s digital
platforms will be vital.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 65

6.2

Marketing, passenger
engagement and traffic

This function owns overall passenger communications and specifically the targets
to drive traffic to the digital estate. Some businesses have marketing as a separate
function, joined with broader brand marketing, with digital seen in light of the tech-
nology capability. But experience suggests that this is not an optimal set up as it
means the digital team are only responsible for technical and conversion optimiza-
tion but not for the volume and quality of inbound traffic. If traffic quality is poor, even
the world’s leading airport digital offer won’t achieve revenue or service objectives.

This function may include:

• Brand marketing
• Campaign marketing
• Channel marketing, on and off airport
• Performance marketing, such as Google paid advertising
• Social media
• CRM and loyalty

6.3

Commercial digital

This function owns the passenger facing digital experience, including websites
and apps. Digital assets are horizontal across all departments, and IT being is the
central pivot. The website/app should not only be specific to commercial interest
but will also integrate information owned and managed by other departments, such
as flight information, wait time and lost and found. Hence, close collaboration with
all departments is imperative.
66 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

• Back end: There must be continuous development of digital services, set

up as product management. Each product area will be a different part of the
business, for example website, app, or retail digital offer.
• Front end: A content team will be responsible for day-to-day information,
content, retail products and information to enable passengers to buy and
navigate an airport. This can be an area that is often underinvested but it’s
important to remember that this is the only part of the digital offer that passen-
gers see. A lot of complexity sits in the back-end product management, but
passengers don’t see that and just expect it to work seamlessly.
• Systems administration and architecture: This may be part of the IT team
or part of an external agency. Whoever is responsible must ensure the tech-
nical infrastructure works and complies with data and cybersecurity standards,
ensuring the commercial team can focus their time on driving value from the
digital platforms.

6.4

Distribution

This function effectively serves as the external sales team and manages the
outcomes of the booking channel strategy with third parties. Once the digital foun-
dation is in place, data feeds must be built to enable third party websites, apps and
travel companies to sell parking and other services, usually in return for a commis-
sion. This is an important function as – given passenger participation in airport digital
services is low compared with airlines, and that airport marketing budgets will be
limited – this digital distribution function enables airports to reach a much bigger
pool of potential customers pre-departure. This function will include:

• Technical build: A team which works with IT to build the data feeds to enable
third party selling.
• Sales team: This team sells your data feeds to other travel companies and
negotiate sales commissions.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 67

6.5

Data and analytics

This team should be at the heart of the commercial digital operation and use the
wealth of digital data an airport will have available to drive revenue and commercial
performance. This team will define the use cases and coordinate with airport data
experts to provide the required datasets and analytics. The data experts can include:

• Website data analysts

• Data scientists for predictive and prescriptive analytics
• Customer data platform specialists

6.6

Cross experience
commercial teams

Airports will achieve more customer-centricity when they move into a cross-
experience team organizational structure i.e., a team comprising of experts from
commercial, innovation, IT, operations, finance, facility management and more. This
is usually a more mature organizational model. It is important to remember that, for
passengers, it is a one journey and one experience.

By embedding the passenger journey within their structure, airports place passen-
gers – instead of products or channels – at the heart of their digital operations.
This structure’s main benefit is it creates accountability and power for delivering a
unified experience. Keep in mind that while other operating models can also deliver
a customer-centric, unified experience, this structure can provide advantages in
transforming to an experience-led business.
68 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

6.7

Digital development

The commercial digital framework should seamlessly fit into overall airport digital
governance, including procurement, implementation and ongoing support. The
development is done using best practices prescribed for digital governance.

6.8

In-house versus outsource of

commercial digital solutions

One question that needs answering is the degree to which an airport outsources its
commercial digital capability compared with how much it owns directly. The following
are recommended considerations:

• Outsource e-commerce digital transformation. Use a trusted agency or

third party with deep airport domain experience and which understands the
complexity of e-commerce at an airport, for any initial build.
• It is important to remember that, for passengers, it is a one journey and one
experience. Commercial internal experience can also be a catalyst for making
broader business and operations more digital by sharing best practices.
• Digital marketing, development and content can be outsourced while retaining
the core values and branding of the airport for all marketing communications.
• The biggest challenge an airport will likely face is finding the right combination
of commercial acumen and digital talent. Training the team on cross-functional
areas is recommended. New hiring initiatives should consider talent across
both these functional areas.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 69

KEY TAKEAWAYS

• Airports at the start of their digital journey should create a digital centre of
excellence organizational model to focus effort and create pace of change.

• A commercial centre of excellence will include the core functions of marketing,

digital, distribution and data.

• As digital capability matures airports should move from a team structured by

channel to one structured around the passenger, by adding a cross experience
team, which is responsible for owning the end-to-end passenger journey across all
digital channels. Passengers only see and expect one journey through the airport,
irrespective of what channel they use, so airports need to enable that capability in
its organizational structure.

• Follow best practice development for digital in terms of continuous improvement,

product management and sprint methodology.

• Consider setting up a central digital governance structure sponsored by the

executive team and consider the right mix of in-housing versus outsourcing.
Airport Digital
Transformation
Key Challenges
and Risks
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 71

Airport digital transformation—

key challenges and risks

Commercial digital transformation offers many benefits for airports, but the road to
reaping those benefits isn't without obstacles. Here are some of the main challen-
ges airports will face.

7.1

Change management

• Employee resistance: New technology disrupts routines. Airports need

to address employee concerns through clear communication, training and
showcasing the benefits of digital tools.
• Stakeholder alignment: Aligning airlines, concessionaires, government
agencies, security services and other stakeholders with the digital vision is
crucial. Open communication, demonstrating win-win scenarios and involving
stakeholders in the planning process can help.

7.2

Strategic planning

• Prioritization: With so many digital solutions available, it's easy to get over-
whelmed. Defining clear goals and prioritizing projects based on impact for
all stakeholders is essential.
• Data integration: Airports often have siloed data systems. Creating a unified
data platform that integrates information from various stakeholders is the key
to unlocking the full potential of digital tools.
72 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

7.3

Collaboration

• Collaboration and cooperation from other departments are essential.

• The importance and urgency of digital initiatives for the commercial depart-
ment may not be mirrored in other departments.

7.4

Costs

• CAPEX: The importance and urgency of digital initiatives for the commercial
department may not be mirrored in other departments.
• OPEX: Annual allocations for operational expenditure to ensure the continuity
of ongoing operations.

7.5

Security and privacy

• Cybersecurity threats: As airports become more interconnected, they

become more vulnerable to cyberattacks. Robust security measures are
essential to protect all stakeholder data.
• Passenger data privacy: Balancing innovation with passenger privacy
concerns is crucial. Transparency about data collection and usage builds
trust, and compliance with data privacy regulations is vital.
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 73

7.6

Tax and regulation constraints

• Funding limitations: Airport investments in digital technology can be limited

by Passenger Facility Charges (PFC) and other airport-specific taxes, which
may have restrictions on how the funds can be used. Securing additional
funding for innovative projects outside these limitations can be challenging.
• Regulatory compliance: New technologies may need to comply with a
complex web of regulations from various government agencies, including
aviation safety, data privacy and cybersecurity standards. Navigating this
complex landscape can slow down innovation and implementation.

7.7

Challenges related to suppliers

and tenants

• Integration challenges: Integrating various digital solutions offered by differ-

ent suppliers can be complex and time-consuming. Ensuring compatibility and
smooth data exchange across stakeholder systems can be a hurdle.
• Standardization issues: A lack of industry-wide standards for digital solutions
in airports can create compatibility problems and hinder seamless passenger
experiences across different airports.
• Tenant buy-in and investment: Airlines, concessionaires and other tenants
may be hesitant to invest in new digital solutions, especially if the benefits
aren't immediately clear or require upfront costs. Encouraging adoption and
collaboration is crucial.
74 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

7.8

Overcoming these challenges

Overcoming these challenges requires a multifaceted approach:

• Communication and training: Clearly communicate the digital vision and its
benefits to all stakeholders, including employees, airlines, concessionaires,
government agencies and security services. Provide comprehensive training
to ensure everyone understands the new systems and processes.
• Collaboration and partnership: Work closely with all stakeholders, including
technology providers who have experience in airport digital transformation,
to develop and implement integrated digital solutions. Foster a collaborative
environment where stakeholders can share ideas and concerns.
• Phased implementation: Start with well-defined pilot projects that demon-
strate value and gain experience with stakeholder integration and change
management. Gradually scale up successful solutions across the airport.
• Security focus: Invest in robust cybersecurity solutions to protect airport
systems, passenger data and stakeholder information. Implement clear data
privacy policies and procedures that apply to all stakeholders.

Addressing stakeholder challenges:

• Develop clear standards and guidelines for digital solutions at the airport to
ensure compatibility and seamless data exchange.
• Work with suppliers to offer flexible and scalable solutions that cater to the
diverse needs of airlines, concessionaires and other tenants.
• Offer incentives or cost-sharing programs to encourage tenant buy-in for new
digital solutions.
• Establish clear governance structures that define roles, responsibilities and
decision-making processes for all stakeholders involved in the digital trans-
formation strategic initiative.

Digital transformation is not a one-time event, but a strategic initiative that requires
continuous development and refinement. By embracing a long-term commitment
to this initiative and addressing these challenges strategically, airports can foster
collaboration among stakeholders and unlock the immense potential of technology
to create a seamless and positive travel experience for everyone.
Creating a
Commercial
Digital Roadmap
76 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

8.1

Commercial roadmap template

This paper has shown why airport commercial digital transformation is important
and the areas to consider when looking for value and digital business models. It has
also examined how to benchmark commercial digital maturity and considerations
for core commercial airport functions, such as retail, ground transportation, services
and wayfinding. Airports will have an established technology approach and know
some of the key internal enablers, including operating models and data.

The next step is to work with internal stakeholders to create a roadmap for commer-
cial digital growth for the airport. There are many templates, but the following is a
simple template from the University of Cambridge, based on how some of the world’s
most successful companies build their technology roadmaps.

The template has five core steps:

Step 1: Future value or ‘to be’

• Quantifying the value of adding more digital into the passenger proposition.
• Considering how this supports the broader business and product / service
strategy and goals.
• Defining how the business will need to change its capabilities.

Step 2: Where you are now or ‘as is’

• Market and passenger trends driving change.

• Current business, product and service strategies.
• Current business capabilities.

Steps 3, 4 and 5: How to fill the gap between steps 1 & 2

• This includes the key activity and projects required, commercial drivers and
and satisfaction growth forecasts.
• How the technology and business capability will change.
• Mitigation plans and risks / assumptions.
ACI World - Airport Commercial Digital Transformation Best Practices, 2024 77
78 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

The above is then turned into a roadmap by year, which can be used to brief any
agencies or third parties to help create a more detailed project and program plan.

You can find out more about Cambridge University’s roadmap templates at: https://
engage.ifm.eng.cam.ac.uk/roadmapping-templates
 ACI World - Airport Commercial Digital Transformation Best Practices, 2024 79

8.2

Immediate priorities
A majority of passengers already experience high levels of digital in their daily lives.
Airports that haven’t started on the digital journey are already behind and need
to start now. Those with a well-established program need to go faster to keep up
with changing consumer demand. The key point is that digital is more agile than
traditional airport infrastructure and airports need to start or accelerate their digital
transformation now. Consider the following as immediate actions:

Importance and buy-in

• Ensure the business and senior leadership understand the importance of

commercial and passenger digital acceleration, distinct from broader oper-
ational or business-wide digital improvements.
• Work with internal stakeholders or third-party agencies to benchmark where
the airport is today in terms of maturity and where it should be in the years
ahead based on the local market and passenger expectations.
• Understand where the sources of value are for the passengers based on their
journeys, which digital business model is most important and which of your
existing products and services you should focus on first.

Create a commercial digital strategy to support the overall digital

transformation

• Create a vision and strategy for commercial and passenger digital to help
focus direction.
• Consider the business areas that will enable change, normally the biggest
blockers to success.
• Work with each area of the business to understand the specific digital oppor-
tunity for core areas including retail, advertising, ground transportation, servi-
ces, help and wayfinding.
80 ACI World - Airport Commercial Digital Transformation Best Practices, 2024

Create a technology plan

• Work with IT or agency partners to create a roadmap of technology change

and the gaps to deliver a better digital passenger experience.
• Alongside, complete a data audit to understand the gaps in commercial data
and how to use them to improve experience.

Review your organizational structure

• Review if the current structure enables digital commercial growth, has the right
core elements, and puts insight and data from the passenger at the centre
of decision making.
• Create a plan to build or buy digital talent to run and accelerate your digital
proposition.

Create a business case and roadmap

• Create a booking channel strategy and digital-first KPIs to build a case for
increased revenue and passenger satisfaction.
• Work on a more detailed roadmap of project and program activity.
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