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Airlines look to keep kiosk innovation on track to improve customer service, generate more ancillary revenue

sourcewww.zktek.com

publisherzktek.com

time2013/09/27

Airlines look to keep kiosk innovation on track to improve customer service, generate more ancillary revenue

Airline self-service kiosks have changed the passenger experience, noticeably for the better. Ever since the first kiosks were installed in the mid-1990s, long lines have been shortened, and the check-in process has been more streamlined.

For instance, only a small percentage of Delta Air Lines’ passengers still rely on a customer service representative at a counter to check in. “When you look at the array of self-service check in options, only 10 per cent of check-ins occur at the counter with a representative, and 90 per cent of all check-ins occur by other means,” says Paul Skrbec, manager, corporate communications at Delta. “The 10 per cent of customers who opt for the traditional check-in method are those who tend to be less experienced in the travel process, or have special circumstances, such as flying with children.”

These days some kiosks boast a broad range of functionality beyond simple check in; they allow passengers to generate their own bag tags, track lost bags, change seats, clear upgrades or purchase inflight Wi-Fi sessions and carbon offsets. Some kiosks even allow travellers to compete in a bidding war for seats on oversold flights.

Perfecting the actual check-in process is also important, however, as kiosk specialists like IBM, NCR and SITA look to spearhead an evolution in kiosk technology.

THE NEED FOR SPEED

At IBM, improvements in both hardware and software have cut down the amount of time it takes for passengers to check in to a matter of seconds. “A trend we are absolutely seeing in next generation equipment is an increase in speed and ease to improve the customer experience,” says Brian O’Rourke, IBM’s global airline segment leader.

The newest development in check-in technology utilises RFID near field communication to reduce passenger interaction, and cut down waiting time. “Essentially, customers can walk into the airport, and with no queues scan an RFID card at a cue card reader within three to five seconds,” says O’Rourke. A boarding pass is instantly sent via SMS or email to the passenger’s mobile device.

While NFC is not yet a standard feature in most smart phones, RFID chips can be embedded into airline loyalty cards or permanent electronic bag tags, as Qantas is demonstrating at Australian airports with its ‘Q Bag Tag’ self-service luggage drop system.

TALK ABOUT TAGGING

One of the most sought-after features in kiosks today is the ability for a passenger to tag his or her own checked baggage. “From the SITA ‘Passenger Self-Service Survey’, we can see that a large percentage of passengers (62 per cent) would very much welcome self-tagging,” says Thomas Knierim, market analyst, SITA.

He adds that 83 per cent of airlines “have either implemented or plan to implement (assisted) bag drop by 2015. Progress has been made already: 28 per cent have already implemented bag drop (assisted) today.”

In the United States, the Transportation Security Administration has approved rules regarding self-tagging of bags for US-based airlines, as well as foreign airlines flying out of the country. At present, Alaska Airlines is actively trialling unassisted bag-tagging. “Customers who have used the service are delighted to be able to help themselves by tagging their own bags, dropping them off and going on their way,” says Alaska Airlines VP of customer service-airports Jeff Butler.

Alaska plans to roll out self-service bag tagging at more airports this year. American Airlines, meanwhile, completed a trial run of a bag-tagging solution in early 2011, but has since ceased self bag-tagging operations. Plans are in place to resume the service in the near future.

Outside of the United States, self-service bag tagging is catching on a bit faster. At Australia’s Brisbane Airport, low-cost carrier Jetstar, working together with SITA, has managed to cut down the bag tagging process to an impressive half-minute using robust and easy-to-use software. With just 25 seconds of passenger interaction, a checked bag is weighed, tagged, measured, and dispatched to its flight.

SELF-SERVICE BOARDING

Once at the gate, a different type of kiosk is beginning to prove popular with both airlines and their passengers. Self-boarding technology has added another layer of self-service at airports, enabling passengers to scan their own boarding pass, building upon the kiosk experience. New York-based JetBlue Airways is the first airline in the United States to trial the technology, and so far, passengers are enjoying the experience.

“We’ve been testing self-board technology at [Las Vegas] McCarran, in collaboration with the airport, for a while and are excited to be one of the first users” says Tamara Young, manager of corporate communications at JetBlue.

“At McCarran we’ve received a very good response and are looking forward to the possibilities it will open up, including evolving the boarding process and timing. We’ve already noted that it provides the ability to free up a crewmember to provide additional personalized service at the gate area.”

APPLE IPAD AS KIOSKS

Kiosks can cost thousands of dollars, which, for a struggling or start-up airline, may not be a feasible expense. Some airlines have turned to consumer grade electronics, such as Apple’s iPad – and have created their own software – to develop kiosks for a fraction of the cost.

The average passenger may never know that the kiosk he or she is using for check-in is really a repurposed iPad. But that’s exactly the solution that Malaysia Airlines has selected. First introduced in 2010, the iPad-based kiosk is touted by the airline as being “simpler, faster, and greener”. The kiosk offers all of the features normally found on a traditional kiosk, such as seat selection, tracking lost baggage, and accepting payment. After initial tests at its ticket office, Malaysia Airlines expanded the ‘MHkiosk’ programme to the Kuala Lumpur City Air Terminal and Kuala Lumpur Sentral Station.

An innovation that may one day eliminate the need for check-in kiosks altogether is the mobile phone boarding pass. Among the leaders in this space is Lufthansa, which beckons passengers to use their Internet-enabled mobile phone to “check in as early as 23 hours before departure, reserve your seat and receive your mobile boarding pass” in order to “enjoy even greater flexibility and save time for the really important things”.

But even as this service is gaining traction, more work needs to be done. For instance, JetBlue’s iPhone App does not yet have mobile boarding pass capability. So, even though passengers are able to check-in with the application, passengers must still utilise a kiosk to print a boarding pass. At Delta, a total 83 airports are set up to accept mobile boarding passes – well shy of the carrier’s overall footprint.

For passengers travelling outside of their home country, international data roaming charges may also act as a deterrent to using one’s mobile for boarding.

REVENUE OPPORTUNITIES

In addition to self-service bag tagging and the other popular features, check-in kiosks have also opened up a new channel of ancillary revenue for airlines.

A passenger at a kiosk is a captive audience. It gives the airlines a chance to tempt a passenger with services such as early boarding, upgrades to the very popular premium economy seating, and the option to purchase Wi-Fi or a business-class meal even if seated in economy.

“We see an increase in payment at the kiosk for additional services which is already common in North America, and now starting in other parts of the world,” says SITA’s Knierim. Since most kiosks already have credit card readers installed for passengers to access their reservations, a software update can enable kiosks to accept payment for impulse upgrades and purchases.