To understand how and why airports are investing in technology, Amadeus, in collaboration with Opinium Research, conducted the Travel Technology Investment Trends 2024 research project. This cross-industry initiative surveyed 50 senior airport leaders worldwide to understand the challenges they face and how technology is being harnessed to address them.
The report highlights the key challenges faced by airport leaders, such as managing increased levels of disruption, staff shortages, and the need to reduce their airport’s environmental impact, while also exploring the solutions technology offers to navigate these challenges. At the heart of this shift lies a common desire: to create a more seamless, connected, and ultimately, traveler-centric airport experience. Of the airport leaders we surveyed, 56% said ‘enhancing the customer experience’ is their top short-term objective for technology investment, followed by ‘improving operational efficiency’ (52%).
Perhaps that’s why airports plan to increase technology investment more than any other area of the travel industry. Our research revealed that, on average, airports intend to increase technology investment by 17%. Some 94% of airports plan ‘at least moderate’ investment in their organization, with 44% planning to invest ‘aggressively’ over the coming twelve months.
Let's take a closer look at the findings to discover the top investment priorities for airport leaders in the coming year.
Enhancing the passenger experience with biometrics
The airport industry's commitment to enhancing the passenger experience is evident in the rapid adoption of self-service technology and the increasing investment in biometric solutions. According to our research, nearly all airports surveyed either offer or plan to offer biometrics at key touch points such as check-in, bag drop, security, lounge access, and boarding.
While self-service technology has already been widely implemented, biometric technology is quickly catching up. The drivers behind this investment are varied, with 56% of airports aiming to improve the passenger experience, an equal number prioritizing security enhancement, and 38% focusing on regulatory compliance.
The United States is at the forefront of biometric technology adoption, with the US Customs and Border Protection Agency (CBP) leading the way. Amadeus, actively involved in supporting this rollout, has seen a significant increase in the number of passengers processed using its Biometric Solutions, with deployments in numerous US airports. Moreover, airports of all sizes are creating end-to-end biometric experiences, showcasing a global trend towards a more seamless and secure passenger experience.
Rethinking passenger services
The aviation industry is witnessing a significant shift in passenger service provision, enabled by the adoption of cloud-based passenger processing technology. With this transition, airports, airlines and ground handlers are exploring new possibilities, aiming to deliver passenger services from new locations both inside and outside the terminal.
According to our survey, 92% of respondents see value in providing flexible passenger services from locations beyond the typical fixed check-in and bag drop counter. Airport leaders are particularly enthusiastic about the potential of serving passengers at new locations around the terminal, with 52% expressing interest. Additionally, significant numbers are considering offering services in major hotels (46%), city center locations (40%), and even at major events (38%) and cruise terminals (28%).
This shift is exemplified by Amadeus's Airport Cloud Use Service technology, which has already enabled flexible passenger services worldwide. Amadeus ACUS is a common use solution operating in the cloud, moving away from the airport on-site infrastructure towards the cloud. ACUS means that any organization providing passenger services can do so with just a WiFi or mobile broadband connection. For example, Lufthansa has employed ACUS Mobile to enhance its operations, from repatriating citizens during the COVID-19 pandemic to ensuring service resilience during IT system failures at airports in remote locations.
Baggage handling is another example. With cloud-based passenger processing technology, passengers can be checked-in from anywhere, and their bags securely transported to the terminal and injected into the standard baggage flow, maintaining a secure chain of custody. Airports, airlines and ground handlers see significant potential in offering flexible baggage services from a variety of locations, enhancing the overall passenger experience.
During the COVID-19 pandemic, Lufthansa was tasked with repatriating thousands of German citizens from cruise ships in the Caribbean. Airports in location couldn’t effectively serve such large numbers of travelers in such a short space of time. So Lufthansa used ACUS Mobile to check-in passengers as they disembarked multiple cruise ships. The airline has also used the technology to ensure service resilience across its network. When the IT systems at an important African airport ceased to function, Lufthansa was able to fly ACUS Mobile devices to the terminal and could continue to serve its customers as normal.
Navigating disruption
The COVID-19 pandemic has significantly impacted airport operations, with 52% of airports reporting more disruption than before the pandemic, and only 14% experiencing less. While opinions are divided on whether disruption levels will return to pre-pandemic norms, one thing is clear: managing disruption is a major challenge.
The most significant challenges highlighted by airport leaders include a lack of timely information and difficulties in sharing key information among stakeholders. When it comes to the costs associated with disruption, airports are feeling the strain. Interestingly, more airports cite the impact of indirect costs, such as brand damage and reduced retail spend, over direct costs like reduced flight movements.
To tackle these challenges, airport leaders are eyeing technological solutions. The research shows capabilities such as automated disruption response, common situational awareness platforms, and predictive analytics are seen as essential for improving disruption management. We explore the issue of disruption more thoroughly in a specific report
.
Prioritizing sustainability in airport technology
Sustainability has emerged as a top priority for airport technology leaders, with 76% of respondents confirming that sustainability objectives are either important or very important drivers of technology investment for their airport. This commitment to sustainability is reflected in the industry's increasing focus on technologies that can contribute to environmental goals.
Our study revealed that more than three-quarters of airports are either already investing in or planning to invest in technologies aimed at improving sustainability. Key areas of investment include moving passenger and operational systems to energy-efficient cloud computing, optimizing aircraft departure sequences to reduce fuel burn, and implementing data analytics to power down unused airport resources.
The industry's focus on sustainability not only aligns with environmental objectives but also has the potential to drive significant operational efficiencies and cost savings in the long run.
Final thoughts
The findings of this study match our on-the-ground experience when working with airports. The sector is undergoing digital transformation as inflexible legacy technology is gradually replaced by cloud-native systems that connect more easily from anywhere. New technologies like AI and biometrics are helping airports to do more with less and focus resources to deliver the best possible traveler experience.
We see an increasing recognition that common data foundations can help all actors at the airport to work better together, for example around common Key Performance Indicators for airport operations. This approach means diverse teams can be empowered with a common single view into operations so flights can be best managed, resources best allocated and disruption scenarios best handled.
The way passengers experience the airport is also changing as self-service technology matures and increasingly gets smaller and fades into the background. The study highlights an overwhelming desire to roll out biometric technology at check-in, bag-drop, security, border control and boarding to support a more automated and streamlined airport experience.
I’m encouraged to see that airports are leading the travel industry when it comes to planned technology investment. For the forecast 17% increase in investment to yield maximum results I believe it should be channeled to initiatives that provide common data foundations and facilitate improved collaboration at the airport. That’s how we’ll drive change and have maximum impact for travelers.
If you’re interested in finding out more about how airports are planning to invest in 2024 and beyond, I’d encourage you to read the full report available below:
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