Vancouver Airport Case Study On Kiosks

Henrik Avanessians

Isaac Bullock

Mary Christian

Kirsten Clements

Donald Grogg

Walden University

Management 3003-03

Professor Matney

December 29, 2007

Abstract

The purpose of this paper is to provide a collaborative analysis of the Real World Case Study on Delta, Northwest Airlines, and Vancouver Airport:  The Business Value of Customer Self-Service Kiosks. 

            This paper will consider the following as a means of bringing into the analysis the expertise of individuals of the group:

1.                What are the central issues?

2.                What pertinent areas will be considered?

3.                Analyze the considerations and determine their relative importance.

4.                Investigate other possibilities?

5.              Critique what was done, draw final conclusions, and make recommendations. 

1. What are the central issues?

With the fierce competition found in the airline industry there is a constant need for airlines to find ways to differentiate themselves by focusing on what the customer is looking for in their travel experience.  This must be done while still minimizing costs in order to remain competitive.    As was noted in this case study, O’Brien & Marakas (2007), describe that travelers want a fast, “no-hassle trip” without standing in long lines. (p 87)     O’Brien & Marakas (2007), go on to quote Kevin Malloy, vice president of IT for the airport authority at Vancouver International Airport as saying that the cost savings are “massive”.  A study of this airport revealed that with the projected growth, there would be a need to add a substantial number of check-in counters and the airlines would ultimately be paying for these additions. (p 88)    Therefore there is a need to find other solutions from both a cost standpoint and from a customer service perspective. 

2. What pertinent areas will be considered?

Northwest Airlines made several key moves towards a self-service model.  O’Brien & Marakas (2007) state that, “Northwest Airlines (www.nwa.com) had embraced self-service airport kiosks in a big way before Delta…In fact, more of Northwest’s customers are using self-service check-ins by checking in online on the Web at nwa.com, or through one of their e-Service Center check-in kiosks, than through traditional check-in methods.” (p 87)

While Delta Air Lines trailed Northwest Airlines in the initial implementation of its kiosk initiative, Delta soon realized the advantages that a more customer interactive solution could provide.  As this new technology gains popularity with both travelers and airlines, we are already seeing the next step that is certain to be replicated in other major airports.  O’Brien & Marakas (2007) report that, “Vancouver International Airport has taken the airline kiosk idea to a whole new level.  The Vancouver Airport Authority deployed 80 new common-use kiosks that support all airline customer check-in requirements, thus eliminating the need for kiosks dedicated to just one airline.”  (p 88)  This new technology opens the door to a wealth of opportunity to expand these services into a multitude of other industries that connect services with the airline industry. 

3.   Analyze the considerations and determine their relative importance.

            Just what has been the significance of this new technology?  Has this given a competitive advantage to airlines that have chosen to invest heavily on the front end of a technology that had not yet proven its value?  Field (2003) quotes David Melnik, founder of Kinetics as saying that “passenger self-service is the core” of the airport process, making it a ripe candidate for the process re-engineering that is changing airline structures and organizations.  Field (2003) further quotes Melnik as saying, “The hub-and-spoke system is not going to go away, so making hubs manageable for the passenger is going to be a key way for an airline to differentiate itself to the public and get some of the efficiencies it needs to compete with point-to-point, low-cost carriers.” (p 48)   For major airlines it appears that this is just becoming a cost of doing business.   O’Brien & Marakas (2007) explain that the costs of initiating this self service model are significant but Rob Maruster, Delta Airlines’ director of airport strategy and service says that, “the payback is enormous, but he declines to give financial details.” (p 87)     

4. Investigate other possibilities.

What will maximize the efficiency of this new technology?  Since customers are looking for a fast and “hassle-free” experience, what are the challenges that this new technology creates and how will the airlines quickly identify the challenges faced by travelers who do not understand how to utilize this new technology?    What other services could be offered through this kiosk system that would provide differentiation to airlines that adopt this technology?    Delta has created a way for customers to give direct feedback about their Kiosk system through a Blog (http://blog.delta.com/category/airport/ ) that is called “Designing the Way You Check-in”.  It invites comments on how the kiosk system works while sharing about the new features being offered that were implemented based on feedback from its customers.  Among the comments, the Delta manager that designed the Blog, periodically posts responses to let customers know that their voices are being heard.  This is an important tool to provide the opportunity for customers to voice their comments and receive timely feedback on changes and updates to improve upon the current system.

Along with the technology that provides CUSS Common Use Self Service kiosks for all participating airlines there are opportunities to link other services like car rental or hotel reservations into this system so that it becomes a progressive time-saving tool.  As O’Brien & Marakas (2007) noted in this case study, it opens doors to have kiosks in hotels and other areas that would provide the convenience travelers are looking for.  According to Stoller (2007), Avis Rent-A-Car and Delta Airlines are testing a program in the Atlanta airport where customers returning cars can use a kiosk to print boarding passes while waiting for a shuttle to the airport.  The opportunities that this new technology provides create a wealth of possibilities to make the travel experience a more pleasant one. 

5. Critique what was done, draw final conclusions, and make recommendations.

Heinrich (2005) explains that Kevin Molloy, the driving force behind the Vancouver project, fully expects to use this technology in the 2010 Olymic Games to ease to botlenecks that occur due to increased security that is necessary these days at such events. (p 63-64)  This is a testiment to the level of success that has been realized by this new technology.   

As we move forward utilizing this new and innovative technology the possibilities are very exciting but these new technologies are not without their own set of challenges.  There are issues related to security that are continually being addressed.  This will help to ensure that as we adopt this new technology that proper security safeguards are in place.  This includes security technologies that utilize fingerprint identification and possibly even retinal scanning as a means of ensuring identity. 

Other challenges include the training of customers on the use of the new technology so that the customer receives the “hassle-free” experience that they are expecting.  For those who are comfortable with new technology this will not be an issue but for some it may be a barrier to utilizing the new technology.  As a whole we are being trained to be much more accepting of self service.  In many instances it is what many people prefer.  It has not been too many years ago that gas station attendants pumped our gas.  Today is almost unheard of to have an attendant pump your gas.  In grocery stores we are moving to self checkout lanes thus reducing the time it takes to check out at the grocery store.  Why not self-service for airline services?  It just makes sense.   

References