IS THE WORLD READY FOR THE SELF Bag drop? Practical considerations & real-world experience

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1 For internal use only IS THE WORLD READY FOR THE SELF Bag drop? Practical considerations & real-world experience

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3 For internal use only IS THE WORLD READY FOR THE SELF BAG- DROP? Executive Summary In the airline and airport business, selfservice is the new mantra. And there s good reason, too: self-service is helping the airline industry reduce costs, increase revenues, and improve the customer experience. With self-service check-in now available at many airlines and airports worldwide, decision-makers are turning their attention to the next frontier in selfservice: the bag drop. Three key factors determine the success (or failure) of a self-service bag drop: regulations, real estate and passenger expectations. Industry stakeholders airlines, airports, vendors and integrators need to own these issues before embarking on a selfservice project. This white paper examines the main market drivers behind the self bag drop, as well as current market tends and industry deployment plans. It features a special focus on three use cases which together account for some 80% of situations encountered today examining the key customer issues and implementation results. Practical considerations and real-world experience govern the outlook of this paper. Is the world ready for the self bag drop? Let s find out. The next frontier in self-service is the bag drop. Table of Contents Executive Summary Introduction Business drivers for the self bag drop Market trends: The bag journey of the future is fully automated Key factors for success: Regulations, Real Estate, and Passenger Expectations Let s get real: the bag drop in the real world 5.1. Use case #1: Removing all the counters Use case #2: The hybrid solution Use case #3: The fully automated bag drop Comparing solutions on the market The case of IER Business benefits of the self bag drop We ve seen the future, and it s self-service Real-world examples: Three use cases Business benefits of the IER solution What s coming next: re-architecting the environment Appendix: About the author /// 3

4 IS THE WORLD READY FOR THE SELF BAG- DROP? For internal use only 1 / introduction In spite of a gloomy economic climate and a continued high price for fuel, 2013 is likely to be one of the most profitable for the air transport sector. According to IATA, airlines will report net income of $10.6 billion dollars for 2013, up 58% over 2012, based on a turnover of $671 billion. If these figures are confirmed, 2013 will be the third most profitable year after 2007 ($14.7 billion) and 2010 ($19.2 billion). 1 1 Transport aérien: 2013 pourrait être l une des années le plus rentables selon l IATA : La Tribune, March 20, Passenger Traffic Shows Continued Strength, IATA press release, May 1, IATA Airline Industry Forecast , published Dec The Airline IT Trends Survey, SITA Passenger Self-Service Survey Highlights (Air Transport World/SITA) Airport Industry Insights: Flying into the Future, SITA 2013 Confirming this trend, passenger traffic shows continued strength. IATA reports that total traffic rose 5.9% in the one-year period March 2012 to March 2013, with RPK rising 6.0% for international travel and 5.7% for domestic travel. 2 Moreover, it is clear that airline passenger numbers are poised to explode. IATA predicts that airlines will carry some 3.6 billion passengers in 2016, an increase of around 800 million on 2011 passenger numbers. 3 There will be almost 500 million new passengers traveling on domestic routes and over 300 million new passengers on international routes. To handle these numbers efficiently and profitably, airlines and airports are lining up to offer self-service functions to passengers. According to SITA, The priority today for most airlines is adding baggage functionality to bring selfservice to those passengers with more than hand luggage. 4 Indeed, the global trend is for automation of the bag drop process and the numbers show it. A recent survey 5 by Air Transport World/SITA shows that: 74% of airlines and 60% of airports plan to offer automated bag drop by % of airlines and 83% of airports plan to offer assisted bag drop by % of airlines and 79% of airports plan to offer bag tag printing by 2015 Passengers, too, are getting on board. According to the same survey, passengers rank the self-service bag drop a strong 6.8 out of 10 on the Technology Attractiveness Index. But there are important caveats: Baggage is often identified as the biggest barrier to achieving full selfservice check-in. 6 The bag drop is a risky moment, a complex one, one with the potential for fraud. That makes it all the more important for airline and airport decision-makers to get it right. 10 Mobile Flight Status Updates 8.9 HIGH 8 6 Mobile Ancilliary Services Mobile Promotions 6.3 Mobile Booking Self- Service Bag Drop Self-Print Bag Tag 7.5 Mobile Itinerary Mobile Airport Navigation Mobile Boarding Passes 8.0 Mobile Flight Search 8.7 Transfer Kiosk 8.9 Self- Boarding MEDIUM LOW 4 Technology Attractiveness Index Source: 2012 Passenger Self-Service Survey Highlights (Air Transport World/SITA) 4 ///

5 For internal use only IS THE WORLD READY FOR THE SELF BAG- DROP? 2 / Business drivers for the self bag drop In the airline industry, the self-service business is impelled by the need to reduce the cost structure, increase revenues and enhance the passenger travel experience. Six business drivers are spurring airports and airlines to deploy self bag drop solutions. Automated bag drop > Self-service security > Passenger touch points Source: SFO Media - Photos IER > Automated security & boarding > Self check-in & tagging > > Self-service boarding Counter check-in Decrease operating expenses at all passenger touch points Industry stakeholders need to decrease operating expenses at check-in, baggage drop, security check and boarding. There are two main levers to do so. First, use fewer agents to process passengers, along with some self-service, and ultimately automate the process fully. Second, ensure higher system availability through product robustness, low maintenance costs, and software that is easy and inexpensive to upgrade. /// 5

6 For internal use only Increase passenger capacity within a limited footprint Airport operators and airlines in dedicated terminals need to process an increasing number of passengers within a limited footprint. Since the size of the terminal is often fixed, this means reducing the space devoted to check-in and baggage drops. The space can then be reallocated to businesses that generate additional revenue, such as shops and food courts. Generate more ancillary revenue from the passenger Airport operators and airlines in dedicated terminals need to process an increasing number of passengers within a limited footprint. Airlines have to generate more ancillary revenue to fill the profit gap caused by increased operating costs and intense competition. Each passenger touch point including the baggage drop presents an opportunity for the airport or airline to generate more revenue. Goods and services that may be offered a la carte include sales of onboard snacks and drinks, and fees for checked baggage, priority check-in, priority boarding, seat preference and added legroom. Fine-tune airport investment to serve carriers with very different needs Airports have to fine-tune their investments so as to serve very different customers, such as low-cost carriers and 6 /// major legacy airlines. Solutions that are scalable and easy to upgrade are key in this context. Airports also should realize that not all airlines are willing to adopt and pay for the latest technologies, particularly those involving automation. Comply with safety and security regulations Airlines and airports have an obligation to comply with all safety and security regulations at check-in, baggage drop position, security inspection and boarding gates. All those touch points especially the bag drop are clearly seen as stressful places for passengers. Enable a better passenger experience Airports and airlines need to minimize the bottleneck created by the bag drop process, which is perceived as a painful experience by most passengers. Those stakeholders are actively looking at ways to better manage the passenger experience to ease the process; reduce frantic behavior; and allow passengers to enjoy their trip. Given these business drivers, now let s see where the market is heading.

7 For internal use only IS THE WORLD READY FOR THE SELF BAG- DROP? 3 / Market trends: The bag journey of the future is fully automated Though contexts and priorities differ for the world s airlines and airports, global trends are clear: the bag drop is rapidly becoming the next self-service milestone. Passenger demand as well as business imperatives intersect in this regard. The passengers point of view From the passenger s point of view, the bag journey of the future is fully automated. According to SITA: Passengers are eager to embrace greater levels of self services. Now that self-check-in is becoming the norm, they have baggage processing firmly in their sights, with: 62% willing to tag their own bag 65% keen to use self-service bag drop 63% interested in tracking the location of their bag via their mobile phone 7 Self-service will be a vital step forward, as check-in and bag drop are ranked among the top three most stressful steps in the journey. 8 The industry s point of view For airports and airlines, the self bag drop is most definitely on the agenda. Surveys show that 74% of airlines and 60% of airports plan to offer automated bag drop by By 2015, deployments will rise from only a few airlines/airports in 2012 to over half of the survey respondents. 9 The table below gives a sense of the rapid expansion of self-service deployments planned by airports and airlines. 7 SITA-ATW 2011 Passenger Self-Service Survey Highlights, Chart 11, cited in SITA Baggage Report Passenger Self-Service Survey, issued by SITA and Air Transport World, 9 October Airline Business Airline and Airport I18:43 Trends Surveys Industry Deployment Plans for Self-Service airports airlines Self printing bagdrop 13 Unstaffed Bag drop locations Transfert kiosk (Common Use) Self-Boarding Unstaffed Bag drop locations Transfer kiosk (Common Use) Selfboarding Deployment by 2015 Current deployment Source 2012 Airline Business Airline and Airport IT Trends Surveys /// 7

8 IS THE WORLD READY FOR THE SELF BAG- DROP? For internal use only The future of the self-service vendor market Currently, there are an abundance some would say an overabundance of players in the self-service market. It is becoming increasingly clear that this sector is ripe for consolidation, a process from which only the leading players will emerge. Vendors and integrators that emerge from this shake-out will inevitably be those that enable airlines and airports to deal with the three key factors decisive for the success of the self bag drop: regulations, real estate and passenger expectations. 8 ///

9 For internal use only IS THE WORLD READY FOR THE SELF BAG- DROP? 4 / Key factors for success: Regulations, Real Estate and Passenger Expectations Three factors determine the success of a self-service bag drop: regulations, real estate and passenger expectations. Industry stakeholders, including airlines, airports, vendors and integrators, need to fully understand these issues before embarking on a selfservice project. REGULATIONS are notoriously different from one country/airport/ airline to another At one extremely are highly restrictive, tightly regulated environments with layers of security constraints. At the other extreme are open environments, in which boarding a plane and dropping off a bag is no more complicated than taking a bus. Furthermore, in any given country, there is often a significant difference in regulations between domestic and international flights. These differences may include ID requirements and baggage rules, as well as immigration and customs formalities. Even in the most restrictive environments, regulatory authorities are increasingly open to studying new self-service options for bag handling. For now, the self bag drop may be off the table, but that is unlikely to be the last word. REAL ESTATE is all about space allocation in the terminal The challenge is to determine the right balance between the infrastructure needed to process passengers and baggage, and infrastructure that can generate additional revenue from the passenger. Depending on the configuration, there can be high or low availability of floor space for retail, with a corresponding impact on revenue and return on investment. Hybrid check-in positions have been shown to optimize costs, by keeping the check-in footprint small and maximizing retail space. An airport s retail space can be a major revenue generator. In a striking example, at Atlanta s Hartsfield-Jackson, the airport cites average sales of $2,215 per square foot, compared to just $700 per square foot for a leading Atlanta mall. 10 PASSENGER EXPECTATIONS are ultimately the decisive factor Passengers literally vote with their feet: If airlines and airports don t meet their expectations, they may seek other carriers or other means of transportation. Moreover, if passengers are stressed and unhappy, they will be in no mood purchase goods and services, and may not even have the time to do so. To meet customer expectations for self-service while reducing the level of stress, operators must provide a simple, clear, obvious process for the passenger. In addition, an agent should always be available to assist the passenger, if needed. In light of these factors, we now turn our attention to three use cases that together account for over 80% of situations encountered today. 10 Atlanta airport seeks business for new terminal, The Atlanta Journal- Constitution, March 11, 2010 The challenge is to determine the right balance between the infrastructure needed to process passengers and baggage, and infrastructure that can generate additional revenue from the passenger. /// 9

10 IS THE WORLD READY FOR THE SELF BAG- DROP? For internal use only 5 / Let s get real: The bag drop in the real world As we ve shown, there are many different situations and contexts perhaps as many as there are airlines and airports! Nonetheless, the use cases below together account for some 80% of current situations Use case #1: Removing all the counters At this airport, passengers tended to ask, Why can t flying be as simple as taking a coach? Many were frustrated by the fact they spent more time in the airport than on the aircraft. This real-world implementation involves an airline s domestic flights in a country that has a highly permissive regulatory environment. In a simple process, the passenger drops his bag on an open belt, and off he goes. Key customer issues At this airport, passengers tended to ask, Why can t flying be as simple as taking a coach? Many were frustrated by the fact they spent more time in the airport than on the aircraft. With an average check-in time for domestic flights of 55 minutes, the decision to travel by air was becoming less compelling, and customer complaints were rising steadily. Guiding principles The guiding principles for the airline were that the check-in/bag drop solution had to be really fast, not just quicker than before. It also had to be simpler: could your parents do it? The airline wanted a compelling, customer-driven offering that focused on the needs of the majority of passengers, and used technology as an enabler, not a solution on its own. The situation in 2013 Following deployment of the openbelt solution, self-service usage went from less than 35% to 100% overnight no surprise there, as all counters were eliminated. The further impact was that airport throughput increased significantly. Customer satisfaction in the airport increased by 10-15%, and employees became more engaged with customers. With the new setup, passengers with luggage to check can arrive just 10 minutes before gate closing. Impact of the key factors Regulation: This ultra-simple process is enabled by very permissive regulations (no ID check required) Real estate: Eliminating the counters frees up space for retail sales Passenger expectations: Passengers with luggage don t have to queue, and can relax or shop before their flight The solution: an open belt A simple, accessible kiosk for selftagging, in which the passenger prints and affixes his own bag tag An open-belt bag drop for domestic flights, in which the passenger drops his bag on an open belt > > self-service, RFID-enabled boarding, in which the boarding gate scans and reads the passenger s boarding pass, without an agent s intervention Simple & accessible kiosk self-tagging Open belt bag drop (for domestic flight) Self-service boarding RFID-enabled 10 ///

11 For internal use only IS THE WORLD READY FOR THE SELF BAG- DROP? 5.2. Use case #2: The hybrid solution This real-world implementation involves a European airport/airline that wanted to increase its revenue four-fold, but had a fixed number of terminals. Since the total space could not be increased, the airline needed to re-allocate existing space so more could be sold to each passenger. Key customer issues At this airport, the director said, We want our airport to be turned into a big shopping mall! To make this possible, the footprint for passenger touch points had to be reduced. However, passenger capacity needed to increase. Furthermore, one position could not be dedicated to a single airline, and multi- DCS management was needed as part of the solution. The situation in 2013 Following this successful deployment, baggage-drop transaction time was slashed from 2 minutes to less than 40 seconds. Self-service usage went from zero to 30% (for general travelers) and 90% (for business travelers), while customer satisfaction in the airport increased. As planned, the main airline s counters are used by other airlines during peak periods. Impact of the key factors Real estate: The operator has found an excellent balance between the footprint needed to process passengers, and the space required to generate additional revenue from retail shops and restaurants. Passenger expectations: In this deployment, passengers are offered their choice of going to a manned counter or using self-service, resulting in just a 30% take-up of self-service by general travelers. This figure would rise sharply if a manned counter were not offered. We want our airport to be turned into a big shopping mall! The solution: a hybrid approach The counter has a dual interface, enabling use by an agent or selfservice by the passenger cute peripherals are provided for manned agent use cuss equipment is provided for self-service passenger use There is very low impact on millwork /// 11

12 IS THE WORLD READY FOR THE SELF BAG- DROP? For internal use only 5.3. Use case #3: The fully automated bag drop In this example, a pilot project to evaluate a two-step check-in/bag drop process was launched by an airline at a leading US international airport in March In a successful example of co-innovation, the pilot project was jointly developed by the airline and the vendor. The key lessons learned would inform how the airline would move ahead with check-in and bag drop, subject to approval by US regulators. Key customer issues In the existing installation, the counters footprint was much too large. Furthermore, passengers with a bag had to go to the counter, making a long process even longer. Finally, the counter management required a large staff of contract employees to check IDs and manage passenger bags. The solution: a fully automated bag drop self-tag, in which the passenger prints a baggage tag and attaches it to his bag; and self-drop, in which the passenger goes to the baggage drop point, identifies himself with his boarding pass and drops his bag on the belt. The project was a successful example of co-innovation between an airline and vendor: designing and building a solution, testing it, and learning from it. Highlights of the solution The system enables two types of bag tags to be read: a paper tag with printed bar code, and a permanent, RFID-enabled tag, often used by frequent fliers. The bag drop system was designed to meet the TSA s stringent criteria for safety and security. Once the passenger has placed his bag on the belt and the machine has processed the bag, it can no longer be accessed or opened. It is impossible to change the nametag, slip a bomb inside or otherwise alter the bag. Return on experience: The pilot project showed that a smaller footprint was sufficient to process the same number of passengers. The solution provided more passenger control, as customers were fast and handled the process successfully, with little assistance. For the airline, labor costs were reduced for the two-step process, compared to the traditional, one-step process. Finally, transaction time was reduced, with only two scans, and no keyboard involved. Lessons learned The project was a successful example of co-innovation between an airline and vendor: designing and building a solution, testing it, and learning from it. The US regulator observed the pilot project closely, but ultimately did not approve the self bag drop aspect of the solution, for regulatory reasons. Despite the regulatory issue, passenger return on experience was excellent, with the robust solution providing over 99.9% availability. Impact of the key factors Real estate: The pilot project demonstrated that the same number of passengers could successfully be handled within a smaller footprint. Passenger experience: Passengers were considerably more relaxed and less stressed by the check-in/ bag drop process. Regulations: For now, very strict regulatory constraints prevent deployment of this solution. However, this may change as the regulatory environment and the market evolve. 12 ///

13 For internal use only IS THE WORLD READY FOR THE SELF BAG- DROP? 6 / Comparing solutions on the market A variety of vendors currently offer several categories of bag drop solutions, such as a handheld self-service bag drop; a hybrid two-in-one bag drop; and a fully automated self-service bag drop. Multiple solutions within a given category may appear similar. However, on closer examination, certain issues may become evident, which call into question the viability of the solution. Below, we highlight some of the potential issues with certain vendors solutions. Handheld self-service bag drop Potential issues here include the risk of scanning the wrong bag, particularly if there is no multi-tag detection. There may be a risk of weight cheating, fraud or error. The installation may not be universally accepted. There is a risk of deterioration of moving parts. Finally, there may be no CUSS platform, with a vendor-specific application required instead. Hybrid two-in-one bag drop In this case, potential issues include the fact that it may be necessary to replace the existing counter. Moreover, this option is much more expensive than the handheld self-service bag drop. Fully automated self-service bag drop With many vendors solutions, existing counters and injectors must be replaced, making this a much more expensive option than handheld or hybrid solutions. The footprint is often larger than that of a regular counter, and the solution may require a large, dedicated hall. There may be no CUSS platform, with a vendorspecific application required instead. Finally, there is generally little-to-no evolution possible for peripherals. Potential issues here include the risk of scanning the wrong bag, particularly if there is no multitag detection. There may be a risk of weight cheating, fraud or error. /// 13

14 IS THE WORLD READY FOR THE SELF BAG- DROP? For internal use only 6.1 The case of IER In contrast to other vendors, IER has developed a range of solutions that circumvents these issues through improved design, high-quality components and close collaboration with its customers. The results are reliable, robust installations that minimize costs, minimize the footprint, and enable reuse of existing millwork and injectors. IER solutions are highly open, compatible with CUTE and CUSS, and are accurate and secure. Crucially, they are designed to evolve with the airline industry. IER positions itself as a premium supplier to the market, focusing on top-tier segments with solutions that feature high added value and high resilience for more demanding customers, such as: Major, legacy and low-cost/low-fare international airlines in mature and growing markets Operators of mid-size to large airports with international traffic A ir traffic control organizations This is perhaps the moment to admit that the three use cases described in Chapter 5 (Let s get real: The bag drop in the real world) are all examples of current IER implementations. These proof points give an excellent sense of IER s realworld capabilities and experience. A manufacturer and integrator for the airline and airport industry, IER has indepth knowledge of the operational processes required for passenger and baggage flow, and vast experience in the integration of customer solutions. A trusted partner of airlines and airports, IER solutions are differentiated by their scalability, their compliance with the highest-level safety and security criteria, and their ease of evolution. IER at a glance /// 300,000 peripherals deployed 3,000 kiosks monitored 24/7 800 airports served 400 airlines served

15 For internal use only IS THE WORLD READY FOR THE SELF BAG- DROP? 7 / Business benefits of the self bag drop Now that we ve examined the self bag drop in some detail, we turn to the heart of the matter: What are its business benefits? What is the return on investment? This are clearly the key questions for C-level decision-makers in the airline and airport industry. The answers are summarized below. Increased revenue The smaller footprint of the self bag drop means more real estate can be allocated to revenue-generating activity, such as retail shops and restaurants. For example, at Hartsfield-Jackson Airport in Atlanta, the airport cites average sales of $2,215 per square foot, compared to just $700 per square foot for a leading Atlanta mall. 11 Reduction of floor space Hybrid systems that can easily be configured for self-service or manned use avoid dedicating separate floor space to each configuration, freeing even more space for revenue-generating activity. In a fully hybrid terminal, the number of bag drop positions could potentially be cut in half, saving up to 50% of the space dedicated to this function. Decreased OPEX With automation, low value-added agents tasks are transferred to the passenger, reducing the number of staff required and/or enabling staff to be assigned to high value-added activities. Depending on the extent of automation, OPEX savings can range from 30 to 50%, as underlined by a recent article in Passenger Terminal World, which cites a 50% reduction in operational costs. 12 Optimized CAPEX Bag drop solutions can be upgraded with additional functions (e.g., passport reader, NFC payment module, etc.), avoiding major investments in new systems and extending the operational life of the solution. Enhanced customer experience The self bag drop reduces stress for the passenger, putting the traveler in a better frame of mind to shop, generating additional revenue. Passengers strongly favor this solution, as evidenced by a recent survey by Air Transport World/ SITA, which shows that passengers rank the self-service bag drop a strong 6.8 out of 10 on the Technology Attractiveness Index. 13 IER s solutions provide all these business benefits and more Our solutions are low risk. Put simply, our value proposition is: We re good; we know how to do this; we re ahead of the curve in technology; and we have the customers to prove it. 11 Atlanta airport seeks business for new terminal, The Atlanta Journal- Constitution, March 11, Direct Drop, Passenger Terminal World, Showcase Passenger Self-Service Survey Highlights (Air Transport World/SITA) /// 15

16 IS THE WORLD READY FOR THE SELF BAG- DROP? For internal use only 8 / We ve seen the future, and it s self-service Self-service is helping the airline industry reduce costs, increase revenues, and improve the customer experience. With self-service check-in now available at many airlines and airports worldwide, decision-makers are turning their attention to the next frontier in self-service: the bag drop. These uses cases highlight the technological, operational, financial and regulatory constraints that face decision-makers when considering a self bag drop implementation. Three key factors determine the success of a self-service bag drop: regulations, real estate and passenger expectations. Industry stakeholders airlines, airports, In this white paper, we presented three uses cases all real-world examples of IER implementations which together account for some 80% of all situations encountered today. In the first use case, a highly permissive regulatory environment enabled IER to implement an ultra-simple process for an open-belt self bag drop. In the second use case, the airport wanted to sharply increase its revenue by reallocating space to revenuegenerating activates; IER achieved this by implementing a hybrid solution, with a counter designed for use by the agent or self-service by the passenger. In the third use case, a pilot project for a twostep check-in / bag drop process which had to comply with TSA security and safety regulations the passenger return on experience was excellent, with the solution providing over 99.9% availability. vendors and integrators must thoroughly understand these issues before embarking on a self-service project. 8.1 Real-world examples: Three use cases These uses cases highlight the technological, operational, financial and regulatory constraints that face decisionmakers when considering a self bag drop implementation. Together, these constraints form the key business drivers behind the self bag drop market: operational costs have to be decreased at all passenger touch points More passenger traffic has to be managed in a smaller footprint More revenue must be generated from the passenger throughout the journey Airports need to meet the very different needs of low-cost and legacy airlines compliance with local safety, security and immigration regulations is essential customers need to have an easy, enjoyable, stress-free experience 16 ///

17 For internal use only IS THE WORLD READY FOR THE SELF BAG- DROP? 8.2 Business benefits of IER As illustrated in this white paper, the main business benefits from the self bag drop are increased revenue, reduction of floor space, decreased OPEX, optimized CAPEX, and an enhanced customer experience. IER s solutions provide all these business benefits and more. A manufacturer and integrator for the airline and airport industry, IER has in- depth knowledge of the operational processes required for passenger and baggage flow, as well as the underlying technologies involved. Indeed, IER is the only integrator specialized in the airline industry that designs and produces 100% of its mission-critical hardware, software and consumables. IER s solutions are differentiated a number of crucial factors, including: Scalability we integrate our technology in our customer s existing design and infrastructure, reusing injectors to minimize costs. compliance with the highest-level safety and security criteria, enabling an ultra-low risk of fraud cheating, or intrusion. Indeed, it is vital for error rates in a bag drop system to be extremely low. ease of evolution IER equipment has been designed to be easily upgradeable onsite. At IER, we have a profound understanding of our customers needs and we have a broad, diversified customer base to prove it. /// 17

18 IS THE WORLD READY FOR THE SELF BAG- DROP? For internal use only 8.3 What s coming next: re-architecting the environment For airlines and airports worldwide, the fundamental trend is toward selfservice. How rapidly that will be achieved depends on the elimination of the various constraints that hinder deployment. Around the world, a large number of experiments are underway, which are testing different configurations, technologies and solutions. The structure of the market will be determined by the outcome of these experiments. Although it is clear that vendors need to understand the basic technology, deployment and system integration, these are not the essential issues. Indeed, most vendors master these elements to a greater or lesser extent. The crucial issue for vendors is to work upstream with airport architects to determine the optimal allocation of space; with interior designers to organize that space; and with ergonomics specialists to design the customer interfaces, both for software and millwork. It is also crucial for architects and airport designers to include the baggage-drop as an integral part of their initial plans for new airports and for retrofits of existing spaces. The clear trend is to re-appropriate space, re-architect the environment. Technology now makes it possible for the self bag drop to effectively meld into its environment. For example, the self bag drop can become part of the walls of the terminal, or be integrated in freestanding, multi-user, multi-functional counters in the center of the floor. Both options enable maximum access while eliminating queues. Signage will play a key role in improving passenger flow. At the start of this white paper, we asked whether the world is ready for the self bag drop. From what we ve seen, it s clear that the answer is a qualified yes. Some airlines and airports are not only ready for the self-bag drop they are already there. Others, however, will need to overcome various constraints to join this wave of the future. The question is not if, but when. 18 ///

19 Appendix About the author Author Christophe Arnaud is responsible for Marketing & Business Development at IER France, a subsidiary of the Bolloré Group. As head of the Transportation Business Unit at IER, Mr. Arnaud is in charge of strategic marketing, strategic partnerships, business development, and product and project management. Mr. Arnaud has extensive experience in self-service processes, automation and emerging technologies in various industries, including airlines, railways, ground transportation, automotive, electric vehicles, car sharing and smart grid. He is a graduate of the Ecole Centrale de Paris and SKEMA Business School.

20 For internal use only For more information on IER solutions, please visit our website at or contact us as shown below. IER International Headquarters: 3, rue Salomon de Rothschild Suresnes France Tel.: Fax: wier-contact@ier.fr Création Aliénor Atinault - Photos Thinkstock - IER