Maximising Commercial Revenues Dwell Time. Nigel Dolby Founder
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1 Maximising Commercial Revenues Dwell Time Nigel Dolby Founder
2 Core Objective To Maximise Airport Shopping & Dining Revenues: Every Passenger Every Customer Every Visitor All Day Every Day
3 Achieving Our Objective? Global Turnover = $35 Billion USD Significant Evolution & Development Improved Facilities Width & Depth of Portfolio $35 to $40 Billion per annum Lost Sales Achieving 50% of our Potential We Are Not Maximising Revenues!
4 Delivering Our Objective A Commercially Dynamic Environment In Which: The optimum portfolio of shops, restaurants, facilities Of the appropriate quality and size In the right locations Delivering the optimum range of products and brands Supported by the highest levels of retail/dining standards and service levels
5 Dynamic Commercial Environment Relaxed, Comfortable & Stress Free Facilitate, Motivate, Stimulate & Inspire Can Spend, Want to Spend & Do Spend The 3 Musts : Money, Opportunity & Time Commercially Dynamic? Commercially Destructive Environments
6 Time One of the 3 Minimum Requirements It s a Must Not a Bonus Airports = Finite & Limited Time 2 Essential Elements to Time Physical Time Dwell Time The Concept of Time How long have I got? Time Retrospectively Has No Value
7 Penetration %age by Dwell Time 80% 70% 60% 50% 40% 30% 20% 10% 0% > Dwell Time Minutes Spend Per Customer by Dwell Time - Ratio Increase > Dwell Time Minutes
8 Global Dwell Time Airport Dwell Time = 137 Minutes 36 minutes of Processes & Transitions 101 Minutes to Complete 65 Minutes of queuing, waiting, watching & orientation 47% of Total Airport Dwell Time is Wasted Commercial Dwell Time = 29 Minutes Only 21% of Customers Total Time This is Not Commercially Dynamic!
9 Lost Dwell Time 2.1 Billion Hours of Lost Time Global Lost Dwell Time Hours in millions Check In Security Orientation FIDS The Gate Only 0.9 Billion Hours of Commercial Dwell Time Breakdown of Customers Airport Time Process Time Queue, Watch & Wait 6% 21% 26% Basic Needs Commercial DT 47%
10 Capacity Process Times Kiosk & On-line Ratios Staff Competency Check-In Systems Queue Management Dwell Time - Check In NO The Allocation and Utilisation of Check In Desks does not meet the demand from Customers wanting to Check In
11 Check In 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Arrival, Check In & Capacity Comparison Queuing Waiting Arrival Check In Capacity Over Capacity
12 Dwell Time Check In Customer: 18 Minutes of Waiting & Queuing Airport: >40% Capacity Decrease Airline/Handling Agents: 22% More Resources Duty Free Companies, Retailers & Restaurateurs Brand Owners & Airport Owners: $4 Billion Lost Revenues Every Stakeholder Loses
13 Dwell Time The Gate On-Time Departures The Myth of Late Arrivals Controlled by Airlines Over Compensation No Correlation Between Call to Gate & Boarding Average of 22 Minutes of Waiting
14 Dwell Time The Gate Call to Gate 150% Arrival Pattern at the Gate 100% 50% At Gate Boar ding 0% At Gate 26% 66% 92% 100% Boar ding 0% 0% 0% 0% 0% 0% 0% 27% 27% 27% 14% 5% Arrival & Boarding Comparison 120% 100% 80% 60% 40% 20% 0% At Gate 4% 10% 17% 28% 42% 61% 82% 95% 100% Boarding 15% 54% 26% 5% Minutes Pre Departure At Gate Boarding Permanent Gate
15 Dwell Time The Gate Customer: 22 Minutes of Waiting Airport: >18% Reduced Gate Capacity Airline/Handling Agent: 13% More Resource Duty Free Companies, Retailers & Restaurateurs Brand Owners & Airport Owners $6 Billion Lost Revenue Every Stakeholder Loses
16 The Concept of Time Processing Passengers Not Serving Customers 10 Minutes of Lost Commercial Time Wait in Lounge? How Long Have I Got Timeframe Control Of Time I have got 45 mins not I had 45 minutes Time Retrospectively Has No Value
17 Airport Spending Drivers Impulse Sales Critical Additional Sales Impulse = 79% of all revenue Need or Want = only 21% Downtown Shopping - 3 Spending Drivers Need 2% Want 19% Impulse 79% Airport Shopping - 3 Spending Drivers Impulse 27% Need 24% Only 27% Impulse Revenue 73% Convenience Revenue Our Malls are not convenience Not Maximising Revenues Want 49%
18 Time Understanding The Value Airport Shopping/Dining Spending > Dwell Time Minut es Considered Impulse Concept of Time Impulse Considered/Convenience Finite Value Impulse = Revenue Growth Impulse driven by Dwell Time & The Concept of Time Creating a Demand We are Not Fulfilling a Demand!
19 Dwell Time - Summary $4 Billion Lost Revenue Check In $6 Billion Lost Revenue Gate $3 Billion Lost revenue Security, FIDS, Orientation $5 Billion Lost Revenue The Concept of Time $18 Billion Lost Revenue Appalling Customer Service Levels/Experience Over Resourced Capacity Reductions Every Single Stakeholder Loses WHY?
20 Why? Because We Always Have! Queuing & Waiting is expected, tolerated and excused Customers have no choice Captive Audience Syndrome Treating the Symptoms & Not Solving the Problems Build for Queues Queue Management Systems Resources to Manage Queues Fast Track at a cost Avoid Queues - Premium Service for the minority We Manage & Exploit We Do Not Eliminate
21 Why? Airports Poor Relationships with Airlines There have always been queues Operations v s Commercial Complex Contracts Why Should We Change? What s In It For Us? We Do Not Know Where to Start Retail/Restaurant & Brand Poor Relationships with Airport Its Not Our Fault There s Nothing We Can Do We Do Not Understand Is It Worth It? It is Too Difficult We Do Not Know Where to Start These Are Not Valid Reasons to Turn Your Back On Your Share of $18 Billion Per Annum
22 Individual & Collective Responsibility Your Business Your Customers Your Revenues Global Averages Are Irrelevant $4 billion or $40 billion it is just a number What Does This Mean For Your Airport, Your stores, Your restaurants, Your brand What Is This Worth To You?
23 The Challenge Commercially Dynamic Not Destructive Time Is of The Essence Eliminating Entrenched & Endemic Problems Is This Challenge Realistic & Achievable? Yes It Is Is This Challenge Worth It? Yes It Is Is This Challenge Quick & Easy? No It Is Not
24 The Challenge Commercial Dwell Time = $13 Billion per Annum Efficient and Effective Processes The Concept of Time = $5 Billion per Annum Commercially Focused Customer Information Not Passenger Data $18 Billion - No Challenge is tough enough I am up for the Challenge ARE YOU?
25 Thank You For Your Time I Welcome Any Questions?
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