Cincinnati/Northern Kentucky International Airport (CVG) employs innovative approaches to understand and meet passenger preferences in the commercial and retail environment. Ahead of his participation in the FTE Ancillary & Retailing event (co-located with FTE EMEA in Dublin on 11-13 June 2024), Carlos Ruiz, Director of Commercial Management, CVG, explains the airport’s focus on personalisation, collaboration and cutting-edge tech.
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Ruiz is speaking in the FTE Ancillary & Retailing Conference in a session focused on “How do we better optimise and evolve commercial offerings and remove friction for passengers and stakeholders?” One of his key messages will be the importance of personalising the customer experience. “As airport operators, we know that every passenger travels differently and has diverse needs and preferences,” says Ruiz. “We have been working to collect as many data points as possible, via surveys and other market research, to understand the different personas travelling through CVG. Analysing the data has helped us build programmes that cater to the various personas. It is key to understand passengers’ preferences, such as food choices, retail needs, and any other preferred amenities when deciding on new development. Implementing services that our passengers want elevates customer satisfaction and ultimately drives more revenue.”
There is an unprecedented need for collaboration and partnership in the airport ecosystem and Ruiz explains that the Cincy region, as well as CVG Airport, has a strong collaborative culture. “We partner to co-develop innovative solutions. We share ideas and best practices when it comes to operations and workforce. One area where we lag in the US, due to the airport’s operating model, is integrations with our business. In the future, I would like to see an opportunity where passengers can use their airline reservation platform to complete their booking and check-in process as well as order coffee or food to pick up in their concourse before their flight. The same could be done for duty free.”
Innovative approaches to understand and meet passenger preferences in the commercial and retail environment
CVG employs innovative approaches to understand and meet passenger preferences in the commercial and retail environment. For instance, when passengers connect to its free WiFi, the airport leverages a gamified short survey to gather real-time insights. “This feedback informs our decision-making process for introducing new food and beverage options,” Ruiz shares. “By bringing in concepts that resonate with our passengers, we aim to create more relaxing and enjoyable experiences during their time at the airport. As an example, in collaboration with Paradies Lagardère, we created a partnership with a local vertical farm, 80 Acres, to bring some of their fresh produce to casual dining restaurants and salad kits to the retail grab-and-go sections. Such partnerships demonstrate how airports could serve as catalysts for their local businesses.”
Meanwhile, in its car park operations, CVG prioritises customer feedback to enhance service offerings. Recognising the demand for additional car care services, it conducted a thorough business case analysis and found that the demand for such services exceeded assumptions. “As a result, CVG now offers a range of car care services for customers using our valet services, including basic car washes, full details, oil changes, and tyre rotations while they travel,” Ruiz explains. “This proactive approach demonstrates our commitment to meeting customer needs and enhancing the overall travel experience.”
Continuing to test cutting-edge technology and a commitment to innovation
Robotics is one of the three key themes of the FTE Digital, Innovation & Startup Hub in 2024, alongside Artificial Intelligence (AI) and Internet of Things (IoT). Meanwhile, the FTE Aviation & Robotics Summit takes place in Pittsburgh – the “Robotics Capital of the World” – on 14-16 May 2024.
CVG utilises fully autonomous delivery robots for food and retail, with their testing and introduction proving insightful. “We learned how travellers, particularly those with mobility needs or families burdened with luggage, would adopt and interact with the technology,” Ruiz shares. “Through a user-friendly web app, travellers could conveniently order food and snacks, with the robot delivering directly to their gate. This service helped alleviate the stress of having to move around and leave the gate area to get food and drink. Beyond its practical use, the delivery robots engaged travellers, grabbing their attention to snap a photo or video. Services like this prove that we need to continue testing cutting-edge technology, not only as a commitment to innovation but to differentiate ourselves within the commercial environment of the airport. It helps us distinguish from competitors and foster a reputation as a forward-thinking airport.”
Indeed, CVG is exploring Artificial Intelligence and Machine Learning to help personalise the passenger experience. “I dream of a single platform that passengers can use after completing airline booking to customise their airport experience,” says Ruiz. “For example, after booking their flight, there would be a seamless transition to an airport-owned platform to book parking. The platform would suggest services based on the type of passenger. Business travellers would be offered valet parking versus economy parking products. Further, the system would use dynamic pricing strategies to optimise revenue and maximise occupancy. Once the passenger arrives at the airport and scans their car park reservation, the system would offer food and beverage, retail, or lounge experiences based on how much time they have before their boarding process begins.”
Personalising the passenger experience is paramount. For airports in a competitive environment, it serves as a key driver for building loyalty, and ultimately increasing revenue. “Delivering personalised offers to every passenger could be challenging, but targeting frequent travellers presents a valuable opportunity,” Ruiz notes. “Frequent travellers, who often represent the most loyal and high-spending customer segment, demand tailored experiences. These passengers, who are likely enrolled in the airport’s loyalty programme, provide access to valuable data that can inform personalised offers. By leveraging passenger data and understanding their preferences, airports like CVG can effectively customise offers and cross-sell ancillary products and services. This could include promotions for car parking, car services, access to common-use lounges, and discounts on food, beverage, and retail purchases.”
FTE Ancillary & Retailing: “A dynamic environment to learn from peers around the world”
The latest commercial and retail developments at CVG reflect the airport’s commitment to promoting local flavours and culture. Last year, it successfully bid for seven food and beverage locations, with six awarded to SSP America and one to Tailwind Hospitality. “The focus throughout this process was creating a distinct sense of place and offering passengers a taste of Cincinnati’s culinary scene,” Ruiz explains. “Through partnerships with local establishments, such as the Cincinnati Bengals and Taste of Belgium, SSP America will provide unique dining experiences for our travellers. Additionally, recognising the demand for healthier options, we are introducing an acai bowl and smoothie brand, Sambazon, operated by Tailwind Hospitality. These developments not only elevate our food offerings, but also contribute to the overall ambiance and experience at CVG.”
Looking ahead, as a first-time attendee and speaker, Ruiz is eager to participate in the co-located FTE EMEA and FTE Ancillary & Retailing events in Dublin in June. “I am looking forward to immersing myself in a dynamic environment where I can learn from peers around the world. I hope to gain insights into areas that CVG could leverage for commercialisation, particularly in personalising the passenger experience and other ancillary services. I’m especially excited to hear from airports that are at the forefront of innovation in this regard and to explore the cutting-edge tools and strategies they are employing. Overall, I see this event as a fantastic opportunity to expand my knowledge and contribute to the advancement of our airport’s initiatives.”
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