Transfer passengers’ perception of service innovations at hub airports : Munich International, Seoul Incheon, and Singapore Changi Airport

Abstract

Today’s hub airports face tough international competition for passengers who make a connection through an airport as these passengers have a great variety of alternate routes when selecting a connecting hub. In order to appeal to transfer passengers and influence their choice of hub airport, many hubs endeavour to differentiate themselves from the competition through the provision of innovative services within the airside, the area of an airport where transfer passengers spend their dwell times. Such innovative amenities include shopping malls, relaxation facilities, or leisure activities and are intended to satisfy transfer passengers’ needs in a better way than the competition and exceed their expectations of the airport product. This dissertation investigates whether hub airports can successfully attract transfer passengers by providing innovative commercial and leisure services. It further explores how transfer passengers perceive innovative services and how these services affect their airport experience while in transit. Three airports were chosen for investigation, namely, Munich International Airport, Seoul Incheon Airport, and Singapore Changi Airport. It was considered appropriate to select these hub airports as they rank among the best airports in the world and embark on a differentiation strategy through service innovations. A total of 12 respondents who have experience with using at least one of the mentioned airports were recruited. The data for this study was collected through qualitative interviews and a distinction between business and leisure transfer passengers was made in order to crystallise a certain tendency for both travel types. For each airport under investigation two business and two leisure travellers of both genders were selected so that an equal representation of both traveller types and genders could be obtained. The investigation arrived at the understanding that service innovations at hub airports can positively affect transfer passengers’ dwell time. In particular, leisure travellers can be very receptive towards the provision of innovative services. However, innovative leisure and commercial services are not always sufficient to accommodate and fully satisfy transfer passengers’ needs. The findings indicate that basic requirements for both leisure and business transfer passengers still comprise of conventional functions that are expected from an airport, such as efficient passport control or straightforward layout. The study outcomes further demonstrate that the provision of service innovations in hub airports has only a minor impact on transfer passengers’ next hub airport selection. Transfer passengers would still tend to base their future airport selection primarily on price or connecting time rather than on innovative commercial and leisure amenities.