Copenhagen Optimization

4 reasons your airport needs to adapt to new technologies and how to do it

The triggers behind the transformation

#1 The first trigger is passenger growth. Airports that have previously been able to operate without constraints are now feeling the pain of long lines snaking through the terminal, causing delays, unhappy passengers or misconnections resulting in social media uproar.

#2 The second trigger is the rising importance of retail revenue: the increased significance of non-aeronautical revenue (NAR), is forcing airports to shift focus. At an airport conference, I overheard a vendor describing airports as malls with runways attached. This is in line with a recent ACI analysis that shows that retail concessions remain the largest source of non-aeronautical revenue for airports at 30.2% (ACI Economic Report March 2019).

#3 The importance of retail revenue is closely tied with the third trigger, the need for increasing passenger satisfaction: Having a bad experience at the airport once, leaves the passenger with a lasting impression of not wanting to show up early, resulting in fewer sales and less revenue. Also, being stressed by the passenger journey through the airport reduces the desire to spend time in retail. Even though your airport may stay within your service level agreements for wait time at security or check-in, the actual passenger experience may still be poor, if lines snake outside the roped-off queuing area or if the airport layout causes confusion and a sense of chaos.

#4 The final trigger is the increased applicability of new technologies. Biometrics, CT-scanners, and baggage tracking software have now reached a level of accuracy and affordability that can significantly improve processing times and security measures while making passengers happy. However, the technologies are not just plug ‘n play. Airports need to understand their operational processes and have a holistic approach to airport operations to gain the full benefit of adopting new technologies. The technologies driving the transformation and how they create a better airport

Check-in

• The full-service kiosk will partly be phased out within the next 5 years and the check-in and boarding card process will take place before arrival at the airport.
• Mobile kiosks can be the more flexible replacement for the full-service kiosks.
• Development and adoption of face recognition and the single token concept will also help to decrease transaction times and passengers’ satisfaction, although this will take longer.
• Operational optimization also depends on the willingness of airlines to agree to the use of shared services. This will be affected by the airlines’ need to differentiate and brand themselves and reflects the level of competition at your airport. However, using accurate planning tools will usually get you a long way before having to expand infrastructure.

Baggage

• Within baggage, the permanent bag tag will gain traction within the next 5-10 years, with RFID being the more expensive option, due to high implementation costs.
• The smaller bag tag printers can help airports deal with an increasing number of passengers in the coming years.
• The permanent baggage tag is unanimously selected as the future within baggage
• Airport operators will start engaging more actively in the baggage operation where millions of data points are generated. The data points are not only valuable for the baggage operation, but for other operational areas as well.

Security

• The main driver of performance improvement in security operations is the adoption of advanced scanners. C3- or C2-level scanners that let passengers keep liquids and/or laptop in the bag will increase throughput and improve process times and the passenger experience.
• The introduction of centralized image processing (CIP) and automated tray return systems contribute to an increased throughput and reduced wait times.
• Security level differentiation works towards an overall reduction in the process time and Risk Based Screening helps security staff focus on the few travelers that pose the biggest threat.

Emigration / immigration

• The wider use of Primary Inspection Kiosks (PIK) and eGates improves processing times and reduce wait times during entry and exit into the country.
• Also, the wider use of mobile apps for the border can help streamline the traveler inspection process and enable border security officers to focus more on inspection and less on administrative functions.
• As officers become more familiar with the automated solutions, transaction times are expected to decrease significantly and through this, reduce reliance on border officer staffing

Retail

• The use of new technologies, like biometric face scans, will also play a key role in the retail aspect of running an airport. The pre-enrollment of personal information provides airports with valuable information on individual preferences to tailor offers to each individual passenger. This will enable airports to increase NAR significantly, although it also requires airports to think carefully about data security and regulations.

What to consider when adopting new technology

• Do a test run! Before purchasing new technology, make sure to either test it at your own airport or visit other airports that have it, to see how it works in a live airport environment.
• Get the required know-how! Ensure you have the right skill set to assess the value of the technology to your airport. If you are missing the skills, get it from outside your organization. This can be done by carrying out a technology maturity assessment.

• Get the right people! Ensure you have the required skills needed to work with the technology implementation. It is important that the required resources are identified as part of the project acceptance.
• Measure the value! Have a clear understanding of what the aim of implementing the technology should be, and make sure to measure the new piece of technology from implementation. Quantifiable metrics should be put in place to support this.
• Take small steps! By doing a limited installation at first, you get a chance to harvest learnings and use them for a full roll-out. Also, make sure that you have a framework contract that allows for quick project extensions without another round of procurement.
• Decide on one or more suppliers! Consider the value of having one versus several providers. For certain areas, multiple suppliers may be required to deliver the services.

About Copenhagen Optimization

• Established in December 2014
• Founded by Anders Dohn and Kasper Hounsgaard
• Turnover in 2016: DKK 7.5 mil.
• Number of employees: 16
• Customers: Approximately 20 airports in Europe and North America

Copenhagen Optimization expands its partnership with JFKIAT

“We are excited that JFKIAT has chosen to expand our partnership and consolidate systems with our Better Airport solution,” said Kasper Hounsgaard, CEO of Copenhagen Optimization. “We are confident that with the Better Airport solution, JFKIAT and its dedicated team will become even better equipped to achieve their mission of providing a best-in-class customer experience and ensure the highest levels of safety and security.”

“We are pleased to expand our proven partnership with Copenhagen Optimization, taking the next step on our journey towards incorporating data-driven innovation at T4,” said Roel Huinink, President and CEO of JFKIAT. “In response to the COVID-19 pandemic, we directed our innovation efforts to improve and transform our processes and procedures by implementing new technology, elevating safety practices, and striving to achieve higher standards to ensure T4’s preparedness for the next normal of air travel. Choosing to consolidate our systems within the Better Airport solution will not only optimize our operations, but will also help us to ensure a first-class customer experience and support our vision to be New York’s leading digital terminal through innovation, data and technology.”

“Since implementing Better Forecast our planning team has been able to drop the use of cumbersome excel models and move from several days to produce a forecast to a matter of hours. We see Better Forecast as delivering an excellent user experience (enabling less reliance on key personnel), a significant improvement in our speed to produce a forecast and importantly more accurate forecasts that our teams are able to rely upon.”

The Project

“We are very satisfied. We have seen significant improvements because of this project. Copenhagen Optimization delivered on everything they promised.” - Ilias Maragakis, COO

“We are already seeing a vast improvement in efficiency at the security points of Rhodes thanks to the streamlined operational improvements you and your team suggested.” - Dimitris Fragkos, Continuous Improvement Manager

Copenhagen, 5th August 2019

Scope of work

“CopOpt began by carrying out a Digital Maturity Assessment, appraising current processes and digital readiness at EIA across fifteen different business areas. They looked at where we have staff strengths and where we need to invest, so that our staff can really run a digital airport. Their recommendations were tangible and provided an action plan for digitalization”

The approach

Results

About Copenhagen Optimization

Copenhagen, 16th July 2019

Scope of work

“Lyon Airports were pleased to work with CopOpt's team, who has a great knowledge of airport operations. They were able to make adapted recommendations to our environment and performance expectations.“ says Stéphane DERIVRY, Security Manager,  Aéroports de Lyon

The results 

About Copenhagen Optimization

Exhibitor Spotlight 

Who is Copenhagen Optimization?

What makes our products/services stand out? 

• The user experience - Better Airport® simplifies the complexity and automates a large share of the manual tasks currently carried out by planners in the airport – while still keeping the users in control
• Domain knowledge consultancy and software – we have solid experience from airport operations and continues to strengthen our understanding from working with airports globally on airport operational optimization
• Covering the entire airport operation – Better Airport® covers all elements of the airport operation and secures changes in one area are accurately reflected in other areas

What brings Copenhagen Optimization to the FTE Global EXPO this year? 

Why should visitors come to Copenhagen Optimization stand E3 

Which technology or trend do you think will have the biggest impact on the air transport industry in 2019? 

“We are incredibly proud to receive this recognized award and it shows that our hard work and persistence is paying off. We enjoy the success because all our employees feel part of the team and we believe in improving the way airports and hospitals operate.” says managing partner and founder, Mr. Anders Dohn.

“The strategy and the work we do is paying off, and the gazelle award is a testimonial to that,” says managing Partner and founder, Kasper Hounsgaard, who unfortunately was unable to attend the ceremony due to business activities in the USA.

• Corporate form: Public limited company or private limited company
• Lines of business: particular lines of business are not included (e.g., holding companies)
• Activity: revenue of DKK 1 million/DKK ½ million in gross profit
• Profitability: the sum of operating profit > 0
• Growth in 4 years: > 100 percent

At Copenhagen Optimization, we are serious about information security. We believe that in a modern company, information security and data protection is fundamental to operating a healthy business.

Copenhagen, 10th May 2019

First ever Better Airport® user summit in Copenhagen

Meeting in the magical Tivoli Gardens

“Participating in the Better Airport® user summit has been both informative and a great opportunity to meet many of the other airports who use the software solution. I certainly see the potential of airports coming together with Copenhagen Optimization to develop the best solution that will deliver on our business priorities” Says Shaun Dee, Operations Capacity Planning Manager at LHR.

Technology and Change Management must go hand in hand

“One thing is that Better Airport® provides its users with a new and powerful planning platform; another thing is, that in order to gain the full value of Better Airport®, both we and the clients must have a focus on how it brings value within the organization as it may introduce new ways of thinking and working. We and our customers all share one thing – we want to continue leading the way with Better Airport® but also in the way we do things,” says Tor Fog Justesen, Director Products at Copenhagen Optimization.

"One example is London Heathrow (LHR) who recently joined the user family. LHR can use Better Airport® to support the skilled planning team at Heathrow and can now optimize and automate their current planning processes, including the ability to quantify any what-if scenarios with hard numbers, which will lead to better resource allocation and higher cost savings.” says Kasper Hounsgaard, Managing Partner and founder of Copenhagen Optimization.

About Copenhagen Optimization

Copenhagen Optimization improving the airport experience for more than 400 million passengers in 2019.

This is the first pilot program in North America, and it is set to modernize the airport experience at security screening checkpoints by reducing wait times and decrease crowding.

“These are the innovations and ideas that we love to make our guest experiences more convenient and stress-free, especially as more people get back flying again,” said Charu Jain, Alaska’s Senior Vice President of merchandising and innovation. “With very little effort, guests can lean on technology to get them through the security process quicker.”

“We can use technology to make the travel experience more streamlined and intuitive,” said Port of Seattle Commissioner Sam Cho. “We appreciate the partnership of passengers and airlines to help test these programs for the benefit of our community.”

Positive impact on the airport operation

“Virtual Queuing, if applied correctly, can have a significant, positive impact on the airport operation,” said Kasper Hounsgaard, CEO of Copenhagen Optimization. “It will give SEA reliable intelligence on the demand at their security operations across the day, it will allow them to predict queues, and queue areas can be organized accordingly to adhere to physical distancing demands.”

About Copenhagen Optimization

For more information:

Copenhagen Optimization has been nominated for the Ernst and Young Entrepreneur Of The Year 2017 Award. The EY Entrepreneur Of The Year is the world’s most recognized growth cabinet competition, celebrating and honoring the best entrepreneurs in Denmark and Globally.

Feeling unwell? Taking the temperature will tell you if you have a fever. You probably knew this already, but the display on the thermometer will tell you to a certainty of +/-0.5% exactly how burning hot you are. The thermometer, however, won’t tell you what you are suffering from, nor how to cure your illness.

• what is going wrong
• why it is going wrong, or
• how you can solve your problem

• airport ratings drop
• passenger spending decreases and
• airport staff are left stressed

See the doctor!

Edinburgh Airport (EDI) has announced a new contract with Copenhagen Optimization (CopOpt) to introduce CopOpt's Better Forecast platform, in order to improve the accuracy of the passenger forecast while reducing the time spent on forecasting.

“We enjoyed the head-to-head competition and were pleased to see how the EDI forecasting team were setting high standards for the forecasting process as well as for the accuracy of the forecast. The machine learning elements included in Better Forecast proved    successful    and significantly reduced the time required to make a forecast while securing a high accuracy.”

“This new forecasting solution will allow us to meet an increasing demand for more dynamic, timely and accurate security forecasting.  Working with CopOpt we have reduced the time taken to produce the security forecast, demonstrated an improvement in forecast accuracy and have found an intuitive product that more than fits the needs of our Business Planning Team.

Developed by Copenhagen Optimization and CLEAR, Program Allows Travelers to Reserve a Security Control Time Slot for a More Predictable Travel Experience

“BER Runway provides our passengers with an attractive, free service. It allows them to plan their stay at the airport more reliably and make their journey less stressful,” said Thomas Hoff Anderson, Managing Director Operations at Flughafen Berlin Brandenburg GmbH. “The BER Runway is also an important step on the way to further digitizing operations at our airport. This will enable us to further optimize all processes in the interest of our passengers in the future.”

“Allowing the passenger to be in control of their journey is the future of air transportation,” said Kasper Hounsgaard, co-CEO of Copenhagen Optimization. “Our virtual queuing solution is a game-changer in the personalized airport experience. More relaxed and happier passengers benefit the commercial part of business while nudging passengers to arrive outside the peak periods improves the operation. As the virtual queuing solution integrates seamlessly with any airport system, it is a viable solution for any airport to take on.”

“With this expansion, a whole new international market will be able to experience what the CLEAR brand stands for: frictionless, stress-free experiences,” said CLEAR CEO Caryn Seidman-Becker. “We’re excited to partner with the entire Berlin Brandenburg community to make the airport experience better for both the airport and the traveler and to bring the CLEAR brand to the European market.”

• Reserve: To use the free BER Runway lane, just visit the dedicated website where you can enter your flight details, the size of your party, and find a reservation time that works for you.
• Confirm: Once you select your reservation time, finish booking by entering your email, and confirming your details. You'll receive a confirmation email and QR code.
• Go: When you arrive in Terminal 1, look for signs pointing to the BER Runway lane. Scan your QR code and enjoy the fast lane right to security.

The ban on carrying laptops into the aircraft cabin, currently in place for several countries in the Middle East, is rumored to be extended to cover all European destinations including the UK. This afternoon the team at Copenhagen Optimization discussed what it will mean for airports and the passenger experience for the Europe – U.S. traffic.

Read our take on the three major impacts on airport operations here:

1. The ban will lead more passengers to check-in bags.

2. The gate operation becomes the real bottleneck in a widespread ban

3. The risk of mishandling in the baggage reclaim

Final remarks

An opportunity driven mindset during crisis

Airport data: There is more than enough to begin

• How many passengers will arrive at check-in, when will they arrive, and at what check-in area?
• How fast are passengers being processed?
• What is the required distance between passengers?
• What is the size of the queuing areas?

• Automated passenger tracking provides valuable information on passenger arrival and transaction times as well as use of infrastructure.
• Surveys are utilized by many airports and they are a good way of collecting data for processing rates, and knowing when passengers arrive. Depending on the methodology, they can also define which flight each passenger is on.
• Baggage tag scans provide an additional way of determining passenger arrivals as they are collected once the bag enters the baggage system at check-in. While the show-up profiles generated need to be adjusted for any wait time, they produce a passenger arrival for every single flight.

Recovery after COVID-19: One step at a time

• Leveraging the data already availablet o create tangible results for the organization – this will drive the demand for additional analytics
• Looking for alternative data sources when the primary source is not available
• Stakeholders will often hold additional data. Engage with them and showcase the value added that data sharing can generate
• Validating all data
• Using the data to implement small and continuous improvements

Unleash data and create immediate value

1.   Performance driven

2.   Ordering passengers

3.   Ordering open lanes or hours

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Conclusion

The Department of Homeland Security (DHS) has announced their initial measure to counter the laptop threat: Electronic Trace Detection (ETD) of all laptops going to the USA from all international destinations.

Option 1: Performing ETD at the security checkpoint for US-bound passengers

Option 2: Performing ETD on all laptops at the security checkpoint

Option 3: Performing ETD at the gate for US flights

• Full security screening of all passengers
• Closed holdrooms