Six Figure Savings & an ROI over of 100%: Learn how Airports are benefiting from AI
- Ravi Lal
- Mar 24
- 14 min read
Updated: Apr 7
Six Figure Savings:
The ROI of Airport AI
Navigating the Future of Airport Customer Service with AI
A Voxly Digital Ebook. March 2025.
To Learn More visit www.voxlydigital.com
Welcome to our ebook about how Airports are using AI for customer self-service, including an example ROI calculation based on real-world examples.
If you want to learn more please reach out:
We can’t wait to help.
Ravi LAL
Founder
Spring 2025
To start your journey, answer our Poll below.
How does your Airport feel about investing in AI for customer service automation?
We are already on our AI journey.
We are still thinking about if AI is right for us.
We are going to invest in AI in the next 6 months.
You can vote for more than one answer.
Airport AI is Taking Flight
Imagine stepping off a plane, tired but excited. Or perhaps you're rushing to catch a connecting flight, a little anxious about making it on time. Airports, while gateways to the world, can often be sources of stress and confusion.
The modern airport is a bustling hub of human activity, a gateway connecting people and cultures across the globe. Yet, beneath the excitement of travel lies a complex operational landscape, one where efficiently managing passenger flow and delivering exceptional customer experiences are paramount. For airport management teams, this presents a constant balancing act: how to provide timely and accurate information, address a myriad of passenger inquiries, and maintain a high level of service, all while keeping operational costs in check.
Historically, airports have relied heavily on human staff to fulfill these roles. While the personal touch remains invaluable, the sheer volume of passenger interactions can lead to long queues at information desks, overwhelmed customer service agents, and ultimately, a potentially frustrating experience for travelers. Moreover, the cost associated with staffing these operations around the clock can be substantial.
A new era of customer service is dawning, powered by the rapid advancements in Artificial Intelligence (AI). Across industries, organizations are aggressively investing in AI to revolutionize how they interact with their customers. In the airport sector, this investment is particularly strategic. Imagine passengers effortlessly accessing the information they need, exactly when they need it, without waiting in line.
This is the promise of AI-driven customer self-service.
Consider Airport Schiphol in Amsterdam, which has been experimenting with AI-powered information kiosks and virtual assistants to guide passengers. Or look at the increasing adoption of airline-specific chatbots that handle everything from booking changes to baggage tracking.
These examples highlight a growing trend: airports are recognizing the transformative potential of AI, particularly in the form of intelligent chatbots, to address long-standing challenges in customer experience and operational efficiency.
The latest generation of AI, fueled by Large Language Models (LLMs), is taking customer self-service to unprecedented heights. These sophisticated chatbots can understand natural language, interpret complex queries, and provide human-like responses with remarkable accuracy. They are no longer the clunky, keyword and button driven bots of the past. Today's AI chatbots can engage in meaningful conversations, offer personalized assistance, and seamlessly guide passengers through their airport journey.
This ebook will guide you through how AI chatbots are not just a futuristic concept, but a practical and powerful tool that can help airports elevate customer experience, optimize operations, and ultimately reach new heights of efficiency and passenger satisfaction.
We have also created a commercial framework for calculating the ROI of an Airport investing in an AI Chatbot - highlighting both cost savings and new revenue opportunities based on real-world statics and case studies.
The AI Powered User Journey
Navigating an airport can sometimes feel like plunging into a high-stakes, real-time video game. From the moment you step inside, you're faced with a maze of check-in lines, security checkpoints, and gate information, all while battling the ever-present threat of flight delays and unexpected changes.
The stress of deciphering signage, the anxiety of potential missed connections, and the sheer volume of fellow travelers can transform what should be an exciting journey into frustration.
Enter AI, poised to revolutionize the airport user journey by anticipating needs, optimizing flows, and delivering real-time solutions, paving the way for a new era of customer satisfaction in air travel. Let's imagine where AI will improve the user journey:
Airport Arrival: Whether arriving by car, bus, or train, the first hurdle is often navigating the journey to the airport itself. Passengers need to know the best transportation options, including costs, travel times, and detailed directions. Maps of the airport vicinity and clear guidance on where to be dropped off are also essential.
Managing Check-in and Baggage: Once at the terminal, the next step involves check-in and baggage handling. Travelers need clear instructions on check-in procedures (online, kiosk, or counter), baggage allowances (size and weight restrictions), and specific guidelines for oversized or special baggage. Knowing where to drop off their luggage efficiently is also a key concern.
Checking Flight Information and Updates: Staying informed about flight status is paramount. Passengers constantly seek real-time updates on departure and arrival times, potential gate changes, and any unexpected delays or cancellations. This information empowers them to manage their time effectively and minimize anxiety.
Understanding Security and Entry Regulations: Navigating security checkpoints can be a source of stress. Travelers need to be well-informed about required travel documents, restrictions on carry-on items, prohibited items, and the step-by-step screening procedures. Even information on current security wait times can significantly improve their experience.
Accessing Premium Services: For passengers who have opted for premium services like VIP lounge access or Fast Track security, the expectation for a seamless digital experience is even higher. They need clear instructions on how to access these services and any relevant information associated with their benefits.
Navigating the Airport: Airports can feel like sprawling mazes, especially for first-time visitors. Clear and intuitive wayfinding is crucial. Passengers need help locating their departure gates, baggage claim areas, lounges, restrooms, restaurants, shops, and other essential facilities.
Finding Food, Beverages, and Shops: Travelers often have downtime before their flights and look for dining and shopping options within the terminal. They need information about the types of restaurants and shops available, their locations, opening hours, and potentially even menus or product offerings.
Seeking General Customer Support & Answers to Frequently Asked Questions: Beyond specific journey stages, passengers often have a wide range of general inquiries. These can range from airport policies on lost property to questions about Wi-Fi access or currency exchange. They need a quick and easy way to get accurate answers to these frequently asked questions.
Requesting Special Assistance: Some passengers require additional support, such as wheelchair assistance, help with boarding and disembarking, or guidance for passengers with reduced mobility. They need an efficient way to request and coordinate these special assistance services.
What Can an AI Chatbot Do for Your Airport?
The beauty of an AI chatbot lies in its ability to act as a central, always-available source of information and assistance for airport visitors. Here's how:
24/7 Instant Support: Unlike human agents who have limited availability, AI chatbots can provide instant responses to passenger queries around the clock, ensuring that travelers can get the information they need at any time, regardless of their location or time zone. This is particularly valuable for passengers experiencing flight disruptions or arriving at odd hours.
Drive Revenue Generation: By providing easy access to information and booking options for parking, retail, dining, and premium services, AI chatbots contribute to increased airport revenue. For example, a passenger asking about dining options could be presented with nearby restaurants, links to make reservations, and more.
Personalized Information: Modern AI chatbots can be integrated with airport systems. This allows them to provide personalized information based on a passenger's flight details, booking information, or even their location within the airport. For example, a chatbot could proactively notify a passenger about a gate change or offer directions to their specific baggage claim area.
Handling High Volumes of Inquiries: Airports often experience peak periods with a surge in passenger inquiries. AI chatbots can effortlessly handle a large volume of conversations simultaneously, preventing long wait times and ensuring that every passenger receives timely assistance.
Consistent and Accurate Information: AI chatbots are programmed with accurate and up-to-date information, ensuring that passengers receive consistent answers to their questions, regardless of who or what they interact with. This eliminates the risk of conflicting or outdated information being provided.
Multilingual Support: Many AI chatbots can communicate in multiple languages, catering to the diverse international passenger base of most airports.
Integration with Parking and Other Services: AI chatbots can be integrated with other airport services, such as parking booking systems, lounge access portals, and special assistance request forms. This allows passengers to not only get information but also take action directly through the chatbot interface.
Data Collection for Service Improvement: Every interaction with the chatbot provides valuable data on passenger needs and pain points. This data can be analyzed to identify trends, understand common queries, and inform decisions for improving airport services and facilities.
Six Figure Savings: The ROI of Airport AI
Lets calculate the business case for an investment in AI customer services.
While passenger needs are paramount, airport management also operates with a set of critical business objectives. In the fast-paced aviation industry, staying ahead means embracing innovation. Artificial Intelligence (AI) chatbots are emerging as powerful tools, poised to revolutionize airport customer service by offering instant assistance, real-time information, and streamlined processes. But does the investment make sense? This analysis provides a clear framework for evaluating the financial return of implementing AI chatbots in airports.
The Challenge: Traditional Service can be Costly
Running traditional airport information desks and call centers come with significant investment. Costs include staffing (salaries and benefits averaging around $60,000 annually per agent in the US), physical infrastructure (desks, technology), and valuable terminal space (potentially over $100/sq ft).
Handling the sheer volume of passenger inquiries – ranging from simple directions to complex flight issues – puts considerable strain on resources, with human agents spending valuable minutes on each interaction.
The Solution: AI-Powered Efficiency & Savings
AI chatbots offer a transformative solution. By automating a substantial portion of routine inquiries (studies suggest resolution rates of up to 80% for some tasks), they can drastically reduce the workload on human agents. This translates directly into significant cost savings:
Miami International Airport halved inquiries to their social media team using their chatbot "Mia." |
Optimized Staffing: IndiGo, an India airline, has seen agent workload decrease by 75%, while others report overall customer service cost reductions of up to 30%.
24/7 Scalability: Unlike human staff, chatbots operate continuously, handling vast numbers of queries simultaneously without fatigue, ensuring consistent service during peak times or disruptions.
Beyond Savings: Boosting Revenue & Loyalty
The benefits extend beyond cost-cutting. AI chatbots enhance the passenger experience, leading to measurable financial gains:
Improved Satisfaction Drives Spending: Faster responses and convenient access to information boost passenger satisfaction. Crucially, satisfied passengers spend more.
Airports Council International (ACI) found a 1% increase in satisfaction can yield a 1.5% rise in non-aeronautical revenue (retail, dining, etc.). |
Targeted Revenue Generation: Chatbots can analyze queries to offer relevant promotions in real-time. Aéroports de Lyon saw a 40% jump in parking conversion rates by using their chatbot for targeted offers.
Enhanced Loyalty: Positive, efficient digital interactions build loyalty, encouraging repeat business – a vital asset in a competitive market.
Understanding the Investment
Implementing a chatbot requires investment.
Build costs can start at $100,000 for a typical airport for development and integration fees.
Annual Platform and maintenance fees often cost around 15-20% of the initial fee for this category of IT project.
Staff training to manage the system and for workflow integration must also be considered.
Calculating the Return on Investment (ROI): A Framework & Example
ROI compares the total benefits (cost savings + revenue increases) against the total costs over time. To illustrate a hypothetical ROI for a typical medium sized airport, we used the following assumptions:
Annual Passengers: 5 million
Information Desks: 3, each with 3 FTE agents (9 total)
Call Center Staff: 10 FTE agents
Average Annual Salary + Benefits per Agent: $60,000
Annual Inquiries (Total): 500,000
Average Handling Time per Human Inquiry: 5 minutes (Call Center), 3 minutes (Information Desk)
Chatbot Implementation Cost (Year 1): $150,000
Annual Chatbot Maintenance Cost: $30,000
Estimated Chatbot Resolution Rate: 70%
Estimated Reduction in Human Agents: 5 (3 Information Desk, 2 Call Center)
Non-Aeronautical Revenue: $50 million
Estimated Increase in Customer Satisfaction: 5%
Satisfaction to Revenue Multiplier: 1.5%
Targeted Promotions Delivered Annually: 100,000
Conversion Rate of Promotions: 2%
Average Spending per Promotion Conversion: $20
Overall, the main assumptions are $150k initial cost, $30k annual maintenance, 70% chatbot resolution rate, reduction of 5 FTE staff ($60k each), 5% satisfaction increase, and modest revenue from targeted promotions.
Hypothetical ROI Example for a Medium-Sized Airport
Contact us about building a business case specifically for you.
Conclusion: A Strategic Imperative
The business case is compelling. AI chatbots offer airports a significant return on investment, often within the first year, by cutting operational costs and generating new revenue. Equally important are the qualitative benefits: enhanced passenger satisfaction, a more modern airport image, and freeing up human staff for complex, high-value interactions.
For success, airports should define clear goals, choose the right platform, ensure seamless integration, train staff effectively, and maintain a robust human escalation path. Embracing AI chatbot technology is not just about efficiency; it's a strategic move to elevate the entire airport experience.
Note that all figures in this section are based on publicly available information. Actual costs should be validated by the reader when they do their own business case.
AI SPOTLIGHT
Airport Parking
For travelers driving to the airport, a seamless parking experience is paramount. They want to know what kind of parking facilities are offered, such as short-term, long-term, and valet services. Imagine a traveler needing to drop off a relative for a quick flight; they'd want real-time updates on short-term parking availability near their terminal.
Conversely, someone embarking on a two-week vacation would need guidance on the most cost-effective long-term options. Crucial to their decision-making is the real-time availability of parking spots, clear directions to these locations, and tailored recommendations based on their trip duration.
They also seek transparent pricing details and diverse payment methods, including the convenience of online pre-booking. For example, a business traveler could pre-book a space near the business lounge, ensuring a smooth transition.
Furthermore, customers need robust support for managing their parking reservations, including the ability to extend or modify bookings seamlessly. In the unfortunate event of vehicle damage within the airport parking area, they require clear procedures for insurance claims.
Additionally, a comprehensive FAQ section addressing common parking-related queries, such as electric vehicle charging availability or accessible parking options, would significantly enhance the customer experience. For instance, a family arriving late at night would appreciate knowing the location of well-lit and secure parking areas, or how to easily find their car upon return.
AI is Safe: No Hallucinations. An an On-Brand Experience
A common concern when implementing AI, especially LLMs, is the potential for "hallucinations," where the AI generates incorrect or nonsensical information. Ensuring a safe and on-brand experience is crucial for airport chatbots. Here's how this is typically addressed:
Curated Knowledge Base: The foundation of a safe AI chatbot is a well-maintained and accurate Knowledge Base. By carefully selecting and curating the data sources that the chatbot relies on, airports can minimize the risk of the AI accessing or generating incorrect information.
Retrieval Augmentation: The RAG architecture itself helps mitigate hallucinations. By first retrieving relevant information from a trusted Knowledge Base and then using the LLM to generate a response based on that retrieved information, the AI is less likely to fabricate answers.
AI Guardrails & Prompt Engineering: Developers implement "guardrails" within the AI system to define acceptable boundaries for its responses. This can include instructions on tone, style, and the types of topics the chatbot should address. Careful prompt engineering, which involves crafting specific instructions for the LLM, also plays a vital role in guiding the AI's behavior and ensuring it stays on-topic and provides accurate information.
On-Brand Experience: To ensure an on-brand experience, the chatbot's language, tone, and even its visual presentation should align with the airport's overall brand identity. This includes using consistent terminology, adhering to brand guidelines, and potentially even incorporating the airport's logo and color scheme into the chatbot interface.
By implementing these safety measures, airports can confidently deploy AI chatbots that provide accurate, reliable, and on-brand customer service, minimizing the risks associated with AI hallucinations.
CASE STUDY: Bristol Airport UK
Elevating Customer Experience with Generative AI
Bristol Airport recognized the growing need to enhance its customer service and streamline operations. Facing a high volume of passenger inquiries, particularly around parking and security, they sought an innovative solution to empower passengers with instant answers and reduce the burden on their customer service teams.
Challenges faced by Airport Management
High volume of repetitive customer inquiries, especially regarding parking, security, lounge booking, lost property, special assistance, and airline information.
Passengers often needed information outside of standard operating hours.
Customer service teams were spending significant time answering common questions, limiting their capacity to handle more complex issues.
A desire to be at the forefront of digital innovation in the UK transport sector.
An AI powered Assistant for Bristol Airport
In August 2024, Bristol Airport launched an AI Assistant powered by Generative AI. Their approach involved:
“Self-Serve First" Strategy: Empowering passengers to find answers themselves through the AI chatbot before needing to contact human agents.
Generative AI Technology: Leveraging the capabilities of Large Language Models (LLMs) to understand natural language and provide human-like responses.
Retrieval Augmented Generation (RAG): Building a bespoke Knowledge Base from their website content and integrating it with the LLM to ensure accurate and contextually relevant answers.
24/7 Availability: Providing round-the-clock support to passengers, regardless of the time of day.
Natural Language Understanding (NLU) and Natural Language Generation (NLG): Allowing users to ask questions in their own words, even with typos or emojis, and receiving clear and concise answers in everyday language.
Integration with OpenAI's LLM and LangChain: Utilizing cutting-edge AI technologies for response generation and orchestration.
AI Guardrails: Implementing measures to ensure a safe and on-brand experience for users.
Website Integration: Making the AI Assistant easily accessible from the Bristol Airport website.
Business Benefits of AI
While it's still early days since the launch, Bristol Airport anticipates several key business benefits from their AI Assistant:
Improved Customer Experience: Providing instant and readily available answers to common questions, leading to increased passenger satisfaction and reduced stress.
Reduced Burden on Customer Service Teams: Freeing up human agents to focus on more complex inquiries and passengers who require more personalized assistance.
Increased Operational Efficiency: Streamlining customer service operations associated with handling routine inquiries.
Enhanced Data Insights: Gaining valuable data on the types of questions passengers are asking, providing insights for continuous improvement of services and facilities.
Positioning as an Innovation Leader: Demonstrating a commitment to leveraging the latest technology to enhance the passenger experience.
Richard Thomasson, Head of Customer Operations at Bristol Airport, highlighted the potential of the AI Assistant to make a significant difference by providing real-time information and 24/7 support, particularly for common queries around parking and security.
“Customers to Bristol Airport historically have a lot of questions around areas like parking or security, especially when plans change”, said Richard Thomasson, Head of Customer Operations Bristol Airport. “This is a great opportunity for AI to make a difference - providing real-time information and 24/7 support”.
The Bristol Airport case study serves as a compelling example of how airports can successfully leverage Generative AI chatbots to enhance customer experience, improve operational efficiency, and position themselves as leaders in digital innovation.
A Practical Checklist
Getting Started with an AI Chatbot for Your Airport
Embarking on an AI chatbot project might seem daunting, but by following a structured approach, your airport can successfully implement this transformative technology. Here's a practical checklist to guide you:
Define Your Goals: Clearly identify the specific business and customer service objectives you want to achieve with an AI chatbot. Are you aiming to reduce call center volume, improve passenger satisfaction with parking information, or enhance sales within the terminal?
Understand Your Users' Needs: Conduct thorough research to understand the most frequent questions and pain points of your passengers across their airport journey. Analyze existing customer service data, conduct surveys, and gather feedback to identify key areas where a chatbot can provide the most value.
Assess Your Existing Data and Systems: Evaluate the availability and quality of your existing information sources, including your website, FAQs, policy documents, and integration capabilities with external systems (parking, flight information, etc.). A well-organized and accessible Knowledge Base is crucial for a successful AI chatbot.
Build a Comprehensive Knowledge Base: Work closely with your technology partner to build a robust and accurate Knowledge Base that covers the most common passenger queries. Ensure the information is up-to-date and easily accessible to the AI chatbot.
Implement Robust AI Guardrails: Prioritize safety and brand consistency by implementing AI guardrails to prevent hallucinations and ensure the chatbot's responses align with your airport's brand identity and values.
Establish Clear Escalation Paths: Ensure that users have a clear and easy way to escalate complex issues or request to speak to a human agent when needed.
Train Your Internal Teams: Educate your customer service and IT teams on how the AI chatbot works, how to monitor its performance, and how to handle escalated issues.
Continuously Monitor and Optimize: Regularly monitor the chatbot's performance, analyze user interactions, and gather feedback to identify areas for improvement. Continuously update the Knowledge Base and refine the AI algorithms to enhance its accuracy and effectiveness.
By following these steps, your airport can strategically implement an AI chatbot that effectively addresses passenger needs, improves operational efficiency, and enhances the overall customer experience.
Bringing It All Together
The aviation industry is constantly evolving, and airports are under increasing pressure to deliver exceptional customer experiences while optimizing operations. AI-powered chatbots represent a game-changing technology that can help airports navigate these challenges effectively.
By providing instant, accurate, and personalized self-service options, AI chatbots empower passengers, reduce the burden on human staff, and generate valuable data insights for continuous improvement.
The success story of Bristol Airport demonstrates the tangible benefits of embracing Generative AI for customer service.
As the technology continues to advance, airports that strategically invest in AI chatbots will be well-positioned to enhance passenger satisfaction, drive revenue growth, and solidify their position as innovative leaders in the aviation landscape.
The future of airport customer service is intelligent, and AI chatbots are paving the way.
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