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Delta, NorthwestAirllnes, and Vancouver Airport: The Business Value of Customer Self-Service Kiosks
Since the project was launched in November 2001, the airline has spent $5 million to $7 million on customerservice initiatives, including the kiosks, he says. Maruster says the payback has been enormous, but he declines to give financial details. Delta says it is on track to check in 13 million to 14 million people in 2005. Delta Technology purchased the self-service check-in kiosks from Kinetics USA (www.kineticsusa.com). the dominant supplier of self-service kiosks in the airline industry, with 6 of the top 10 airlines in the world using Kinetics self-service technology. The self-service kiosks are really networked special-purpose microcomputer terminals, featuring video touch screens as the primary user interface, a built-in high-speed thermal printer for printing flight itineraries and boarding passes, and a rnagnetic-stripe card reader to read customers' airline and credit cards. Childress says an internal application-development team integrated the kiosk functionality with Delta's Digital Nervous System, the network that communicates with every part of the Delta organization. "In 2002, we deployed over 300 kiosks in 81 cities," Childress says. "From start to finish, it took six months, and we were checking in half a million people per month. We wouldn't have been able to do it without the infrastructure." Childress says he learned how important it is to have the application and business teams work together. "Having a team that knows what they want to achieve from a strategy and business perspective enables the technology team to drive a solution as soon as possible." Vancouver International Airport has taken the airline kiosk idea to a whole new level. The Vancouver Airport Authority deployed 80 new "common-use" kiosks that support all airline customer check-in requirements, thus eliminating the need for kiosks dedicated to just one airline. The new system, developed by IBM and Arinc Inc., an Annapolis, Maryland-based communications and engineering firm, is based on a new industry software standard called "CUSS," or common-use self-service. Passengers can access many different airlines' self-service check-in applications from a single kiosk. Air Canada was the first airline to use the kiosks for its Express Check-in. Since their installation, however, over half of the airlines flying in and out of Vancouver are using the system. Kevin Molloy, vice president of IT for the airport authority, said the cost savings are "massive." For example, a study conducted by his office in 2000 revealed that to continue supporting the airport's projected passenger load would require an additional 145 check-in counters at a cost of $1 million each. That cost would eventually be recouped from the airlines, he said. Vancouver International is the second-largest international passenger gateway on the West Coast and Canada's second-busiest airport, with more than 15 million passengers and 274,400 takeoffs and landings last year.

or travelers, the best trips are fast and hassle-free, with limited time spent at the airport. That's why AtlantabasedDelta Air Lines Inc. (www.delta.com) teamed up withits technology subsidiary, Delta Technology Inc., to deployhundreds of self-service check-in kiosks at airports across the country, with a goal of speeding travelers to their destinations. ,',likeChildress, senior vice president of development at Deita Technology and the project's leader, says there are now +19kiosksinstalled at airports in 81 U.S. cities. The kiosks hadbeen part of Delta's multiyear business plan, but when airports increased security in the wake of the September 11 terroristattacks-and the amount of time customers spent waiting in line grew longer-the airline decided to accelerate theproject. Delta acknowledges that it had been trailing orne other carriers' kiosk initiatives before September 11. For example, Northwest Airlines (www.nwa.com) had embracedself-service airport kiosks in a big way before Delta.Northwest had over 650 e-Service Center check-in kiosks in over 150 airports, more than any other airline, and added over 100 more kiosks at the end of2003. In fact, more ofXorthwests customers are using self-service check-ins by checking in online on the Web at nwa.com, or through one oftheire-Service Center check-in kiosks, than through tradinonal check-in methods. Thus, more than half of eligible customers now choose oneof 0.'orthwest's self-service check-in options, a record high.At the carrier's Detroit World Gateway and Minneapolis/ St. Paul airport hubs, usage has averaged 70 percent.Systemwideusage has continued to soar through the endof200l "On May 1, 2004 our Minneapolis/St. Paul hub achieved a record 74 percent of check-in transactions perfonned through one of our convenient self-service check-in options," said AI Lenza, vice president of e-commerce and distribution. "With the rapid growth we are experiencing, by theendof the year we expect that at least 70 percent of our customers, system-wide, will be choosing nwa.com online check-in or an e-Service Center kiosk for their check-in needs," saidLanza. RobMaruster, Delta Air Lines' director of airport strategy andservice,sais the kiosks hel p customers shave 5 to 15 minutes off the time they have to stand in line. Passengers canusethe kiosks to check in for their flights, get boarding pal-e\ fororiginating or connecting flights, select or change ars,request to stand by for an upgrade, check baggage, change flights,and initiate multiparty check-ins. Deltaadded more than 400 kiosks in late 2004 and enhanced functionality to include international check-in and ftecollection. With this change, Delta will offer customers morethan 800 kiosks in airports nationwide. "From the business side,the kiosks are the cornerstone of a broader airponstrategy to offer customers more control," Maruster

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But there's also a more practical nature to using the common-access kiosk to support Vancouver's 22 airlines, said Molloy. "If each airline were to bring in their own kiosk, they may actually turn into obstacles to processing passengers," he said. Recently, the airport authority also installed some of the new kiosks in its parking areas and at curbside valet parking locations, allowing passengers to check in before entering the airport's terminals. In addition, the Vancouver Airport's kiosks will eventually be installed in locations such as hotel lobbies and cruise ship terminals.

The economic benefits of the common-access kio ks makes that level of deployment possible, said Molloy, "There's no way to place 22 kiosks in a hotel lobby," he said.
Source: Adapted from Linda Roseneranee, "Self-Service Cheek-ln Kiosks Give Travelers More Control," Computenaorld, February 24,2003, p, 48; Kinetics Inc., "Touch Your \Vorld," www.kinerics.rv.Augusr 25, 2003; and Dan Vertin, "Vancouver Deploys First Common-Use Kiosk for Airline Ched In," Computeruiorld, October 10, 2002,

CASE STUDY QUESTIONS

1. What computer system technologies and functions are included in self-service kiosks? What other technologies should be provided? Why? Visit the Kinetics USA website for more details. 2. What is the customer value of self-service kiosks for airline check-ins? What other services should be provided? Take the demo tour of the Delta check-in kiosk at www.delta.com/travel/trav_serv/kiosk to help you answer. 3. What is the business value of self-service kiosks in the airline industry? Do self-service kiosks give airlines a competitive advantage? Why or why not? 1. Self-service kiosks are certainly helping the airline industry. Using the Internet, see if you can find other industries that are benefiting from the use of kiosks, 2. Given the plans to deploy kiosks into areas such as parking lots and hotel lobbies, what do YOll see as the next step in kiosk use? Break into small groups with your classmates and discuss the future of self-service kiosks. Do you think there are downsides to their use: