Are Airports the Next Smart Cities? - Hitachi Vantara

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Are Airports the Next Smart Cities? - Hitachi Vantara
Are Airports
  the Next
Smart Cities?

     Sponsored by
Are Airports the Next Smart Cities? - Hitachi Vantara
Are Airports the Next Smart Cities?

                                                           Contents
  Executive Summary                                                                                                                                   2
  Business Operations Challenges                                                                                                                      2
  The Airport as a Smart City                                                                                                                         3
  Technology To Achieve a Smart Airport                                                                                                               4
  Vision for the Future                                                                                                                               5
  Innovation Leads to Solutions                                                                                                                       7

                                      Executive Summary
As mega airports open in the Middle East and Asia, existing airports         its connections and services outside and into the surrounding cities?
continue to see record numbers of travelers. A great deal of business        It allows an airport to be seen as an important destination in itself
press coverage is focused on these developments, considering                 and economic driver for its region.
implications to security and efficiency, or the grandeur of new                 In this whitepaper we will consider how video intelligence, artificial
architecture. The press is also looking at ever-evolving digital             intelligence (AI) and the internet of things (IoT) can be used to create
transformation, which is disrupting airports and the technology they         “smart spaces,” which help make smart airports and airport urbanism
use. It is clear from airport industry news that over the course of the      possible. It is important from the beginning to note the importance of
last year airports are beginning to follow the smart city model and          maintaining the privacy of the individuals within the airport at all times.
change the definition of destination airports.                               That should be the expectation from any technology used to support
   “Airport urbanism1” is an approach that takes these concepts to           these concepts. Innovations in technology are allowing for protection of
another level. How does the airport impact nearby cities and expand          privacy or intelligence without surveillance.

                  Business Operations Challenges
  Airports need to drive revenue and growth, just like any other business.   airport can provide to their retail partners, the smarter they can be in
  Although airports are challenged by regulation and security, they still    providing and marketing their products to potential customers passing
  need to think like a business and be customer centric to accomplish        by their shops, increasing conversion rates and business efficiency.
  these goals. According to the International Air Transport Association         There’s also an opportunity within airports to establish stronger
  (IATA), the number of air passengers could increase to 8.2 billion         partnerships between airports and airlines. For example, airline
  yearly in 20372. This is an amazing opportunity to address a captive       lounges are part of the overall customer experience. By analyzing the
  audience with new services to improve the travel experience and build      movement of passengers, the airlines can ensure that their lounges are
  new revenue streams. Additionally, a study by airline industry IT and      adequately staffed and stocked with food and beverages. The amount
  telecommunications provider SITA found that an extra 10 minutes            of carry-on baggage being transported through the airline lounges can
  in the security line will reduce airport retail spending by 30%3. This     also help predict a possible overhead bin shortage on the aircraft. Data
  reinforces the linkage between efficiency in the security process and      that helps to understand where passengers spend their time in the
  the opportunity to drive retail revenues.                                  lounges, such as the work area, TV area, buffet and bar, shower and
     The same SITA study predicts annual airport retail spending at $22      spa facilities, can help plan for future functionality that will provide a
  billion, which leads us to the second consideration: How can retail        better airline lounge experience.
  spending be increased in airports? Just as the technology does in             Attracting visitors to the landside public areas of airports is another way
  shopping malls and stores, the use of video intelligence can help retail   to increase retail revenue, which doesn’t need to be limited to passengers
  establishments better understand how passengers are moving through         who are flying. Families dropping off or picking up loved ones might take
  their establishments. It can uncover information as to where retail        the opportunity to shop. And, depending on the location of the airport, it
  traffic is coming from or going to, how long people spend in the shops,    could even be a destination location for local residents who don’t even
  and which areas they spend the most time in. The more information an       enter the airline terminal, but just visit to use the landside facilities.
Are Airports the Next Smart Cities? - Hitachi Vantara
The Airport as a Smart City
Airports globally are recognized as being similar to smart cities, as they focus on delivering improvements to operations, sustainability,
experience and business vitality. Let’s consider four such airports that represent major geographic regions of the world: America, Asia,
Europe and the Middle East4. For any airport looking to improve operations and passenger experience, these case studies should fuel
some ideas for how an airport might approach this goal.

North America – San Diego International Airport
Environment
San Diego International Airport launched three programs to reduce            How smart spaces could help: In conjunction with existing
greenhouse emissions, counterbalance carbon emissions, and stop            IoT sensors, video and 3D lidar could gather intelligence
the food waste going into the landfills. The first initiative focused on   regarding the number of passengers arriving and departing in
transportation to and from the airport. To reduce carbon emissions,        such mobility services to help plan further partnerships and
partnerships and marketing efforts were developed to support ride-         marketing. In terms of curbside management, the type of vehicle
sharing mobility. This is an example of an airport impacting landside      – taxi, ride share or personal – could be identified to facilitate
operations to aid in the overall customer experience and reduce            such planning.
carbon emissions, which they successfully did by 30%.

Asia – Shanghai Jewel Changi Airport
Architecture and Technology
Often showcased as the smartest airport globally, the combination            How smart spaces could help: By tracking the movement of
of sustainable architecture and technology are what stand out at           passengers and analyzing the time spent in different locations
Shanghai Jewel Changi Airport. IoT sensors, data analytics and AI          throughout their airport journey, improved efficiencies and retail
are used to ensure a positive customer experience for passengers           offers could be created.
traveling though this location.

Middle East – Hamad International Airport
Technology
The smart airport program at Hamad International Airport is                  How smart spaces could help: Retail establishments could be
focused on efficiency, related to check-in and baggage drop, to            more efficient in terms of staffing and stocking inventory in their
improve overall customer experience. Its technology achieved a 40%         shops by analyzing passenger movements within the airport. This
reduction in the time it took passengers to get into the terminal. This    analysis would provide insight into where and how much time
equates to 40% more time to use facilities within the airport and          passengers spend in airport lounges, shopping, dining and which
increase airport revenue.                                                  establishments specifically.

Europe – Munich Airport
Technology to Become a Smart City
Munich Airport is in partnership with the Massachusetts Institute          the Munich Airport. LabCampus GmbH works with MIT to provide
of Technology (MIT) Senseable City Lab to design a smart city              technology infrastructure support for state-of-the-art concepts
concept for the airport. This approach is an example of using              for energy, mobility and urban planning. While not an actual smart
an airport landside location for innovation. The goal is to build a        airport, Munich Airport showcases a way that airports can use their
collaborative working environment for organizations to design and          facilities landside and then test new concepts within their terminals
develop smart city products and services and then test them at             as appropriate5.
Are Airports the Next Smart Cities? - Hitachi Vantara
Technology To Achieve a Smart Airport
Let’s consider how airports can leverage video intelligence, AI and IoT      mentioned earlier about traveler traffic flow and areas of interest within
to achieve the goal of becoming a smart airport. Video is already in         airport lounges and retail establishments would be enabled via lidar.
use in most airports globally; what is new is how that video intelligence    The next step is to gather all of this information and apply AI to analyze
can be gathered, interpreted and used to impact the experience of            the input and create a real-time, three-dimensional view of the airport
the traveler within an airport. Of course, safety and security cannot be     that doesn’t capture any personally identifiable information (PII). This
overlooked when thinking about the role video intelligence plays in the      approach allows for granular tracking of movements within the airport
daily airport operations.                                                    without knowing a person’s identity.
   The most commonly used source of video is CCTV. The first step is            It’s impossible to mention the use of any type of video
to take this information and make it more intelligent and actionable via     intelligence without considering privacy concerns. Today’s solutions
the use of computer vision and machine learning, commonly known              have the ability to automatically anonymize the information that
as video analytics. Infared technology can also be used at night to          is being collected through privacy masking, transparency and 3D
augment video data streams. One recent advancement that is providing         lidar. All three of these safeguards ensure that personal information
a wealth of new use cases is the introduction of 3D lidar.                   remains private.
   Lidar stands for light detection and ranging. Think of it as sonar that      Figure 1 illustrates many of the video intelligence modules that
operates with lasers instead of sound. The same concept applies as           are available today for use in a smart airport solution. These are just
far as detecting obstacles and movement. Within an airport, lidar can        a few examples to begin to consider how an airport could use video
be used to monitor the different types of space usage. All of the topics     intelligence for its evolution into a truly smart airport.

     Figure 1. Available Components of a Video Analytics Solution for a Smart Airport
Are Airports the Next Smart Cities? - Hitachi Vantara
Vision for the Future
Key components of a video analytics solution, as shown in Figure 2, deliver immediate, measurable results to key areas of airport operations.

                      Figure 2. Components To Build a Smarter Airport

Smart Lounges and Smart Gate Areas
Airline lounges and public airport waiting areas in airport terminals         ensure that staffing, food and beverage quantities are adequate.
are part of the overall customer experience and are important to take         • Areas most frequented. Where do people spend the most time
into consideration.                                                            within the lounge? This data can be used for future lounge planning.
   The use of video intelligence in airline lounges helps to ensure the        • Food quantities. Is the buffet running low on certain items? The ability
customer experience is up to par for high-level frequent fliers or paid         to plan stocking ensures that in-demand items are always refreshed.
entrants (see Figure 3). It can address:                                        • Carry-on baggage. How much baggage is flowing through the
   • Peak traffic times. What time of day are the highest traffic times in      lounge? Tracking this information helps make initial predictions for
    the lounge and on which days of the week? This information can help          possible overhead bin shortages.

                                          Figure 3. 3D lidar creates an image of passengers boarding a
                                          plane. It counts and measures their luggage automatically to
                                          order to improve on-time performance.
Are Airports the Next Smart Cities? - Hitachi Vantara
Retail
According to recent studies, U.S. travelers alone spent more than $1.7          most time in? Retailers can use this information as a competitive
billion at airports' newsstand and travel convenience stores in 2017. An        advantage to develop successful marketing programs.
additional study projected this figure to reach $49 billion by 2021. This       • Stock quantities. Which items drive the most interest for customers
reflects a 27% increase versus 2016 revenues6. Although numbers of               within shops? This gives retailers the ability to keep in demand items
retail shoppers in malls are in decline due to online sales, the captive         always refreshed.
audience in airports continues to shop.                                          • Traffic flow. How do passengers travel though the airport? Which
   To keep this growth going forward and possibly increase it, retailers          shops garner the most interest? Is there a standard path that
need to provide options that will draw customers into their shops. Video          customers take through the airport? Could key retail locations be
intelligence can provide analytics regarding the following areas to help          promoted for a higher premium by the airport?
accomplish these goals (see Figure 4):                                            Opportunities in retail at airports fall within two categories. First,
   • Peak traffic times. When do shops have the heaviest foot traffic and   airports can help stores to better prepare for marketing to their
    on which days of the week? This information can help ensure staffing     customers. Providing video intelligence and analytics makes airport
    and product stocking quantities are adequate.                            locations more attractive to potential retailers. Second, airports can
    • Most-visited shops and sections within them. Which shops have         promote specific shop locations to retailers for a higher premium
     the highest visitation rates? Which sections do people spend the        based on traffic.

  Figure 4. 3D lidar displays the journeys and dwell times of customers throughout a retail store.           Figure 5. Video analytics counts cars in
  It can understand the difference between each person, but it doesn’t capture any personally                the taxi pickup area and carts in the cart
  identifiable information (PII).                                                                            rack to deliver insights that help improve
                                                                                                             operations.

Curbside Management
Before even entering the building, just getting to the airport can be            • Parking guidance and analytics. Managing short- and long-term
a frustrating experience. Being delayed in entering the airport not            parking, enabling easier reservations and proactively diverting
only impacts the passenger experience, but it can lead to missed               drivers to overflow lots can be done with sensing, signage and apps.
flights and disorganized lines as people try to skip the lines to              This saves passengers time and frustration, while helping airports
catch their flights. With new options, such as ridesharing and                 use existing infrastructure to its fullest potential before investing in
changes in public transit usage, intelligently managing the curbside           new construction.
has become a hot topic for many airports. Some examples of                     • Drop-off and pick-up analytics. Knowing the number of passengers
how airports are using video intelligence and IoT for curbside                  per vehicle, especially by vehicle type, can help airports better
management are:                                                                 manage ridesharing and shift people to public transit options.
   • Measuring and predicting traffic. Counting and classifying vehicles       • Cart management and left-behind objects. Detecting how many
    helps airports to understand when they may need extra staff or how         carts and services are available versus demand can help ensure a
    to adjust policies to enable faster pick-ups and drop-offs.                smooth experience for passengers.

Destination Airports
Destination airports are a draw for nontravelers to experience shopping        In addition to the retail-oriented services, security functionality can
and entertainment inside airport locations, but outside of the secured       be added for these locations outside of the main terminals. When
terminals. Interestingly enough, this trend is already quite widespread      hosting concerts, exhibitions or sporting events, the influx of a large
globally. Some examples of such locations include:                           crowd of people adds new challenges.
   • Incheon, Seoul, Korea. Ice rink, 18-hole golf course and a culture       Adding security functionality outside of the main airport terminals
    center for events.                                                       requires additional sensors, camera and video intelligence tools. For
    • Munich, Germany. On-site brewery, Audi showroom, indoor surfing       more on this topic, please see our special report on The Smart Path to
     and mountain biking exhibitions, concerts and a Christmas market.       Airport Safety and Security.
     • Vancouver. Art museum and an aquarium with 5,000 creatures.
Are Airports the Next Smart Cities? - Hitachi Vantara
Innovation Leads to Solutions
    Smart spaces and video intelligence solutions are becoming widely          airport safety and security. It enables airports to combine video
    adopted because they produce immediate, tangible benefits to airport       and lidar data with IoT sensor data and business data to gain
    operators. By complementing digital data with data from the physical       clear, comprehensive intelligence for operations. Armed with this
    world, the resultant analytics can provide actionable insights that help   knowledge, safety and security efforts become more targeted, cost
    support a better understanding of what is happening and where.             effective and efficient. Customer experience is improved. Retail
      Hitachi’s Lumada Video Insights provides a smart path to                 operations are optimized. Your airport is better in every way.

                                     About Hitachi Vantara
Hitachi Vantara, a wholly-owned subsidiary of Hitachi, Ltd., guides            of the Fortune 100 trust Hitachi Vantara to help them develop
our customers from what’s now to what’s next by solving their                  new revenue streams, unlock competitive advantages, lower
digital challenges. Working alongside each customer, we apply                  costs, enhance customer experiences, and deliver social and
our unmatched industrial and digital capabilities to their data and            environmental value.
applications to benefit both business and society. More than 80%                 Visit us at www.hitachivantara.com.

1
  https://airporturbanism.com/content/1-home/airport-urbanism_max-hirsh.pdf
2
  https://www.iata.org/en/pressroom/pr/2018-10-24-02/
3
  https://www.sita.aero/globalassets/docs/infographics/passengers-in-focus-infographic.pdf
4
  https://www.smartcity.press/top-three-smart-airports/
5
  https://www.munich-airport.com/development-of-a-smart-city-concept-at-munich-airport-5247619
6
  https://www.retaildive.com/news/airport-retail-has-a-long-runway-for-the-right-brands/549298/
Are Airports the Next Smart Cities? - Hitachi Vantara Are Airports the Next Smart Cities? - Hitachi Vantara Are Airports the Next Smart Cities? - Hitachi Vantara
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