The 1st Chief Commercial Officer at San Francisco international (SFO), details the impacts that the pandemic had on domestic and international travel while also explaining the mitigation tactics that SFO has taken to combat this. Kevin discusses touchless technology and the incorporation of digitalization in terminals to enhance the passenger experience during travel.
Interviewers: Max Vale and Delia Chi
Producer: Carrie Wojcik
The Hold Room, Episode 14 Transcript
[Introduction]
TJ: Welcome to The Hold Room with ACC: a quick update on all things relating to airport development as well as the Airport Consultants Council.
Wendy: This episode is part of a New Passenger Experience series hosted by ACC’s Terminal and Facilities Committee. In this series, we are collecting the experiences and perspectives of different types of users of the airport passenger terminal, including: business travelers; leisure travelers; airport executives; airport, airline, TSA, and concessions staff; and airport consultant staff, to name a few. For more information on this series and the hosts, go back and give the first episode a listen to.
Wendy: Joining Delia and Max in the Hold Room today is Kevin Bumen. Kevin is representing large airports in our podcast series. Listen to what he has to tell us about the changing passenger experience at SFO.
[Interview]
Delia: Welcome to the Hold Room. In this episode on the new passenger experience today we turn our focus to commercial operations at airports and are joined by Kevin Bumen, Chief Commercial Officer at San Francisco International Airport. It's such a pleasure to have you with us today in the Hold Room. Kevin, can you please tell the listeners a little bit about yourself and what you do?
Kevin: Good morning, thanks for having me on today. It's great to be here. I began as the Chief Commercial Officer here last fall in San Francisco. It's a new position here at the airport. Our former CFO, Leo Fermin, retired last year. There was some reorganization done, and they took the time. I was a chief business and finance position and created a CFO position and a CCO position. I'm proud to have been selected to serve in that role here as the first Chief Commercial officer for SFO.
Prior to joining the team here, I was in San Luis Obispo. I was the director of airports for San Luis Obispo County for seven years and then prior to that I was working in the North Lake Tahoe area and I was at Truckee Tahoe Airport, served in several roles there and finished my time there as Director of Aviation.
Delia: Thank you for that, Kevin. How has the pandemic affected you in your job and operations at SFO?
Kevin: You know airports all over the pandemics had a massive effect on our business on our facilities on our staff, it really hasn't left any area untouched of the entire enterprise. But like many areas we’re in recovery at various points of recovery, I would say. Everything doesn't come back at the same pace San Francisco was hit exceptionally hard. When you look at the coastal hubs versus the Mid-continent hubs, our business went way, way down. And to the tune of over 90% down by some measures at the bottom.
But we're coming back. I'll be it slowly, San Francisco, you know pre pandemic had about 26% of our traffic was international and we're only seeing a fraction of that at this point. It is there, but it's very small and why does that matter? Because you know when we look at our network here you know the domestic network feeds a portion of that international traffic, so you can only see domestic recovery growing to a point until we have the international feed to drive the remainder of domestic recovery. And then when we look at the economics of the international passenger and their spend and their impact on the airport. Both of the passenger and the airlines, the economic recovery will not be complete for this airport until we see a growing portion of international traffic.
Delia: I know that a lot of the leisure traffic is starting to come back at a much faster pace than the business travel, and you know, we talked about the international traveler with all of the rules, regulations, policies, mandates during the pandemic. I know that it's been really hard for airports concessions, tenants it's been really hard for everybody to just respond to all of those changes, and it's probably the same case for SFO. I know we're talking to some off the other airports and airlines in our podcasts, there was a lot of mention in the conversations that we had around touchless technology.
Some of the innovative solutions that have come out of the pandemic. Is there anything at San Francisco in terms of the technology improvements that have sort of arisen, out of the pandemic?
Kevin: In terms of something that is entirely unique to this, I can't say anything comes to mind immediately, but I will say it as propel or thinking on touchless. You know, we implemented parking reservations last fall. And while that you know is not unique to our airport or the industry in general, it's a way to bring touchless to that experience in in ways that we hadn't had before, so. I think it certainly raised the visibility on those investments and why they are not just a good idea, but in some cases even expected by the passenger. You know the technology that's been out there, whether it's you know around HVAC systems or cleaning, and many of those other things. Some of that was already in place here, just given the age of, you know, maybe some of our newer terminals versus our older ones.
The really key piece of this, I think, is as we look at new technologies in the airport and whether it's around the terminal and the physical plant, or whether it's around the customer experience. I think this event will create a real imperative to look at well, what does this do for our health and safety initiatives? Does this help move us forward in that direction because there is a new imperative that comes out of this. I feel like the industry much you know, 911 really changed our posture and our policies and our procedures around physical security. The pandemic is going to do the same around health security.
Max: That's actually a great segue into our next question. If you could make one suggestion for improving the passenger experience, what would it be? And it doesn't have to be related to health and safety, could be anything.
Kevin: Well, you know. I feel like the future lies in digital and as is overly simplistic as that sounds, I you know San Francisco has done a really remarkable job over the past many, many years of building beautiful terminals with beautiful amenities and a passenger experience in the physical sense that is often unmatched. I think our next horizon is how do we bring the digital to that? That really goes all the way back into the journey of the traveler that starts with really dreaming of travel. Right? Like just that kind of dream to plan and that SF is appropriately engaged with the passenger at that level all the way through to planning up to day of travel to then in terminal, to post travel and that.
We fully evolved the digital experience on all platforms, on all fronts, in an integrated fashion, to bring completeness to the to the trip that you know. The airlines have done a wonderful job of really building out the tools that they bring to the passenger for evaluating tickets and itineraries and pricing up to you know hey, you get the text the night before about your gate or a flight delay and then you get a little bit of information in the airport. And then you might get a survey after you travel, and that is a that is a very defined important part of the journey that the airline really owns the customer, but there's a whole lot of that journey on either end that that the airport is a very important piece of that. And we can do a lot more than we have done in the past and so I really see that future on digital. We're at a unique point right now where it's you know revenue recovery with Traveler recovery, but it's also challenged by you know the overall financial condition of the airport really drives some thinking around: How do we find interesting ways to evolve our revenue that don't involve a heavy investment? And that's probably our biggest focal point right now. Is there are opportunities out there, but until we get further along in recovery, significant investments on a lot of projects. Whether it's a built project or a digital project, are going to be hard to come by.
Delia: Yeah, we spoke to a couple of hospitality providers, and it was really interesting. They were kind of saying the same thing, Kevin. They were talking about like I think it's this is kind of a new age of looking into door-to-door experiences and when I mean door to door, I mean like when you book your plane to get and are about to like walk out of the door or there could be a partnership that you have with airports have with Uber or airlines have with Uber and Lyft or any of those other TNC companies. All the way to when we when the passenger gets onto the onto the plane and that digital experience. And as you said, fully involving that digital experience is going to be able to really start connecting the dots in the passenger journey and really offer that seamless service. So I'm yeah totally on board with what you're saying.
Kevin: As you look at those points in the passenger journey where there is anxiety or uncertainty around what is going to happen so the passenger response is get there early and then figure it out when you're there, right? Because time, which is the commodity you're trading in air travel is what passengers are reinvesting into the journey to create certainty. And in reality can bring digital to that journey in ways that allows them to use their time differently. They may still choose to show up early, but maybe then they're enjoying a drink at the bar or they're shopping, or they go to one of our yoga rooms. There's so many other ways that they could use that precious commodity of time in their trip. Rather than: “Oh my gosh, I don't know how long the line at security is going to be, so I'm gonna get there an extra hour early.” And then what? It's this constant exchange of uncertainty and time in that pre travel realm. What the current situation is at the airport and how to navigate that. And right now, with leisure travel being such a high component of our customer base, just in walking around the terminals, the experience of the average traveler right now is lower than average. You don't have the frequent business traveler in the mix. But I think if you look at people who travel infrequently or haven't traveled in a long time, it's evident as you walk around, there's just an inherent aspect of leisure travelers too, that they they're not on the road every week. They aren't as agile in the airport and so as I think about the power of digital, right now, if we had it with leisure travel being this large component, I think it could be quite impactful in that segment could be desirable.
Delia: I know you've already talked about this a little bit, but what does a positive passenger experience mean to you?
Kevin: That's a fantastic question. I think the positive passenger experience is one that it exceeds expectations in positive ways. It has elements of surprise and delight in it. You know of moments in that in that whole experience, right that places perhaps where there was friction in previous journeys or anticipated friction, it's just not there, right?
There's clear signage that takes you easily to your check in or your bag drop or your gate. The lines are short, birds are singing, you know the rainbows on the horizon, right? I mean, it's like how, how idyllic can you make? This right it can be so much more at times than what it is and the what it is often impacts of peak volume or construction. And as soon as you have one of those unanticipated moments the stress goes up, the enjoyment goes down because now you're just in this recovery mode through the journey and there's no one definition to it. I think everyone would define it differently, but I think we've all had a trip that we can point to that we would say was really really good. But we've all had a lot of really, really good trips that we can't recall and so you know that absence of recollection is, well, it was a successful trip, right? I got through the airport, nothing happened, you know? That it's the great trip we all forget and that's fine, but then you know, I think about like our SFO museum.
And for somebody who maybe hasn't been to SFO and seen that, you know there's a, there's an impactful moment when you start seeing the art we have around the airport, and some of the incredible historical photography and displays. That's a really impressive feature of our airport that for somebody who either has forgotten about that or has never seen it, that's an incredible moment in their trip. But if they have the time to sit there and engage with that and enjoy it, ideally that's something that in the trip that nothing else goes wrong with, they take that with them. And are talking about that of you know, gosh my trip through the airport, there was this museum and it was wonderful and it was cool, and you know. Everything else went fine, but let me tell you about the really good part. All these little moments in that experience that are. You know either part of the built environment or part of what the airport does to engage and create experiences along the way. There's so much opportunity there, and a lot of it doesn't cost a lot of money.
Max: Harvey Milk Terminal, Terminal 1 at SFO is one of my favorite terminals of all time. It's a beautiful building. It's got artwork everywhere and I love the fact that it's attributed to Harvey Milk. First openly gay elected official in the United States. That's a big deal.
Kevin: Huge, yeah. And to folks that aren't from the Bay Area or astute on politics probably wouldn't know that story.
I see a question in the chat here regarding the museum and how do you drive passengers to spaces like the museum while keeping anxiety low enough to enjoy it fully? That's a great question, right? Because if you are having this challenged journey that is impacted by crowds and other things, how do you create the desire or the ability for somebody to enjoy it? I think one of those is simply in our design. Like I think a big piece of it is ensuring that the displays are on the journey path, that it's almost integral to it and you could take 10 seconds or 30 seconds or 10 minutes and stop and enjoy it. Think placement and design are key and creating things engaging elements of airports it's meaningful to them. They could gain something from it. You know the other piece I think to here, is that we change those things so they rotate, and whether that's a museum type function or whether you know it's your commercial offerings, other parts of the airport keeping it fresh and keeping it real, nobody gets excited about something they see all the time. There's things they like to see all the time that are kind of those anchored points, but on the other hand, having elements that are changing and dynamic is, I think, a part of that excitement too. As I travel around to airports of all sizes one of the most unique things about this airport.
Delia: I know one of the things I've really liked about San Francisco, where every time I've flown out of it, the art displays that are right along the path. Even in Terminal 2, they've got those. Terminal 2 is designed somewhat a little bit differently so than some of the other terminals that are more linear.
Whereas in Terminal 2 you've got the gates surrounding like the concessions, the food. And I always thought that those types of spaces were actually pretty unique in that you don't even have to sit in the hold room to wait for your plane, a lot of the airlines have the alerts that you can get on your phone. And I know a lot of our listeners are they’re architects, engineers and planners and I guess the question to you Kevin is: Are there just in thinking about the design of the airport and how that affects the customer experience and for me, I get Terminal 2 having that middle area is really unique for me and very memorable, but is there anything that you would want to provide/impart to our listeners that our engineers, architects, planners that are involved in the designing of the airport, so anything you would say to them to from your perspective to improve the passenger experience?
Kevin: Well, foundational to passenger experience is design. You know, I think if you imagine everything I was talking about with this, you know fully evolved digital experience and you did that in the most rudimentary terminal that didn't have the amenities the aesthetic the comfort the convenience. I don't think the digital would be successful, it you have to have both and you know our system has evolved in a way that we do great built terminals throughout the US throughout the world. We're very involved in that space. The digital layer is now coming into it. I think it's hugely important. I mean in San Francisco it defines you know much of the identity and the culture of the of the airport, the city, the region. There's an aesthetic to that, that we’ve propelled. We've done a lot of work around that with our REACH program, and other ways that we communicate that, you know, design standard is probably too narrow of a term, but the way that we want to evolve our facilities and the experience that passengers derive from them purely by the way you know that the light moves through the facility, the way that the signage is hung in the way that the, you know, the floors are designed in this. You know all the things with ceiling height then hold room design. There's so much to that that. Uh, in a in a in a really, really well-designed terminal that that frictionless experience I mentioned earlier becomes enabled by that design. And you know, just as some elements of passenger engagement don't cost a lot of money. Terminals, on the other hand typically cost a lot of money. There are some neat things you can do that that are rather economical, but at the same time a lot of a highly evolved design is going to be investment based and that you know that comes down to, you know, just beyond the desires of the airport, you know what's the capability financially? What's the relationship with the airlines and are they willing to support those kind of investments to elevate the experience?
There's a, there's a lot that goes into that, but I think you know for somebody who is in a planning or a design role at an airport, their job is extremely important because you know those details. I mean, we could talk a whole podcast just about bathrooms, right? I mean. Like there is a moment in a passenger journey that can be really good, not memorable, or really bad, and you want the 1st two? So you know San Francisco has done a lot of work in our bathroom designs. We've got different generations of those around the airport that are notable. But that's a that's a very key piece of this and yes, I couldn't emphasize that enough that I think the success will start with those facilities, how they're evolved, the care, the detail you know to your comment Max about the stories you're telling in those facilities, whether it's about, you know, a prominent local figure, or whether it's about the history of the region or art. What you, what life do you bring to that? Because an airport can be a big empty building too. And so you have to breathe some of the, some elements of life and culture to it in in many ways that can make it very exciting.
Max: Kevin, thank you so much for taking the time to talk to us about your perspective on the passenger experience, both past and future, and we really appreciate your time.
Kevin: Thanks for having me. It's always nice to talk about our shared challenges and opportunities in this industry.
[Outro]
Wendy: Thanks for joining us in The Hold Room for this special podcast series exploring the new passenger experience. You can find more from this series on the ACC Training Hub—that’s training.acconline.org/the-hold-room—or wherever you get your podcasts, including Apple Podcast, Spotify, Stitcher, etc. Follow us for more content from the Airport Consultants Council. You can support this podcast by leaving a rating or review and by telling your friends and colleagues about the podcast. Thanks again.