Beyond the runway: Copenhagen Airport's strategy for innovative services
Copenhagen Airports A/S (CPH) is at a crucial turning point. In order to maintain its leading position as the top hub in Northern Europe, the airport must respond to long-term challenges and take bold, innovative steps. Text: Prof. Dr. Christoph Grimpe
More than just flying
The decline in revenue from non-aviation-related areas – such as the airport's own shopping centre – is one of the biggest areas for improvement. Despite the large number of passengers who have time to stroll through the shops and visit restaurants before their departure, sales are stagnating. Fewer and fewer passengers are using the airport shopping centre. Sales of food and beverages in particular are declining. This is a serious problem, as an impressive 80% of CPH's total revenue comes from this segment. It is clear that CPH must find creative solutions to revive the full potential of this source of revenue. The increasing popularity of online shopping, especially among younger travellers, is putting the classic airport experience to the test. Those who shop conveniently via smartphone are less inclined to browse in local shops. CPH faces the task of skilfully integrating digital retail strategies into the airport experience in order to get passengers excited about shopping on site again.
From crisis mode to recovery
The COVID-19 pandemic has shaken the aviation industry like no other event before it. International air traffic collapsed dramatically, and CPH faced its most serious crisis since the Second World War. As operations slowly recover, smart strategies are needed to regain passenger confidence and boost spending. Competition among Europe's major airports is intense. To attract airlines and routes, CPH must continuously invest in its infrastructure. However, a decline in non-aviation revenue could jeopardise these important investments – and thus the airport's competitiveness.
The way forward: innovation as the key to success
CPH is tackling these challenges with a clear focus on corporate entrepreneurship. By adapting to changing customer behaviour, developing new services and making targeted use of digital technologies, the airport aims not only to overcome the effects of the pandemic, but also to shine in the aviation industry in the long term. CPH's future lies beyond the runway – in the art of constantly reinventing itself. In a complex strategy process, the airport initially generated 50 innovation ideas based on existing or newly acquired skills that either strengthen the existing business model or require a new one. Three ideas were implemented in concrete terms: the further development of innovative airport management software that is sold to other airports; a click-and-collect system for purchases; and optimised passenger flows aimed at better distribution of passengers in the shopping mall.
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About the author
Prof. Dr. Christoph Grimpe is Professor of Innovation and Entrepreneurship at Copenhagen Business School (CBS), Denmark, and Visiting Professor at the University of Zurich. After completing his studies in business administration and political science, he earned his doctorate at WHU – Otto Beisheim University – in Vallendar, Germany. His research focuses on business innovation strategies, corporate entrepreneurship and the strategic use of intellectual property rights. His research findings have been published in academic journals such as the Academy of Management Journal, Strategic Management Journal, Strategic Entrepreneurship Journal and Nature Biotechnology. He works as an expert witness and consultant for, among others, the Expert Commission for Research and Innovation, which advises the German federal government. He is a fellow of DRUID – Danish Research Unit on Industrial Dynamics – and a research associate at the Leibniz Centre for European Economic Research (ZEW).