Why Airports Need to Go Phygital Now

Airports are often called the first and last impression of a city. They’re more than just buildings with runways — they are bustling hubs where millions of passengers, staff, retailers, and services intersect every day. Yet, despite being some of the most complex ecosystems in the world, many airports remain surprisingly outdated in how they operate.

For many travelers, the airport experience still means:

• Standing in endless queues.
• Struggling with confusing layouts.
• Hunting for food and retail options under time pressure.
• Feeling cut off from the kind of convenience they get in everyday life.

And for airport operators? It means missed opportunities. Without the right systems, airports lose billions in untapped revenue, from retail sales to ancillary revenue solutions like transport and partner services.
In today’s digital-first world, this disconnect is no longer acceptable. Travelers demand more, and airports that can’t deliver are quickly being left behind. That’s why the time to go phygital is now.

The problem isn’t a lack of ambition — airports everywhere want to improve passenger satisfaction and grow revenues. The challenge is that most are held back by disconnected, siloed systems.

• The airport passenger experience is handled separately from operational systems.
• Retail, food, duty free, and transport all run on different platforms that don’t “talk” to each other.
• Marketing and advertising remain outdated, missing chances to capture attention in real time.

This disjointed approach frustrates passengers and makes it impossible for operators to maximize their return on investment. Worse, airports lose ground to competitors who are already embracing airport management technology to modernize their operations.
As the aviation industry rebounds from global disruptions, the airports that transform now will secure long-term loyalty and revenue growth. The ones that don’t risk falling permanently behind.

The term “phygital” combines physical and digital — but in the context of airports, it goes far beyond buzzwords. A phygital airport is one where every physical touchpoint is enhanced by digital convenience, creating a journey that is seamless, intuitive, and personalized.

Here’s what that looks like in practice:

• Smart Shopping: Passengers can browse products before they travel, use duty free pre order, or simply scan to order online while in the terminal. Purchases can be picked up later or delivered directly to their homes.
• Frictionless Check-In: Instead of waiting in line, travelers use smart self service kiosks, self checkout kiosks, or self service POS counters to check in, drop bags, and move through security faster.
• Stress-Free Navigation: Interactive maps and digital wayfinding guide passengers from parking to boarding gates, ensuring they never miss a flight.
• On-Demand Services: From Ground Transport Booking for taxis and rentals to reserving lounges, spas, or concierge services, everything is available at a tap.
• Connected Ecosystems: Through Travel Partner Ecosystem Integration, airports can offer seamless add-ons — hotel check-ins, city transfers, or even in-city shopping extensions.
• Contextual Engagement: Airports can push tailored Advertisements on Digital Platforms to passengers at the right time, creating highly effective upsell and cross-sell opportunities.
• Conveniences at Scale: Services like e-lockers, click-and-collect shopping, and automated baggage tracking become part of a connected ecosystem that enhances both passenger satisfaction and Revenue from New Services.

The phygital model ensures airports aren’t just transit points — they become lifestyle hubs where travelers spend more time, money, and attention.

From a traveler’s perspective, phygital airports transform stress into simplicity. Imagine this scenario:
You’ve just landed after a long-haul flight. Instead of rushing around looking for a taxi stand, your phone prompts you with a Ground Transport Booking option. With a few taps, you’ve reserved a ride that’s waiting by the time you exit.

While waiting for luggage, you scroll through the airport’s app, checking out Advertisements on Digital Platforms showing you limited-time offers on duty-free products. You place a duty free pre order, skipping the hassle of carrying extra bags — it’ll be delivered to your home.

Hungry? Instead of standing in a crowded food court, you use scan to order & deliver online through the airport food delivery app, and your meal is delivered right to your gate before boarding your connection.
This is more than convenience — it’s control, personalization, and peace of mind. And once passengers experience this, it becomes the new baseline for loyalty.

For airports, the value of going phygital extends far beyond passenger satisfaction.

1. Revenue Growth

• Upselling and cross-selling opportunities are multiplied when the right offers hit at the right time.
• Revenue Enhancement from Upsell & Cross Sell strategies boost average transaction size.
• New models like Revenue from New Services (e.g., e-lockers, concierge, in-city delivery) create additional profit streams.

2. Operational Efficiency

• A connected airport operations management system improves staff allocation, compliance, and service delivery
• Bottlenecks in check-in, baggage, and security are reduced, cutting costs and delays.

3. Commercial Optimization

• Digital platforms allow real-time Advertisements on Digital Platforms, maximizing value from retailers and concession partners.
• Ancillary revenue solutions extend the value of every passenger journey, both inside and outside the terminal.

4. Passenger Retention

• A smooth airport passenger experience builds loyalty and increases dwell time, translating directly into higher spend.

In short, phygital airports earn more, run smoother, and delight passengers — all at once.

This is exactly what Skateboard, GrayMatter’s flagship platform, delivers.

• A passenger app that doubles as a duty free pre order and airport food delivery app, while also offering gate-to-gate navigation, live flight updates, personalized offers, and loyalty rewards.
• Smart self service kiosks and self service POS terminals for frictionless check-ins, payments, and retail purchases.
• An operations hub that functions as a robust airport operations management system, ensuring compliance, staff efficiency, and real-time monitoring.
• AI-driven analytics for Revenue Enhancement from Upsell & Cross Sell, campaign optimization, market basket analysis, dynamic pricing, and unlocking Revenue from New Services.
• Integrated services like Ground Transport Booking for cabs, shuttles, and rentals, plus Travel Partner Ecosystem Integration covering hotels, parking, and in-city retail.
• Passenger conveniences such as e-lockers, click-and-collect shopping, lounge reservations, concierge services, and airport food delivery—all in one seamless interface.
• A marketing layer that enables airports to run Advertisements on Digital Platforms, connecting with passengers in context to boost engagement and returns.

Skateboard is more than technology. It’s a blueprint for airports to reimagine their future — one where every passenger touchpoint creates value, and every operational challenge turns into an opportunity.

Q1. What does “phygital” really mean in airports?
Phygital combines physical and digital touchpoints into a single seamless journey. For airports, this means blending kiosks, apps, payments, and services into one connected ecosystem — exactly what Skateboard enables.

Q2. How is this different from a regular airport management system?
Traditional systems handle operations, but rarely connect with the passenger side. Skateboard unifies both — delivering an advanced airport operations management system alongside a rich airport passenger experience platform.

Q3. Does going phygital mean huge hardware investments?
Not necessarily. Skateboard integrates with existing kiosks, POS systems, mobile apps, and partner services. Airports don’t need to rip out their infrastructure — Skateboard makes it smarter.

Q4. How does Skateboard improve revenue for airports?
Skateboard unlocks revenue through multiple streams: ancillary revenue solutions, Revenue Enhancement from Upsell & Cross Sell, targeted Advertisements on Digital Platforms, and Revenue from New Services like e-lockers, concierge, and transport booking.

Q5. Can passengers really order everything through one app?
Yes. With Skateboard, passengers can access duty free pre order, F&B, airport food delivery, Cab Booking, lounge reservations, and even partner services — all from a single app.