1. ACI ASQ Passenger Satisfaction Report First Quarter 2016
Good morning, commissioners. Last year, we briefed you on our initiative to build an LAXceptional Xperience airport-wide brand, as well as our action plan, to enhance the guest experience. An important part of our action plan was a guest satisfaction survey to help us identify guest priorities, make the enhancements that are most important to our guests, monitor performance, and track improvements airport-wide. This data is extremely important because we cannot manage what we do not measure!
ACI ASQ Passenger Satisfaction Report First Quarter 2016

2. Passenger Satisfaction Report LAX – Airport Performance
Q1 2016
To get all of this important guest feedback, we participated for the first time in the Airports Council International (ACI) Airport Service Quality (ASQ) survey. This is a standardized survey that measures airports around the world. It specifically measures passenger satisfaction while they travel through the airport.
We recently received our first quarter results and today I’d like to share them with you, recognizing that as we conduct the survey throughout the year, we will have a more complete picture of our performance taking into account seasonality and peak traffic periods.
© 2016 ACI

3. Methodology at a Glance for LAX
Standardized benchmarking survey; 267 participating airports worldwide
ASQ has existed for 10 years; first year LAX is participating
First quarter = January, February, March 2016
1,839 intercept surveys in boarding gates in all terminals
55 questions regarding service-related topics, satisfaction and passenger demographics
Self-completed paper questionnaires by randomly selected passengers
Covers all operating hours of the airport. Each day of the week is evenly distributed.
Scale of 1 (poor) to 5 (excellent)
But first, I’d like to share a little background about ASQ, which was conducted in January, February, and March, and its methodology:
ACI ASQ is the only benchmarking program/survey that measures guest satisfaction WHILE passengers are at the airport. Other surveys (like Skytrax, JD Powers, etc.) take place after the travel is completed. ASQ has been around for 10 years and this is the first year that LAX is participating, so this is an important milestone for us.
More than 1800 in-person surveys were conducted in the gate areas in all terminals. They are self-completed by randomly selected passengers.
You all have a copy of the actual questionnaire. There are 55 questions.
They are asked about basic demographic information related to their profile as well as 34 items about specific service related topics and their overall satisfaction.
It covers all hours of the airport and each day of the week is evenly distributed.
The scale is 1 to being best. Because ASQ uses a five-point scale, differences of only .2 or .3 can be quite significant.
© 2016 ACI
Airport Performance - Q1 2016

4. LAX – Airport Performance Focus on Q1 2016 – Mean Scores by Category
Base
n = 1765
n = 1130
n = 1396
n = 1462
n = 1669
n = 1839
n = 1827
So here are our scores on a 1 to 5 scale. . .
The results can be sliced and diced in many ways, but this slide shows you that overall satisfaction was 3.73 – again 5 being best. These scores reflect the main categories of the ASQ:
Access Check-in Passport/Personal ID control Security Wayfinding
Facilities
Environment Arrivals
Our highest-scoring category is the check-in process and our lowest score is airport facilities.
n = 1820
n = 1230
Notes:
Responding to all questions is not mandatory, the number of respondents could be different from one category to another.
To calculate the mean score within a category, each item has been considered with the same importance
Base is Respondents providing a valid response
© 2016 ACI
Airport Performance - Q1 2016

5. LAX – Airport Performance Focus on Q1 2016 – Mean Scores by Rated Item
Overall
Satisfaction
Access
Check-in
Passport Control
Security
Finding Way
Airport Facilities
This next slide takes each of those categories and gives you a more detailed breakdown. It allows us to see how the total score for each category is made up of more detailed scores.
For example:
In the third category down Check-in We received a 3.96 for check-in waiting time A 4.11 for efficiency of check-in staff And a 4.14 for courtesy of check-in staff. Together, these three scores make up the average of 4.07 for our overall check-in scores which was on the prior slide.
Our highest component score was 4.08 for a safe and secure feeling in the security category which had an overall score of 3.96 which indicates the dampening effect of security waiting time (3.80)on overall satisfaction with security.
We will be analyzing this kind of data to understand the drivers of guest satisfaction and where our best opportunities for improvement lie.
Airport Environment
Arrivals Services
* Other may include Education, Family visit, Religious events, etc.
© 2016 ACI
Airport Performance - Q1 2016

6. LAX – Airport Performance Focus on Q1 2016 – Mean Scores by Segment
Base
n = 1765 A B C D E F G H I J B
n = 534
n = 1231
n = 472 C
n = 953 CD
n = 340
n = 657
This chart gives you a breakdown of the types or segments of passengers surveyed and their satisfaction with the airport experience.
International guests are more satisfied than our domestic guests.
Leisure guests are more than business guests, which might surprise some people.
Non-connecting guests are more satisfied than connecting guests.
Economy class guests are more satisfied then business class who are more satisfied than first class guests. (May be due to expectations?)
Based on these segments, if, for example, you wanted to know restroom ratings for international female passengers who were traveling for leisure in economy class, the ASQ results can provide that level of detail. F
n = 1046
n = 67
n = 139 HI
n = 1523
Notes:
“*X” letter designations indicate that the segment’s performance is higher than the segment identified by the letter at a statistically significant level (95%).
Base is Respondents providing a valid response
* Other may include Education, Family visit, Religious events, etc.
© 2016 ACI
Airport Performance - Q1 2016

7. LAX– Airport Performance Top 5 Most Important Items
Base
n = 1450
TOP 5 Most Important Items
This slide is particularly useful because it starts to give indications of the drivers of guest satisfaction. This slide shows the top 5 answers to the question:, “What are the things that are most important to you at this airport?”
The top five answers are: Wayfinding Check-in wait times Internet access Security wait-times
Cleanliness of restrooms So, for now we consider these five things to be indicators of the key drivers of guest satisfaction, meaning that if we make improvements in these areas, we have a greater chance of our overall guest satisfaction scores increasing.
At the end of the year, we will have a more detailed analysis of the drivers of guest satisfaction provided by ACI which will allow us to make even better decisions on the optimal opportunities to enhance the guest experience.
Notes:
Top 5: from Q8: “Which of the items listed in Question 7 are the 1st / 2nd / 3rd most important to you at this airport?”
The figures represent the number of respondents who mention the item.
Base is Respondents providing a valid response
© 2016 ACI
Airport Performance - Q1 2016

8. This last slide is to show that comparable data about how we rank against other airports is also available from ACI ASQ.
The first column is exclusively LAX – 3.73 overall satisfaction
The second column is how all 267 participating airports scored on average including all sizes of airports (4.14 overall satisfaction).
The third column are the rankings for all large airports on average, including LAX – 4.23 overall satisfaction.
And the last column is the ranking for the best airport in the world – 5.00 overall satisfaction.
In the airport size category (third from the end), the difference between 3.73 and 4.23 may look small, but it is a significant move forward and will require a concerted effort on the part of LAWA and the LAX airport community.
The good news is we know where we currently stand and we can measure our performance as we complete our capital construction, optimize our operations, train our airport staff, and enhance the services provided to our guests.

9. Engaged Employees and Partners
Guest First
Happy Guest
Informed Guest
Ambiance and Feeling
Engaged Employees and Partners
Guest Delight
Policy Integration
So now that we have all this data and new insight What do we do with it? That’s really where the value of this data it. How do we take this feedback from our guests and use it to move the guest satisfaction needle?
For one, we have tied the survey results into our action plans for Years 1 and 2, which were created at workshops held with a cross-section of employees. We are meeting with senior managers, as well as designated employees, to share the survey results and obtain commitments about what can be done to improve guest satisfaction.
We are also sharing this data with our tenant partners and we will work closely with them to move the guest experience needle. We plan to have these discussions on a quarterly basis.
A recent study of best practices used by US airports to improve guest satisfaction has confirmed that using guest feedback to enhance guest satisfaction is a winning strategy and we are confident that our decisions will be more impactful on the LAX experience as we do the same.
Things on the horizon for the Board: I am happy to report that we are on target to fulfill each of the items within our Year 1 plan which supports our LAXceptional Xperience strategic roadmap represented in this slide.
As you recall, the ASQ survey supplemented by a proprietary survey to be conducted for LAWA by Unison on an as-needed basis, were major components of our Year 1 action plan.
The other major components were airport-wide training and performance management tools like mystery shopping. I will be back this summer to present you with the proposed vendors for these two components, as well as a contract for AiRadio as a means of keeping our guests informed, which is one of our strategies to improve the guest experience as highlighted in this slide.
You will note that one of the circles in our strategic roadmap is the informed guest, so I will turn this over to Mary Grady to talk about how she and her team are keeping our guests informed as they navigate through all the construction going on.
LAXceptional Xperience Strategic Roadmap

10. Renovation Efforts Awareness
Awareness of LAX Modernization and Renovation Efforts
Are you aware that LAX has been undergoing a renovation/modernization effort?
Renovation Efforts Awareness
The new Tom Bradley International Terminal
41%
All new local restaurants at LAX
34%
New and improved shopping experiences at LAX
29%
Terminal 1 Renovations
27%
New LED street lighting and roadway improvements
26%
Elevator, Escalator and Moving Walkway Modernization
24%
Improving and automating the security screening of checked baggage at all LAX terminals
23%
Terminal 5 Renovations
22%
Terminal 2 Improvements
21%
Terminal 4 Connector
Terminal 7 & 8 Renovations
Runway construction as mandated by the federal government
19%
Terminal 6 Renovation
17%
Access improvements for persons with disabilities
14%
New energy-efficient Central Utility Plant 9%
Other 3%
We are nearing the end of our 3rd year of the LAX is Happening Capital Improvement Public Education campaign designed to inform and inspire travelers. To measure awareness of the campaign and modernization efforts, we conducted a survey.
To put the results into context, we compared the “like” results to those from a 2011 survey which is the closest study we have to a benchmark in assessing the awareness of the LAX modernization efforts.
Survey Methodology: The 2011 survey was a 700-person phone survey. The 2016 Awareness survey was a 700-person survey conducted online and using iChat.
Results of the 2011 survey found only 37% had any awareness of improvements being made at LAX.
Our most recent survey, more than three quarters, or 78% are aware of the renovation and modernization projects at LAX. The highest level of awareness was for the new Tom Bradley International terminal…followed by new concessions.
(Total (700), Those aware of renovation/modernization efforts (544)

11. 70% of those aware of the renovations say they took action
Awareness = Action
Action Taken | Those Aware of Modernization
70% of those aware of the renovations say they took action
Left for the airport early/planned ahead
Spoke to a friend, family, and/or co-worker about the improvements at LAX
Used the information in a visit to LAX
Visited the lawa.org website
Visited laxishappening.com
Posted/shared something about the updates on social media
None of the above
One of the goals of our Public Education and Communication outreach was, as a direct result of our campaign and marketing efforts, to change behavior.
Of those aware of renovation/modernization efforts, 70% say the awareness led to action:
42% left for the airport early…planned ahead.
39% communicated the improvements to friends or family.
Nearly 20% went to the LAX or LAX is Happening website for more information…
and others shared something about the improvements on Social Media.

12. Campaign Message Clearly Understood
Understanding | Campaign Recognizers
“Very attractive graphics and easy to understand.”
How easy was it to understand what this advertising is communicating?
Top 2 Box: 94%
“I mainly understood that construction was happening and would continue for some time. I could tell that LAX was modernizing its facility.”
Key Takeaway: The results of the LAX is Happening campaign and related public outreach efforts increased awareness of the modernization by more than double, when compared to the 2011 survey results.
We used every resource possible to spread the word, to “inform and inspire.” Of those most recently surveyed, 94% found the LAX is Happening campaign quite or very easy to understand.
When asked what the campaign was communicating...the response that stood out:
“the airport improvements are for our benefit”
Of those surveyed, Total Campaign Recognizers (412)
“I saw it months ago, the message clearly is that the airport improvements are for our benefit.”

13. Awareness of LAXisHappening.com = Plan Ahead
How frequently have you visited the LAXisHappening.com website?
Have visited: 80%
“I briefly visited it after seeing it referenced here! I will be checking it prior to future trips to LAX. I find it interesting. It mentions aspects of which I was not aware. I may aim to arrive earlier for flights to check out some of the facilities mentioned.”
-Frequent Traveler, Aware of Modernization, Male, 35-54
The LAX is Happening campaign has a strong role in awareness.
Of those familiar with the LAX is Happening website, 44% say they have visited either a few times….with 14% indicating they use it regularly.
The survey results show us that the LAX is Happening messaging is successful communicating not only our efforts to modernize LAX, but the benefits for travelers.
In addition, the campaign was liked and seen as positive with a modern feel.

14. In Summary
Awareness of the LAX modernization effort is high – support the renovation
In 2016, awareness of the modernization is more than double compared to the 2011 survey
The LAX is Happening campaign has a strong role in awareness
The campaign reached more than half of those within the 15 mile LAX radius (or outlying cities), clearly communicating not only the efforts, but the positive impact it would have on travelers
In addition, the campaign was liked and seen as positive with a modern feel
Beyond simply knowing about the renovations, awareness did lead to action, especially among those who saw the campaign
The overwhelming majority of recognizers used the information, speaking to others and planning ahead when traveling
Compared to the 2011 survey, awareness of the LAX improvements has increased considerably since starting the Public Education Communication campaign.
The campaign reached more than half of those within the 15 mile LAX radius (or outlying cities), clearly communicating not only the efforts, but the positive impact it would have on travelers
Beyond simply knowing about the renovations, awareness did lead to action, especially among those who saw the campaign
The overwhelming majority of recognizers used the information, speaking to others and planning ahead when traveling