NCR Corp. (NCR) recently provided its TouchPort check-in kiosks to Ordos Ejin Horo Airport in China and AviancaTaca, a Latin American airline. Financial details of the deals were not divulged.
Both AviancaTaca and Ordos Ejin Horo Airport will use the kiosks to handle growing number of passengers. AviancaTaca is continually adding new planes and routes, which have increased its passengers and ultimately called for a need to deploy check-in kiosks to avoid congestion at the counters.
The Ordos Ejin Horo Airport, which serves 10 airlines and currently manages roughly 1 million passengers per year, also intends to provide its passengers with self-check-in facilities and flight information. Passengers can also change seats, check itineraries and print boarding passes through a single platform.
The NCR TouchPort check-in solution is expected to enhance AviancaTaca and Ordos Ejin Horo Airport customers’ travel experience and eventually boost its revenue stream. The solution will also free up employees handling the check-in process, allowing them to serve customers with more complex travel needs.
The airline industry is growing by leaps and bounds to keep pace with increasing passenger demand. Hence, a faster check-in system is necessary to avoid a bottleneck at the counters and serve passengers efficiently. We think that this would provide a good business opportunity for NCR TouchPort, going forward.
NCR has been serving the travel industry for quite some time. The rich industry exposure helps it to deliver products and services needed to satisfy changing demands. During the recently concluded fourth quarter 2012, NCR witnessed strong momentum in its travel business supported by solid order growth. The company also expects the momentum to continue in 2013.
Though NCR’s grip into the travel space is solid, we think similar offerings from IBM Corp. (IBM) could curb NCR’s growth prospects.
Currently, NCR Corp. has a Zacks Rank #2 (Buy). Investors can also consider other technology stocks such as Concurrent Computer Corp. (CCUR) and Faro Technologies Inc. (FARO), which carry a Zacks Rank #1 (Strong Buy).
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