small and large airport concession agreements march 2013
TRANSCRIPT
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Small and Large Airport Concession Agreements
March 2013
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Shared Ride at airports
Is inherently green, and……….
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It’s not easy being green!!
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Shared Ride at airports
Is inherently green Is an after thought (taxi’s, mass
transit) Can take up to 6 cars off the road Removes private cars from traffic
flow Reduces emissions Improves air quality
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Shared Ride at airports
Is non subsidized mass transit!!! Lower price point……. But goes door to door
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Common for all airports
Financial healthBe able to make investments
InsuranceState minimum is not enough
SafetyComprehensive plan
Experience
TechnologyDispatch and rez
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Exclusive– Too Small of a market to be financially
healthy• Nashville experience
– Provide an airport office to cut overhead
– Waiting area to build loads/ age the passenger.
– Curb space is minimum– Minimum signage……– But good location (not the back 40)
Small Airports
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Nashville case study
4 providers– One primarily military– Two to city areas– One convention hotel that provides the
service • The hotel has a ticket counter as you get to
baggage claim• Other 3 share a booth causing commodity
pricing
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Nashville
Nashville O&D 4.7 million Ridership was primarily
hotel/convention traffic Average fare was approximately $17 SS used vans, competitor used
Sprinters No one company had high density
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Nashville
Open transportation market Over 90 providers City attempted to pass an ordinance
to limit that number
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Nashville
At the same time airport was asked to put out an exclusive RFP
Airport would put out a RFP for door to door residential only – too small of a market
One carrier pulls out, one looks to sell citing losses
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Nashville
No RFP ever put out However, the transportation
ordinance passed!
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Large Airports
Multiple carriers without flooding the market– LA had 3, seems 2 is optimal– SF going through this process now– Usually many competitors (taxi, black
car, private bus, city bus etc)
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Large Airports
Maximum signage– ORD
Adequate curb space (multiple vans) Curb or airport staff (or both) Technology
– Kiosks– Boarding signs
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Orlando case study
13th largest airport-35 million passengers
Great transportation market– Largest rental car market
One dominant provider Underserved residential market MCO wants second provider to be
DBE Prior 2 DBE’s went out of business
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Orlando
Will not give a second contract to non DBE company
SS starts service using a reservations only system
Rides are matched remotely and communicated to passengers
Service to all areas
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Orlando
SuperShuttle carries approximately 15,000 passengers per month
Approximately 3 passengers per trip 50% go to residential areas All prepaid, pre arranged Not paying concession fee to MCO Only need is for curb space for
staging and walk up business
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A word on concession fees
The spirit of partnership– Both parties share in success– Structure fee, “the better I do the better
you do”– Fees should vary by market and market
density– How much market protection does the
airport really offer these days?
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Summary
Even though shared ride is sometimes overlooked as an important part of airport transportation solutions, as you know, it is green, it eases congestion, it is non-subsidized mass transit and can be a good source of revenue for airports.