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Optimizing Airport Revenue Its All About The Bottom Line Presented by Presented by Darrell Brantley Darrell Brantley Asst. Manager of Ground Transportation.

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Presentation on theme: "Optimizing Airport Revenue Its All About The Bottom Line Presented by Presented by Darrell Brantley Darrell Brantley Asst. Manager of Ground Transportation."— Presentation transcript:

1 Optimizing Airport Revenue Its All About The Bottom Line Presented by Presented by Darrell Brantley Darrell Brantley Asst. Manager of Ground Transportation Services Asst. Manager of Ground Transportation Services

2 Orlando International Airport Ranked #1 in Customer Service for Large Airports Ranked #1 in Customer Service for Large Airports Source: Airport Revenue News Magazine Source: Airport Revenue News Magazine

3 Ground Transportation Services Employee Parking Ground Transportation Ground Transportation Administration of Towing Services Administration of Towing Services Mobile Food Units Leased Parking Distribution of Literature Picketing Agreements

4 Permit Type # of Companies # of Vehicles Permit Type # of Companies # of Vehicles C - Concession C - Concession N - Non Concession 194 1,230 N - Non Concession 194 1,230 P - Off Airport Parking 3 28 P - Off Airport Parking 3 28 R - Off Airport RAC R - Off Airport RAC S - Out of Town Shuttle 9 71 S - Out of Town Shuttle 9 71 T - Taxi T - Taxi V - Vehicle-for-Hire 390 1,362 V - Vehicle-for-Hire 390 1,362 TOTAL 618 3,827 TOTAL 618 3,827 PERMITS

5 GT Revenue (Projected FY 2007) On-Airport Rental Cars$37,000,000 On-Airport Rental Cars$37,000,000 Off-Airport Rental Cars$14,300,000 Off-Airport Rental Cars$14,300,000 Commercial Lane $4,900,000 Commercial Lane $4,900,000 Transportation Concessionaire $3,220,000 Transportation Concessionaire $3,220,000 Taxicabs$1,500,000 Taxicabs$1,500,000 Off-Airport Parking $ 940,000 Off-Airport Parking $ 940,000 Violations & Misc. Fees$ 60,000 Violations & Misc. Fees$ 60,000 Total Annual GT Revenue $61,920,000 Total Annual GT Revenue $61,920,000

6 Proposed Budgeted Revenues $364,298,000 Orlando International Airport FY 2008 RAC Fees & Rents $54,606 Concessions $33,457 Terminal Other $15, 503 Signatory Terminal Rents $50,076 Signatory Landing Fees $41,064 Other Rentals $10,879 Other Airfield $17,958 Hotel $38,198 Parking & GT $66,174 PFCs, Interest & Other $36,383 9% 15% 18% 10% 5% 3% 12% 14% 4% (In thousands) 6

7 Who are the Parking Operators?

8 Off-Airport Parking Providers Parking Companies Parking Companies Rental Car Companies Rental Car Companies Hotels Hotels

9 Off-Airport Parking Operators Off-Airport Parking Operators Parking 3 Parking 3 Rental Car & Parking 5 Rental Car & Parking 5 Hotel & Parking 1 ____ Hotel & Parking 1 ____ Total Off-Airport Parking Operators 9 Total Off-Airport Parking Operators 9

10 Does the Airport receive a fair share ?* Does the Airport receive a fair share ?* Parking Companies ? Always Parking Companies ? Always Rental Car Operators ? Mostly Rental Car Operators ? Mostly Hotels ? Rarely Hotels ? Rarely *Based on airport rules governing off-airport parking *Based on airport rules governing off-airport parking

11 Off-Airport Parking Revenue (fy 2007) Parking $694,000 Parking $694,000 RAC/Pkg $240,000 RAC/Pkg $240,000 Hotel Pkg $ 6,000 Hotel Pkg $ 6,000 Total $940,000 Total $940,000

12 Why Should Airports Govern Off-Airport Hotel Parking?

13 Reasons to Govern Hotel Parking Business derived from Airport Passengers Business derived from Airport Passengers You Snooze, You Lose – Airport Revenue You Snooze, You Lose – Airport Revenue Instills a Level Playing Field Among Parking Competitors Instills a Level Playing Field Among Parking Competitors Maintain Regulatory Compliance Maintain Regulatory Compliance

14 What are some of the challenges? Requires research to identify hotels providing parking Requires research to identify hotels providing parking Airport rules must require fees for parking Airport rules must require fees for parking Might prove to be labor intensive for Airport Might prove to be labor intensive for Airport

15 Other Service Providers Destination Management Companies Destination Management Companies Resort Transportation Providers Resort Transportation Providers Cruise Line Operators Cruise Line Operators

16 Who are the Destination Management Companies?

17 Resort Transportation Providers

18 Cruise Line Operators

19 Airport Revenue Received (fy 2006) Disney Magical Express $ 962,000 Disney Magical Express $ 962,000 Royal Caribbean Cruises$ 0 Royal Caribbean Cruises$ 0 Carnival Cruise Line$ 0 Carnival Cruise Line$ 0 Holland America Cruise Line$ 0 Holland America Cruise Line$ 0 Destination Mgt. Companies $ 0 Destination Mgt. Companies $ 0

20 Why is it Important to Manage this Activity?

21 What are the Benefits to the Airport? Provides a method to assess cost to industry based on passenger traffic and space use Provides a method to assess cost to industry based on passenger traffic and space use Instills a level playing field among competitors Instills a level playing field among competitors Reinforces regulatory compliance by employee identification and customer service counter requirements Reinforces regulatory compliance by employee identification and customer service counter requirements Provides a positive image of the airport for travelers Provides a positive image of the airport for travelers Optimizes Airport Revenue Optimizes Airport Revenue

22 What are some of the challenges? Requires Research & Analysis, Public Hearings, & Rule Amendments Requires Research & Analysis, Public Hearings, & Rule Amendments Industry Resistance to Fees Industry Resistance to Fees Must have infrastructure to accommodate the users Must have infrastructure to accommodate the users

23 September 2007 Orlando International Airport

24 Authority Staff Challenges Coordinate Projects & Agreements Coordinate Projects & Agreements Define New Business Segments Define New Business Segments Modify Infrastructure Modify Infrastructure Study & Analysis for Public Hearings Study & Analysis for Public Hearings Implement Business Plan (2009) Implement Business Plan (2009)


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