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Small and Large Airport Concession Agreements March 2013.

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Presentation on theme: "Small and Large Airport Concession Agreements March 2013."— Presentation transcript:

1 Small and Large Airport Concession Agreements March 2013

2 Shared Ride at airports  Is inherently green, and……….

3 It’s not easy being green!!

4 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

5 Shared Ride at airports  Is non subsidized mass transit!!!  Lower price point…….  But goes door to door

6 Common for all airports  Financial health Be able to make investments Insurance State minimum is not enough Safety Comprehensive plan Experience Technology Dispatch and rez

7  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

8 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

9 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

10 Nashville  Open transportation market  Over 90 providers  City attempted to pass an ordinance to limit that number

11 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

12 Nashville  No RFP ever put out  However, the transportation ordinance passed!

13 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)

14 Large Airports  Maximum signage –ORD  Adequate curb space (multiple vans)  Curb or airport staff (or both)  Technology –Kiosks –Boarding signs

15 Orlando case study  13 th 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

16 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

17 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

18 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?

19 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.


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