Optimizing Airport Revenue It’s All About The Bottom Line

Optimizing Airport RevenueOptimizing Airport Revenue

It’s All About The Bottom LineIt’s All About The Bottom Line

Presented byPresented by

Darrell BrantleyDarrell Brantley Asst. Manager of Ground Transportation ServicesAsst. Manager of Ground Transportation Services

Orlando International Orlando International AirportAirport

Ranked #1 in Ranked #1 in Customer Service for Customer Service for Large Airports Large Airports

Source: Airport Revenue News MagazineSource: Airport Revenue News Magazine

Ground Transportation ServicesGround Transportation Services

Employee ParkingEmployee Parking Ground TransportationGround Transportation

Administration of Towing ServicesAdministration of Towing Services

Mobile Food UnitsMobile Food Units

LeasedLeased ParkingParking

Distribution of LiteratureDistribution of Literature

Picketing AgreementsPicketing Agreements

Permit TypePermit Type # of Companies# of Companies # of Vehicles# of Vehicles•

C - ConcessionC - Concession 1 1 550 550 N - Non ConcessionN - Non Concession 194 194 1,230 1,230 P - Off Airport ParkingP - Off Airport Parking 3 3 28 28 R - Off Airport RACR - Off Airport RAC 16 16 140 140 S - Out of Town Shuttle 9S - Out of Town Shuttle 9 71 71 T - TaxiT - Taxi 5 5 446 446 V - Vehicle-for-HireV - Vehicle-for-Hire 390 390 1,362 1,362 TOTALTOTAL 618 618 3,827 3,827

PERMITSPERMITS

GT Revenue GT Revenue (Projected FY 2007)(Projected FY 2007)

On-Airport Rental CarsOn-Airport Rental Cars $37,000,000$37,000,000 Off-Airport Rental CarsOff-Airport Rental Cars $14,300,000$14,300,000 Commercial LaneCommercial Lane $4,900,000$4,900,000 Transportation Concessionaire Transportation Concessionaire $3,220,000$3,220,000 TaxicabsTaxicabs $1,500,000$1,500,000

Off-Airport ParkingOff-Airport Parking $$ 940,000940,000 Violations & Misc. FeesViolations & Misc. Fees $$ 60,00060,000

Total Annual GT Revenue Total Annual GT Revenue $61,920,000$61,920,000

Proposed Budgeted RevenuesProposed Budgeted Revenues$364,298,000$364,298,000

Orlando International AirportOrlando International AirportFY 2008FY 2008

RAC Fees & Rents

$54,606

Concessions

$33,457

Terminal Other

$15, 503Signatory Terminal Rents

$50,076

Signatory Landing Fees

$41,064

Other Rentals

$10,879Other Airfield

$17,958 Hotel

$38,198

Parking & GT

$66,174

PFC’s, Interest & Other

$36,383

9%

15%

18%

10%10%5%

3%

12%

14%4%

(In thousands)

6

Who are the Parking Who are the Parking Operators?Operators?

Off-Airport Parking ProvidersOff-Airport Parking Providers

Parking CompaniesParking Companies

Rental Car CompaniesRental Car Companies HotelsHotels

Off-Airport Parking OperatorsOff-Airport Parking Operators

Parking Parking 33 Rental Car & Parking Rental Car & Parking 55

Hotel & Parking Hotel & Parking 11

________

Total Off-Airport Parking Operators Total Off-Airport Parking Operators 99

Does the Airport receive a fair Does the Airport receive a fair share ?*share ?*

Parking Companies ? Parking Companies ? AlwaysAlways

Rental Car Operators ? Rental Car Operators ? Mostly Mostly

Hotels ? Hotels ? RarelyRarely

*Based on airport rules governing off-airport parking*Based on airport rules governing off-airport parking

Off-Airport Parking Revenue (fy Off-Airport Parking Revenue (fy 2007)2007)

ParkingParking $694,000 $694,000

RAC/PkgRAC/Pkg $240,000 $240,000

Hotel PkgHotel Pkg $ 6,000 $ 6,000

Total Total $940,000 $940,000

73%

26%1%

Why Should Airports GovernWhy Should Airports Govern Off-Airport Hotel Parking? Off-Airport Hotel Parking?

Reasons to Govern Hotel Reasons to Govern Hotel ParkingParking

Business derived from Airport PassengersBusiness derived from Airport Passengers

You Snooze, You Lose – “Airport Revenue”You Snooze, You Lose – “Airport Revenue”

Instills a Level Playing Field Among Parking Instills a Level Playing Field Among Parking CompetitorsCompetitors

Maintain Regulatory ComplianceMaintain Regulatory Compliance

What are some of the What are some of the challenges?challenges?

Requires research to identify hotels providing parking Requires research to identify hotels providing parking

Airport rules must require fees for parkingAirport rules must require fees for parking

Might prove to be labor intensive for AirportMight prove to be labor intensive for Airport

Other Service Providers Other Service Providers

Destination Management CompaniesDestination Management Companies

Resort Transportation ProvidersResort Transportation Providers

Cruise Line OperatorsCruise Line Operators

Who are the Destination Who are the Destination Management Companies?Management Companies?

Resort Transportation ProvidersResort Transportation Providers

Cruise Line OperatorsCruise Line Operators

Airport Revenue Received (fy Airport Revenue Received (fy 2006)2006)

Disney Magical Express Disney Magical Express $$ 962,000 962,000

Royal Caribbean CruisesRoyal Caribbean Cruises $$ 0 0

Carnival Cruise LineCarnival Cruise Line $$ 0 0

Holland America Cruise LineHolland America Cruise Line $$ 0 0

Destination Mgt. Companies Destination Mgt. Companies $$ 0 0

Why is it Important to Manage this Why is it Important to Manage this Activity?Activity?

What are the Benefits to the What are the Benefits to the Airport?Airport?

Provides a method to assess cost to industry based on passenger traffic Provides a method to assess cost to industry based on passenger traffic and space useand space use

Instills a level playing field among competitorsInstills a level playing field among competitors

Reinforces regulatory compliance by employee identification and customer Reinforces regulatory compliance by employee identification and customer service counter requirementsservice counter requirements

Provides a positive image of the airport for travelersProvides a positive image of the airport for travelers

Optimizes Airport RevenueOptimizes Airport Revenue

What are some of the What are some of the challenges?challenges?

Requires Research & Analysis, Public Hearings, & Requires Research & Analysis, Public Hearings, & Rule AmendmentsRule Amendments

Industry Resistance to FeesIndustry Resistance to Fees

Must have infrastructure to accommodate the usersMust have infrastructure to accommodate the users

September 2007September 2007

Orlando International AirportOrlando International AirportOrlando International AirportOrlando International Airport

Authority Staff ChallengesAuthority Staff Challenges

Coordinate Projects & AgreementsCoordinate Projects & Agreements

Define “New” Business SegmentsDefine “New” Business Segments

Modify Infrastructure Modify Infrastructure

Study & Analysis for Public HearingsStudy & Analysis for Public Hearings

Implement Business Plan (2009)Implement Business Plan (2009)