ACRP 01-35 Transportation Network Companies (TNCs): Impacts to Airport Revenues and Operations
Summary of Results for:Task 3 – Airport Survey and Model DevelopmentTask 4 – Best Practices and Operational Configurations
Senior Program Officer: Theresia H. SchatzContractors: Ricondo and RSGPrincipal Investigator: Craig Leiner
Contents
• Project Objectives
• Task 3 Summary Slides
• Task 4 Summary Slides
• Conclusion
Project Objectives
Develop a reference guide for airport practitioners that will:• Identify strategies for adapting airport landside access
programs to reflect the evolution of ground transportation modes (e.g., TNCs and autonomous vehicles)
• Assess TNC impacts on other airport revenues and operations (e.g., parking and rental cars)
• Provide analysis for both a current timeframe and a projected 5- to 10- year outlook.
Additional information at:https://apps.trb.org/cmsfeed/TRBNetProjectDisplay.asp?ProjectID=4415
Task 3
Data Collection, Airport Survey, and Model Development
Task 3 | Objectives
• Conduct data collection from a diverse, large cross-section of airports; compile data on TNC trip attributes, including pricing, airport parking activity and revenues.
• Prepare a searchable statistical database
• Prepare aggregate and disaggregate mode share models
Task 3A- Airport Survey | Response
Strong response from airports
• 50 full participants from top 100 US airports by enplanements
• Large Hub: 22 – 44%• Medium Hub: 13 – 26%• Small Hub: 15 – 30%
• Good geographic cross-section
Task 3A- Airport Survey | Permits
TNC permitting activity peaked in 2015, with Uber and Lyft now permitted at most airports• In 2015, approximately 1/3 of all surveyed airports signed drop-off
and/or pick-up agreements with Uber and/or Lyft• As of 2018, approximately 90% of surveyed airports have permits in
place with the two main TNCs• As of 2018, Wingz permitted at about one-third of large hub airports
TNC (% PERMITTED) LARGE HUB MEDIUM HUB SMALL HUB ALL AIRPORTS*
Uber 82% 92% 93% 88%
Lyft 82% 92% 100% 90%
*Unweighted results
Task 3A- Airport Survey | Fees
TNC per-trip fees vary by airport size; fees increasing at many airports
• Airports increasing fees to:• Cover costs of TNC-related enforcement and investments• Make up for revenue lost from other ground transportation
(e.g. parking)• More generally, tap into a new and growing revenue stream
MEAN FEE ($) LARGE HUB MEDIUM HUB SMALL HUB ALL AIRPORTS*
Drop-off $3.40 $2.30 $1.80 $2.70
Pick-up $3.50 $2.60 $2.00 $2.80 *Unweighted results
Task 3A- Airport Survey | Investments
Larger airports, particularly, have needed to make capital investments to keep up with TNC demand
• TNC growth has required airports to be both nimble (re-assigning curb space and re-locating staging areas) and forward-thinking (major capital investments to support TNCs)
INVESTMENTS/OPERATIONAL CHANGES LARGE HUB MEDIUM HUB SMALL HUB ALL
AIRPORTS*
Made landside capital investments due to TNCs 82% 38% 40% 58%
Have changed pick-up/drop-off locations of other modes due to
TNC presence45% 23% 13% 30%
Developed dedicated staging lot for TNCs 82% 62% 60% 70%
*Unweighted results
Task 3A- Airport Survey | OperationsCATEGORY LARGE MEDIUM SMALL*
Primary drop-off locations76% designate the private vehicle departure/ticketing curb; 19% designate private vehicle/baggage claim curb.
75% designate the private vehicle departure/ticketing curb; the others have designated the private vehicle/baggage claim curb and commercial vehicle only locations on both departure and arrival levels.
73% designate the private vehicle departure/ticketing curb; 27% designate private vehicle/baggage claim curb.
Primary pick-up locations
45% designate private vehicle/baggage claim curb; 32% designate the departures level curb; the rest designate commercial vehicle only curbs or nearby parking structures/lots.
45% designate private vehicle/baggage claim curb; 31% designate the departures level curb.
40% designate private vehicle/baggage claim curb; 33% designate commercial vehicles only departures level curb.
Has TNC presence led to change in pick-up/drop-off locations of other modes?
45% 23% 13%
TNC staging lot location mean number of spaces
82% dedicated lot; 9% combined taxi + TNC lot222 spaces
62% dedicated lot; 8% combined taxi + TNC lot 74 spaces
60% dedicated lot; 7% remote lot29 spaces
Rematch status52% do not allow; 38% allow with some restrictions; 10% allow with no restrictions.
58% do not allow; 8% allow with some restrictions; 33% allow with no restrictions.
33% do not allow; 13% allow with some restrictions; 53% allow with no restrictions.
Operational requirementsMost airports designate specific pick-up and drop-off curbs, require display of trade dress, and place a limit on dwell time in staging areas; just over a third require criminal background checks; and 9% of large hubs have a vehicle fuel-efficiency requirement.
Geofences Nearly all airports have one or more geofences in place.
Areas defined by geofence Large and medium hubs geofence much of the airport property, as well as specific areas (e.g., staging lot, specific terminal areas); small hubs are more likely to geofence specific terminal areas.
Have TNCs impacted landside operating costs? Yes: 91% Yes: 62% Yes: 27%Has there been a TNC impact on roadways, curbs, crosswalks? Yes: 86% Yes: 85% Yes: 60%
Level of TNC wayfinding 64% have signage equivalent to that of parking or other ground access modes; 23% have no TNC-related wayfinding.
54% have signage equivalent to that of parking or other ground access modes; 46% have no TNC-related wayfinding.
67% have signage equivalent to that of parking or other ground access modes; 7% have no TNC-related wayfinding.
Task 3A- Airport Survey | Interviews/Summary
Follow-up interviews confirmed prevalent themes and concerns:
• Congestion is a major concern• At curb, in staging areas, and on all airport roadways
• Revenue is not yet a concern for all (TNC fees making up for parking losses at some airports)
• Difficulty of capital planning for the unknown• How high will TNC mode shares go?• How to build out and allocate ground transportation physical
resources (e.g., curb space)• “Future-proof” ground access infrastructure investments
Task 3A- Airport Survey | Dataset
Survey yielded a searchable, statistical database of all responses• Allows user to tabulate and cross-tabulate all survey data• Spreadsheet also includes descriptions of all survey variables
and values (i.e. survey questions and their answer options)• Variables which readily allow airport identification have been
scrubbed to comply with survey anonymity policy
Task 3B | Aggregate TNC Mode Share Model
The model showed that a few key “macro” factors correlate to TNC share; aggregate data of this type do not allow detailed analysis of the effects of modal alternatives, prices, and service levels on TNC mode shares
• Modeled data from 24 airports with TNC mode share data
• Found significant correlation between TNC mode share and:• Airport size (passenger origins)• Parking rates
• Disaggregate mode choice models will examine modal pricing and service tradeoffs
Task 3C | Disaggregate Mode Choice Models
Task currently underway; models will provide key insights into TNC use and mode choice behavior
• Modeling mode choice at two airports: DCA and SFO
• Models based upon revealed preference data from recent ground access surveys and other sources
• Demand elasticity: what does the model tell us about…• TNC fees• Parking rates• Traveler behavior
Task 4
Best Practices and Operational Configurations of TNCs
• Identify the curbside impacts of TNCs; analyze the effect of TNC operations on access roads and curbside pedestrian movements.
• Identify best practices for locating TNC passenger pick-up and drop-off activities. Review and summarize information obtained from surveyed and other airports, as available, on the types of commercial vehicle fees, business arrangements, basis for establishing these fees and other issues involved with implementing these arrangements.
• Examine near-term issues, such as curbside management and assignment of parking areas, and long-term issues, like the development of parking garages and the basic layout of the airport.
Task 4 | Objectives
Task 4 | Permits, Regulations, and FeesAIRPORT TNC TAX/FEE NOTES BEST PRACTICE
BOS $3.25 (pick-up only) State law allows airport to require Criminal Offender
Record Information (CORI) and sex offender checks. Considering charging drop-off fee. HOV policy can be used to influence mode share.
Conduct robust background checks.
DEN $5.20 total ($2.60 pick-up and drop-off)
Rematch is allowed; it reduces roadway traffic; reduces demand for space in hold lot; and improves customer service (shorter wait times).
Collect both a drop-off and pick-up fee.
Allow rematch.
DFW $10 total ($5 pick-up and drop-off) $600 annual permit fee
Major recent adjustment in curb management: only active loading/unloading allowed.
$3 of trip fee paid by company; $2 by driver. Collect both a drop-off
and pick-up fee.
LAX $8 total ($4 pick-up and drop-off) $1,000 activation fee
Rematch permitted. $200 per violation of rules and regulations.
Collect both a drop-off and pick-up fee.
Allow rematch.
DCA and IAD
(MWAA)
$8 total ($4 pick-up and drop-off) $5,000 activation fee
Applies to DCA and IAD. Permits were issued to TNC companies (Uber and
Lyft), not to individual TNC drivers. Failure to follow MWAA regulations can result in Notices of Violation, with fines up to $250 per occurrence, applied against the permit holders.
Collect both a drop-off and pick-up fee.
RNO $1.00 (pick-up only) Rematch allowed only if hold lot is empty. Use rematch to
manage TNC supply.
SEA
$6.00 (pick-up only) Tiered activation fee: $50,000 to $100,000
Trip fee is set in an attempt to “level playing field” with taxis.
Environmental/fuel efficiency goal MPG >45: most TNCs are hybrids.
Rematch permitted. TNCs have the option of paying a pick-up or drop-off
fee (i.e., split the $6.00 into two $3.00 charges). All chose to pay the $6.00 fee.
Set trip fee in context with other commercial ground access services.
Allow rematch. Establish
environmental/fuel efficiency policy.
SFO
$5.00 at terminal curbside
$3.60 at nearby terminal area garage Activation fee based on pre-permit trips.
Transit First policy. Two pick-up locations to manage curb activity.
Differentiated trip fee depending on location.
If a fee is much higher for curbside pickup, airports could get many pickups to move to a garage but leave a "premium" option for curbside.
SOURCES: Transportation Research Board, ACRP 01-35, Airport Survey, June 2018, RSG; Airports CouncilInternational–North America, Survey of Airport Trip Fees, August 2018; Airport Ground TransportationAssociation, 2018 Ground Transportation Vehicle Fees and Fares Survey, March 2018.
Task 4 | Permits, Regulations, and Fees
Cost recovery is the prevailing
TNC fee approach at large-hub
airports
HUB CATEGORY FEE TYPE MIN MAX MEAN
LargeDrop-off $2.00 $5.00 $3.40
Pick-up $1.50 $6.00 $3.50
MediumDrop-off $1.00 $3.00 $2.30
Pick-up $1.00 $3.25 $2.60
SmallDrop-off $1.25 $2.00 $1.80
Pick-up $1.00 $3.50 $2.00
TOPIC LARGE MEDIUM SMALL
Method used to establish trip fee Cost recovery 42% 25% 13%Market-based 32% 33% 53%In accord with state, municipal, or other enabling legislation 15% 17% 20%
No response 11% 25% 14%
TNC revenue earmarked 16% 17% 7%
Have made capital investments due to TNCs 82% 38% 40%
Mean fees cluster around $3.50 at the large hub airports, $2.50 at medium-hubs, and $2.00 at
small-hubs.
SOURCE: Transportation Research Board, ACRP 01-35, Airport Survey, June 2018, RSG.
The research team conducted supplemental telephone and on-site interviews with eightairports, two TNC companies, multiple TNC drivers, and several industry organizations.The objective was to develop a thorough up-to-date understanding of salient issues,policies, and practices related to TNC management.
• Airport managers tended to focus on themes relating to curb operations, hold lot capacityand location, and the impact of renovations and major capital improvements on curbmanagement and customer service.
• The TNC companies highlighted wayfinding (for both drivers and passengers), location andcondition of hold lots, and a desire for reasonable data reporting and background checkrequirements.
• TNC drivers focused on hold lot management and amenities, as well as challenges relatedto efficient passenger pick-up.
Task 4 | Check-in with airport operators, TNC companies and drivers, and industry organizations
THEME AIRPORT TNC INDUSTRY
Recalibrating pick-up and drop-off locations -Revising staging area locations and capacity -Enforcing rules and regulations - -Impact of renovations / capital improvements - -Safe and secure customer service: driver background checks and training; pax wayfinding Relationships -Program audits, compliance, and trip reporting
Landside managers, ground transportation planners, capital improvement directors, legal staff, and financial officers have been challenged to respond to the burgeoning role of TNCs.
As evidenced by the comments expressed in the airport interviews, many key issues persist:• managing curb congestion and enforcing permit conditions• supervising and managing staging areas: location, dwell times, amenities, and
capacity• balancing changes in mode share: reassigning curbs, relocating hold lots,
revising fees• reassigning pick-up and drop-off locations due to major terminal renovations
and capital improvements• ensuring safe and secure customer service: driver background checks and
training; passenger wayfinding• developing constructive relationships with TNC companies• conducting program audits and ensuring the accuracy of trip reporting
Best Practices | Check-in with airport operators
Task 4 | Operations, Management, and WayfindingDESCRIPTION BEST PRACTICE NOTES
Recalibrate pick-up and drop-off locations
Flex between Departures and Arrivals levels to reallocate TNC activities to less congested locations. (See “Special Operations”)
Consider the role of non-terminal locations (nearby garages and surface lots) for pick-up; if garages are used, spaces should be designed to allow for pull-through rather than backing into travel aisles.
Consider using (or establishing) intermodal centers for all commercial ground transportation operations.
Analyze proposed changes w/microsimulation model, e.g., VISSIM, or with spreadsheet tool developed for ACRP Report 40.
BOS, DFW, DIA SEA, and SFO have proactively and creatively reassigned pick-up and drop-off locations to make efficient use of available curbs and designate “underutilized” airport property, such as nearby garages and mini staging areas for pick-up.
Allocation of curb space
Monitor mode market share every 6 months and adjust curb assignments (linear feet, location) commensurate with demand.
Use hold lot dispatches, passenger surveys, photo-logging, Automated Vehicle Identification (AVI) to monitor market share.
Driver training As a permit condition, require TNC companies to prepare
training materials that accurately reflect current airport regulations; airport operator reviews and approves materials and retains option to randomly test drivers on regulations.
The method of delivery can be at the discretion of the company: e.g., handouts, podcast, app, instructions on website.
Wayfinding
Install wayfinding at least to a level of information/guidance comparable to that provided for other ground transportation services. Consider using the AAAE Common Standard for Wayfinding (August 2018) term and icon. LAX has adopted AAAE recommendations.
Consider adding walk-time information to signs
Special operations
Rematch and pre-dispatch operations have the potential to reduce dead-head trips, relieve hold lot demand, improve customer service by reducing wait times, and may also reduce vehicle miles of travel on an airport’s access roads. They should be considered a best practice subject to the configuration of an airport’s access roads.
Rematch works well on a single-level roadway system; airports with upper and lower drives must verify the system lends itself to rematch operations.
Enforcement Vehicles should display trade dress and any other airport
commercial ground transportation tags. Drop-off/pick-up only in designated areas; drivers must not block lanes, dwell for excessive time at the curb, or solicit riders.
Penalties for violations should be included in permits.
Accessibility Permits should require companies to provide accessible vehicles
and trained drivers. Drivers must be trained in properly serving pax with disabilities & accommodating service animals.
Performance should be monitored by the airport operator. Penalties for violations should be included in permits.
Task 4 | Ground Access Planning and Capital Programming (1 of 2)
DESCRIPTION BEST PRACTICE EXAMPLES AND NOTES
Planning and customer service
Integrate TNC operations into broader commercial ground transportation environment.
Establish passenger wait-time standards.
Establish mode share goals. Enforce ADA requirements. Consider planning ground
transportation centers that are flexible and adaptable to changes in mode share, app platforms, and technology.
Environmental impacts
Permit operations that reduce dead trips (e.g., rematch).
Establish fuel-efficiency requirements. Provide incentives for use of alternative
fuel/electric vehicles.
SEA: Environmental Key Performance Indicator requires use of vehicles with >45 miles-per-gallon fuel rating; also allows rematch, which reduces deadhead trips.
PHX: 10 percent discount on trip fees for dedicated alternative fuel vehicles.
Road/ curb congestion
Use GIS mapping and video monitoring to supplement simulation models and to identify curb “hot spots.”
Check nearby intersections for capacity to handle TNC design hourly volumes.
SFO has applied VISSIM model to each of the four curbside roadways serving the domestic and international terminals.
Modify TNC routing in response to peak-period congestion.
Task 4 | Ground Access Planning and Capital Programming (2 of 2)DESCRIPTION BEST PRACTICE EXAMPLES AND NOTES
Staging areas: location
Provide basic driver amenities. Recommended travel time from hold area to pax pick-
up location is approximately 5 minutes; upper limit should not exceed 10 minutes.
See “Staging Areas: design” for details on recommended driver amenities.
Staging areas: adaptability
Locate and design hold areas consistent with overall ground access plan.
Plan for shared facilities.
As market shares change and services evolve, TNCs should be included in a comprehensive approach to planning commercial ground transportation operations.
Staging areas: capacity
Survey responses and interviews suggest the following ranges:
Large hub: 250 to 300 spaces Medium hub: 100 to 150 spaces Small hub: 50 to 75 spaces Consider splitting staging area into two separate
smaller locations to improve passenger pick-up wait time and to reduce staging area congestion.
Several large-hub airports relocated staging areas soon after TNCs were permitted to operate, since initial space estimates were inadequate. One airport operator is currently planning to move the TNC staging area to the taxi area and to relocate taxis to a smaller on-airport site.
Staging areas should have sufficient room for expansion.
Staging areas: design
Access and egress should be adequate to prevent spillback of queued vehicles onto adjacent roads.
Sanitary facilities, lighting, trash receptacles, video surveillance, and prayer areas should be provided.
If gas stations or convenience stores are not nearby, consider providing vending machines (water/snacks)
Designate space for parking food trucks.
Connected/Autonomous vehicles (C/AVs)
Install adequate and secure communication infrastructure.
Install adequate conduit for electric vehicle charging stations and power grid capacity.
Timing, adoption rate, and impact of C/AVs subject to conjecture; however, secure high-speed/high-capacity communications infrastructure will be necessary.
Task 4 | Regulatory Structure, Permits, Reporting, and Audits (1 of 2)
DESCRIPTION BEST PRACTICE EXAMPLES AND NOTES
Company information and fees
Charge application or administration fee. Establish term (1 to 2 years) and whether permit is
renewable. Trip fee: specify drop-off, pick-up, or both. Color photo of company trade dress. Accessibility plan for accommodating passengers with
physical disabilities.
Trip fee set by rate schedule and consistent with ground access policies: environmental, cost recovery, customer service.
TNC should agree to allow airport operator to conduct passenger surveys and should assist (not interfere) with process.
Driver information and fees
Driver application and annual renewal fee. The make and model of the motor vehicle being driven. The license plate of the motor vehicle being driven. TNC drivers must possess a valid driver’s license and be at
least 21 years of age. Certificates of insurance for the motor vehicle being driven
(see insurance practice).
Renewal process allows airport operator to update list of authorized drivers; and confirm insurance compliance.
Training: TNCs must establish a driver training program to ensure all drivers are familiar w/airport rules and regulations.
Driver background check
TNCs must perform national criminal background check, including the national sex offender database on drivers utilizing their platform.
TNCs to facilitate Criminal Offender Record Information (CORI) checks.
There should be a 7-year “look back” on reckless driving and for any convictions related to drugs or alcohol, fraud, sexual offenses, use of a motor vehicle to commit a felony, a crime involving property damage and/or theft, acts of violence, or acts of terror.
Insurance
“Transportation network company insurance” is a policy that specifically covers use of a vehicle in connection with a TNC’s online-enabled application or platform.
Insurance and commercial liability coverage while on airport property should be at least $1 million.
$200,000 excess liability. A participating driver shall carry proof of TNC insurance
coverage at all times during use of a vehicle in connection with a TNC’s online-enabled application or platform.
Airport as additional insured. Require that TNCs and/or TNC
drivers carry primary coverage that specifically covers TNC activity as defined and required by the TNC to demonstrate that required coverage in the given jurisdiction is in place during this period.
Task 4 | Regulatory Structure, Permits, Reporting, and Audits (2 of 2)
DESCRIPTION BEST PRACTICE EXAMPLES AND NOTES
Supporting exhibits: maps, definitions, forms
Attach to agreements a location map or aerial photo showing location of staging area(s), route to terminal(s), and pick-up/drop-off locations.
A TNC is an organization, including a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in [state] that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
TNC activity is the period a driver is logged onto the TNC’s app to the time the driver logs off or the ride is completed, and the passenger has exited the vehicle, whichever is later.
TNC drivers shall only transport passengers on a prearranged basis. For TNC services, a ride is considered prearranged if the ride is solicited and accepted via a TNC digital platform before the ride commences. TNC drivers are strictly prohibited from accepting street hails
Provide template for monthly trip reporting/payments.
Operational requirements
Specify pick-up and drop-off locations: levels, doors, designated lots, inner/outer curbs, all dependent on airport configuration and management policies.
Define routes to/from staging area to terminals. Identification: require display of trade dress, visible w/in 50 ft. Specify staging lot dwell time limit; duration may differ based
on time-of-day or arriving flight schedules.
Driver may not refuse trips unless unable to provide service due to travel party size.
Drivers may not solicit rides. Staging lot to be used to serve
on-airport trips only. Drivers to remain with vehicles
when parked in the staging area.
Auditing, monitoring, and operational records
Geofence will be implemented, and TNCs are required to track all entry, exit, pick-up, and drop-off activity on the airport.
Trips are to be reported and payment remitted monthly; this should include date, time of entry into geofence.
Company should establish electronic waybill system with trip details satisfactory to airport administration, finance, or audit departments.
Require companies to make available for inspection complete records of all business transacted at the airport.
Airport operator has the right to audit the TNC’s airport operations; inspect or audit books of account, statements, documents, records, returns, and files relating to business transacted at the airport.
Airports may require the TNC company, at its own expense, to provide a report prepared by a Certified Public Accountant on trip activity and fees paid.
Penalties Fines and violations should be similar to those imposed on other commercial ground transportation services.
Notices sent to TNC companies for payment, not to drivers.
• The research team and panel are working to prepare a technical memo on TNC impacts to public parking and commercial ground transportation revenue
• The research effort will produce a practical Reference Guide that airport operators can use to assess and manage TNC impacts in 6 areas:• Ground access operations and practices
• Business and revenue trends
• Regulations, permits, enforcement and agreements
• Policy development
• Technology
• Capital Planning
Conclusion
