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)