Resource Manual for Airport In-Terminal Concessions (2011) / Chapter Skim
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2 Overview of Airport Concession Programs
2 Overview of Airport Concession Programs
Pages 6-21
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From page 6... ...
"Aeronautical revenues" generally refers to revenues from the use of airfields, aircraft aprons, and airline terminal buildings. "Nonaeronautical revenues" generally refers to revenues from other activities, including passenger-related sources, such as parking, rental cars, and terminal concessions, and nonpassenger-related sources, such as commercial ground leases, sale of mineral C H A P T E R 2 Overview of Airport Concession Programs
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From page 7... ...
The FAA does not provide a separate breakout for retail excluding duty free. The contribution from nonaeronautical revenues varies widely among airports and depends on a number of factors, including the following: • Availability of land for commercial or other nonaeronautical uses • Distance from the major population centers and availability of alternate forms of ground transportation, which can affect demand for automobile parking and rental cars • Passenger demographics, which can affect spending • Numbers of international passengers, which can produce duty free and higher overall retail spending • Time spent in the terminals by passengers (also referred to as dwell time)
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From page 8... ...
The 383 nonhub commercial service airports accounted for only 1% of terminal concession revenue and about 3% of total airline passengers. 8 Resource Manual for Airport In-Terminal Concessions Parking and Ground Transportation $2,799 Food and Beverage $465 Retail and Duty Free $570 Services $373 Rental Cars $1,417 Hotels $33 Other $549 Passenger Airline Aeronautical Revenue $7,328 Non-Passenger Aeronautical Revenue $1,631 Land and Non-Terminal $527 Nonaeronautical Revenue $6,735 Total Operating Revenues $15.695 Billion Total Nonaeronautical Revenues$6.735 Billion Source: FAA n.d.
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From page 9... ...
Nonaeronautical revenues as a percentage of total revenues for selected airports and airport systems -- FY2008.
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From page 10... ...
Food and beverage concessions at large hub, medium hub, and small hub airports average 4.5 square feet, 6.5 square feet, and 10.4 square feet of space per 1,000 passengers, 10 Resource Manual for Airport In-Terminal Concessions $5.2 $23.4 $76.0 $465.5 $6.1 $24.8 $82.7 $455.7 $9.0 $22.2 $45.0 $373.0 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Non Small Medium Large Revenue to Airport Operator (millions) Services and other Retail and duty free Food and beverage Source: FAA Compliance Activity Tracking System (CATS)
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From page 11... ...
Changes in concession revenues at all U.S. commercial service airports 2000–2009 (dollars in millions)
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From page 12... ...
leading to departure gates and the volume of passengers in each separate flow are major determinants regarding the number of concession units that can be supported. At many airports, food and beverage services are considered the most important concession from a customer service standpoint.
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From page 13... ...
Overview of Airport Concession Programs 13 Figure 2-7. Specialty retail kiosks at Oakland International Airport.
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From page 14... ...
West Coast airports with higher percentages of passengers from Asia averaged just over $13.00 per enplaned international passenger. Outside the United States, major international airports, such as Dubai International, London Heathrow, and Seoul Incheon International airports, produce duty free sales approaching $1 billion annually because of their large volumes of international passengers, limited domestic traffic, and airline service to high-tax, high-duty destinations.
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From page 15... ...
Figure 2-9 shows a typical spa unit at San Francisco International Airport. • Medical clinics, offering urgent care to passengers, prescriptions for travelers in need, and general medical services to employees.
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From page 16... ...
The 2009 ACI World Airport Service Quality passenger survey, a voluntary, fee-based program administered by ACI, which involves surveys of passengers around the world, ranked Seoul Incheon International, Singapore Changi, Hong Kong International, Beijing Capital International, and Ghandi Hyderabad International airports as the best airports worldwide (Airports Council International 2010)
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From page 17... ...
The ability to meet customer demand during seasonal and daily peaks affects customer service and revenues. The peak demand characteristics of airports vary and must be taken into account in planning the concession program.
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From page 18... ...
• Smaller leasing packages, more concession agreements. As airport concessions have grown in scale and sophistication, airport operators have sought to increase the level of competition 18 Resource Manual for Airport In-Terminal Concessions
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From page 19... ...
TSA security checkpoint procedures have increased passenger processing times and lengthened queues, which has, in turn, reduced demand for pre-security concessions and increased demand for post-security concessions. Stress and anxiety related to security inspection also reduces spending, as illustrated conceptually in Figure 2-10.
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From page 20... ...
Other changes in the airline industry include the rapid growth in LCC traffic at secondary airports serving major cities, a decrease in the share of connecting traffic flowing through major hubs, and a shift to LCCs in price-sensitive leisure markets. Airline bankruptcies and consolidations through mergers (AirTran Airways and Southwest Airlines, Delta Air Lines and Northwest Airlines, US Airways and America West Airlines, Continental and United Airlines)
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From page 21... ...
Example of concessions integrated with holdrooms.
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