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Published byPatricia Payne Modified over 9 years ago
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Small and Large Airport Concession Agreements March 2013
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Shared Ride at airports Is inherently green, and……….
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It’s not easy being green!!
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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
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Shared Ride at airports Is non subsidized mass transit!!! Lower price point……. But goes door to door
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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
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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
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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
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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
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Nashville Open transportation market Over 90 providers City attempted to pass an ordinance to limit that number
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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
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Nashville No RFP ever put out However, the transportation ordinance passed!
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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)
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Large Airports Maximum signage –ORD Adequate curb space (multiple vans) Curb or airport staff (or both) Technology –Kiosks –Boarding signs
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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
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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
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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
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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?
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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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