Terminal/Campus Optimization Program Evolve the Airport Travel - PowerPoint PPT Presentation

IND O VERVIEW

T ERMINAL /C AMPUS O PTIMIZATION P ROGRAM

Terminal/Campus Optimization Program  Evolve the Airport Travel Experience  Understand the Customer of Tomorrow  Enhance an Indy Sense of Place  Celebrate the Indy Spirit  Drive Local Economic Impact 6

What is Indy? 7

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Enhance an Indy Sense of Place Indianapolis International Airport  Gateway to Indianapolis  Reflect the City’s Culture Guiding Principles for Sense of Place  Authenticity  Discovery/Surprise  Delight 12

T HE IND T RAVELER

IND Passenger Demographics  Generational Data IND Visitors • 39% Baby Boomers (1946 – 1964) • 30% Generation X (1965 – 1980) • 31% Millennials (1981 – 2000)  54% have college or graduate degrees  40% report household income >$100K  55% leisure travelers Boomer Gen X Millenial Sources: 2015 ACI ASQ Survey & 2015 QSM Survey 14

Evolution of Indianapolis Resident  Indianapolis is getting younger  Millennials and Gen Z population will grow to 65% by 2040  Ethnic diversity is increasing  Highest rate of growth in those identifying as two or more races  Hispanic/Latino – 2nd highest growth rate 15

Our Evolving Traveler 16

D IVERSE B USINESS P ARTICIPATION

POLICY: The Indianapolis Airport Authority (IAA) values diversity and is committed to providing meaningful opportunities to Disadvantaged, Minority, Women and Veteran Business Enterprises (DMWVBE). It is the policy of the IAA to implement measures to increase the participation and utilization of DMWVBE’s in Authority contracts and their respective subcontracts issued in relation to airport related services and purchases, including but not limited to construction, professional services, goods and concessions. 18

ACDBE Program Participation of Disadvantaged Business Enterprises in Airport Concessions The United States Department of Transportation (USDOT) requires every airport that receives federal grants to maintain a Disadvantaged Business Enterprise Program. The program for airport concession DBEs (ACDBE), is mandated by Title 49 Code of Federal Regulations part 23 (49 CFR 23). 19

Purpose of the ACDBE Program The Program Intent:  To ensure nondiscrimination in the award and administration of concession opportunities  To create a level playing field on which ACDBEs can compete fairly for concession opportunities  To ensure that only firms that fully meet ACDBE eligibility standards are permitted to participate  To help remove barriers to the participation of ACDBEs in concession opportunities 20

Who Can Qualify as an ACDBE? Only firms organized for profit are eligible §26.73(d) To qualify as an ACDBE, a firm must be:  An existing small business, as defined by Small Business Administration (SBA) standards  At least 51% owned by socially and economically disadvantaged individuals who: • are US citizens or permanent residents • possess expertise in their field • control the daily business operations • Have a personal net worth less than $1,320,000 21

Business Opportunities for ACDBEs  Food and Beverage Concessions  News & Gift Concessions  Specialty Retail Concessions  Services Concessions  Goods and Services Supplier  Management/Joint Venture 22

Key ACDBE Program Facts  ACDBE is not the same as DBE, MBE, WBE, VBE, or SBE  Indiana Department of Transportation (INDOT) administers ACDBE certification for IND  You must be certified as an ACDBE to participate in Airport Concessions Disadvantaged Program 23

ACDBE Application and Contact Information INDOT DBE Staff  Derrick Casson, Certification Manager 317-233-4664 or DCasson@INDOT.in.gov  Kimberly Sons, DBE Certification Specialist 317-234-8087 or ksons@indot.in.gov  Sean Howard, Supportive Services For certification information and application, please visit the Indiana 317-233-4944 or SHoward1@INDOT.in.gov Department of Transportation’s  Sissy Guynn, Supportive Services DBE/ACDBE web page: www.in.gov/indot/2748.htm 317-233-4664 or TGuynn@INDOT.in.gov General questions can be emailed to: DBECertification@INDOT.in.gov 24

B USINESS O PPORTUNITY

Indiana’s Largest Airport  > 8 million travelers each year  > 140 daily flights  43 nonstop destinations 26

Serving Most of Indiana (and Beyond)  Only 7 miles to downtown  1.8 million residents in Indy metro  Primary service area population >3,000,000  Approximately 2 hour drive time 27

Non-Stop Growth: More Passengers YTD Departing Passengers 2015 vs 2016 5.7 Million Passengers YTD 450 Thousands 400 350 300 250 Biggest June in 200 IND history 150 100 50 0 Jan Feb Mar April May June July Aug 2015 2016 28

Non-Stop Growth: More Destinations  Alaska Airlines begins serving IND • Seattle  Frontier and Allegiant add destinations • Jacksonville • Philadelphia • Savannah  Vacation Express begins seasonal service • Punta Cana 29

Non-Stop Growth: More Capacity  12% increase in total seat capacity Seats Added  Competitive mix of low cost and 350 Thousands legacy seats 300 250 200 150 100 50 0 Legacy Carriers Low Cost Carriers 30

Robust Competition Benefits IND Travelers 3% 22% 33% 4% 23% 14% 1% 31

Economic Engine for Central Indiana  > $4.5 billion annual economic impact  > 10,000 jobs  #2 largest FedEx operation in world  Nation’s eighth-largest cargo facility  No local taxes used for airport operations 32

IND – Best Airport in America  ACI Airport Service Quality Award Best Airport in North America 2010, 2012, 2013, 2014, and 2015  ACI Director General’s Roll of Excellence  Condé Nast Traveler Best Airport in America 2014 and 2015  Travel + Leisure Top 10 Best Domestic Airports, 2016  TripAdvisor Travelers’ Choice Favorite US Airport, 2016 33

IND – Best in Airport Concessions  ACI Excellence in Airport Concessions Best Food & Beverage Program, 2016  Airport Revenue News Best Overall Concession Program 2009, 2011, 2012, 2013, and 2015 34

Historical Sales 1.5% Annual Growth 3.0% Annual Growth 3.2% Annual Growth 36

Historical Sales per Square Foot 37

Historical Sales per Departing Passenger 0.3% Annual Growth 1.8% Annual Growth 2.0% Annual Growth 38

Comparative Airport Food & Beverage Concessions 2014 Sales per Departing Passenger IND SEP = $9.00 $6.93 Median SEP = $8.00 $6.05 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 39

Comparative Airport Retail Concessions 2014 Sales per Departing Passenger $7.00 $6.00 IND SEP = $4.19 Median SEP = $5.00 $3.40 $4.00 $3.00 $2.00 $1.00 $0.00 40

Doing Business at the Airport: A Different Environment  Customers Not Here to Shop or Dine  Security  Airline Operations  Scaling Up  Small Spaces  Operating Hours  Operating Costs  Delivery/Storage  Employee Badging 42

Local Success Story Erin Humphreys EnRoute Spa 43

Local Success Story Kim Hendren Nature’s Table Copper Moon Coffee Granite City Au Bon Pain 44

Local Success Story Carly and Mandy Swift Just Pop In 45