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

IND OVERVIEW

TERMINAL/CAMPUS OPTIMIZATION PROGRAM

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

8

9

10

11

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

THE IND TRAVELER

IND Passenger Demographics

• Generational Data
• 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

IND Visitors

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

DIVERSE BUSINESS PARTICIPATION

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
• pportunities
• 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
• pportunities

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

317-233-4944 or SHoward1@INDOT.in.gov

• Sissy Guynn, Supportive Services

317-233-4664 or TGuynn@INDOT.in.gov For certification information and application, please visit the Indiana Department of Transportation’s DBE/ACDBE web page: www.in.gov/indot/2748.htm General questions can be emailed to: DBECertification@INDOT.in.gov

24

BUSINESS OPPORTUNITY

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

50 100 150 200 250 300 350 400 450 Jan Feb Mar April May June July Aug

Thousands

YTD Departing Passengers 2015 vs 2016

2015 2016

Biggest June in IND history 5.7 Million Passengers YTD

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
• Competitive mix of low cost and

legacy seats

50 100 150 200 250 300 350 Legacy Carriers Low Cost Carriers

Thousands

Seats Added

30

Robust Competition Benefits IND Travelers

3% 33% 14% 1% 23% 4% 22%

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

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00

2014 Sales per Departing Passenger

Median SEP = $6.05

IND SEP = $6.93

39

Comparative Airport Retail Concessions

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00

2014 Sales per Departing Passenger Median SEP = $3.40 IND SEP = $4.19

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