Bhavesh A. Patel, Director of Airport Concessions Agenda

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Bhavesh A. Patel, Director of Airport Concessions Agenda Bhavesh A. Patel, Director of Airport Concessions Agenda • Introduction • Tampa Bay Overview • Tampa International Airport Facility Overview • Passenger Demographics • Airport Concessions Disadvantaged Business Enterprise (ACDBE Program) • Networking Break • Airport Concessions Overview • Current Situation • Next Steps 2 Tampa Bay Overview 3 TAMPA INTERNATIONAL AIRPORT-TPA Hillsborough County Aviation Authority • Differences between Independent Special Districts and City and County Governments – Single purpose business function – Governing body not elected, usually selected for business expertise • Five Member Board – Three members are appointed by the Governor – Two members are elected officials • The Authority is a self-supporting organization – does not use taxpayers money to fund daily operations – Generates revenues from airport users to fund operating expenses and debt service • Capital projects are funded through the use of grants, bonds, passenger facility charges, and other internally generated funds 4 General Aviation Airports Peter O. Knight 139 Acres Tampa Executive Plant City 407 Acres 199 Acres 5 Mission Statement Our mission is to be a major driver in the economic growth of the Tampa Bay Region. We will be leading edge innovators to create global access and extraordinary customer experiences through our people and facilities to build prosperity for our stakeholders and the region. Vision Statement Our vision is to be a vibrant aviation gateway for Tampa Bay, providing access and economic opportunity for our stakeholders. 6 TPA Gross Domestic Product Tampa is a convenient gateway to the 10th largest economy in the United States • Tampa Bay 2011 GDP: $157.2 Billion (19th in U.S.) • Central Florida 2011 GDP: $132.4 Billion (22nd in U.S.) • Combined 2011 GDP: $289.6 Billion (10th largest economy in U.S.) Source: U.S. Department of Commerce, Bureau of Economic Analysis 7 TPA Business Market Tampa Bay Billion Dollar Headquarter Companies 2011 • Four of the 16 Florida Company Revenues ($ Millions) Headquarters City companies ranked in the Publix Super Markets Inc. 25,328 Lakeland 2012 Fortune 500 are from Tech Data Corporation 24,376 Clearwater the Tampa Bay area Jabil Circuit 16,519 St. Petersburg WellCare Health Plans Inc. 6,107 Tampa • Tampa has substantial Florida Power Corporation 5,254 St. Petersburg private-sector employers Gerdau Ameristeel Corporation 4,195 Tampa who generate air travel OSI Restaurant Partners LLC 3,629 Tampa Raymond James Financial Inc. 3,400 St. Petersburg • The U.S. government also TECO Energy Inc. 3,343 Tampa has a large presence in the HSN Inc. 2,997 St. Petersburg Tampa region Roper Inductries Inc. 2,797 Sarasota Lincare Inc. 2,691 Clearwater • MacDill Air Force Base is just Tampa Electric Company 2,674 Tampa 15 miles south of TPA with Hillsborough County Schools 1,942 Tampa 8,981 military and 2,009 Beall's Inc. 1,260 Bradenton civilian personnel Tampa Bay 2012 Regional Profile by Tampa Bay Partnership 8 TPA Tourist Destination St. Petersburg/Clearwater among the best beaches in the world • 35 miles of white sand beaches on eight barrier islands • Clearwater Beach named #1 Best Beach Town by USA Today • Fort De Soto named America’s #1 Beach by Dr. Beach in 2005 and best beach in America in 2008 • Caladesi Island named America’s #1 Beach by Dr. Beach in 2008 • St. Pete Beach named Travelers’ Choice® #1 U.S. Beach Destination by Trip Advisor in 2012 9 TPA Tourist Destination Tampa Bay tourism is increasing at a greater rate than Orlando 25% 22% 20% 19% 17% 17% 15% 14% 14% 15% 13% 14% 12% 12% 11% 10% 10% 10% 10% 9% 9% 10% 9% 9% 8% 8% 8% 8% 9%* 6% 7% 6% 6% 6% 5% 5% 5% 5% 5% 4% 4% 5% 3% 2% 1% Year over Year Change in Tourism Tax Tourism in Change Year over Year 0% -1% -5% -4% Orlando (Orange Co.) Tampa Bay (Pinellas Co.) Source: Monthly Tourism Development Tax reports published by Orange County and Pinellas County. 10 TPA Destinations Nonstop service to 12 International and 62 Domestic Destinations Halifax Montreal London Ottawa Zurich Manchester Minneapolis Toronto Albany Boston Grand Rapids Rochester Hartford Flint Providence Milwaukee Buffalo New York-Long Island Cleveland Pittsburgh Newark Trenton New York-JFK, LGA Detroit Westchester Co. Wilmington Chicago-ORD,MDW Columbus AkronPhiladelphia Indianapolis Baltimore Atlantic City Dayton Kansas City Washington-IAD, DCA Denver Cincinnati Norfolk Las Vegas St. Louis Louisville Raleigh/Durham Nashville Los Angeles Charlotte Memphis Phoenix Atlanta Dallas Birmingham Tallahassee Jacksonville Austin Departures by Seat Pensacola Gainesville New Orleans San Antonio Houston-IAH, HOU 28% Short Haul Tampa West Palm Beach 72% Long Haul Ft. Lauderdale Miami Key West Havana Santa Clara Cancun San Juan Holguín Grand Cayman Is. Panama City 11 TPA Airport Overview ANNUALLY Air Canada, 1.6% All Other, 4.3% Departures 77,380 Spirit, 3.2% Passengers 16,768,103 JetBlue, 7.4% Cargo 180,385,221 lbs. Mail 11,398,584 lbs. Bags Checked 5,562,600 Southwest/Airtran, American, 8.5% 36.1% DAILY US Airways, 11.0% Departures 212 Passengers 45,800 Delta, 16.5% Cargo 494,206 lbs. United, 11.4% Mail 31,229 lbs. Bags Checked 15,240 12 TPA Domestic Access is Growing New York Washington D.C. Chicago Dallas / Fort Worth Jacksonville Minneapolis West Palm Beach Gainesville Wilmington Hartford Memphis Wilmington Trenton 13 TPA International Expansion 25% 22% 21% 19% 20% 20% 18% 18% 18% 17% 17% 15% 15% 13% 10% 7% 5% 4% 2% 1% 1% 1% 1% 0% 0% 1% 1% Year over Year Change in Passengers in Change Year over Year 0% 0% 0% -5% Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Domestic International Source: Monthly station activity reports 14 TPA International Expansion London20% increase in international passengersCuba in 2012 Nonstop service to Daily flights Havana, Holguín, and Santa Clara Zurich Panama Second frequency begins March 2014 New flights begin December 2013 15 TPA Recognition Award Winning Convenience and Customer Satisfaction 2nd Best Airport in America 3rd Best Airport in North America 5th Best Airport (15-25M passengers) in the World 6th Favorite Airport in the World Best Airport – Best of Florida Awards Ranked 3rd in the United States – Business Travel Survey 16 Tampa International Airport Facility Overview 17 TPA Airport Facts • 3,300 Acres with three runways • 30th busiest airport in the U.S. in terms of passenger enplanements • Served over 16.9 million total passengers in FY2013 • Over 200 departing flights daily • 74 destinations served by 16 passenger carriers • One main terminal and four airside terminals with 59 gates • Approximately 22,000 total parking spaces in long-term, short-term, valet and economy 18 Airside A Constructed: 1995 16 Gates (United, Frontier, JetBlue, Silver & Spirit) 19 Airside C Constructed: 2005 16 Gates (Southwest/AirTran) 20 Airside E Constructed: 2002 13 Gates (Delta, Sun Country & Air Canada) 21 Airside F Constructed: 1987; Expanded and renovated: 1997 14 Gates; Renovated: 2012 (American, British Airways, Cayman, Copa, Edelweiss, Sky King, US Airways & West Jet) 22 TPA Airline and Airport Facts Top 10 Markets • New York • Chicago • Philadelphia 24% • Atlanta • Detroit • Baltimore • Washington DC • Boston • Indianapolis • Dallas/Fort Worth 23 MASTER PLAN Objectives • Curbside congestion • Roadway congestion • Parking capacity • Rental car facilities • Real estate use • Multi-modal connectivity • Capacity needs for international processing • Main terminal capacity 24 MASTER PLAN Phase I Decongestion • Consolidated Rental Car Facility • Automated People Mover • Transfer Level Expansion and Concessions Redevelopment • Timeline: 2013-2018 • Cost: $935 Million 25 MASTER PLAN Phase II Enable • Replace Air Traffic Control tower • Relocate HCAA Service Building offices • Replace hotel • Demolish Red Side Garage and prepare site for Terminal Complex Expansion • Timeline: 2018-2023 • Cost: $452 Million 26 MASTER PLAN Phase III Expansion • North expansion of Main Terminal • New Airside D and Expand Airside C • New CBP/FIS in Main Terminal • Timeline: 2020-2028 • Cost: $1.2 Billion 27 MASTER PLAN Enplaned Passenger Forecast 28 FY2012 OPERATING REVENUES Operating revenues increased $14.6 million from FY10 to FY12 as a result of new revenue initiatives and are expected to increase another+$20.9 $6.5 millionmillion in FY13 $185.0 $182.3 $183.1 $180.0 $176.6 $175.0 $171.0 $170.8 $170.0 millions) $165.0 ($ $162.2 $160.0 $155.0 $150.0 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Budget 29 FY2012 OPERATING REVENUES Interest Income $2.8M 1.6% Other Advertising Duty Free $2.0M $1.1M $0.3M 3.8% 2.0% 0.5% Other Revenue $20.2M 11.5% Concessions $52.6M 29.8% Food & Beverage Airline Revenue $10.7M Rental Cars $49.2M 20.3% $32.5M 27.8% 61.8% Hotel $1.4M 3.0% Retail Parking $4.7M $51.8M 8.9% 29.3% 30 Passenger Demographics 31 PASSENGER DEMOGRAPHICS Primary Purpose & Frequency of Trip 2007 2010 2012 80% 75% 75% 70% 69% 60% 50% 40% 31% 30% 25% 25% 20% 10% 0% Business Leisure 32 PASSENGER DEMOGRAPHICS Party Size 2007 2010 2007 2010 3.0 3.0 2.5 2.5 2.2 2.0 2.0 2.0 1.9 1.7 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 Travel Party Size Meeters/Greeters Party Size 33 PASSENGER DEMOGRAPHICS Gender 2010 2012 2013 70% 59% 60% 57% 55% 50% 45% 43% 41% 40% 30% 20% 10% 0% Male Female 34 PASSENGER DEMOGRAPHICS Household Shopping How much of the apparel, gift, and household shopping do you do for your family? Men Women 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% All or Nearly At Least Half Less than All or Nearly At Least Half Less than All Half All Half Source: 2011 International Council of Shopping Centers (ICSC) Shopping Habits Report-Phase II 35 PASSENGER DEMOGRAPHICS Age 65% > 45 years old 30% 26% 26% 25% 24% 25% 23% 21% 20% 16% 15% 15% 15% 15% 15% 15% 13% 13% 12% 10% 5% 5% 5% 5% 4% 4% 4% 0% 21 or 22-25 26-34 35-44 45-54 55-64 65 or Older Younger 2010 2012 2013 36 PASSENGER DEMOGRAPHICS Household Income 2012 50% 45% 41.9% 40% 35.6% 35% 30% 25% 22.5% 20% 15% 10% 5% 0% Under $50,000 > $100,000 $50,000 -$100,000 37 PASSENGER DEMOGRAPHICS Time of Arrival – Dwell Time of Trip 2007 2010 2012 55% > 1.5 Hours 60% 54% 52% 50% 40% 32% 33% 30% 26% 22% 22% 20% 18% 16% 13% 10% 7% 4% 0% 0% 1% 0% Less than 30 min.
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