Optimizing Airport Revenue It’s All About The Bottom Line

1. Optimizing Airport RevenueIt’s All About The Bottom Line • Presented by • Darrell Brantley • Asst. Manager of Ground Transportation Services

2. Orlando International Airport • Ranked #1 in Customer Service for Large Airports • Source: Airport Revenue News Magazine

3. Employee Parking Ground Transportation LeasedParking Ground Transportation Services Administration of Towing Services Picketing Agreements Mobile Food Units Distribution of Literature

4. Permit Type# of Companies# of Vehicles C - Concession 1 550 N - Non Concession 194 1,230 P - Off Airport Parking 3 28 R - Off Airport RAC 16 140 S - Out of Town Shuttle 9 71 T - Taxi 5 446 V - Vehicle-for-Hire 390 1,362 TOTAL 618 3,827 PERMITS

5. GT Revenue (Projected FY 2007) • On-Airport Rental Cars $37,000,000 • Off-Airport Rental Cars $14,300,000 • Commercial Lane $4,900,000 • Transportation Concessionaire $3,220,000 • Taxicabs $1,500,000 • Off-Airport Parking$ 940,000 • Violations & Misc. Fees $ 60,000 • Total Annual GT Revenue $61,920,000

6. Proposed Budgeted Revenues $364,298,000 Orlando International Airport FY 2008 Terminal Other $15, 503 Concessions $33,457 Signatory Terminal Rents $50,076 RAC Fees & Rents $54,606 4% 9% 14% 15% Signatory Landing Fees $41,064 12% 18% 3% 5% Other Rentals $10,879 Parking & GT $66,174 10% 10% Other Airfield $17,958 Hotel $38,198 PFC’s, Interest & Other $36,383 (In thousands) 6

7. Who are the Parking Operators?

8. Off-Airport Parking Providers • Parking Companies • Rental Car Companies • Hotels

9. Off-Airport Parking Operators • Parking 3 • Rental Car & Parking 5 • Hotel & Parking 1 ____ • Total Off-Airport Parking Operators 9

10. Does the Airport receive a fair share ?* • Parking Companies ? Always • Rental Car Operators ? Mostly • Hotels ? Rarely • *Based on airport rules governing off-airport parking

11. Off-Airport Parking Revenue (fy 2007) • Parking $694,000 • RAC/Pkg $240,000 • Hotel Pkg $ 6,000 • Total $940,000

12. Why Should Airports Govern Off-Airport Hotel Parking?

13. Reasons to Govern Hotel Parking • Business derived from Airport Passengers • You Snooze, You Lose – “Airport Revenue” • Instills a Level Playing Field Among Parking Competitors • Maintain Regulatory Compliance

14. What are some of the challenges? • Requires research to identify hotels providing parking • Airport rules must require fees for parking • Might prove to be labor intensive for Airport

15. Other Service Providers • Destination Management Companies • Resort Transportation Providers • Cruise Line Operators

16. Who are the Destination Management Companies?

17. Resort Transportation Providers

18. Cruise Line Operators

19. Airport Revenue Received (fy 2006) • Disney Magical Express $ 962,000 • Royal Caribbean Cruises $ 0 • Carnival Cruise Line $ 0 • Holland America Cruise Line $ 0 • Destination Mgt. Companies $ 0

20. Why is it Important to Manage this Activity?

21. What are the Benefits to the Airport? • Provides a method to assess cost to industry based on passenger traffic and space use • Instills a level playing field among competitors • Reinforces regulatory compliance by employee identification and customer service counter requirements • Provides a positive image of the airport for travelers • Optimizes Airport Revenue

22. What are some of the challenges? • Requires Research & Analysis, Public Hearings, & Rule Amendments • Industry Resistance to Fees • Must have infrastructure to accommodate the users

23. Orlando International Airport

24. Authority Staff Challenges • Coordinate Projects & Agreements • Define “New” Business Segments • Modify Infrastructure • Study & Analysis for Public Hearings • Implement Business Plan (2009)