saleme 2013 symposium

CONCESSIONS: BEYOND “LOCATION, LOCATION, LOCATION”

Presented By: David W. Saleme, A.A.E.Columbus Regional Airport Authority

Track: B (Terminal/Landside)

Workshop: 5

Title: Concessions to Concessions

Moderator: Chris DonahueURS

Date: 7 February 2013

About Today

David Saleme, Esq, A.A.E.Business Development Manager

Columbus Regional Airport AuthorityPort Columbus International Airport

Getting the Most out of Your Square FootageBeyond “Location, Location, Location”

• Background on CMH• Location, Services, Promotion

About CMH

Port Columbus International Airport CMH

• Total Annual Passengers – ~6,380,000• Three Concourse Design, separate checkpoints,

no post security connectivity.• No single carrier dominates the market.• Just over 40,000 square feet of concession space.• Approximately 46% of concession space pre-

security.

About Our Revenue

2007 2008 2009 2010 2011 20122,700,000

2,900,000

3,100,000

3,300,000

3,500,000

3,700,000

3,900,000

4,100,000

4,300,000

4,500,000

Enplaned PassengersRevenue to Authority

Revenue Impact

2009 2010 2011 2012 2013 2014 2015 2016 2017$3,500,000

$3,700,000

$3,900,000

$4,100,000

$4,300,000

$4,500,000

$4,700,000

$4,900,000 @ 1% from 2009

Through 2012

@ 1% after 2012

@ 3% after 2012

$637,000

$670,000

$1,130,000

Location

Increase Revenues through customer focused concessions, services, and marketing.

This “customer focused” approach was developed as a result of the transition in concession responsibility at the end of 2009 – we made adjustments based on:

– identifiable industry successes with concepts beyond typical “in-line” locations,

– data from surveys demonstrating that passengers asked for concepts already in place,

– our own experiences observing passengers in the terminal.

Location

Location

• Total Concession Square Footage– 10,000 to 12,000 per million EP

• Ratio of Pre/Post Security– 10/90 split– heavy concentration post-security

• Alternatives to “in-line” locations

Location

Terminal – As a Whole

How Much?

10-12,000 Square Feet (SF) of Concession Space per million Enplaned Passengers (EP)

3,150,000 x .01 = 31,500 SF3,150,000 x .012 = 37,800 SF

Optimum:31,500 –37,800 SF

Current:40,700 SF

Terminal – As a Whole

10/90 Guidance

Terminal – Pre/Post Security

10/90 Guidance

Terminal – Pre/Post Security

Optimum:3,150 –3,780 SF

Current:18,700 SF

Optimum:28,350 – 34,020 SF

Current:22,000 SF

10/90 Guidance

Terminal – Pre/Post Security

Concourse A2,600 SF – Original

Concourse A ~2,700 SF – Revised

Concourse B - Immediate/Potential

Future State

Terminal – Pre/Post Security

Optimum:3,150 –3,780 SF

Post TMP:17,000 SF

Optimum:28,350 – 34,020 SF

Post-TMP: 28,000 SF

Concourse B “Reserve”7,000 SF

Services

Services

Services – Power

Services – Kiosks

Promotion =‘s Information

Conclusion

Increase Revenues through customer focused concessions, services, and marketing.

Getting the Most out of Your Square Footage:

• Location: post security and in proximity to the passenger.

• Services: meet the needs of the passenger so they are free to unplug, and can find what they need.

• Marketing: visually interrupt their journey with messaging that drives them to the locations.

David Saleme, Esq, A.A.E.Business Development Manager

Columbus Regional Airport AuthorityPort Columbus International Airport