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TRANSCRIPT
IND Concessions Refresh ProgramInformation & Networking Session
November 8, 2017
10:00am
South Ticketing Hall
Indianapolis International Airport
https://www.ind.com/business/concessions-refresh-program
Agenda - Information & Networking Session
10:00am – 12:00pm Presentation:
• Welcome & Introductions from IAA Team• IND Overview and Profile• Review of Concessions Program and Future Space Planning• Prime Concessionaires Introductions• ACDBE Program• Board of Health Review• Procurement Process• Q & A
Noon-1pm: Lunch on Catwalk
1pm-5pm: Networking and Tours
Welcome and Introductions
Mario Rodriguez – Executive DirectorMamon Powers – IAA Board Member/Chair of the Terminal Optimization CommitteeAl Bennett – IAA Board MemberMarsha Stone – Sr. Director of Commercial EnterpriseDavid Shaw – Director of Concessions & Air ServiceJason Paltzer – Retail Operations CoordinatorCarol Hurley – Marion County Public Health DepartmentHolli Harrington – Director of Supplier DiversityDoreen Cherry – Procurement Manager
IND Overview and Profile
49 Nonstop Destinations – ties most in IND history
8.6+ million projected travelers in 2017
2% more travelers in 2017 vs. 2016
2017 is trending to be a record year
Origination & Destination (O&D) Airport
Alaska Airlines began operating at IND in May 2017
Delta announced a nonstop flight to Paris, France – to begin in May 2018
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Serving Indiana (and Beyond)
• IND is only 7 miles to downtown
• 1.9 million residents in Indymetropolitan
• Primary service area population >3,000,000
• Approximately 2 hour drive time
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IND is Economic Engine for Central Indiana
• > $5.4 billion annual economic impact
• > 10,000 on airport jobs
• 49 nonstop destinations – ties IND record!(Up from 39 in just 2014)
• Most West Coast access in IND history
• IND ranks Top 10 Connected Medium Airports (Source: MIT Airport Connectivity Quality Index)
• #2 largest FedEx operation in world
• Nation’s eighth-largest cargo facility
• No local taxes used for airport operations
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Departing Passenger Historical Data
3,598,7183,683,765
4,008,256
4,239,8284,300,000
3,200,000
3,400,000
3,600,000
3,800,000
4,000,000
4,200,000
4,400,000
2013 2014 2015 2016 2017
Departing Passenger Data from 2013-2017
2018 and Beyond
+1.0%-1.9% Growth Forecast
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Airline Market Share (as of September 2017) – Robust Competition
3%
34%
14%1%
23%
3%
21%
1%
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• J.D. Power North America Airport Satisfaction StudyHighest in Customer Satisfaction for Medium Airports
2010 and 2016
• ACI Airport Service Quality AwardBest Airport in North America
2010, 2012, 2013, 2014, 2015, 2016
• ACI Director General’s Roll of Excellence
• Condé Nast Traveler Readers’ Choice Best Airport in America
2014, 2015, 2016 and 2017
• Travel + Leisure World’s Best AwardsTop 10 Best Domestic Airports, 2016
• TripAdvisor Travelers’ ChoiceFavorite U.S. Airport, 2016
IND - Perennial World Class Award Winning Airport
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Concessions Overview – Today’s Program
Concourse A
Concourse B
Civic Plaza
• 54 retail and food & beverage concessions spaces
• 65,000 + square feet of concessions space
• 42% of concessions space are pre-security
• 58% of concessions space are post-security
Concession Refresh Program
Guiding Principles for Sense of PlaceAuthenticity
Discovery/SurpriseDelight
• Enhance Customer Experience• Create a Sense of Place• Remain Relevant for Today’s Traveler
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Concession SPACE
42% 58%
Pre-Security Post-Security
Concession SALES
28%
72%
Post-Security Pre-Security
Concessions Overview – Today’s Program
Concessions Program Overall Sales
$10.90
$10.72
$11.16 $11.20
2014 2015 2016 2017
Sales Per Departing Passenger
3,300,000
3,400,000
3,500,000
3,600,000
3,700,000
3,800,000
3,900,000
4,000,000
4,100,000
4,200,000
4,300,000
4,400,000
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
$50.0
2014 2015 2016 2017
Mill
ion
s
Gross Sales by CategoryFood and Beverage News & Convenience Specialty Retail EPAX
21%
14%
65%
• Optimize the customer experience and increase customer/passenger satisfaction
• Maximize Concessionaire financial returns and Revenue to Airport
• Create a “sense of place” and capture the spirit of Indianapolis and the region
• Represent local, regional, national and international concepts and brands
• Create opportunities for Airport Concessions Disadvantaged Business Enterprises (“ACDBE”)
• Remain relevant in a dynamic ever-changing environment
Future Concessions Refresh Program Objectives
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Future Business Opportunity
• 40 concessions spaces are expiring at the end of 2018
• 5 concessions spaces are expiring at the end of 2020
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DRAFT – SUBJECT TO CHANGE
• Construction Costs
• Security
• Airline Operations
• Small Spaces
• Operating Hours
• Operating Costs
• Delivery/Storage
• Employee Badging
• Employee Parking
• Labor17
Doing Business at an Airport Airport vs. Street Retail: Key Business Considerations
Possible Deal Structures
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• Direct Lease
• Joint venture• Participation financially and operationally by two or more parties
• Sublease• Prime concessionaire and one or more subtenants
• Licensing/Franchising
• Other
Future Concessions Space Allocation Recommendation
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Current
42% 58%
Proposed
Pre-Security Post-Security
30%
70%
Post-Security Pre-Security
DRAFT – SUBJECT TO CHANGE
Concourse A
Concourse B
Civic Plaza
Future Concessions Programming Recap
• 50 News & Convenience, Retail and Food & Beverage Concessions Spaces
• 62,000+ Square Feet of Concessions Space
• 30% of Concessions space is Pre-Security, 70% is Post-Security
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DRAFT – SUBJECT TO CHANGE
Civic Plaza - Proposed
Civic Plaza - Existing
Civic Plaza - DRAFT – SUBJECT TO CHANGE
Total Square Footage OfferingsCurrent: 27,599Proposed: 19,480
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Concourse A - Proposed
Concourse A - Existing
Concourse A - DRAFT – SUBJECT TO CHANGE
Total Square Footage OfferingsCurrent: 19,828Proposed: 20,435
Concourse A - Proposed
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Concourse B - DRAFT – SUBJECT TO CHANGE
Concourse B - Proposed
Concourse B - Existing
Fast Casual
Total Square Footage OfferingsCurrent: 19,557Proposed: 24,335
Concourse B - Proposed
The IAA’s Supplier Diversity ProgramHolli Harrington – Director of Supplier Diversity
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.
About Our Policies
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 (DBE) Program.
The program for Airport Concession DBEs (ACDBE), is mandated by Title 49 Code of Federal Regulations part 23 (49 CFR 23).
ACDBE Program:
Purpose of the ACDBE Program
• 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
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
Business Opportunities for ACDBEs
• Food and Beverage Concessions• News & Gift Concessions• Specialty Retail Concessions• Services Concessions• Goods and Services Supplier• Management/Joint Venture
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Carol Hurley – Environmental Health Specialist
Office Number 317-221-2255
Cell Number 317-373-2713
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Mission Statement
To Promote Physical, Mental and Environmental Health; Prevent and Protect
Against Disease, Injury and Disability.
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Retail Food Establishment Sanitation Requirements
• Current code is Title 410 IAC 7-24
• https://www.in.gov/fssa/files/410_iac_7-24_food_establishment.pdf
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Doing Business at the AirportDoreen Cherry – Procurement Manager
Go to www.ind.com or
www.indianapolisairport.com
You may choose to
register or browse
through current
opportunities
The Vendor Portal
will appear giving
you the option to
register or browse
opportunities
Listing of
business
opportunities
Vendor Registration
& Emergency Operations
Use key words to search and
select categories related to the
services and/or supplies your
company offers
If you select the option ALL CATEGORIES (999999), an email will be
sent every time a bid opportunity is posted
Q & A
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NETWORKING BREAKOUT SESSION
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Contact Information:David Shaw
317-625-5948 [email protected]
Jason Paltzer317-829-4750 [email protected]
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