CONCESSIONS OVERVIEWBUILDING FOR THE FUTURE

NOVEMBER 2018

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RECORD-SETTING PASSENGER TRAFFIC

Source: Denver International Airport

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Source: Innovata Schedules via Diio MiNote: Cayman Airways starts service in March 2019

Airlines Serving Denver International Airport2018—2019

DEN AIR SERVICE

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AIR CARRIER RANKINGSDenver International Airport (DEN) Seat Market Share

CY 2018

United43%

Southwest29%

Frontier12%

Delta5%

American5%

Spirit2% Other

2%Non-U.S.

2%

Source for data: Innovata Schedules via Diio MiNote: Other airlines include Alaska, Allegiant, Boutique, Denver Air Connection, JetBlue, Great Lakes and Sun Country; Non-U.S.-Flag Carriers include Aeromexico, Air Canada, British Airways, COPA, Edelweiss, Icelandair, Lufthansa, Norwegian, Volaris and WestJet; data includes all regional/express carriers

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DEN’S NONSTOP NETWORK

Denver International Airport Nonstop Service NetworkYE June 2019

Source: Innovata Schedules via Diio MiNote: Some markets are seasonal and some markets are served less than daily

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66

COMPETITIVE ADVANTAGES

Source: Innovata Schedules via Diio Mi (YE June 2019); U.S. DOT O&D Survey (YE 2Q 2018)

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CONCESSIONS BY THE NUMBERS

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CONCESSIONS OVERVIEW• 144 shops, restaurants, and passenger services locations • More than 186,000 square feet• Concessions program gross annual sales: $400 million• ACDBE goal: 33 percent of gross concession sales• ACDBE performance: $167 million (2016) or 41 percent of sales

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$170M

$244M

$0M

$50M

$100M

$150M

$200M

$250M

$300M

2013 2014 2015 2016 2017 ttm Sep2018

Food & Beverage Sales

+7.4

$59M

$105M

$0M

$20M

$40M

$60M

$80M

$100M

$120M

2013 2014 2015 2016 2017 ttm Sep2018

Retail Sales

+12.1%

$8M

$11M

$0M

$2M

$4M

$6M

$8M

$10M

$12M

2013 2014 2015 2016 2017 ttm Sep2018

Passenger Services Sales+7.2%

$9.04

$11.35

$0$2$4$6$8

$10$12$14

2013 2014 2015 2016 2017 ttm Sep2018

Sales per Enplaning Passenger

+4.7%

Post-Security Excludes: Terminal, Duty Free and Airportwide Services

DEN HISTORICAL SALES

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Casual dining bar42%

Quick service alcohol13%

Quick service29%

Snack7%

Specialty coffee6%

Bar3%

F&B Category Share 2017

FOOD AND BEVERAGE OVERVIEW

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Travel Convenience49%

Fashion8%

Books6%

Gifts and souvenirs

11%

Accessories4%

Electronics11%

Beauty7%

Food3% Toys

1%

Retail Category Share 2017

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RETAIL OVERVIEW

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THE FUTURE OF CONCESSIONS

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FUTURE OF CONCESSIONS

• Goals

• Create Sustainable Business Opportunities

• Incorporate ACDBE and MWBE firms in new opportunities

• Opportunities

• Gate expansions

• Concourse redevelopment

• Expiring contracts

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GATE EXPANSION• New concessions will be located in each gate expansion area• Innovative opportunities for ACDBE partners

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CONCOURSE REDEVELOPMENT

5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

Example Concessions Demand

Capacity Today 2044

• The departures peak hour is forecast to grow by more than 100% in Concourse C by 2044, further compromising passenger flow and commercial performance in the absence of significant additional space

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CONCOURSE REDEVELOPMENT

ROUGH DRAFT CONCEPTUAL LAYOUT

Concourse: Approximate Space (sf)

Type Today Future

Commercial 21,000 34,000

Common Seating 2,300 7,000

Mezzanine: Approximate Space (sf)

Type Today Future

Commercial 0 22,000

Lounge 0 7,500

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RFP OPPORTUNITIES

• Concessions will release the first round of RFPs in Q1 2019

• Forecast in December 2018

• Round one will include gate expansion opportunities

• Subsequent groups of RFPs are scheduled to be released in 2019

BEING A CONCESSIONAIRE PARTNER

HOW TO PARTICIPATE

• Direct Agreement

• Sub-agreement with

a Prime Concessionaire

• Joint Venture

• Licensing

• Vendor

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AIRPORT BUSINESS CHALLENGES

• Scaling Up

• Large Investment

• Small Spaces

• Operating Hours

• Operating Costs

• Delivery/Storage

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AIRPORT BUSINESS CHALLENGES

• Security

• Employee Badging

• Employee Parking

• Customer Dwell Time

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FOR MORE INFORMATION

Activation occurs through multiple channels• DEN’s Commerce Hub• Community Outreach

• Civic & Business Organizations• Industry Outreach

• @ DEN• National Conferences

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OUTREACH MESSAGING

• Find Resources

• Register on Website

• Division of Small Business

Opportunity office (DSBO)

• DEN Commerce Hub

• Learn about opportunities

• Attend outreach sessions

• Begin networking /

keep networking

• Start certification process / update

certifications

• Start business planning

• Your unique concept

• Your unique approach

• Arrange financing

• Start designing

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