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General Overview of the Concessions Program at Portland International Airport
Citation preview
PDX Concessions Program Update
Scott Kilgo
Outline
• Concessions overview• Why our program is
different• Tenants and selection• Our customers• Future developments
Concessions Overview• Growing success for more than 16 years
• Program vision – Broad mix of quality local products– High quality store design and merchandising standards– Provide a great customer experience– Pricing that is the same as other locations– NW theme throughout the program
• Experience mirrors best in our region
• Nationally recognized as an industry leader and innovator
Concessions Overview
• 60 stores, restaurants, news stands
• Local concepts are an advantage
• 60% of our stores and restaurants are local concepts
• Full service bank, Hair salon and other passenger services
• Balance between before and after security
• Locations open 365 days a year
• Many are open 16 hours a day
• 40,000 customers each day
Concessions Overview
• Just over 13.5M passengers last year
• Exceeded $56M in sales last year
• $8M in revenue to reduce airline costs
• Sales levels stand out when compared to other airport or mall programs – $8.45 per boarded passenger; or – $1,200 per square foot
Why is our program different?
Direct Leasing vs. Master Concessionaire•Direct leasing
– Leasing with individual tenants. – Portland
•60 locations with almost 30 different tenants. •Results in higher sales; $8.45 per boarding passenger
•Master Concessionaire– Lease major portions of the program to a single or few
tenants. – Seattle
•Few tenants with most of 70 locations.•Results are lower sales; $6.02 per boarding passenger
Proactive Operations
Direct relationship with tenants Proactive training with
management staff Working with our tenants
every day Monthly Manager Meetings Mystery Shop and Dine
Program Associate of the Month
Contest
Marketing and Themed Events Program 3 major events 4 special events Entertainment Activities Special Product Offerings Coordinated Sales and
Specials
Our Tenants and Selection
Coffee and Pastries• Coffee People, Starbucks and
Marsee Baking
• $6.3M in sales last year
• 40 % of passengers buy coffee every time they are at PDX
Sit Down Dining • Gustav’s, Capers Cafe,
Sandoval’s Margarita Bar
• Rose City Café and Stanford’s
• Before security locations
• $12.6 in sales last year
• Significant increase this year
• Demand Continues to grow
Food Counter Service• Pizza Schmizza, Good Dog,
Sandoval’s Fresh Mexican, Riverfront Café
• Panda Express, Wendy’s
• $9.3M last year
• Demand Continues to grow
Magazines and Newspapers• Your Northwest Travel Mart
and Hudson News• $6M in magazine and paper
sales
• Travel Mart innovation from PDX
Products from our region• Made In Oregon, Oregon
Pendleton and Your North West Travel Mart
• Broad selection of quality products
• $6M in sales last year
New and Used Books
• Powell’s Books, Travel Mart and Hudson
• $3.9M in sales last year
• 10% books at Powell’s used or discounted
Clothing, Footwear and Accessories• Nike and Norm Thompson
• $2.9M in sales last year
• Norm Thompson at PDX
Arts and Crafts Gallery• Real Mother Goose Gallery
• Glass, jewelry, ceramics, fine wood, furniture and clothing
• Show case for Local artisans
Blackboard Chickensby Chicken Coup
Passenger Services•Full service bank
•RelaxStation Salon
•Free WiFi
•Service Centers with desks
Who are our typical customers?
We know our customers better than any other airport
How we know our customers•Conductive regular surveys for years•Listen to our tenants that have the most interaction; and
•Watch sales by day at all 60 locations
Why this is important•Make better decisions•Generates higher sales from happy customers
I would like to introduce our three typical customers…
Ms. Jane Traveler
– Flies 4 times a year
– Spends 90 minutes in terminal
– Strong preference for local concepts
– Prefers sandwich and bakery concepts
– Values a quick purchase
– Pricing is important
– More likely than men to shop retail, particularly pre-security
Mr. John Traveler
– Flies 4 times a year
– Spends 90 minutes in terminal
– Strong preference for local concepts
– Quick affordable purchase
– Likely to use the free WiFi
– Will purchase food or beverage, especially at sit-down restaurants
Ms. Judy Meeter
– Parks in the garage
– Is usually accompanied in terminal
– Spend less than 60 minutes in terminal
– Strong preference for local concepts
– Makes a purchase
– Appreciates things to do in terminal
– Looks for the pre-security stores
Looking to the future
Our Approach to the future– Continue Vision
– Direct leasing and proactive operations methods
– Great current and prospective tenants
– Listen to customers and tenants to make the best decisions
– Make changes over the next 3 years to minimize disruption
– Balance of working with existing and new tenants
Improvements Opportunities
– Older terminal areas after security need to be updated
– Some dated food concepts need to be replaced
– Need additional food and retail locations to meet customer needs after security
– Revisit some operational procedures
During the next three years– Refurbish three older terminal
areas
– Work with current tenants to make some concept improvement at 12 location
– Complete a solicitation process to select some exciting new food concepts
• 4 Sit down cafés with bar service
• 3 Coffee locations• 1 bakery concept• 1 Gourmet Pizza concept• 1 Sandwich, soup and
salad concept
Questions