Track: B (Terminal/Landside) Workshop: 5 Title: Concessions to Concessions Moderator: Chris Donahue URS Date: 7 February 2013CONCESSIONS: BEYOND “LOCATION, LOCATION, LOCATION”Presented By: David W. Saleme, A.A.E. Columbus Regional Airport Authority
About TodayGetting the Most out of YourSquare FootageBeyond “Location, Location, Location”• Background on CMH• Location, Services, Promotion David Saleme, Esq, A.A.E. Business Development Manager Columbus Regional Airport Authority Port Columbus International Airport
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 Revenue4,500,000 Enplaned Passengers4,300,000 Revenue to Authority4,100,0003,900,0003,700,0003,500,0003,300,0003,100,0002,900,0002,700,000 2007 2008 2009 2010 2011 2012
Revenue Impact$4,900,000 @ 1% from 2009 Through 2012$4,700,000 @ 1% after 2012 $1,130,000$4,500,000 @ 3% after 2012$4,300,000$4,100,000 $670,000$3,900,000 $637,000$3,700,000$3,500,000 2009 2010 2011 2012 2013 2014 2015 2016 2017
Location Increase Revenues through customer focused concessions, services, and marketing.This “customer focused” approach was developed as a result ofthe 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
How Much? 10-12,000 Square Feet (SF) of Concession Space per million Enplaned Passengers (EP)Optimum:31,500 –37,800 SFCurrent: 3,150,000 x .01 = 31,500 SF40,700 SF 3,150,000 x .012 = 37,800 SF Terminal – As a Whole
ConclusionIncrease Revenues through customer focused concessions, services, and marketing.Getting the Most out of Your SquareFootage:• 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 David Saleme, Esq, A.A.E. journey with messaging that drives Business Development Manager them to the locations. Columbus Regional Airport Authority Port Columbus International Airport