IND Concessions Refresh Program Information & Networking Session
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1 IND Concessions Refresh Program Information & Networking Session November 8, :00am South Ticketing Hall Indianapolis International Airport
2 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
3 Welcome and Introductions Mario Rodriguez Executive Director Mamon Powers IAA Board Member/Chair of the Terminal Optimization Committee Al Bennett IAA Board Member Marsha Stone Sr. Director of Commercial Enterprise David Shaw Director of Concessions & Air Service Jason Paltzer Retail Operations Coordinator Carol Hurley Marion County Public Health Department Holli Harrington Director of Supplier Diversity Doreen Cherry Procurement Manager
4 IND Overview and Profile 49 Nonstop Destinations ties most in IND history 8.6+ million projected travelers in % more travelers in 2017 vs 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
5 Serving Indiana (and Beyond) IND is only 7 miles to downtown 1.9 million residents in Indy metropolitan Primary service area population >3,000,000 Approximately 2 hour drive time 5
6 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 6
7 Departing Passenger Historical Data Departing Passenger Data from ,400,000 4,200,000 4,239,828 4,300,000 4,000,000 4,008,256 3,800,000 3,600,000 3,598,718 3,683, and Beyond +1.0%-1.9% Growth Forecast 3,400,000 3,200,
8 8
9 Airline Market Share (as of September 2017) Robust Competition 3% 21% 1% 3% 34% 23% 1% 14% 9
10 IND - Perennial World Class Award Winning Airport J.D. Power North America Airport Satisfaction Study Highest in Customer Satisfaction for Medium Airports 2010 and 2016 ACI Airport Service Quality Award Best 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 Awards Top 10 Best Domestic Airports, 2016 TripAdvisor Travelers Choice Favorite U.S. Airport,
11 Concessions Overview Today s Program Concourse B 54 retail and food & beverage concessions spaces Civic Plaza 65,000 + square feet of concessions space Concourse A 42% of concessions space are pre-security 58% of concessions space are post-security
12 Enhance Customer Experience Create a Sense of Place Remain Relevant for Today s Traveler Concession Refresh Program Guiding Principles for Sense of Place Authenticity Discovery/Surprise Delight
13 Concessions Overview Today s Program Concession SPACE Concession SALES 42% 58% 28% 72% Pre-Security Post-Security Pre-Security Post-Security 13
14 Millions Concessions Program Overall Sales $50.0 $45.0 $40.0 $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $- Gross Sales by Category Food and Beverage News & Convenience Specialty Retail EPAX 21% 14% 65% ,400,000 4,300,000 4,200,000 4,100,000 4,000,000 3,900,000 3,800,000 3,700,000 3,600,000 3,500,000 3,400,000 3,300,000 Sales Per Departing Passenger $11.20 $11.16 $10.90 $
15 Future Concessions Refresh Program Objectives 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 15
16 Future Business Opportunity 40 concessions spaces are expiring at the end of concessions spaces are expiring at the end of 2020 DRAFT SUBJECT TO CHANGE 16
17 Doing Business at an Airport Airport vs. Street Retail: Key Business Considerations Construction Costs Security Airline Operations Small Spaces Operating Hours Operating Costs Delivery/Storage Employee Badging Employee Parking Labor 17
18 Possible Deal Structures Direct Lease Joint venture Participation financially and operationally by two or more parties Sublease Prime concessionaire and one or more subtenants Licensing/Franchising Other 18
19 DRAFT SUBJECT TO CHANGE Future Concessions Space Allocation Recommendation Current Proposed 42% 58% 30% 70% Pre-Security Post-Security Pre-Security Post-Security 19
20 DRAFT SUBJECT TO CHANGE Future Concessions Programming Recap Concourse B 50 News & Convenience, Retail and Food & Beverage Concessions Spaces Civic Plaza 62,000+ Square Feet of Concessions Space Concourse A 30% of Concessions space is Pre-Security, 70% is Post- Security 20
21 Civic Plaza - DRAFT SUBJECT TO CHANGE Civic Plaza - Existing Civic Plaza - Proposed Total Square Footage Offerings Current: 27,599 Proposed: 19,480
22 Concourse Proposed Concourse A - Proposed Total Square Footage Offerings Current: 19,828 Proposed: 20,435 Concourse A - DRAFT SUBJECT TO CHANGE Concourse A - Existing 22
23 Concourse B - Proposed Concourse B - Proposed Fast Casual Concourse B - DRAFT SUBJECT TO CHANGE Total Square Footage Offerings Current: 19,557 Proposed: 24,335 Concourse B - Existing 23
24 The IAA s Supplier Diversity Program Holli Harrington Director of Supplier Diversity
25 About Our Policies 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. ACDBE Program: 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).
26 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 Only firms organized for profit are eligible 26.73(d). Who Can Qualify as an ACDBE? 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
27 Business Opportunities for ACDBEs Food and Beverage Concessions News & Gift Concessions Specialty Retail Concessions Services Concessions Goods and Services Supplier Management/Joint Venture
28 29
29 Carol Hurley Environmental Health Specialist Office Number Cell Number
30 Mission Statement To Promote Physical, Mental and Environmental Health; Prevent and Protect Against Disease, Injury and Disability. 31
31 Retail Food Establishment Sanitation Requirements Current code is Title 410 IAC
32 Doing Business at the Airport Doreen Cherry Procurement Manager
33 Go to or
34 You may choose to register or browse through current opportunities
35 The Vendor Portal will appear giving you the option to register or browse opportunities
36 Listing of business opportunities
37 Vendor Registration & Emergency Operations
38 Use key words to search and select categories related to the services and/or supplies your company offers
39 If you select the option ALL CATEGORIES (999999), an will be sent every time a bid opportunity is posted
40 Q & A 41
41 NETWORKING BREAKOUT SESSION 42
42 Contact Information: David Shaw Jason Paltzer
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