ACI-NA 2014 (FY13) Benchmarking Survey September 7, 2014

Transcription

1 ACI-NA 2014 (FY13) Benchmarking Survey September 7, 2014 Contact: Economic Affairs and Research Tel:

2 Who Are We? Airports Council International North America (ACI-NA) represents local, regional and state governing bodies that own and operate commercial airports in the United States and Canada. ACI-NA s 194 airport members enplane more than 95 percent of the domestic and virtually all the international airline passenger and cargo traffic in North America. The mission of ACI-NA is to advocate policies and provide services that strengthen the ability of commercial airports to serve their passengers, customers and communities. ACI-NA is the largest of the five worldwide regions of Airports Council International (ACI). 2

3 ACI Benchmarking Survey Developed in 2005 from TPA s Airport Initiatives Measurement (AIM) survey and further refined through efforts by DFW, DEN, and BNA These efforts led to the revision of the FAA Form 127 in 2009 to align with the survey Used by airports primarily for financial and operational benchmarking and to more easily comply with FAA Form 127 reporting requirements Future enhancements through the ACRP project will move the data online and more easily query the data for benchmarking purposes 3

4 Help Make This Presentation Interactive We are piloting interactive polling technology Visit on your smartphone, tablet, or computer Don t log in Questions will automatically appear Responses are anonymous, but will be shared on-screen 4

5 I. Participation 5

6 Survey Sample Hub Category Fiscal Year * Large Medium Small Non-Hub Canadian Total *As of August 4, 2014; total responses with commitments increases to 94 6

7 Airport Survey Participation ( ) LARGE 2013 Years BOS X 5 BWI X 5 DCA X 5 DEN X 5 DFW X 5 DTW X 5 FLL X 5 IAD X 5 IAH X 5 LAS X 5 MCO X 5 MIA X 5 MSP X 5 PHL X 5 PHX X 5 SAN X 5 SEA X 5 SFO X 5 SLC X 5 TPA X 5 ATL X 4 PDX X 1 EWR C 5 JFK C 5 LAX C 5 LGA C 5 ORD C 5 MEDIUM 2013 Years AUS X 5 BNA X 5 BUF X 5 CMH X 5 CVG X 5 DAL X 5 HOU X 5 IND X 5 JAX X 5 MEM X 5 MKE X 5 OAK X 5 PIT X 5 RDU X 5 RSW X 5 SAT X 5 SJC X 5 SMF X 5 SNA X 5 STL X 5 OMA X 4 PBI X 2 PVD X 1 ANC C 4 MCI C 4 RNO 4 TUS 4 ABQ C 3 PDX 3 MSY C 2 BDL 1 SMALL 2013 Years ALB X 5 BTR X 5 CAE X 5 CHS X 5 DSM X 5 ELP X 5 FAT X 5 GEG X 5 GRR X 5 GSP X 5 ICT X 5 IWA X 5 JAN X 5 MSN X 5 ORF X 5 SDF X 5 SRQ X 5 HSV X 4 OKC X 4 BOI X 3 LGB X 3 PNS X 1 RNO X 1 TUS X 1 FAI C 4 SAV 4 ABE 3 ACY C 3 TUL 3 BTV 2 COS 2 HRL 2 MHT C 2 ECP 1 GPT 1 MYR 1 TLH 1 *As of August 4, 2014, C denotes commitment to respond before September 30 NON-HUB 2013 Years AVL X 5 TLH X 4 SHV X 1 LAN 3 TRI 3 BGR 2 EVV 2 APF 1 CRW 1 FWA 1 JNU 1 ROA 1 CANADIAN 2013 Years YHZ X 5 YQB X 5 YVR X 5 YXE X 5 YYC X 5 YYZ X 1 YUL C 4 YXS 3 YLW C 2 YMM C 2 YOW 2 YSJ 2 YWG 2 YEG 1 YKF 1 YYJ C 0 7

8 Poll: What is your airport s primary use for this survey? To benchmark against peers 20 To find opportunities to improve revenue 3 To find opportunities to reduce costs 0 To prepare FAA Form Other 3 8

9 II. Considerations 9

10 Benchmarking Considerations 500+ data points Potential for inconsistency Different preparers and participation Interpretations of definitions FYE Airports move between hub sizes. In 2013: 2 airports upgraded to larger hub sizes 2 airports downgraded to smaller hub sizes 10

11 Sample Anomalies Observed Operations Parking Transactions Data may need to be recalibrated and cleansed when performing analyses 11

12 Response Time Within deadline: 51% Months 51% of responses met ACI s deadline 20% of responses received 12+ months after FYE 12

13 Poll: What is the greatest benefit of participating? Measuring key indicators against peer airports Data Sharing data with other like airports Benchmarking against peers Peer data Corroboration of data Access to data from peers Relative performance Have access to the data Understanding where we fall in different metrics versus peers Quick answers to competitive set data Insight into other airports business performance and structures 13

14 III. Large-Hub Airport Trends 14

15 Key Performance Indicators Selected KPIs reflect opportunities to improve airport performance in the near term Revenue Non-Aeronautical: Parking Concessions Rental Cars Expenses CPE PC&B Contract Services 15

16 How to Read the Charts Highest response value Median response value Lowest response value 16

17 Participating Large-Hub Airports To analyze trends, we included the 20 airports that have consistently participated in the survey since 2009: SEA MSP BOS SFO LAS SLC DEN DTW PHL BWI DCA IAD SAN PHX DFW IAH TPA MCO FLL MIA 17

18 Non-Aeronautical Revenue % Total Revenue Total revenue: 5.0% CAGR from 2009 to 2013 Non-aeronautical revenue: 4.6% CAGR Aeronautical revenue: 5.4% CAGR Median declined from 47% in 2009 to 45% in 2013 KPI6 Airports in proximity to FL theme parks, being the most visited destination in the US, experienced the highest % of non-aero revenue 18

19 Non-Aeronautical Revenue per EPAX Median non-aeronautical revenue per EPAX in 2013: $9.23 Increase from $8.83 in 2009, a 1.1% CAGR, in-line with the median growth in enplanements KPI7 Airports with highest revenue figures are those in cities with higher costs of living, which likely translates to higher prices 19

20 Non-Aeronautical Revenue per EPAX Airports of all hub sizes have seen an increase in median nonaeronautical revenue per EPAX since 2009 Small-hub airports have the highest median non-aeronautical revenue figures per EPAX This is true for parking and rental car revenue, but reversed for concessions 20

21 Poll: Where do you see the greatest opportunity to increase non-aeronautical revenue at your airport? Parking Parking Oil wells Concessions Land use Find oil under the airfield Parking Parking Parking Parking Transportation Network Companies Parking Ground leases Parking Concessions 21

22 Parking Revenue % of Non-Aeronautical Revenue Most important source of non-aeronautical revenue for many large-hub airports Relatively consistent median of 42%, with some airports generating between 50-60% of their non-aeronautical revenue from parking KPI61 22

23 Parking Revenue / Transaction In 2013, revenue per transaction ranged from $12-$48 Median transaction value remained relatively consistent between , but increased $4 (19%) from 2012 to 2013 KPI50 Increasing rates, optimizing pricing structure, and adding products 23

24 Poll: What has your airport done to increase parking revenue? Increased rates 9 Added premium products 4 Added spaces 1 Other 1 24

25 Concessions Revenue % of Non-Aeronautical Revenue Concession revenue accounts for 20% of non-aeronautical revenue at large-hub airports Miami generates very high duty free and services revenue, while Las Vegas generated over $20 million in revenue from slot machines in 2013 KPI43 25

26 Concessions Revenue per EPAX The airport with the highest concession revenue per EPAX generated more than 5 times the airport with the lowest Despite the economic slowdown, concession revenue per EPAX grew at a 1.7% CAGR KPI45 26

27 Rental Car Revenue % of Non-Aeronautical Revenue Rental car s share of non-aeronautical revenue has fallen slightly since 2009 For Orlando, one of the largest rental car markets, it has grown from 31% in 2009 to 37% in 2013 KPI64 Gross rental car revenue at Orlando per O&D passenger increased from $17 to $21 in the past 5 years 27

28 Cost per Enplaned Passenger Median CPE for large-hub airports increased 15% from $8.74 in 2009 to more than $10 in 2013 Of the 20 large-hub airports in this analysis, only three experienced a decline in CPE from 2012 (two of which had fewer enplanements) KPI1 Large variation in CPE due to several important factors, including capital programs and debt profiles, that, combined with activity, drive such differences 28

29 PC&B % Total Operating Costs PC&B expenses have accounted for a declining percentage of total operating costs from 43% in 2010 to 39% in 2013 KPI91 This may be attributed to increases in other expenses (such as supplies and materials or communications and utilities) outpacing PC&B costs or a greater reliance on contracted labor 29

30 PC&B Expense per Employee PC&B expenses per employee have increased at a 2% CAGR since median was $105K with a range that varied based on location/cost of living and airport structure (government vs. stand-alone) KPI92 30

31 Contract Services % Total Operating Costs Contract services costs now represent 39% of total operating costs up from 30% in 2009 Some contracts that airports have outsourced include maintenance (custodial, elevators, etc.) and services (IT, engineering, parking and shuttle buses, etc.) KPI10 31

32 Ratio of Contract Services Costs to PC&B Costs Between 2009 and 2013, the median contract services expenses grew significantly faster than PC&B expenses As a result, the ratio of contract services to PC&B increased from 60% to 90% KPI11 Large-hub airports appear to be increasing reliance on contract staff 32

33 Ratio of Contract Services Costs to PC&B Costs Medium Small Contract services total about 40% of PC&B expenses at small-hub airports, but nearly 70% at medium-hub and 90% at large-hub airports Medium- and small-hub airports are not showing the same trend of increasing reliance on contracted services 33

34 IV. Medium- and Small-Hub Highlights 34

35 Participating Medium-Hub Airports For data consistency in identifying trends, we looked at the following airports that have participated in each of the 5 years from 2009 to 2013: MKE BUF SMF OAK SJC STL IND CMH CVG PIT SNA MEM BNA RDU DAL AUS SAT HOU JAX RSW 35

36 Medium-Hub Highlights Non-Aeronautical Revenue per EPAX increased significantly at 4.0% CAGR with no growth in median enplanements since 2009 Median Parking Revenue % of Non-Aeronautical Revenue increased from 49% in 2009 to 52% in 2013 Median CPE for medium-hub airports increased faster than large- and small-hub airports 21% between 2009 and 2013 Unlike large-hub airports, medium-hub airports do not appear to be as reliant on outsourced services 36

37 Participating Small-Hub Airports For data consistency in identifying trends, we looked at the following airports that have participated in each of the 5 years from 2009 to 2013: GEG DSM MSN GRR ALB FAT ICT SDF ORF IWA ELP JAN GSP CAE CHS BTR SRQ 37

38 Small-Hub Highlights Non-aeronautical revenue per EPAX had a 3.1% CAGR, due in large part to a 4.0% CAGR in rental car revenue per EPAX Despite a 5.7% CAGR in enplanements, the median value of concessions revenue per EPAX in 2013 was the same as it was in 2009 Concession revenue accounts for 8% of non-aeronautical revenue, significantly lower that large-hub airports (20%) and medium-hub airports (14%) PC&B costs per employee have increased at a 3.2% CAGR faster than inflation 38

39 Poll: How can the survey be improved? Provide interim comparative data by airport. Waiting for final results is a long time. Identify anomalies and try to help resolve Fix differences with FAA Forms Schedule briefings with each airport to share how they compare to their peers Automate it, reduce # of data points based on user input 39

40 Appendix A Medium-Hub Trends 40

41 Participating Medium-Hub Airports For data consistency in identifying trends, we looked at the following airports that have participated in each of the 5 years from 2009 to 2013: MKE BUF SMF OAK SJC STL IND CMH CVG PIT SNA MEM BNA RDU DAL AUS SAT HOU JAX RSW 41

42 Non-Aeronautical Revenue % Total Revenue Non-aeronautical revenue: 1.8% CAGR Aeronautical revenue: 2.7% CAGR KPI6 Median non-aeronautical revenue % of total revenue declined slightly from 55% in 2009 to 54% in

43 Non-Aeronautical Revenue per EPAX Median non-aeronautical revenue per EPAX in 2013: $12.82 Increase from $10.97 in 2009, a 4.0% CAGR KPI7 This is a significant increase considering there was no growth in median enplanements since

44 Parking Revenue % of Non-Aeronautical Revenue The median value increased from 49% in 2009 to 52% in 2013 It signals an increase in parking fees and/or a longer stay duration since median enplanements has not grown and the number of transactions has fallen about 10% since 2009 KPI61 44

45 Parking Revenue / Transaction In 2013, the revenue gap per transaction was over $40 The median transaction value increased 17% since 2009 Increasing rates, optimizing pricing structure KPI50 45

46 Concessions Revenue % of Non-Aeronautical Revenue Concession revenue accounts for 14% of non-aeronautical revenue at medium-hub airports Median concession revenues remained constant since 2009 KPI43 46

47 Concessions Revenue per EPAX Median concessions revenue increased at a 5.4% CAGR since 2009 In 2013, the airport with the highest concession revenue per EPAX generated almost 4 times more than the airport with the lowest KPI45 47

48 Rental Car Revenue % of Non-Aeronautical Revenue Median rental car revenue has been relatively consistent at 22% since 2009 KPI64 48

49 Cost per Enplaned Passenger Median CPE for medium-hub airports increased at a CAGR of 4.9% over the past 5 years to over $9 in 2013 while EPAX growth was flat KPI1 49

50 PC&B % Total Operating Costs PC&B expenses for medium-hub airports have not changed significantly; the median cost has represented 45% of total operations costs since 2009 KPI91 50

51 PC&B Expense per Employee The median PC&B Expense per Employee increased 11% since 2009 from $76K to $85K at a 2.6% CAGR KPI92 51

52 Contract Services % Total Operating Costs Contract services costs have increased by 1% since 2009 KPI10 52

53 Ratio of Contract Services Costs to PC&B Costs Contract services expenses represented 68% of PC&B expenses in 2013, up from 60% in 2009 Despite this growth, medium-hub airports are adding full-time staff: median FTEs per 100,000 enplaned passengers increased from 7.6 in 2009 to 8.1 in 2013 KPI11 Medium hub airports, as opposed to large-hub airports, do not appear to be as reliant on outsourced services 53

54 Appendix B Small-Hub Trends 54

55 Participating Small-Hub Airports For data consistency in identifying trends, we looked at the following airports that have participated in each of the 5 years from 2009 to 2013: GEG DSM MSN GRR ALB FAT ICT SDF ORF IWA ELP JAN GSP CAE CHS BTR SRQ 55

56 Non-Aeronautical Revenue % Total Revenue Although overall non-aeronautical revenue increased, as a % of total revenue it declined 1.3% since 2009 KPI6 56

57 Non-Aeronautical Revenue per EPAX On a per-epax basis, non-aeronautical revenue increased to $15.76 in 2013 from $13.90 in 2009, a 3.1% compound annual growth rate KPI7 57

58 Parking Revenue % of Non-Aeronautical Revenue As with large- and medium-hub airports, parking is the most important source of non-aeronautical revenue for small-hub airports Relatively consistent % of non-aeronautical: 54% KPI61 58

59 Parking Revenue / Transaction Median transaction value has increased 19% since 2009 Increasing rates, optimizing pricing structure KPI50 The highest parking revenue per transaction is almost 3 times larger than the lowest in the group and has grown at a 13.3% CAGR 59

60 Concessions Revenue % of Non-Aeronautical Revenue Concession revenue accounts for 8% of non-aeronautical revenue at small-hub airports, significantly lower than the 20% at large-hub airports and 14% at medium-hub airports The median value remained relatively consistent since 2009 KPI43 60

61 Concessions Revenue per EPAX Relatively consistent median concessions revenue per EPAX since 2009 The airport with the highest concession revenue per EPAX generated more than 3 times the lowest, with a high concentration of concessions revenue in the Services category KPI45 61

62 Rental Car Revenue % of Non-Aeronautical Revenue Rental car s share of non-aeronautical revenue has remained relatively constant However, the median rental car revenue per EPAX has increased from $3.22 to $3.78 between 2009 and 2013 (4.0% CAGR) KPI64 62

63 Cost per Enplaned Passenger Median CPE for small-hub airports has decreased from $7.70 to $7.47 since 2009, while the median EPAX has increased at a 5.7% CAGR The cost varies significantly between small hub airports from a low of $1.14 to as high as $12.46 KPI1 63

64 PC&B % Total Operating Costs Median PC&B expenses to total operating costs have increased from 50% in 2009 to 52% in 2013 KPI91 64

65 PC&B Expense per Employee PC&B expenses per employee have outpaced inflation at 3.2% CAGR KPI92 65

66 Contract Services % Total Operating Costs Contract services costs have decreased slightly from 22% to 21% in relation to total operating costs KPI10 66

67 Ratio of Contract Services Costs to PC&B Costs Contract services expenses has consistently represented 40% of PC&B expenses since 2009 KPI11 67

68 ACI-NA Airport Performance Benchmarking Survey September 2014 Contacts: ACI-NA Economic Affairs and Research Tel: Metropolitan Washington Airports Authority Julia Hodge, Deputy Vice President Corporate Risk and Strategy Greg Cohen, Manager Corporate Strategic Planning