TERMINAL/CAMPUS OPTIMIZATION PROGRAM
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1 IND OVERVIEW
2 TERMINAL/CAMPUS OPTIMIZATION PROGRAM
3 Terminal/Campus Optimization Program Evolve the Airport Travel Experience Understand the Customer of Tomorrow Enhance an Indy Sense of Place Celebrate the Indy Spirit Drive Local Economic Impact 6
4 What is Indy? 7
5 8
6 9
7 10
8 11
9 Enhance an Indy Sense of Place Indianapolis International Airport Gateway to Indianapolis Reflect the City s Culture Guiding Principles for Sense of Place Authenticity Discovery/Surprise Delight 12
10 THE IND TRAVELER
11 IND Passenger Demographics Generational Data 39% Baby Boomers ( ) 30% Generation X ( ) 31% Millennials ( ) 54% have college or graduate degrees 40% report household income >$100K 55% leisure travelers Sources: 2015 ACI ASQ Survey & 2015 QSM Survey IND Visitors Boomer Gen X Millenial 14
12 Evolution of Indianapolis Resident Indianapolis is getting younger Millennials and Gen Z population will grow to 65% by 2040 Ethnic diversity is increasing Highest rate of growth in those identifying as two or more races Hispanic/Latino 2nd highest growth rate 15
13 Our Evolving Traveler 16
14 DIVERSE BUSINESS PARTICIPATION
15 POLICY: 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. 18
16 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 Program. The program for airport concession DBEs (ACDBE), is mandated by Title 49 Code of Federal Regulations part 23 (49 CFR 23). 19
17 Purpose of the ACDBE Program The Program Intent: 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 20
18 Who Can Qualify as an ACDBE? Only firms organized for profit are eligible 26.73(d) 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 21
19 Business Opportunities for ACDBEs Food and Beverage Concessions News & Gift Concessions Specialty Retail Concessions Services Concessions Goods and Services Supplier Management/Joint Venture 22
20 Key ACDBE Program Facts ACDBE is not the same as DBE, MBE, WBE, VBE, or SBE Indiana Department of Transportation (INDOT) administers ACDBE certification for IND You must be certified as an ACDBE to participate in Airport Concessions Disadvantaged Program 23
21 ACDBE Application and Contact Information INDOT DBE Staff Derrick Casson, Certification Manager or Kimberly Sons, DBE Certification Specialist or Sean Howard, Supportive Services or Sissy Guynn, Supportive Services or For certification information and application, please visit the Indiana Department of Transportation s DBE/ACDBE web page: General questions can be ed to: DBECertification@INDOT.in.gov 24
22 BUSINESS OPPORTUNITY
23 Indiana s Largest Airport > 8 million travelers each year > 140 daily flights 43 nonstop destinations 26
24 Serving Most of Indiana (and Beyond) Only 7 miles to downtown 1.8 million residents in Indy metro Primary service area population >3,000,000 Approximately 2 hour drive time 27
25 Non-Stop Growth: More Passengers Thousands YTD Departing Passengers 2015 vs 2016 Jan Feb Mar April May June July Aug Million Passengers YTD Biggest June in IND history 28
26 Non-Stop Growth: More Destinations Alaska Airlines begins serving IND Seattle Frontier and Allegiant add destinations Jacksonville Philadelphia Savannah Vacation Express begins seasonal service Punta Cana 29
27 Non-Stop Growth: More Capacity 12% increase in total seat capacity Competitive mix of low cost and legacy seats Thousands Seats Added 0 Legacy Carriers Low Cost Carriers 30
28 Robust Competition Benefits IND Travelers 4% 22% 3% 33% 23% 1% 14% 31
29 Economic Engine for Central Indiana > $4.5 billion annual economic impact > 10,000 jobs #2 largest FedEx operation in world Nation s eighth-largest cargo facility No local taxes used for airport operations 32
30 IND Best Airport in America ACI Airport Service Quality Award Best Airport in North America 2010, 2012, 2013, 2014, and 2015 ACI Director General s Roll of Excellence Condé Nast Traveler Best Airport in America 2014 and 2015 Travel + Leisure Top 10 Best Domestic Airports, 2016 TripAdvisor Travelers Choice Favorite US Airport,
31 IND Best in Airport Concessions ACI Excellence in Airport Concessions Best Food & Beverage Program, 2016 Airport Revenue News Best Overall Concession Program 2009, 2011, 2012, 2013, and
32 Historical Sales 1.5% Annual Growth 3.0% Annual Growth 3.2% Annual Growth 36
33 Historical Sales per Square Foot 37
34 Historical Sales per Departing Passenger 0.3% Annual Growth 1.8% Annual Growth 2.0% Annual Growth 38
35 Comparative Airport Food & Beverage Concessions $9.00 $8.00 $7.00 Median SEP = $ Sales per Departing Passenger IND SEP = $6.93 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $
36 Comparative Airport Retail Concessions $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 Median SEP = $ Sales per Departing Passenger IND SEP = $
37 Customers Not Here to Shop or Dine Security Airline Operations Scaling Up Small Spaces Operating Hours Operating Costs Delivery/Storage Employee Badging Doing Business at the Airport: A Different Environment 42
38 Local Success Story Erin Humphreys EnRoute Spa 43
39 Local Success Story Kim Hendren Nature s Table Copper Moon Coffee Granite City Au Bon Pain 44
40 Local Success Story Carly and Mandy Swift Just Pop In 45
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