CONCESSIONS OVERVIEW BUILDING FOR THE FUTURE NOVEMBER 2018
RECORD-SETTING PASSENGER TRAFFIC 2 2 Source: Denver International Airport
DEN AIR SERVICE Airlines Serving Denver International Airport 2018 2019 3 3 Source: Innovata Schedules via Diio Mi Note: Cayman Airways starts service in March 2019
AIR CARRIER RANKINGS Denver International Airport (DEN) Seat Market Share CY 2018 American 5% Spirit 2% Other 2% Non-U.S. 2% Frontier 12% Delta 5% United 43% Southwest 29% 4 4 Source for data: Innovata Schedules via Diio Mi Note: Other airlines include Alaska, Allegiant, Boutique, Denver Air Connection, JetBlue, Great Lakes and Sun Country; Non-U.S.-Flag Carriers include Aeromexico, Air Canada, British Airways, COPA, Edelweiss, Icelandair, Lufthansa, Norwegian, Volaris and WestJet; data includes all regional/express carriers
DEN S NONSTOP NETWORK 5 5 Source: Innovata Schedules via Diio Mi Note: Some markets are seasonal and some markets are served less than daily Denver International Airport Nonstop Service Network YE June 2019
COMPETITIVE ADVANTAGES 6 6 Source: Innovata Schedules via Diio Mi (YE June 2019); U.S. DOT O&D Survey (YE 2Q 2018)
7 CONCESSIONS BY THE NUMBERS
CONCESSIONS OVERVIEW 144 shops, restaurants, and passenger services locations More than 186,000 square feet Concessions program gross annual sales: $400 million ACDBE goal: 33 percent of gross concession sales ACDBE performance: $167 million (2016) or 41 percent of sales 8
DEN HISTORICAL SALES Food & Beverage Sales Sales per Enplaning Passenger $300M $250M $200M $150M $100M $50M $0M $170M $244M +7.4 2013 2014 2015 2016 2017 ttm Sep 2018 $14 $12 $10 $8 $6 $4 $2 $0 $9.04 $11.35 +4.7% 2013 2014 2015 2016 2017 ttm Sep 2018 $120M $100M $80M $60M $59M Retail Sales $105M +12.1% $12M $10M $8M $6M $8M Passenger Services Sales $11M +7.2% $40M $4M $20M $2M $0M 2013 2014 2015 2016 2017 ttm Sep 2018 $0M 2013 2014 2015 2016 2017 ttm Sep 2018 9 Post-Security Excludes: Terminal, Duty Free and Airportwide Services
FOOD AND BEVERAGE OVERVIEW Specialty coffee 6% F&B Category Share 2017 Bar 3% Snack 7% Casual dining bar 42% Quick service 29% Quick service alcohol 13% 10
RETAIL OVERVIEW Electronics 11% Beauty 7% Retail Category Share 2017 Food 3% Toys 1% Accessories 4% Travel Convenience 49% Gifts and souvenirs 11% Books 6% Fashion 8% 11 11
12 THE FUTURE OF CONCESSIONS
FUTURE OF CONCESSIONS Goals Create Sustainable Business Opportunities Incorporate ACDBE and MWBE firms in new opportunities Opportunities Gate expansions Concourse redevelopment Expiring contracts 13
GATE EXPANSION New concessions will be located in each gate expansion area Innovative opportunities for ACDBE partners 14
CONCOURSE REDEVELOPMENT The departures peak hour is forecast to grow by more than 100% in Concourse C by 2044, further compromising passenger flow and commercial performance in the absence of significant additional space Example Concessions Demand 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 Capacity Today 2044 15
CONCOURSE REDEVELOPMENT ROUGH DRAFT CONCEPTUAL LAYOUT Concourse: Approximate Space (sf) Type Today Future Commercial 21,000 34,000 Common Seating 2,300 7,000 Mezzanine: Approximate Space (sf) Type Today Future Commercial 0 22,000 Lounge 0 7,500 16
RFP OPPORTUNITIES Concessions will release the first round of RFPs in Q1 2019 Forecast in December 2018 Round one will include gate expansion opportunities Subsequent groups of RFPs are scheduled to be released in 2019 17
BEING A CONCESSIONAIRE PARTNER
HOW TO PARTICIPATE Direct Agreement Sub-agreement with a Prime Concessionaire Joint Venture Licensing Vendor 19
AIRPORT BUSINESS CHALLENGES Scaling Up Large Investment Small Spaces Operating Hours Operating Costs Delivery/Storage 20
AIRPORT BUSINESS CHALLENGES Security Employee Badging Employee Parking Customer Dwell Time 21
FOR MORE INFORMATION Activation occurs through multiple channels DEN s Commerce Hub Community Outreach Civic & Business Organizations Industry Outreach @ DEN National Conferences 22
OUTREACH MESSAGING Find Resources Register on Website Division of Small Business Opportunity office (DSBO) DEN Commerce Hub Learn about opportunities Attend outreach sessions Begin networking / keep networking Start certification process / update certifications Start business planning Your unique concept Your unique approach Arrange financing Start designing 23
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