When an off-site parking operator opened near Anchorage International in 2002, it put the squeeze on ANC's parking business. You know what the dollar value is."įor airports that already have fee-generating ordinances in place, boosting passenger services and amenities can be a powerful tool. "At least you know how many dollars you're going after," she comments. Such information can also uncover the need to develop additional marketing programs. They can help an airport determine just how many dollars a competitor is taking away and what its market share is. Flat fees - per shuttle bus or per trip - aren't going to compensate you for the volume that these operators are doing, and it should be based on volume, just like it is with other types of fees."įees based on gross revenues also provide good data, Brown adds. Pam Brown, vice president of Business Development - Airports for Standard Parking, recommends certain fees over others: "You've got to get an ordinance that allows you to charge a percentage of gross revenue, much like car rental agreements. "Making sure you have these regulations in place is one way to help limit these firms from entering the market, because it ups their operational cost," adds Howley. While some airports assess pick-up or drop-off fees, others collect a percentage of off-site operators' gross revenues. "If the airport wasn't there, then you wouldn't be in business." "If you use the airport, and your business is reliant on the airport as your source of customers, then the airport should be compensated," Howley explains. Chris Howley, executive vice president of Republic Parking, likens off-airport parking vendors to off-airport rental car companies. Many airports benefit from regulations or ordinances that allow them to collect an access fee from off-airport parking operators. Kansas City International (KCI) courts its customers with valet service and perks for frequent parkers. There are, however, several strategic moves airport operators can make to stay competitive.įaced with a lower-priced off-site rival, Ted Stevens Anchorage International Airport (ANC) held its prices steady and added a loyalty reward program. When parking fees account for 40% or more of an airport's total operating revenue, losing market share to independent off-site vendors is no small issue.
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