City of Austin Performance Report 2014-15

Non-Airline Revenue Per Enplaned Passenger

Measure Description
This measure indicates the Aviation Department's ability to maximize revenue from non-airline services including parking and terminal concessions. The non-airline revenue consists of 1) parking revenue, 2) concessions such as rental cars, food and beverage, news and gifts, advertising, airline catering, etc., and 3) rentals and fees for shuttle permits, cargo facilities, property sales and miscellaneous revenue. This measure shows how much concession revenue is generated for each departing passenger. Non-airline Revenue per Enplaned Passenger is a function of revenue and enplanement trends. This measure links to the goal "Maintain economic sustainability” by reducing reliance on airline revenue. The higher the number is, the better the performance.
Calculation Method
This measure is calculated by dividing the total revenue for Parking, Other Concessions, and Other Rentals and Fees by the total enplaned, or departing, passengers.
FY 2014-15 Results
The goal for this measure was established at $12.31. The Aviation Department fell short of this goal by $0.20, or 1.7%, generating $12.11 for the year.
Assessment of Results
Enplaned passenger activity reached a record high of 5.8 million, which was an increase of 9.8% compared to FY 2013-14. Year-to-date non-airline revenue also experienced record growth at $70.2 million, which was 8.3% higher than FY 2013-14. However, non-airline revenue did not grow at the same rate as enplaned passengers, which resulted in the Department not meeting the target.
Image of outside of airport
Next Steps
Increased emphasis on commercial development and non-airline revenue continues to be the focus for FY 2015-16. A five year goal was established to reduce the Department’s dependency on airline revenue by increasing non-airline revenue to 60% of operating revenue. In October 2015 the Department reached 57.1% in non-airline revenue. Parking revenue accounts for the majority of non-airline revenue. A new parking product, Family Friendly Valet, has been added as an additional option to the Executive Valet.
On October 1, 2015, the consolidated rental car facility opened, which increased the availability of public parking in covered spaces on level one of the new facility and allowed the Department to reclaim additional revenue spaces on the third level of the public parking garage. Scott Airport Parking, an airport business partner and tenant, broke ground in 2015 and will be operational in late 2016, which will provide an increase of approximately 2,000 additional spaces to the parking products. In FY 2015-16 the airport’s concessions under the Delaware North Companies (DNC) and LS Travel and Retail (LS Travel) contracts will be extended through 2027 and renovation will begin in January 2016.
Contact Information
For more information contact David Arthur, Assistant Director of Finance, at (512) 530-6688.