City of Austin Performance Report 2015-16

Non-Airline Revenue Per Enplaned Passenger 

Measure Description
This measure indicates Aviation's ability to maximize revenue from non-airline services including parking and terminal concessions. Non-airline revenue consists of: parking revenue, concessions such as rental cars, food and beverage, news and gifts, advertising, airline catering, etc., and rentals and fees for shuttle permits, cargo facilities, property sales and miscellaneous revenue. This measure shows the amount concession revenue generated by each departing passenger. Non-airline Revenue per Enplaned Passenger is a function of revenue and enplanement trends.
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 2015-16 Results
In FY 2015-16, the Aviation Department generated $12.51 for the year-end, exceeding the established goal of $12.48 by $0.03, or 0.2%.
Assessment of Results
Increased passenger activity in FY 2015-16 maintained a steady increase to parking and concessions revenue resulting in the target being exceeded. Year-to-date non-airline revenue experienced record growth at $77.3 million, or 10.1%, higher than FY 2014-15 and enplaned passenger activity reached a record high of 6.2 million, an increase of 6.7% compared to FY 2014-15.
Next Steps
Increased emphasis on commercial development and non-airline revenue continues to be the focus for FY 2016-17. 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 September 2016, the airport reached 58.9% in non-airline revenue. Parking revenue accounts for 51% of the total non-airline revenue. ABIA is in the planning stages of constructing an additional parking garage, which will replace the current “close in” surface parking product. The new garage will have 6,000 spaces, will more than double the amount of garage parking, and is expected to be completed in 2019. An adjacent office building will also be constructed as part of the new garage development which will be occupied by ABIA administrative staff and airport vendors. Scott Airport Parking’s “Park & Zoom” development, which is located on ABIA property, partially opened in mid-November 2016, and when complete will contribute an additional 1,931 covered parking spaces on-property. “The Parking Spot” is expanding their operation to a second site east of the Airport.
Renovations to existing concession operations by Delaware North (DNC) and Paradies Lagardere (formerly LS Travel) are underway and set for completion by December 2017. In 3rd Quarter 2016, the Airport issued a Request for Proposals (RFP) for concession operations both in the Airport’s gate expansion and to replace existing concession agreements set to expire. The Airport expects the new concession agreements to be executed in 2017.
Contact Information
For more information contact David Arthur, Assistant Director of Finance, at (512) 530-6688.