Transportation Network Companies: Challenges and...
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Wednesday, January 31, 2018 2:00pm to 3:30pm ET Transportation Network Companies: Challenges and Opportunities for Airport Operators TRANSPORTATION RESEARCH BOARD
Transcript of Transportation Network Companies: Challenges and...
Wednesday, January 31, 2018
2:00pm to 3:30pm ET
Transportation Network Companies: Challenges and Opportunities for Airport Operators
TRANSPORTATION RESEARCH BOARD
Purpose
Discuss research from the Airport Cooperative Research Program (ACRP)’s Synthesis 84: Transportation Network Companies: Challenges and Opportunities for Airport Operators.
Learning Objectives At the end of this webinar, you will be able to: • Understand how airports are managing TNC operations • Identify the range of fees charged by TNCs at airports of
different sizes • Understand the potential impacts of TNCs on airport
revenue
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Additional ACRP Publications Available on this Topic
Report 70: Guidebook for Implementing Intelligent Transportation Systems Elements to Improve Airport Traveler Access Information Report 146: Commercial Ground Transportation at Airports: Best Practices Legal Research Digest 3: Survey of Laws and Regulations of Airport Commercial Ground Transportation
Today’s Speakers
Stephanie Box and Peter Mandle of
InterVISTAS Consulting
Presenting Synthesis 84: Transportation Network
Companies: Challenges and Opportunities for Airport Operators
ACRP Synthesis 84 Transportation Network Companies:
Challenges and Opportunities for Airport Operators
Peter Mandle and Stephanie Box InterVISTAS Consulting, Inc.
ARCP Webinar
January 31, 2018
TODAY’S PRESENTERS
Principal Investigator
Executive Vice President InterVISTAS Consulting
Deputy Principal Investigator
Manager InterVISTAS Consulting
PROJECT PANEL MEMBERS • Eva Cheong (SFO)
• Joel Feldman (TPA)
• Dorothy Harris (DEN)
• Kiran Limaye (Consultant)
• Bill Lanham (IAD)
• Lenard Robinson (SAV)
• Susan Shaheen (UC Berkeley)
• Patrick Magnotta (FAA)
• Aneil Patel (ACI-NA)
• Christine Gerencher (TRB)
• Gail Staaba (ACRP Project Officer)
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ACRP SYNTHESIS 84 Research conducted in 2016 with the following objectives:
Determine • How airports regulate TNCs
Gather data
• Drop-off/pick-up and staging areas • Airport TNC fees and revenues • Changes in the use of other modes • Enforcement/tracking methods • Use of geofences
Document •Challenges and opportunities facing airport operators
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RESEARCH APPROACH
• At time of research, TNCs were permitted to operate at >90 U.S. airports, but few for more than 18 months
• Little available relevant literature
• Limited before/after data available
• Conducted original surveys: • Online survey of the 100 largest U.S. airports (73 responded)
• Telephone interviews with/additional data from 18 airports
• Analyzed and summarized results
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ACRP SYNTHESIS 84 CONTENTS
Note: Data presented was current as of Fall 2016; rapid changes in industry
• What they are • How they operate • How customers request rides/how drivers receive rides • How states/counties regulate them
Background on TNCs:
Summary of TNC airport operations & regulations
Tips and effective practices for airports
Summary of survey data
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SURVEY DATA SUMMARIZED BY AIRPORT HUB SIZE
FAA defines airport hub size by the proportion of annual U.S. commercial aircraft boardings an airport serves
L M S
Large hub: 1.0% or
more (24 respondents)
Medium hub: At least 0.25% but less than
1.0% (20 respondents)
Small hub: At least 0.05% but less than 0.25% (28
respondents)
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Companies (e.g., insurance coverage)
Vehicles (safety, maintenance, inspections)
Drivers (e.g., background checks, appearance, training)
Share certain proprietary or confidential information
Have AVI tags mounted on vehicles operated by driver partners
KEY ASPECTS OF TNC REGULATIONS AND OPERATIONS
(AFFECTING AIRPORTS) Airports rely upon state and local regulations governing:
TNCs can quickly introduce new products and procedures
TNCs are privately held companies; not required to:
Uberpool and LyftLine
Re-match
Pre-dispatch
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AIRPORT-SPECIFIC REGULATIONS: TNC COMPANIES
• Establish geofence(s) • Obtain an airport
permit • Some airports require
permits be displayed on each vehicle
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AIRPORT-SPECIFIC REGULATIONS: TNC COMPANIES (CONTINUED)
Comply with state or local regulations
Maintain required insurance (may exceed state & local amounts)
Pay required airport fees – report trips and provide supporting data
Train drivers in the required procedures/use of airport roadways
Take remedial actions concerning drivers if required by airport staff
Comply with the airport’s and FAA’s general rules and regulations
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AIRPORT-SPECIFIC REGULATIONS: TNC DRIVERS
Obey airport regulations regarding use of roadway and posted signs
Use designated drop-off/pick-up locations and staging area
Display company trade dress and airport-issued placard
Possess driver identification/ digital identification
Pay airport fines
Comply with the airport’s and FAA’s general rules and regulations
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TNC WAYFINDING TERMINOLOGY
• Ride-share/Ride-sharing (32%)
• Transportation Network Company/TNC (27%)
• None, no signage provided (20%)
• Uber Pick-up/Lyft Pick-up (10%)
• App-Based Ride Share (7%)
• Smartphone App Rides (2%)
• Ride Service (2%)
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DROP-OFF/PICK-UP & STAGING AREAS
• Drop-off locations
• At departures curb (63%)
• At arrivals curb or elsewhere (37%)
• Pick-up locations
• At private vehicle or CGT arrival curb (64%)
• At departures curb (23%)
• Nearby parking structure or lot (13%)
• Staging areas (82%)
• In a dedicated surface lot (55%)
• Within a parking structure (20%)
• Shared with taxis & limos (7%)
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ENFORCING AIRPORT REGULATIONS
Use curbside traffic officers/airports operations staff 87%
Rely upon self-reported trip data to confirm payment of airport fees 80%
Airports use one of several available TNC vehicle tracking tools
Over 20
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ENFORCEMENT RESPONSIBILITIES AND TOOLS
30%
19% 21%
21%
9%
Large hubs
Curbside traffic control (non-badged) Licensed enforcement officer/police officersRegular audits Spot checksTNC tracking system/software Other
34%
21% 6%
24%
9%
6%
Medium hubs
39%
31%
4%
9%
13%
4%
Small hubs
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AIRPORT FEES CHARGED TNCS
98% of airports with a TNC permit charged one or more of the following fees:
• Activation fees (17%) • Most less than $10,000
• Three more than $50,000
• Minimum Annual Guarantee (6%) • Per-trip fees exceeded
MAG at all airports
• Per-trip fees (87%) • Pick-up only (59%)
• Drop-off and pick-up (41%)
• Annual permit fees (21%) • 60% less than $2,000/year
• 40% greater than $2,000/year (maximum $12,000)
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PER-TRIP FEES CHARGED TNCS – PICK-UP ONLY
0
1
2
3
4
$1.00 -$1.49
$1.50 -$1.99
$2.00 -$2.49
$2.50 -$2.99
$3.00 -$3.49
$3.50 -$3.99
$4.00 -$4.49
$4.50 -$4.99
$5.00 -$5.49
Num
ber o
f Airp
orts
Large-hub Medium-hub Small-hub
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0
1
2
3
4
5
$1.00 -$1.49
$1.50 -$1.99
$2.00 -$2.49
$2.50 -$2.99
$3.00 -$3.49
$3.50 -$3.99
$4.00 -$4.49
$4.50 -$4.99
$5.00 -$5.49
Num
ber o
f Airp
orts
Large-hub Medium-hub Small-hub
PER-TRIP FEES CHARGED TNCS – PICK-UP AND DROP-OFF
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0 2 4 6 8
Less than $100,000
$100,000 to $1,000,000
$1,000,000 to $5,000,000
$5,000,000 to $20,000,000
More than $20,000,000
Number of Airports
Large-hubMedium-hubSmall-hub
ANNUAL REVENUE RECEIVED FROM TNCS
• Depends on types of fees, number of passengers
• Revenues expected to increase as market matures
• Of 31 reporting airports, 14 received over $1,000,000/year
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IMPACTS ON AIRPORT OPERATIONS
When adjusted for changes in terminating airline passengers, the data showed:
10% to 30% decrease in taxicab trips
18% to 30% decrease in shared-ride customers
10% to 20% decrease in private vehicles
5% to 10% decrease in parking transactions
4% to 13% decrease in rental car transactions
46% reported an increase in roadway congestion
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IMPACTS ON AIRPORT REVENUES
Based on the limited sample, we estimate that:
While many airports receive significant revenue from TNCs, these revenues are less than the foregone parking and rental car revenues at most airports
The decline in airport revenues will increase as more passengers use TNCs
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A 10% TO 20% REDUCTION WOULD IMPACT ALL AIRPORTS
Parking, rental cars, and ground transportation contribute 60% of non-aeronautical revenues and
more than 25% of overall airport operating revenues
Aeronautical
Revenue
$11,362 54%
Non-Aeronautical
Revenue
$9,672 46%
Land and Non-
Terminal $677
7%
Retail and Duty Free
$763 8%
Food and Beverage
$747 8%
Services $456
5%
Hotel $222
2%
Parking and
Ground Transporta
tion $4,032
42% Rental
cars $1,800
18% Other $976 10%
Total 2016 Operating Revenues for all U.S. Commercial Service Airports (in millions)
Source: FAA, AAS-400, CATS Report 127.
Total Operating Revenue: $21,034
Total Non-Aeronautical Revenue: $9,672
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SUMMARY OF KEY ADVICE FROM RESPONDENTS
Stay engaged in the state/local regulatory process.
Review permits or agreements used by other airports.
Develop a good working relationship with TNCs/local reps.
Include desired features in initial permit; revisions are challenging.
Require TNCs to train drivers in airport regulations and operations.
Provide properly exclusive TNC staging area with good access.
Plan ahead. Allow for growth and changing operations
Require TNC to assume responsibility for drivers and driver issues.
Communicate with peer airports regarding use of tracking software
Be sensitive to the needs of traditional GT providers.
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OTHER KEY ISSUES AND POTENTIAL RESPONSES
Curbside congestion • Boarding areas in parking structure: MHT, MSY,
SEA, and LAS • Boarding areas in parking lot(s): CLE, TUS, and
SAN (T-1 Only)
Hold Lot Size and Location • Share/adjacent to taxicabs? • Amenities for TNC drivers? • Large lot vs. no lot • Distance from boarding area (less than 5 minutes)
Implications to ground transportation/taxicab concession agreements
• Concession agreements: Impacts on MAG • Use of other metrics
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• Increasing number of airports are recognizing adverse impacts of TNCs
• Supporting further research (see next slide)
• Considering new business and revenue models
• Evaluating additional/new revenue sources: • Fees for use of curbside areas • Fees for airport access (all motorists) • Adjusting fees charged TNCs • Other creative sources
HOW AIRPORTS ARE RESPONDING TO CHANGE
(Since research was concluded)
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STATUS OF AIRPORT TNC RESEARCH
• Synthesis 84 available for free on the TRB website: http://www.trb.org/Publications/Blurbs/176493.aspx
• ACRP Oversight Committee decided to expand upon and update the data collected (as recommended by the research panel)
• “Transportation Network Companies (TNCs): Impacts to Airport Revenues and Operations” (ACRP 01-35)
• “Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue” (ACRP 03-47)
• Both research projects to be initiated Spring 2018
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NEXT STEPS
• Review results of forthcoming ACRP research —including early products
• Adapt to changes in revenues and operations
• Address forthcoming impacts of Autonomous Vehicles/Connected Vehicles
Thank You!
Today’s Participants
• Eva Cheong, San Francisco International Airport, [email protected]
• Stephanie Box, InterVISTAS Consulting, [email protected]
• Peter Mandle, InterVISTAS Consulting, [email protected]
Panelists Presentations
http://onlinepubs.trb.org/onlinepubs/webinars/180131.pdf
After the webinar, you will receive a follow-up email
containing a link to the recording
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