CONCESSIONS OVERVIEWBUILDING FOR THE FUTURE
NOVEMBER 2018
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RECORD-SETTING PASSENGER TRAFFIC
Source: Denver International Airport
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Source: Innovata Schedules via Diio MiNote: Cayman Airways starts service in March 2019
Airlines Serving Denver International Airport2018—2019
DEN AIR SERVICE
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AIR CARRIER RANKINGSDenver International Airport (DEN) Seat Market Share
CY 2018
United43%
Southwest29%
Frontier12%
Delta5%
American5%
Spirit2% Other
2%Non-U.S.
2%
Source for data: Innovata Schedules via Diio MiNote: 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
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DEN’S NONSTOP NETWORK
Denver International Airport Nonstop Service NetworkYE June 2019
Source: Innovata Schedules via Diio MiNote: Some markets are seasonal and some markets are served less than daily
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66
COMPETITIVE ADVANTAGES
Source: Innovata Schedules via Diio Mi (YE June 2019); U.S. DOT O&D Survey (YE 2Q 2018)
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CONCESSIONS BY THE NUMBERS
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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
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$170M
$244M
$0M
$50M
$100M
$150M
$200M
$250M
$300M
2013 2014 2015 2016 2017 ttm Sep2018
Food & Beverage Sales
+7.4
$59M
$105M
$0M
$20M
$40M
$60M
$80M
$100M
$120M
2013 2014 2015 2016 2017 ttm Sep2018
Retail Sales
+12.1%
$8M
$11M
$0M
$2M
$4M
$6M
$8M
$10M
$12M
2013 2014 2015 2016 2017 ttm Sep2018
Passenger Services Sales+7.2%
$9.04
$11.35
$0$2$4$6$8
$10$12$14
2013 2014 2015 2016 2017 ttm Sep2018
Sales per Enplaning Passenger
+4.7%
Post-Security Excludes: Terminal, Duty Free and Airportwide Services
DEN HISTORICAL SALES
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Casual dining bar42%
Quick service alcohol13%
Quick service29%
Snack7%
Specialty coffee6%
Bar3%
F&B Category Share 2017
FOOD AND BEVERAGE OVERVIEW
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Travel Convenience49%
Fashion8%
Books6%
Gifts and souvenirs
11%
Accessories4%
Electronics11%
Beauty7%
Food3% Toys
1%
Retail Category Share 2017
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RETAIL OVERVIEW
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THE FUTURE OF CONCESSIONS
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FUTURE OF CONCESSIONS
• Goals
• Create Sustainable Business Opportunities
• Incorporate ACDBE and MWBE firms in new opportunities
• Opportunities
• Gate expansions
• Concourse redevelopment
• Expiring contracts
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GATE EXPANSION• New concessions will be located in each gate expansion area• Innovative opportunities for ACDBE partners
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CONCOURSE REDEVELOPMENT
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
Example Concessions Demand
Capacity Today 2044
• 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
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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
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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
BEING A CONCESSIONAIRE PARTNER
HOW TO PARTICIPATE
• Direct Agreement
• Sub-agreement with
a Prime Concessionaire
• Joint Venture
• Licensing
• Vendor
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AIRPORT BUSINESS CHALLENGES
• Scaling Up
• Large Investment
• Small Spaces
• Operating Hours
• Operating Costs
• Delivery/Storage
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AIRPORT BUSINESS CHALLENGES
• Security
• Employee Badging
• Employee Parking
• Customer Dwell Time
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FOR MORE INFORMATION
Activation occurs through multiple channels• DEN’s Commerce Hub• Community Outreach
• Civic & Business Organizations• Industry Outreach
• @ DEN• National Conferences
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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
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