Airport Business

AUG-SEP 2014

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August/September 2014 airportbusiness 21 LOVED ones must bide their time at airports as travelers reach their final approach. But often there is no good place for them to pass the time, get a bite to eat or just stretch their legs. Denver International Airport, which serves 52.5 million passengers a year, once offered those waiting a cellphone lot, which was little more than a parking lot with portable restrooms. "The lot was hot in the summer, cold in the winter, and not a good experience at all for our customers," says John Ackerman, chief com- mercial officer. Driven by a strong desire to offer customers of this bustling hub a great experience, airport operators made it their mission to improve the cellphone lots' meager and stark surroundings. In late September 2013, the airport opened its alternative solution to the 45-minute cell- phone wait lot. The new service plaza along Peña Boulevard, called Final Approach, offers patrons a variety of food options, a place to fuel up, free WiFi, arrival and departure boards, and inviting spaces to pass the time. The site is situated on airport property but operates much like the concessions pro- gram within the concrete walls of the airport. California-based Pacific Convenience & Fuels partnered with the airport and footed the proj- ect's $7 million price tag. At its onset, Ackerman says they projected the facility would create more than 200 jobs and generate approximately $2.8 million in revenue, with more than $400,000 going to the airport. "We haven't completed a full year yet, but they're running about 25 percent ahead of pro- jections," he says. "The result was a huge win for our customers, a win for this operator and a win for the airport as it generates significantly more rent. Because the operator bore the capital expense for the project, the service center did not cost the airport anything." The lot offers 250 parking spaces, an increase of more than 130 percent over the old wait lot, which is now closed. And though, the previous lot limited visitors to a 45-minute stay, the new lot poses no such limits. Ackerman explains that with the new business model, they want people to linger and relax. "People can enjoy this area whether or not they are shopping or eating," says Ackerman. "They can just sit here and enjoy the space." The facility's food offerings include a Subway restaurant, Baja Fresh Mexican Grill, Zpizza and Dunkin' Donuts. The inviting space features large windows that let in plenty of light and a comfortable seating area and lounge. There are even iPads built into tabletops with game access so children can play. "It's a really great atmosphere," says Ackerman. "With this space, instead of sitting in their cars, people generally get out and come inside." He goes on to say, "The area has been incredibly well received—the revenue results speak for themselves. Customers tell us how much they appreciate this option and how much better it is than the old cellphone lot." To other airport operators looking to Denver's Final Approach and hoping to do something similar, Ackerman offers a few words: "Treat your customers well. Airports have a signifi- cant number of meeters and greeters and people picking up business partners and loved ones. This is a definite need for airport customers." He adds that it is also an idea that many business operators would be more than willing to take on. "This is the No. 2 best performing location out of several hundred for our partner," Ackerman says. "With the right packaging, an airport should have no trouble attracting part- ners who are very interested in this opportunity." "… an airport should have no trouble atractng partners who are very interested in this opportunity." JOHN ACKERMAN, CHIEF COMMERCIAL OFFICER, DENVER INTERNATIONAL AIRPORT AIRPORT AMENITIES REVIEW

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