Airport Business

AUG-SEP 2018

The airport professional's source for airport industry news, articles, events, and careers.

Issue link: https://airportbusiness.epubxp.com/i/1018106

Contents of this Issue

Navigation

Page 10 of 51

August/September 2018 airportbusiness 11 PEOPLE MOVERS existing transit deficits and capacity issues, as well as associated air pollution, to significantly improve the transit experience for all travelers. More recently, APM systems are being designed to connect airport terminals with landside facilities such as parking, car rental services, regional transportation services, hotels and other related employment and activity centers. With airports about the size of small cities, passenger conveyance to and through the airport terminals and gates can often feel like running in a marathon. APMs can enable greater numbers of passengers to move more quickly and comfortably over longer distances, when walking or buses are not feasible. This helps passengers arrive at their aircraft gates faster and with less stress, especially those traveling at large airline hub operations. APMs on the rise Globally, airports have embraced this transport technology and implemented it as part of their master plans. At last count, there are 51 airports with automated people mover systems around the world. Nearly half (24) of those are in North America. Several new APM systems are planned, including Los Angeles International Airport’s 2.25-mile Automated People Mover that will connect three on-airport stations to Metro Rail and transit services; a Consolidated Rent-A-Car center; two Intermodal Transportation Facilities for additional parking, ground transportation services and meeter-greeter activities; and roadway improvements. The automated people mover is part of the $5.5-billion Landside Access Modernization Program that will offer airport guests convenient and reliable choices to access the AIRPORT PARKING IN THE AGE OF UBER By Art Stadig Technology offers new ways to protect parking revenues. Ridership of transportation network companies (TNCs) like Uber and Lyft is increasing, and that’s posing new challenges when it comes to airport parking. TNC use at some large airports is in the range of 15 percent to 20 percent of all passengers to and from the airport. As patrons choose TNCs to travel to and from airports, demand for parking and other ground transportation options is falling, resulting in lower airport revenue. The problem is, parking is a significant source of revenue for airports—for many it’s the second most important revenue source after gate fees—so falling parking demand can hit an airport’s bottom line hard. So, how can airports respond in this Age of Uber? The impacts on parking are not uniform across parking products, and range widely between different airports. However, modeling parking finances can help airports find the right fee to charge for TNC trips to help recover lost revenue. Demand and revenue impacts The potential impact of TNCs on airport parking are more complicated than simply assuming there’s a uniform decrease in parking demand across the airport parking system. Airport parking demand increases with rising originating enplanements, which in some cases is going up at 3 percent to 5 percent annually. So, while the per passenger parking demand is going down because of TNC use, the number of passengers is growing. This leads to mixed financial results for airports based on several factors, including parking fee changes. In some cases, revenues are flat as enplanements are increasing. Each airport experiences different changes and every situation requires specific solutions. For example, a TNC modeling study at one southern airport found that total parking demand in 2015 dropped by 3-5 percent, compared to 2014, because of TNC trips. This displacement was predominantly affecting longer-term parking of three to four or more days in duration. Conversely, a survey for another southern airport found that TNC trips increased by 600 percent (on a per enplanement basis) from 2014 to 2016. Meanwhile, the total parking transactions per enplanement decreased by 11 percent from 2014 to 2016. In this second case, long-term and remote parking grew, while short-term parking clearly declined. One potential reason for this difference is that patrons could be using TNCs (which never park) rather than being picked-up or dropped-off with a personal vehicle (which occupy short- term parking). The drastically different findings from these two engagements demonstrate the complicated nature of TNCs’ influence on parking demand within airports. TNCs are also impacting airport car rental revenues and taxi utilization fees, which are also declining as many passengers forgo a taxi ride for a TNC ride. For example, Las Vegas’ McCarran International Airport experienced a doubling of TNC pick-ups and drop-offs from a year ago, but saw taxi pickups decline by 13 percent. Los Angeles International Airport, on the other hand, began charging for TNC rides in 2016, which added nearly $9 million in revenue, while rental car revenue on a per enplanement basis fell by nearly 12 percent in the same year. Read more at www.AviationPros.com/ 12423119 City Fee ATL Atlanta $3.85 Pickups BOS Boston $3.25 Pickups CLT Charlotte $1.00 Each Way DEN Denver $2.15 Each Way DFW Dallas $2.00 Each Way DTW Detroit $5.00 Each Way IND Indianapolis $2.50 Pickups LAS Las Vegas $2.45 Each Way LAX Los Angeles $4.00 Each Way MCO Orlando $5.80 Pickups MDW Chicago $5.50 Each Way MIA Miami $2.00 Each Way MPS Minneapolis $3.00 Each Way ORD Chicago $5.50 Each Way SFO San Francisco $3.85 Each Way

Articles in this issue

Links on this page

Archives of this issue

view archives of Airport Business - AUG-SEP 2018