go airport express. airport concession agreements & long term investment strategy
TRANSCRIPT
GO Airport Express
Airport Concession Agreements & Long Term
Investment Strategy
Railroad Transfer Service
Parmelee Transportation 1853 – 1955– Regulated by state– Contract with Railroad Board
Airport Ground Transportation• Continental Air Transport 1938 – 2008
– Regulated by State– Concession Agreement – City of Chicago
Airports Provide Economic Engine
• Air travel is critical to a city’s convention, meeting and tourism industry.
• Businesses locate in cities with easy air travel access
• Airports create good jobs and tax dollars
Connecting the Airports with the City
• Ability to meet fluctuating demand– Convention business
has many peaks and valleys.
Chicago MarketQuarterly Demand
1Q 2Q
3Q 4Q
Chicago Market
Daily Ridership
0
1000
2000
3000
4000
5000
6000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Managing Capacity• Transportation provider must have
the resources to:a. Build capacity to meet peak demand
periods
b. Carry the cost of infrastructure during slow periods
Single v Multiple Operators
• Single Operator can better support slow periods and better serve low volume locations due to higher earnings from busy periods and high volume locations
Single v Multiple Operators• Multiple operators can cause
ruinous competition and bring about poor service during both busy and slow periods and no service to low volume locations.
Efficient Use of Airport Resources
• Maximizing the use of the curb space– Multiple operators = Greater
demand for curb space– Single operator can more
efficiently dispatch vehicles from the curb.
Emissions
• Fewer Vehicles at curb reduce unneeded emissions.
Load Factor
• Fewer vehicles at curb increase the number of passengers per trip and lessen the number of trips operated.
Revenue Per Trip
• Greater load factors generate lower fares and higher revenue per trip.
Security and Safety
• Drivers:– The greater revenue a vehicle
generates the higher wage that can be paid a driver.
– The higher compensation a driver the more selective will be the hiring process.
Investment Required
• Vehicles• Maintenance
Investment Required
• Communications– With Driver
• Dispatch System• Radio• GPS• Mobile Data Terminals (MDTs)• DriveCam
Investment Required
• With Customer– Website– Reservation System– Ticketing System– Phone System– Ticket Kiosks
Investment Required
• Branding– Providing Recognized
Consistent Quality Service
Recognizable NameEasy to recognize GO vans make the customer more comfortable and confident they will receive the quality service they deserve no matter where they are in the world.
Quality of Service
• How Soon?– Frequency
• How Long?– Number of Stops
• How Much?– Fare
Quality of Service – Creating the Experience
• Training– Safety– Customer Service
• Weather- Sight- Bite
Quality Service – Creating the Experience
• Providing Added Value– Historical Fact of the
Day– Giving out Lottery
Tickets– Offering Discounts at
Local Sights.
Fact of the Day September 15, 2008Chicago History Minute
September 15, 2008 On September 15, the Nicaraguan community in Chicago comes together to celebrate its Independence Day, often with picnics, festivals and traditions such as La Gigantona. Learn more>> LINK: http://www.encyclopedia.chicagohistory.org/pages/890.html .
Quality Employment
• Drivers, Ticket Agents and Reservation Agents– Valuing Front Line Personnel
Quality Employment
• Employment Package– Close to 70% of employees are union
members.• Compensation formulas are well above
market level• Drivers and ticket agents receive free health
insurance.• Other benefits include paid vacations,
holidays and sick days.
Achieving Airport Minority Goals
• 82% of employees are minorities.• 80% of employees reside in Chicago.• All vehicles and fuel are purchased through MBE
firms.• Most marketing is done through a WBE firm.• DBE firms are used at every opportunity. Uniforms,
printing, security work, office suppliers, etc. are purchased through DBEs.
Commitment to the Community• Providing leadership and support for local
organizations– Chamber of Commerce– Convention and Tourism Bureau– Rotary– Metropolitan Planning Organization (local MPO)– Principal for a Day– Universities– Hospitals– Travelers Aid
Long Term vs Short Term Strategy
• Building Customer Loyalty vs Creating a One-time Rider
Long Term vs Short Term Strategy
• Investing in state of the art technology vs getting by with what one has.
Long Term vs Short Term Strategy
• Making a larger investment that requires a long term payback.
Long Term vs Short Term Strategy
• Investing in the Community vs. taking the money and run.
Long Term vs Short Term Strategy
• Employees being vested in their job vs. Employees wanting a better job elsewhere.
Airport Concession Agreement• A healthy long term financial
environment offers the best overall return. – The Airport receives greater fees– Customer receives higher quality of
service and lower fares.– Operator has better Return on
Investment– Employee receives greater
compensation & benefits.– The community profits from all the
above.