Take a Closer Look at DFW Airport
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1 Take a Closer Look at DFW Airport
2 ARN PRESENTATION, FEBRUARY
3 Concessions Strategy and Goals Michael Baldwin Assistant Vice President, Airport Concessions
4 ARN PRESENTATION, FEBRUARY 2012 Begin with the End in Mind 4
5 ARN PRESENTATION, FEBRUARY 2012 DFW Airport Mission DFW International Airport will provide our Customers outstanding facilities and services, expanding global access and economic benefits to those we serve. 5
6 Concessions Strategy and Goals DFW Airport Brand World-class brand identity: Professional World-class/International Leading-edge Unique Caring/Friendly/Responsive Not trendy, frivolous, or regional 6
7 Concessions Strategy and Goals Personalized Customer Service Management (PCSM) Comprehensive mixture of Best in Class Based on customer preferences, ensure desired mix of retail by implementing new concepts and optimizing the use of retail space. Three-part Objective Exceed customer needs Increase revenue Provide opportunities for economic growth Local, regional and national concepts Single operator, large operator, joint ventures 7
8 Concessions Strategy and Goals Revenue Strategy - Maximize Passenger Satisfaction and Revenue for All Stakeholders by Right Sizing Terminal Offerings 8-10 sq.ft. / 1,000 epax $10 /enplaned passenger upon plan completion 60 / 40 F&B vs. Retail 8
9 Concessions Strategy and Goals CONCESSIONS SUMMARY EXISTING NEW F & B 38,352 S.F. 51,927 S.F. RETAIL S.F. 19,719 S.F. NEWS 4,811 S.F. 8,300 S.F. SERVICES 824 S.F. 5,653 S.F. DEFERRED 7,592 S.F. TOTALS: 53,040 S.F. 93,191 S.F. 9
10 Concessions Strategy and Goals Trends in the Marketplace Health & Wellness Innovation Tech-saavy Variety & Value Luxury Items High Quality F&B Trends Key Services 10
11 Concessions Strategy and Goals Take a Closer Look at DFW Airport 11
12 Research for the Future Carolyn Phillips Manager, Retail
13 Research for the Future Annual Household Income October % > $100K 13
14 Research for the Future DFW Passengers Xers (33-46) Baby Boomers (47-65) October 2011 Mean: 45 14
15 Research for the Future Passenger Travel Frequency February 2011 Mean: 7 trips 15 February 11 study samples (+/- 2.4%).
16 Research for the Future DFW Passenger Demographics Vary by Terminal Terminal A Example Heavy connecting traffic (70%) More business travelers (54%) Mostly males (63%) Age 25 to 54 (61%) Household income: > $75K (59%) > $100K (35%) 16 * DFW Survey October samples (+/- 5.4%)
17 Research for the Future Economy Created A New Normal Actions have consequences Vigilant Hyper-prioritizing Thrift is an aspiration Paying down debt Shopping smart is the new wealth Looking for something worth buying 17
18 Research for the Future Customer Feedback and Market Research Voice of the Passenger Market Research In-terminal surveys 18
19 Research for the Future Retail Concepts Coincide with Core Passenger Segments DFW local passengers are primarily in three categories Dream Weavers When they go shopping, they look for quality merchandise no matter the price. New Suburbia Families This is one of the top-ranked types for owning toys, books and video games. They maintain that price and functionality trump style. New Cosmopolitans They patronize high-end stores. They re also big purchasers of all kinds of tech gear. Buxton survey 19
20 Research for the Future Retail Concepts Coincide with Core Passenger Segments DFW Connecting passengers vary from local passengers and are more diverse. Urban Community Families They describe themselves as brand-loyal shoppers who prefer to buy functional clothes over expensive designer labels." Prime Middle America Many are do-ityourselfers. Steadfast Conservatives They re likely to be brand loyal when they shop at favorite stores. Buxton survey 20
21 Research for the Future Primary Focus Product Quality and Service xers: focused on what s important needs & values quality over price practicality balance security family boomers: seeking financial security needs & values quality price simplicity low-risk brand trust 21
22 Retail at DFW Airport Carolyn Phillips Manager, Retail
23 Retail at DFW Airport Trends Health & Wellness Retail Variety Women/ Children Concepts Consumer Electronics New Categories..Hitting the Sweet Spot!! 23
24 Retail at DFW Airport Goals Personalized Customer Service Management (PCSM) Offer: Appealing concepts Price variation Variety Balance between national brands and local concepts Provide: Welcoming environment Neighborhoods within the terminals Concepts that complement adjacent locations Relevant concepts for the future Incorporate exciting storefront designs Laser focus on customer service 24
25 Retail at DFW Airport Take a Closer Look at DFW Airport 25
26 Food & Beverage at DFW Airport Michael Morford Manager, Food & Beverage
27 Food & Beverage at DFW Airport..Hitting the Sweet Spot!! 27
28 Food & Beverage at DFW Airport - The Sweet Spot Principles of Success Personalized Customer Service Management (PCSM) Service Differentiation Adaptability Culture of Pride Operational Excellence Consistency 28
29 Innovation Exploration Slide Ordering at the gate Self-pay Interactive kiosks Digital menu boards Smart Apps Customizable orders 29
30 Food & Beverage at DFW Airport Key Characteristics of a Winning Concept Concept/Brand Sense of Place Technology Experience Menu Design 30
31 Food & Beverage at DFW Airport Industry Overview Trends: Asian Mediterranean Indian Gourmet Burgers Healthy Ecogourmet Attributes: Higher-quality Brands Regional Flair Small Plates/Tapas Farm to Table 31
32 Food & Beverage at DFW Airport Take a Closer Look at DFW Airport 32
33 Passenger Amenities Dana Cassidy Manager, Passenger Amenities
34 Passenger Amenities Services and Advertising/Sponsorships Personalized Customer Service Management (PCSM) DFW Airport has laid the framework for the future: Entertainment Productivity Relaxation..Hitting the Sweet Spot!! 34
35 Passenger Amenities Entertainment - Advertising Enhance Advertising and Entertainment Expand Digital Advertising Infrastructure Video Walls Future opportunities Advertising and Sponsorship Current - Video Walls Post TRIP Digital Advertising 35
36 Passenger Amenities Entertainment - Advertising Internal Jet Bridge Advertising Increase Large Format Options 36
37 Passenger Amenities Entertainment Children and Family Entertainment Aquafina Juniors Flyers Club 2 locations Interactive Educational Touch Screens PepsiCo Kidnetic Zone Healthy Option Vending Machines Future opportunities Sponsorships Current - Play Areas Future - Kidnetics 37
38 Passenger Amenities Relaxation New services Minute Suites XpresSpa and Salon Goodfellow s Shoe Shine & Retail Potential future opportunities Business Center Bank Services Spa and Salon Minutes Suites Spa and Salon Goodfellow s Shoe Shine & Retail 38
39 Passenger Amenities Relaxation Comfort Zones Mini-Theaters Lounge seating with plug-ins for sound Special content programming with 3-4 screens in each Future opportunities Sponsorships Current -Theaters with Comfort Zones Future - Comfort Zone Sponsorship Opportunities 39
40 Passenger Amenities Productivity Interactive Information Centers Concession Awareness Customized Searches Pinpoint Specific Concepts Category Grouping Marketing Campaigns Key Services Directional Pathways Future - Order at the Gate Terminal Information Centers FIDS Paging Phones Concession Awareness Ambassadors Wayfinding Current Concession Awareness Information Centers Post TRIP -Terminal Information Centers Concessions Awareness at the Gate Concessions Awareness at Information Centers 40
41 Passenger Amenities Productivity The Distributed Antenna System (DAS) provides continuous cellular coverage throughout the terminals via a fiber optic network 4G enhancements are currently in process Opportunity Space available for more carriers DAS Head-end Room Utility Tunnel Terminals 41
42 Passenger Amenities Productivity Internet Access / Power Program / USB Enhancements to Wi-Fi to broaden customer service Free Wi-Fi / Hybrid Model Power Program expansion for customers Increase access to USB plugs Dallas / Fort Worth International Airport #1 Airport for Tech Savvy Travelers PC World February
43 Passenger Amenities at DFW Airport Take a Closer Look at DFW Airport 43
44 Terminal Renewal & Improvement Project (TRIP) Kevin Sewell Manager, Tenant Projects
45 45
46 Tenant Project Team
47 Tenant Project Team Personalized Customer Service Management (PCSM) - In-House Coordination The TRIP program will require engagement with other DFW departments and the Board s CM at Risk contractor in order to move the projects forward to completion. Planning Liaison ADE Liaison Asset Management Liaison Tenant Project Coordinator EAD Liaison DFW Codes 47
48 Tenant Project Team Development Process Timeline There are two phases to the Concessions Build-Out Process: Phase 1 Design Period: Approximately 91 days Phase 2 Construction Period: Approximately days depending on concept Phase 1 Phase 2 48
49 Tenant Project Team Goals Coordinate concessionaire s design and build-out during TRIP Compliance with DFW Design Criteria Design reviews Construction/Build-out process 49
50 Tenant Project Team Tenant Design Manual Go to Current Concessionaires 50
51 The Request for Proposal Process Martha Hernandez Assistant Vice President, Concessions
52 ARN PRESENTATION, FEBRUARY 2012 The Request for Proposal Process Tentative Schedule RFP Opportunity Date Terminals B and E Fall 2012 Terminal D Part I Fall 2012 Terminal C Fall 2013 Terminal D Part II Fall
53 The Request for Proposal Process Summary Unique advantages of doing business at DFW International Airport 60 million visitors per year Tech-savvy demographic Affiliation with high-end retails brands. State-of-the-art future 53
54 54
55 Thank you for taking a closer look at DFW International Airport! 55
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