Airport Parking in North America

Brett Bain

November 25, 2010

• Tax Structure - United States vs Canada• US Government provides 2.8 Billion annually for

Airport development and maintenance• Canadian Airports receive no funding and pay a

minimum of 10% of gross revenues in tax• Economic conditions have significantly impacted

airports in North America• Canada less impacted by economic downturn• US Airports more optimistic that the economy will

rebound – not shared by all airports and regions• Due to geography and climate, Canada is less reliant

on public transportation

Taxation and Economic Conditions in North American Airports

Canadian PassengersYear Domestic Inter/Trans border Total Difference % change

2000 52,001,167 34,001,836 86,003,003 3,515,798 4.08%

2001 48,490,816 31,723,852 80,214,668 -5,788,335 -7.22%

2002 47,724,839 30,504,665 78,229,504 -1,985,164 -2.54%

2003 48,867,556 29,269,662 78,137,218 -92,286 -0.12%

2004 48,842,030 29,549,194 78,391,224 254,006 0.32%

2005 54,724,164 32,760,386 87,484,550 9,093,326 10.39%

2006 63,527,554 38,149,774 101,677,328 14,192,778 13.96%

2007 66,648,073 39,461,261 106,109,334 4,432,006 4.18%

2008 68,269,747 40,756,221 109,025,968 2,916,634 2.68%

2009 63,488,843 39,600,034 103,088,877 -5,937,091 -5.76%

2010 43,742,706 27,966,648 71,709,354 3.70%

United States Passengers

Year Domestic International Total % Change2000 599,563,678 134,287,145 733,850,8232001 559,618,055 122,907,077 682,525,132 -6.99%2002 551,960,680 118,718,997 670,679,677 -1.74%2003 583,293,766 117,569,855 700,863,621 4.50%2004 629,769,620 133,940,071 763,709,691 8.97%2005 657,261,487 143,588,422 800,849,909 4.86%2006 658,362,620 149,724,787 808,087,407 0.90%2007 679,185,450 156,250,990 835,436,440 3.38%2008 651,721,539 157,706,107 809,427,646 -3.11%2009 617,977,733 149,179,272 767,157,005 -5.22%

2010 YTD 364,429,503 90,419,181 454,848,684 1.12%

Major Canadian Airport Rate Structures

Maximum Daily Rates

Airport ABR # spaces Hourly Daily Economy Remote Valet POF CCIO

Vancouver YVR 10050 $30.25 $30.25 $21.25 $15.75 $30.00 Yes Yes

Edmonton YEG 10200 $20.00 $20.00 $11.00 $9.50 $30.00 Yes Yes

Calgary YYC 7845 $35.00 $35.00 $21.00 $9.95 NA Yes Yes

Winnipeg YWG 2500 $25.00 $15.00 $15.00 $15.00 $25.00 Yes Yes

Toronto YYZ 12000 $144.00 $28.00 $18.00 $15.00 $40.00 No Yes

Montreal YUL 10000 $35.00 $23.00 $18.00 $13.00 $28.00 Yes Yes

Halifax YHZ 3300 $88.00 $18.00 $15.00 $12.00 NA Yes Yes

Major US Airport Rate Structures

Maximum Daily Rates

Airport ABR # spaces Hourly Daily Economy Remote Valet POF CCIO

Atlanta ATL 30,000+ $36.00 $16.00 $12.00 $9.00 N/A Yes Yes

Dallas Ft. Worth DFW 40,000+ $19.00 $19.00 $12.00 $8.00 $22.00 No No

Denver DIA 40,000+ $36.00 $18.00 $10.00 $6.00 $27.00 No Yes

Las Vegas LAS 25,000 $36.00 $14.00 $8.00 $21.00 No Yes

San Francisco SFO 25,000 $33.00 $20.00 $14.00 $38.00 No Yes

Charlotte Douglas CLT 30,000+ $16.00 $6.00 $6.00 $4.00 $19.00 No No

Ft. Lauderdale FLL 12,000 $36.00 $15.00 $7.50 $21.00 No Yes

Washington DCA 9,000 $36.00 $20.00 $12.00 No No

Santa Ana SNA 7,600 $24.00 $17.00 $14.00 $30.00 No Yes

Dallas Love Field DAL 7,500 $14.00 $10.00 No No

Charleston CHS 5,000 $15.00 $10.00 $15.00 No No

Huntsville HVS 4,500 $24.00 $19.00 $7.00 No Yes

US On Airport Average Parking Rates

US On Airport Average Parking Rates

Current Trends in Canadian Airports

• Canadian airports have moved to technology solutions• Economic conditions have slowed the furthering of

products • Many airports are now branding their products for

easier consumer identification• Customer service and a focus on diversity of product

selection are important factors• Off airport parking operators are a significant factor

in revenue leakage in Canada

Trends in Major US Airports • Most US Airports still use a

cashier booth method for revenue collection• Less reliance on technology• About 50% of major airports

have recently adopted credit card in/out payment• Chip and debit cards not

common in the United States• Use of Pay on Foot is limited• Credit Card express pay in lane

being adopted • More limited use of the internet

for parking and generally not integrated to PARC system

• Focus on energy reduction and maintenance of structures is a trend

• Many airports use the cashier collection method for revenues – some hesitancy to adopt automated operations

• Consumer perception that airport parking is more expensive than off airport products• Perception has allowed off airport operators to

thrive• Off airport operators tend to be national companies

which allow for more available discount options• Consumers driven to lower priced products during

economic downturn• Airports across North America have seen large

decreases in short term hourly parking• Product Offering diversity and customer service key

Other Factors Which Impact Consumer Choices

Market Leakage Impacts Airport Revenues

• A collective approach by Canadian airports to address the revenue drain represented by off airport operators• Formation of a national parking brand to compete• Coordinated national and local marketing of the product• Unique branding from existing products in airports • Going head to head with off airport operators• National and international alliances among airports to

be able to develop marketing programs to compete• EIA is prepared to offer jetSet as a national brand name

to other airports

So What is the Answer?

Welcome to jetSet

• 3,300 stalls – fully powered• 24 hour shuttle service• Fully automated operation• Three heated bus shelters with self service check-in

(CUSS)• Full service valet facility with full service airline

check-in counters & CUSS• Chauntry web application for pre booking

JetSet – The Future of Airport Parking in North America

JetSet Website

Jetset Pricing Structure

Product Daily Weekly Monthly

youPark $9.50 $47.50 $95.00

wePark $13.50 $67.50 $270.00

Advance Purchase

60 days 30 days 10 days 3-10 days

Discount 25% off 20% off 10% off 5% off

Online booking Discounts

Standards Rates

• Travel agent promotions and FAM tours• Downtown street team events• Radio and TV ads, print media• Billboard advertising • Discount coupons

Advertising and Promotion

• Lexus partnership promo• Westjet monthly vacation

• US is moving forward with Credit Card In/Out Service• Tap and Go Chip Card is new but gaining ground• Pay on Foot and Credit Card Express payment are

popular in Canada – not common in the US• Business Parking products which guarantee space

and access for a premium price emerging• US moving away from manned cashier collection

method is commencing• North American airports marketing and creating

new products to increase customer base

Future Trends

Questions