Premium Value Concessions Program Value Concessions Program ... Mock Scorecards and benefit determinations ... Hospitality and Lodging Travel and Leisure

Premium Value Concessions ProgramProgram Overview & TPA Services Breakdown

March 21, 2017

DIA PREMIUM VALUE CONCESSIONS PROGRAM 1

Rob McDaniel / Robb BrownDRG [email protected]

1/28/2016


TPA Scope of Work (per contract)

Implement and administer Rule 45 (Food & Beverage, Retail) & 46 (Services)

Gather required information from DEN, evaluation relevant data, and report on the PVC Program

Issue progress reports based on tallying scoring results

Implement and manage appeals process

Contract with mystery shopping vendor

Implement customer service training program

1/28/2016

Agenda


1) Introductions & PVC Program update

2) PVC Mystery Shopping Program refresh

3) Mystery shopping launch schedule and what concessionaires need to do

4) Q&A and form review sign-up

1/28/2016

PVC Objective


This program supports Denver International Airport’s (DEN’s) Concession Policy goal of maximizing non-airline revenue consistent with DEN’s obligation to its airline partners.

The PVC program represents the shared interests of DEN and its concessionaires.

To achieve its primary business objective of attracting and retaining airlines, DEN must maximize the revenue generated by concession space available in the airport while providing outstanding customer service, and preserving the desired merchandise mix.

1/28/2016

PVC Timeline (abridged)


PVC Concept Introduced2009• Concessionaire & DEN begin discussions on program design

Rule 45 Implementation 2012• Third Party Administrator (TPA) selected (March)• Internal mystery shopping begins (August)• Phase 1 Program Benefit recipients determined (December)

Rule 45 Implementation2013• External mystery shopping begins (August)• Internal mystery shopping forms updated• Phase 2 Program Benefit recipients determined (November)

Rule 45 Implementation2014• Training Program begins (July)• Phase 3 Program Benefit recipients determined (December)• Rule 45 update meetings begin

Full Phase begins2015• PVC Rule 45 update Approved

1/28/2016


TPA Baseline Services

DEN data capture/clean-up for Owle™ upload

CSE data capture/clean-up for Owle™ upload

Monthly reporting and scoring for financials, internal customer service, external customer service

Monthly KAEP calculation and reporting

Quarterly Mock Scorecards and benefit determinations

Competitor airport customer service benchmark update

Management of Training and Customer Service vendor

Oversight of PVC Appeals vendor

1/28/2016

Possible PVC Enhancement Ideas


Balance between PVC Program ROI for Concessionaires and DEN

PVC Based Concession Rewards & Recognition Program

Explore intercept study evaluation approach

Bolster operations criterion in scoring

No timeline at this time for next program change

1/28/2016

Mystery Shopping Overview


PVC Internal Mystery Shopping began August 2012

More than 6,000 mystery shops completed to-date

10 minor merchandise category forms

Duty Free and Convenience Retail rolled out 3/16

1099 contractors utilized as mystery shoppers

Last mystery shopping form revision August 2013

LRA by Deloitte will begin shopping in April 2017

1/28/2016

LRA by DeloitteAn introduction2017

LRA by DeloitteCopyright © 2017 Deloitte Development LLC. All rights reserved. 10

IndustryExperience

Airlines & Airports

Hospitality and Lodging

Travel and Leisure

Restaurant and Food Service

Healthcare and Senior Living

Real Estate, Facilities, and Services

Retail and Shopping Centers

Sports and Entertainment Gaming Automotive

35 years of industry measurement experience

Global network of customer experience professionals

Leading edge data collection application and reporting tools

50,000+ inspections annually in 145+ countries

Thoughtful approach to program design and development

Deep experience in consolidating disparate field examination activities

Who we are

Our Global Presence• High volume inspections and

mystery shops coupled with global research programs performed each year in over 145 countries

• Demonstrated, scalable operations and seamless data collection

Field Inspections and Examinations

Mystery Shopping

Brand Standards Development

Research and Analytics

Training

The leader in brand protection and customer experience measurement

LRA by DeloitteCopyright © 2017 Deloitte Development LLC. All rights reserved. 11

The Deloitte differenceDeloitte1 acquired LRA Worldwide, Inc. in 2015 to create LRA by Deloitte. This acquisition enhanced Deloitte’s brand and customer experience measurement capabilities and provides our clients with support from the largest professional services firm in the world. Deloitte is a leader in serving the travel, hospitality and retail industries.

Deloitte named a worldwide leader in consulting services to the retail industry Source: IDC MarketScape: Worldwide Business Consulting Services for the Retail Industry

“ “Deloitte named a global leader in Customer-Facing Services Consulting

Source: ALM Intelligence; Customer-Facing Service Operations Consulting 2016; Kennedy Consulting Research & Advisory estimates © 2016 ALM Media Properties, LLC. Reproduced under license

“ “

A leader in the retail industry

Deloitte provides services to over 80% of the Fortune 500 retailers and distributors, specifically:

• Over 95% of Apparel Retailers1

• 90% of General Merchandisers1

• Over 70% of Specialty Retailers1

• Globally, we serve 87% of the Fortune Global 500 Consumer Business Companies2

1 Fortune 500, May 20162 Fortune Global Analysis, May 2016

A leader in the travel industry

Deloitte provides services to over 85% of the Fortune 500 Travel, Hospitality and Leisure companies specifically:

• Over 95% of Hotels, Resorts & Casinos1

• Over 95% of Airlines1

• Over 95% of Food Services Companies1

• Globally, we serve 87% of the Fortune Global 500 Consumer Business Companies2

Presenter

Presentation Notes

Harsh : Top left: Westfield LAX Top Right: United Bottom Right: US C&BP

Copyright © 2017 Deloitte Development LLC. All rights reserved. 12

Field Research

• Gather qualitative and quantitative data about your business

• Establish benchmarks• Assess against goals/targets

Revenue

• Identify opportunities for up-sell and cross-sell

• Gauge product knowledge

Coaching

• Establish leading practices• Reward good behavior• Pinpoint areas for

improvement

Compliance

• Consistency and quality of first impressions, customer service, and presentations

• Monitor concession/parentcompany performance

Leading companies choose us for visibility into their operations for a variety of reasons, with one common thread – a desire to enhance the customer experience, protect the brand, and drive better outcomes. We work with you to create and deploy customized, comprehensive programs designed to protect your brand.

Why Mystery Shop?


We know that Deloitte is the right provider for your Mystery Shopping program. Here are five key attributes that differentiate us to serve you.

Why Mystery Shop with Deloitte?

We strive to bring the best possible people to every assignment. With more than 80,000 employees in the US, we have incredible teams, and we are proud of our people. Our professionals provide access to ideas and insights through a dedicated client service team that focuses on airports, food & retail.

Deloitte is a global leader in customer experience services, with a broad range of capabilities. Our dedicated brand and customer experience measurement practice has over 35 years of experience executing high-volume, geographically dispersed, complex programs, with a focus in the travel industry.

We bring a unique, tested approach to mystery shopping, one that is designed to add value to your organization. Our methodology is flexible and scalable to your objectives. We incorporate leading practices based on years of experience in industry and in the customer experience measurement profession.

We take a rigorous, holistic approach to quality and consistency. Our continuous improvement processes facilitate consistent, accurate, and professional data collection, and high quality, efficient and informative reporting.

We combine a variety of data points to capture operational and brand health,and uncover an approach for aligning product, service, process and culture to best serve your customers.

Leadership and Team

Industry & Subject Matter Experience

Design Methodology

Program Quality & Consistency

Actionable Insights


Our teamWe have assembled a specialized team that includes industry and subject matter knowledge. The result is a talented, cohesive team that will bring high-quality service. Here is your team and their roles.

Zach ConenSenior Manager

Deloitte & Touche LLP

• Overall Relationship Management• Project Oversight• Added Value Opportunities for PVC and concessionaires

Robert VamosManager (Operations)Deloitte & Touche LLP

• Facilitates mystery shop and PVC relaunch from development.• Creates standards and scoring.• Manages recruitment, training and scheduling of shoppers.• Develops work rules/blackout dates.

Alex DavidsonConsultant (Operations)Deloitte & Touche LLP

• Day-to-day operations contact.• Liaison between the company and the field team.• Oversees quality control processes to facilitate quality/timeliness of

reporting.• Assists with recruiting, training, scheduling and ongoing team

development.

Nick ValentinoManager (Strategy &

Technology)Deloitte & Touche LLP

• Programs data collection tools.• Programs scoring, weighting, tagging scheme.• Performs ongoing monitoring/maintenance of data collection

technology.

Presenter

Presentation Notes

Bob Vamos slide – Talk about team Presence in market (John) but also back office/infrastructure for support (MS Team, Software Service, Training)


Industry & Subject Matter experience

LRA has been a joy to work with, and their mystery shopping and training has reinvigorated MarketPlace Development’s entire concessions customer service program at Washington Dulles International Airport. We receive positive comments all the time from our associates and managers, and we truly value their commitment and service.Sidney Woods, Marketing & Customer Service Manager, MarketPlace Development/Dulles Food & Shops

We have leveraged our deep roots in customer experience measurement to build leading programs for prominent brands in aviation, transportation, retail, hospitality, real estate, entertainment, travel, and more. Our core competency remains in the design, deployment and analysis of complex, high-volume field measurement programs.

“

“Representative Travel & Aviation Clients Representative Retail/Shopping Center Clients

American Airlines Advantage/CitiCard

AvisBudget Group

British Airways Lounges (Flik)

Dallas Fort Worth International Airport

Dulles International Airport (Marketplace)

JFK International Airport

Hertz Corporation

LaGuardia Airport

Los Angeles International Airport (Westfield)

Newark Liberty International Airport

Parkway (PHL)

Philadelphia International Airport (Marketplace)

Reagan National Airport (Marketplace)

San Francisco International Airport

United Airlines

United States Customs & Border Patrol

Ace Parking

Arabian Centers

Aramark

Cadillac Fairview

Caruso Affiliated

Compass Group (Flik, Eurest)

General Growth Properties/Bloomingdales

Parkway

Westfield Shopping Centers


With a multi-layered team of operations and account management professionals, we take a disciplined approach to examination project governance, allowing our measurement programs to launch in congruence with your specifications.

Tested design methodology

Design

ImplementMeasure

Assess

1Project KickoffImplementation Strategy AlignmentCustomer Service Standards ReviewDevelopment, and Refinement

2Evaluation Framework and Protocol

Concession BreakdownTechnology Requirements

(e.g., Reporting)Shopper Selection

Badging and Security ClearanceTechnology Build

4Data CollectionOngoing Shopper TrainingConcessions and Corporate Real-time ReportingOngoing Performance Review, Data Mining, and AnalysisProgram Review and Recommendations

3Shopper Training

Company Data UploadCompany Program Training

Shopper SchedulingProgram Launch


Recruiting

A concentrated in-market recruiting effort will build a cohesive and variable team, supplemented by “the Deloitte Network”

CertificationCertification on program requirements is mandatory for all shoppers. We use a web-based, project-specific certification program, as one of the components of our shopper education and coaching program.

Training

We accomplish consistency and leading quality through our shopper training program. Our shoppers learn through online learning tools, and professionally produced materials.

Editing, Fact-Checking & Quality ControlIn-house, brand immersed editors and knowledgeable fact checkers quality review each report, and determine that the reporting standards are met.

Program quality and consistency


Multi-Dimensional reporting at the outlet level, designed to capture specific facets of an experience.

Actionable insights - Reporting

Product Knowledge

Facility Knowledge

Sales Skills (Cross-sell/Upsell)

Cleanliness and Conditions

Airport StandardsService Elements

“Lateral” Standards

Presenter

Presentation Notes

Bob/Nick - Can talk about individual report design and how we help outlets use them to drive performance


Week of April 17th

What’s next?Our implementation plan & timeline….and what we ask of you!

• Provide Feedback! You will get the draft forms to review later this week

• Participate! Attend the working sessions next

• Engage! Introduce yourselves to Bob and Alex when they are here next week

• Communicate! Your success is our success

March 21 Concession Manager Meeting, PVC Relaunch

March 24

March 31 Official close date for all form reviews and comments

March 29-30 Form Breakout Meetings

Week of April 3rd Present final forms to Concessionaires along with guidelines for scoring

Launch PVC Program

Open Final Forms Review with DEN staff and Concessionaires

AprilMarch

Presenter

Presentation Notes

Bob Vamos – We can click out into the actual document No need to delve into in depth – this was in our proposal But we have a proven methodology and track record for implementing all phases of a project of this nature

Mystery Shopping Form Review

March 29, 2017 *

Session 1: Bar and Casual Dining 9:00am - 10:00am

Session 2: Quick Serve and Quick Serve w/alcohol 10:30am - 11:30am

Session 3: Snack and Specialty Coffee 12:30pm - 1:30pm

Session 4: Specialty Retail and Duty Free 2:00pm - 3:00pm

Session 5: Specialty Retail and Duty Free 3:30pm - 4:30pm

March 30, 2017 *

Session 6: Services / Rule 46 9:00am - 10:00am

Session 7: Convenience Retail & Newsstand 10:30am - 11:30am

Session 8: RMU program manager 12:00pm - 1:00pm

1/28/2016 DIA PREMIUM VALUE CONCESSIONS PROGRAM 20

* All sessions in Aspen Conference Room, enter thru Gate A34

Copyright © 2017 Deloitte Development LLC. All rights reserved 21

Q&A

1As used in this document, “Deloitte” means Deloitte & Touche LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2017 Deloitte Development LLC. All rights reserved.

http://www.deloitte.com/us/about

Documents

Premium Value Concessions Program Value Concessions Program ... Mock Scorecards and benefit determinations ... Hospitality and Lodging Travel and Leisure