DIA trying to land more money-makers - Denver Business Journal:

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But on April 21, the manage r of aviation was more than happuy to cut the ribbon on theat DIA, the latesr in a line of higher-end concessionaires, which are almos t as crucial as a new airline to the facility’es success. At a time when the public is flying less and airportsz are getting less revenuefrom airlines, it’s crucial to increase non-airline revenue at DIA, Day The airport gets 40 percent of its income from sources other than airlines now; its she said, is to raise that figure to 50 percenf or more. Doing so won’t help just DIA. Airportss that don’t get a significant amount of non-airline revenue have to make up for it by charginf more tothe airlines.
Those airlines, in pass increased costs onto travelers at thatlocation and, suddenly, it’sw less attractive to fly out of there. “We want to keep pricee for airlines to operate out of DIA pretty reasonable andprettu low,” Day said. “Clearly this is whers we have to focus our Generating non-airline revenue is an idea that’ss risen in the past 20 years, said Robert northwest chapter president of the .
In the 1970d and ’80s, most airports had just a few newsstanda andquick eateries, and fees to the airlines were But as airports began competing to brinyg in low-cost carriers such as Southwest and AirTran, they realized they couldn’t charge exorbitant amounts and expect those carriers to servw their facility. Large U.S. airports now chargse airlines per-passenger costs that range anywherwefrom $2 to $18 per flight. DIA is in the middle with a chargeof $10.
59, whichj has dropped in the 14 years DIA has been Raising non-airline revenue would mean that cost and, subsequently, ticket fees — could come down even And to that end, Day and Patrick deputy manager of aviationm for revenue and business development, are hatchingh a few plans. Heck is preparing a merchandising as a number of leasexs for the roughly 140 merchants inthe airport’ss concourses will expire in the next three to four years. Ratherd than focus on generic coffee shopsand fast-foodx restaurants, DIA is lookingh to put in locally and nationally knowbn retailers that can generate more business.
That could range from the upscald Brookstone gadget store and Johnson and Murphy shoe storw to the array of locap restaurants around the country that now have airport Airport concessionaire HMS Host sought out Denveer ChopHouse because ofits “iconi brand.” It has had better-than-expected crowds in its firsyt few weeks of operation, said Stephen Douglas, company vice president of businesse development. “A lot of airports around the country, they want to brin that taste of their city to the he said. “You’re definitely driving revenuea forthe airport.” DIA and othere facilities make money from well-shopped concessionx because they get a cut of the profits.
In 2008, concessionss generated $250 million in salea at the airport; DIA realized $40 million of Heck said. Airport officials have laid out a plan fora 500-rooj hotel at DIA, modeled afteer similar lodging sites at hubs arouned the country. They’re also looking at adding a pet-care facilitty and expanding parking including possiblycreating terminal-bordering sites that motoristss can reserve the night before for a fee, Heck While bigger airports have led the way in many of thesre innovations, smaller airports are looking for new revenue as said Olislagers, executive director of .
His for example, has a golf course, baseball/softball academy and familyt fun center that a contractor runs on its At arecent “State of DIA Day told the crowd that attractinbg a new international carrier, a top was “tantamount to bringing in a new Fortune 500 But while such carriers, like their domesticf counterparts, are pulling back more than they are expanding their reachb right now, the idea of finding income from sourcew unthought of 25 years ago is becoming a top prioritg at DIA. “We’re very aggressive about Day said. “We’re going to explore it all. There’s no reaso n not to.
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