Commercial Ground Transportation at Airports: Best Practices (2015)

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1 Overview of the Guidebook This Guidebook on Ground Transportation at Airports describes best practices for managing commercial ground transportation services used successfully by the operators of airports of varying types and sizes throughout the United States, supplemented with a few Canadian examples. These best practices have helped airport operators improve the air- port customer experience, support the efficient and effective operation of airport facilities, enhance airport revenues, and achieve other relevant management objectives. Purpose of the Guidebook This guidebook is intended to allow airport management to compare and contrast the programs used successfully by other airport operators to improve the management and provision of commercial ground transportation services. It is expected to be particularly helpful to the airport landside and ground transportation staff responsible for the day-to-day control of commercial ground transportation operations. The information provided herein may be used to evaluate and select best practices applicable to both individual types of service and airport-wide commercial ground transportation services. The information contained in this guidebook is applicable to the operators of all commercial service airports regardless of their location, passenger volumes, customer demographics, physical configuration, legal and political environment, gover- nance structure, and financial resources. The guidebook can be used by the managers of all airports regardless of their goals and objectives. As such, it presents a broad range of best practices, not all of which are applicable to every airport. The best practices are organized by type of commercial ground transportation service with supporting programs and tech- nologies that are applicable to multiple ground transportation services described separately. What Is a Best Practice? As used in this guidebook the term best practices refers to those practices which, when implemented, help achieve or support the relevant goals of airport management. Best prac- tices include a broad range of: • Standards • Strategies • Rules and regulations • Business practices • Procurement methods • Fees • Operational models/methods • Facility configurations • Supporting technologies • Other programs used by airport operators to provide, monitor, control, regulate, and enforce commercial ground transportation services. Particular emphasis in this guidebook is given to inno- vative and creative practices, which have been successfully implemented at U.S. and Canadian airports and have helped airport managers achieve or support their relevant goals concerning commercial ground transportation services. When evaluating and selecting potential best practices, airport staff should consider the unique characteristics of their airport and the policies and goals established by air- port management. This is because the best practice beneficial to one airport may not be applicable at another due to the variety of airport sizes, locations, configurations, governance structures, financial resources, and other characteristics. This guidebook describes best practices applicable to a wide variety of airports but does not preclude or prejudge practices that may not be readily implemented at some airports. C H A P T E R 1

2Characteristics of Commercial Ground Transportation Services at Airports As used in this guidebook, commercial ground transporta- tion includes the following: • Taxicabs • Limousines • Ride-booking services such as transportation network companies • Shared-ride vans • Courtesy vehicles and courtesy shuttles • Scheduled vans and buses • Charter vans and buses • Flight crew vehicles Each of these transportation services is described in a subsequent section of this chapter and may operate on a pre- arranged, on-demand, or scheduled basis. This guidebook does not address measures or programs to manage private vehicles, rental cars, public transit, or airport-operated shuttles. The following paragraphs describe the types of commercial ground transportation services common to airports and the key operating characteristics of these services. The precise, legal definition for each of these services, along with the min- imum requirement to provide these services, can be found in the local or state regulations governing its operations. Taxicabs The traditional on-demand taxicab is a licensed sedan or van providing door-to-door, on-demand transportation for five or fewer people. Taxicabs are licensed by the regulatory agency or commission of an individual city or state, which also establishes minimum standards for vehicles and drivers. Fares, regardless of the number of passengers transported, are calculated based on the length of the trip and travel time as recorded by a taximeter. The regulatory agency or commission typically sets the meter rate. However, some communities have established zone fares or flat rate fares for trips between the airport and downtown or other major destinations. A customer desiring a taxicab typically boards the first vehicle in a queue at the terminal curbside (Figure 1-1). Thus, unlike taxicab drivers working in a downtown environment who obtain fares from street hails or company dispatches, drivers at airports obtain fares by waiting in queues. In most major cities, taxicab service is provided by drivers who are inde- pendent contractors—rather than employees of the taxicab company—who either lease a vehicle from the company or own a vehicle (owner/operators). As discussed in subsequent chapters of this guidebook, the ability of airport operators to manage and control taxicabs is affected by whether the drivers are employees or independent contractors. In addition to traditional on-demand taxicab services, the following taxicab services are frequently available at airports (or are provided to manage taxicabs). Prearranged Taxicabs An airline passenger may make a prior arrangement to hire or be picked up by a specific taxicab driver or company (e.g., a customer with a voucher for a specific company). This prearranged service is provided in licensed taxicabs with fares charged according to the established metered rate. Generally, while waiting for arriving customers, prearranged taxicabs park in a separate location from on-demand taxicabs. Suburban Taxicabs Generally only taxicabs licensed by the city owning the air- port (or in which the airport is located) can pick up on-demand customers at an airport. If an airline passenger prefers to hire a taxicab licensed by another city, and has made prior arrange- Figure 1-1. Taxicab queues at Charles de Gaulle Airport (CDG) and Bill and Hillary Clinton National Airport (LIT).

3 Limousines A limousine is a licensed sedan, town car, SUV, or luxury vehicle providing door-to-door, prearranged transportation, generally for five or fewer people (Figure 1-2). However, lim- ousine service can be provided in vans or customized vehicles (i.e., stretched) having more seats. Limousine companies and vehicles are licensed by the regulatory agency or commission of an individual city or state, which also establishes the mini- mum standards for vehicles and drivers. Typically fares are a flat rate or pre-negotiated regardless of the number of pas- sengers transported. Customers seeking limousine service contact a limousine company which assigns the trip to an individual driver, or the customer may call a driver directly. Limousine drivers are typically independent contractors rather than employees. Historically, airline passengers hired a limousine service before they boarded their flight, but today passengers may hire a limousine when they land at an airport using their cellphone, smartphone, or other device. Thus the time interval associated with the term “prearranged” can be as little as a few minutes, although some communities have established rules requiring longer minimum times. Another type of limousine service available at some airports is on-demand limousine service. On-demand limousine service is a licensed limousine providing door-to-door, on-demand transportation for five or fewer people. Fares for the use of the entire vehicle are flat fares. At the airports offering these ser- vices, customers can select from on-demand taxicab service or on-demand limousine service, with the key differences being the vehicle and the fare. Ride-booking Services A ride-booking company is an automated dispatch ser- vice using an online-enabled platform (typically a smartphone application) to link passengers with drivers (Figure 1-3). The customer receives an estimated pickup time, a description of ments for this taxicab service, the taxicab from the other city (also called a “suburban taxicab” or “belled-in” cab) would operate like a prearranged taxicab, that is, the taxicab would park in an assigned area and drive to the terminal curbside when authorized by the curbside taxicab dispatcher. Shared-ride Taxicabs During peak periods of demand or when there are insuffi- cient waiting taxicabs, customers may be asked to share a taxi- cab with another passenger. At some airports, passengers have the option to share a taxicab at all times, not just during peak periods. At these airports there may be two passenger queues— one for passengers willing to share a ride and a second for those preferring to ride alone. Service for Transportation of Disabled Passengers Taxicabs capable of transporting passengers in wheelchairs are available on an on-demand basis. These vehicles and other types of vehicles (e.g., vans or SUVs) capable of transporting a large party or passengers with large pieces of baggage (e.g., skis or golf clubs) are available on special request, but may not be immediately available at the airport. As a result, the wait time for these special requests may be longer than the wait for a standard vehicle. Short Trip A short trip is a low-fare taxicab trip to a destination near the airport as defined by distance or time. As discussed in subsequent sections of this guidebook, some airports allow drivers returning to the airport after taking a short trip to proceed to the head of the taxicab queue in order to reduce their wait times and discourage drivers from refusing to accept low-fare trips. Other airports implement minimum fares with this same purpose. Figure 1-2. Limousines at Bush Intercontinental Airport in Houston.

4vidual destinations (i.e., residences, hotels, businesses) for up to 12 passengers who share the van (Figure 1-4). (Smaller vehicles are frequently used at some airports.) Shared-ride vans are licensed by the regulatory agency or commission of an individ- ual city or state, which also establishes the minimum standards for vehicles and drivers. Shared-ride vans group airline pas- sengers going to (or from) a similar geographic destination and then drop them off (or pick them) individually, making multiple enroute stops, depending on the number of passengers being transported. Passengers are charged a flat fare per passenger, although discounts may be offered for round-trip fares or larger par- ties. Shared-ride van fares are less than taxicab fares because customers share a vehicle with others. Customers seeking shared-ride service from an airport either (a) contact the shared-ride company via telephone or internet, with the com- pany assigning the trip to a driver, or (b) walk to the terminal building curbside or company counter and request service from a dispatcher/company customer service representative or driver. Shared-ride drivers are often independent contrac- tors and pay the shared-ride company fees for the company provided dispatches, insurance, and other services. Most shared-ride services provide door-to-door transpor- tation for airline passengers between an airport and a down- town, suburban or other popular destination located less than an hour from the airport. However, some “long-haul” services provide shared-ride transportation to more distant destina- tions. Typically they transport passengers between an airport and established stops (e.g., a hotel) and often operate on a fixed schedule. Long-haul shared-ride services differ from scheduled bus/van services in that they do not follow a fixed route and may skip a stop if there are no passengers waiting to board or alight at a stop. the arriving vehicle, and an image of the driver. At the desti- nation, the app often can calculate the fare automatically and charge it to the customer’s credit card. The primary difference between a ride-booking service and a traditional limousine service is how the customer hires and pays for the service and whether the vehicle is licensed as a limousine or not. There are two types of ride-booking services, both of which provide on-demand, door-to-door transportation. Service Provided Using Drivers and Vehicles Licensed for Commercial Use These services use standard taxicabs or limousines licensed by local regulatory authorities and maintain the insurance required by these regulators. UberBlack is an example of this service. Service Provided Using Drivers’ Own Personal Vehicles These services are provided by drivers using their own personal vehicles, typically licensed and insured for personal use rather than commercial use (i.e., transporting paying customers). These transportation services are commonly defined and licensed as Transportation Network Companies (TNCs). At the time this guidebook was prepared many states and cities were developing laws and policies to regulate these services. These services include UberX, Lyft, and Sidecar, among others. Shared-ride Vans Shared-ride service is a licensed van providing door-to- door, multi-stop transportation between an airport and indi- (PhotoBy Praiselightmedia (Own work) [CC BY-SA 4.0 (http://creativecommons.org/licenses/by-sa/4.0)], via Wikimedia Commons). Figure 1-3. A transportation network company vehicle. Figure 1-4. A shared-ride van at San Francisco International Airport.

5 beneath the passenger cabin) as well as cutaways, minibuses, and transit buses. Scheduled buses/vans are licensed by state and federal agencies which establish safety standards for the vehicles and drivers. Riders are charged a flat fare per passenger, although dis- counts may be available for round-trips, children, and senior citizens. Most scheduled bus/van operators recommend that passengers reserve their tickets, as seats may be limited, but walkups are allowed. Passengers purchase their tickets from either the bus/van driver or from a company agent located at a counter/kiosk in the baggage claim area or bus door. The privately operated scheduled bus/van services described herein comprise most of the scheduled services available at airports; however, several other types of scheduled bus/van services are frequently found at airports. Public Transit Services These are traditional multi-stop, fixed-route, scheduled bus services operated by a local, not-for-profit transit agency (Figure 1-6). The airport may serve as the terminus or an intermediate stop. Riders are charged a flat fare per passen- ger (i.e., per seat). Most public transit service at an airport is provided using full-size transit 30 to 40 passenger buses, but some transit agencies operate 60-passenger articulated buses. The buses used by public transit agencies provide limited space for storage of large bags. Most publicly operated buses stop frequently (e.g., every few blocks or multiple times between the airport and the city center), but there are some express or semi-express services which make a limited number of stops (e.g., the 28X Airport Flyer route connecting Pittsburgh Inter- national Airport with downtown Pittsburgh). Courtesy Vehicles or Courtesy Shuttles Courtesy vehicles or shuttles are vehicles providing door- to-door transportation to/from an airport offered by busi- nesses as an amenity (Figure 1-5). Service may be offered on an on-demand or scheduled basis. Courtesy vehicle service is provided by rental car companies, parking lot businesses, hotels/motels, casinos, training centers, and other businesses located on or off an airport. A variety of vehicle sizes are used to provide courtesy vehicle service ranging from eight-passenger vans (e.g., serving hotel/motels) to full-size buses (e.g., serving rental car companies), and also including 12 to 30 passenger cutaways, and 20 to 35 passenger minibuses. Unlike other air- port ground transportation services, courtesy vehicle service is offered at no direct charge to the passenger. This is because the cost of providing transportation is incidental to the pri- mary business (e.g., charging for the use of a rental car, park- ing space, or hotel room) and is included in the price charged customers for this service. Courtesy vehicles must be licensed by the state motor vehicle department, and depending on the weight of the vehicle the drivers may be required to obtain a commercial license. Courtesy vehicle drivers are normally employees of the business providing the service. Scheduled Vans and Buses Scheduled vans and buses provide transportation at fixed departure times and operate along fixed routes between an airport and one or more established stops. In some cities these scheduled services are referred to as airporters. Service is provided in a variety of vehicle sizes ranging from eight- passenger vans to motor coaches (having a baggage hold Figure 1-5. Courtesy shuttles at Hartsfield-Jackson Atlanta International Airport.

6Passengers are charged a pre-negotiated flat fare that is typically based upon the length of time for which the vehicle is hired, regardless of the number of passengers transported. Passengers contact a charter bus/van company to hire a bus/ van and its driver. Tour groups may also hire “greeters” who assist deplaning airline passengers and escort them to the correct bus. Most of the charter bus/van services available at an airport operate as described herein. However the additional charter or prearranged ground transportation frequently exist at major airports as described in the following paragraph. Flight Crew Vehicles A flight crew vehicle provides transportation for airline flight crews between the airport and their hotel (Figure 1-8). Often these vehicles, typically 8 to 15 passenger vans, are oper- Publicly and Privately Operated Express Bus Services to/from Off-site Terminals These are fixed-route, scheduled, non-stop bus services (i.e., express bus services) connecting an airport and an off-site terminal, typically more than 20 miles away from the airport. Service is provided in 8-passenger vans and motor coaches with under-the-floor baggage storage. These off-site terminals operate much like a commuter park-and-ride lot as they offer inexpensive parking as well as enclosed buildings with seating and other amenities. Airport operators (e.g., those serving Boston and Los Angeles) operate and subsidize express bus services and off-site terminals in order to reduce on-airport roadway traffic volumes and parking requirements. Private businesses operate similar express bus services between pri- vately owned off-site terminals and the airports serving San Francisco (e.g., Marin Airporter), Hartford, and Newark/ New York City (e.g., Connecticut Limousine). ACRP Report 35: Planning for Off-Site Terminals provides more information about off-site terminals and the supporting express bus services. Charter Vans and Buses Charter buses/vans provide door-to-door, prearranged transportation for groups of people (i.e., a charter party) (Figure 1-7). A variety of vehicles are used to provide this ser- vice ranging in size from vans to motor coaches, but includ- ing cutaways and minibuses, and even school buses. Charter buses/vans are also referred to as tour buses and cruise ship buses. Charter bus operators are licensed and regulated by state and federal agencies which establish safety standards for the vehicles and drivers (e.g., limits on the maximum driving hours per day by a driver). Figure 1-6. A public transit bus stop at San Jose International Airport. Figure 1-7. A charter bus drops off passengers at the terminal curbside. Figure 1-8. A flight crew vehicle at San Francisco International Airport.

7 sign an airport permit. By signing the permit, the company formally indicates that it has agreed to abide by all applicable airport rules and regulations (e.g., rules governing the use of airport roads and curbside areas), comply with standards governing the company’s vehicles and drivers, and pay appli- cable airport fees. The permit is evidence that the company and the airport have entered into a business agreement since it stipulates the responsibilities of both parties, that is, the airport sponsor agrees to allow the company access to the airport and its passengers, and the company agrees to abide by airport regulations. There are three basic types of business arrangements (or models) that airport sponsors use with commercial ground transportation companies. These models, which are described in greater detail in subsequent sections of this guidebook, are: open access, exclusive access, or a hybrid of these two. Airports use an open access model for their business relationships with all courtesy vehicles, prearranged limousines, TNCs, scheduled vans/buses, and charter van/buses. Airports may use either an open or an exclusive (or semiexclusive) model for their business relationships with taxicabs, shared-ride vans, and on-demand limousines. Each model has its advantages and disadvantages. The key differences are (a) the airport’s ability to control the customer experience and operations, including vehicle and driver stan- dards, (b) the amount of staff effort required to implement and oversee operations, and (c) the amount of competition among companies. Open Access With an open access system, any vehicle having a valid permit issued by the local regulatory agency may serve the airport. This allows for greater competition among operators. This competition is the key benefit of an open system—all licensed companies have the opportunity to serve the airport. However, an open system frequently leads to an oversupply of taxicabs or shared-ride vans at the airport. As described in subsequent sections of this guidebook, an oversupply of vehicles leads to reduced driver income, reduced motivation for the drivers to properly maintain their vehicles, and reduced cus- tomer service. As a result, an open system requires increased effort by airport staff to ensure that drivers and their vehicles comply with the airport’s minimum standards and its rules and regulations. Enforcement requires greater staff effort because (a) penalties are limited to monetary fines or service suspensions, and (b) staff, particularly those at large airports, must oversee the operation and compliance of hundreds of drivers and their vehicles. Airport staff may also need to implement measures, described in subsequent chapters of this guidebook, to balance the supply of taxicabs with customer demand for service. ated by a charter van operator specializing in this service. Some airlines, particularly foreign flag carriers, hire a flight crew van operator to provide transportation when their crews are staying in hotels located in the city center or other locations where hotel/motel courtesy vehicle service is not available. Some airports waive the established commercial ground trans- portation fees for vehicles that exclusively transport flight crew vehicles since these fees are passed onto and are the respon- sibility of the airline. Transportation Services Not Addressed in the Guidebook This guidebook does not address rail transportation, includ- ing commuter rail, light rail, or other forms of public transit operating on track or automated people mover systems, as these services are not considered commercial ground transportation services. Best practices concerning these services are available in the following reports: • Rail transit and public transit access to airports. Infor- mation about the best practices for providing rail and other forms of public transportation service to airports can be found in ACRP Report 4: Ground Access to Major Airports by Public Transportation, TCRP Report 62: Improving Public Transportation Access to Large Airports, and TCRP Report 83: Strategies for Improving Public Transportation Access to Large Airports. • Airport automated people mover systems. Information about the best practices for planning and designing auto- mated people mover systems at airports can be found in ACRP Report 37: Guidebook for Planning and Implementing Automated People Mover Systems at Airports and ACRP Report 37A: Guidebook for Measuring Performance of Auto- mated People Mover Systems at Airports. This guidebook does not address shuttle buses operated on behalf of the airport linking the terminal building with on-airport public and employee parking facilities, or shuttle buses linking the terminal building with a consolidated rental car center. These on-airport shuttle bus services are not con- sidered commercial ground transportation services. Airport Business Arrangements with Ground Transportation Companies Airports generally require that all companies wishing to conduct business on the airport, including commercial ground transportation companies, obtain the prior approval of the airport sponsor. Any commercial ground transportation com- pany picking up passengers on the airport is considered to be conducting business and is generally required to obtain and

8proposed customer service and the fees to be paid to the air- port. Alternatively, a negotiated process can be used whereby the company is selected based upon the proposed service qual- ity with the fees negotiated separately. Another hybrid arrangement is to award a contract to a company that assumes responsibility for the management and control of the commercial ground transportation service (e.g., taxicabs) but does not operate this service. Instead the management company is required to subcontract to others (e.g., owner-operators) who furnish the service and to ensure the service is provided in accord with established customer ser- vice and safety standards. Raleigh-Durham Airport Authority employs such a hybrid model. The basis for selecting a company will vary from airport to airport with each placing differing emphasis on customer service, proposed fees, and the company’s experience, reflect- ing their individual goals and policies. Methodology The information contained in this guidebook was gath- ered by identifying airports that have implemented pro- grams, procedures, and facilities considered to be examples of best practices. These airports were identified based upon the research team’s familiarity with large- and medium-hub U.S. airports and the results of a web-based survey sent to the ground transportation staff at 146 of the 200 largest U.S. air- ports. Responses were received from 61 airports (about 42% of the surveyed airports). In depth telephone or in-person interviews were conducted with the staff of 67 airports. In total, 112 airports participated in the research, responding either through the web-based surveys, the interviews, or both. Table 1-1 shows the breakdown of participating airports by size. In addition interviews were conducted with several trans- portation regulators, industry group representatives, and technology providers. The information gathered through the interviews was supplemented by a comprehensive literature search. Both the literature search and a list of the airports that participated in the research are summarized in appendices to this guidebook. Exclusive Access With an exclusive (or semi-exclusive) system the airport awards a contract to one or several companies and only this company may pick up customers at the airport. These con- tracts are awarded through a competitive bid or proposal process. The selected concessionaire(s) is responsible for day- to-day operations, ensuring the balance between customer demands and the number of waiting vehicles, and ensuring that service is provided using vehicles and drivers that meet or exceed the standards set forth in their proposal. Compared to an open access contract, enforcement requires significantly less effort because (a) the airport has a contractual business relationship with the ground transportation provider, rather than a regulatory one, and (b) the airport is interacting with a single concessionaire (or typically fewer than three con- cessionaires) rather than hundreds of individual drivers. Customer service is enhanced because companies competing for the concession contract are incentivized to propose levels of service that exceed the airport’s minimum standards. The major disadvantage of an exclusive or semi-exclusive access model is that some properly licensed companies will not be selected and these companies will be precluded from conducting on-demand business at the airport, and thus denied a business opportunity. A second disadvantage is that if one company is awarded the contract, when there is a recompete for the contract, the incumbent will have a perceived advan- tage over its competitors, assuming the incumbent has been performing satisfactorily. Typically companies that are awarded semiexclusive con- cession contracts allocate the customers using a predetermined method (e.g., based upon the number of authorized taxicabs). However, at some airports, individual taxicab contracts are awarded by terminal building or terminal curbside, and individual shared-ride van services may be awarded by geo- graphic area. Another practice to allow greater opportunities for small or disadvantaged businesses is to award contracts to a driver collective or consortium, where multiple smaller independent owner/operators agree to work collaboratively together as one group, creating a fleet large enough to serve the airport. Other measures to increase opportunities for small and disadvantaged businesses are discussed in Chapter 7. Hybrid Arrangements Concession contracts are competitively awarded to the company proposing to pay the airport the highest amount (i.e., a bid) or to the company deemed to offer the best customer service (e.g., a proposal). A hybrid arrangement incorporates components of both processes. For example, an airport may choose to award a contract based upon a competition of the Airport Type Number of Participants U.S. Large Hub 27 U.S. Medium Hub 22 U.S. Small Hub 41 U.S. Non-Hub 19 Canadian Airport 3 Table 1-1. Airport survey respondents by size.

9 Understanding the Industry and Potential Solutions The first section of the guidebook is intended to help air- port staff better understand ground transportation services and the nature of the challenges facing airports, airport passengers, and the providers of commercial ground transportation. It describes relevant policies and regulations, the general expecta- tions of ground transportation customers and providers, and the operations of commercial ground transportation services. Selecting the Appropriate Solution The second section of the guidebook describes the best practices, organized by type of ground transportation service, that were documented through the research conducted as part of this project. This section also describes supporting pro- grams and technologies applicable to multiple ground trans- portation services, measures to support environmental and economic development goals and initiatives, and standards for vehicles, drivers, and customer service. This section also provides guidance on how to select the appropriate solution. Selling and Implementing the Solution The third section provides guidance on how to explain the merits of the proposed solution to airport senior management, local elected officials and airport boards, and commercial ground transportation providers and drivers. It also describes the processes used to award and oversee concession contracts and other business arrangements. The information contained in this guidebook relies upon the surveys of airport staff and the information they pro- vided. Most of the identified best practices were developed and implemented by airport staff using internal resources. There is little if any documentation on the value of the staff time or direct expenses incurred during the development and implementation of these practices. As a result, limited or no data are available on the implementation costs and value of the benefits resulting from many of the best practices described in this guidebook. Finally, the information contained in this guidebook is current as of summer 2014, with the exception of informa- tion on TNCs, which is accurate as of spring 2015. After com- pletion and publication of this guidebook, it is expected that (1) additional best practices and innovative technologies not described or anticipated will be introduced, (2) additional airport staff will implement and improve some of the listed best practices, (3) some of the best practices in use at airports mentioned in this report may be discontinued, and (4) changes will occur in how airports regulate and permit ride-booking services due to the evolving nature of these regulations at the time this guidebook was prepared. Organization of the Guidebook This guidebook contains three sections which provide an overview of commercial ground transportation at air- ports, describe best practices for managing commercial ground transportation, and suggest how to implement these practices.