Commercial Ground Transportation at Airports: Best Practices (2015)

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10 Establishing Goals and Policies for the Airport’s Ground Transportation Program This chapter provides an overview on how airport staff document their relevant goals and policies and describes the metrics that can be used to evaluate the performance of the best practices described in this guidebook. Documenting Management Goals and Policies When identifying and evaluating potential best practices, it is beneficial to first confirm and define the relevant goals of airport management. The goals for each airport are unique and reflect management’s vision for the airport, its mission statement, and its specific values. To achieve these goals, man- agement may have a strategy or long-term plan of action con- sisting of new policies and programs, rules and regulations to support these policies and programs, as well as supporting technologies and revenues. The five goals shown in Figure 2-1, portions of which over- lap, are frequently cited by airport management: Enhance the Experience of the Airport Customer Airport managers seek to ensure that while traveling to and from the airport, airline passengers are transported safely, securely, and comfortably. This implies the use of commercial vehicles meeting applicable and current local, state, and fed- eral regulations, which are properly maintained and insured. They require that these vehicles are operated by drivers who know the relevant airport rules and regulations, have received customer service training, are familiar with the local region, and can communicate clearly with their customers. A comfortable experience relates to the quality of the vehicles. Airports promote the use of vehicles that all can easily step into and out of (e.g., vehicles having low floors and wide doors) and vehicles providing adequate seating, functioning heating and air conditioning systems, adequate baggage storage, modern communication technologies, and equipped with standard safety and emissions control equipment. To ensure that airline passengers using commercial ground transportation services are provided safe and secure transportation, airport managers aim to have customers only board properly licensed vehicles operated by authorized commercial ground transportation providers. Comfortable and convenient service also implies the avail- ability of facilities for passengers boarding and alighting com- mercial vehicles. These are facilities located within or near the terminal building (i.e., a short walking distance) that mini- mize the need to use elevators or escalators, are easy to find and clearly signed, and offer seating and weather protection for waiting passengers. Airport managers believe passengers should be offered a vari- ety of safe, reliable, and comfortable commercial ground trans- portation services to major regional destinations at a range of reasonable fares and levels of convenience. These transportation services should be available at all times including when there is an irregular flight operation/unscheduled aircraft arrival, when there is a demand for service late at night, or during periods of inclement weather. Passengers should be able to choose either exclusive transportation or shared-ride transportation services offered on an on-demand or scheduled basis. The available transportation services should provide for airline passengers with special needs including those who are transportation dis- abled, senior citizens, those who are traveling in large groups or with large pieces of baggage, those who wish to pay using a credit card, or those who have other special needs. Minimize Required Staff Time and Airport Resources Airport managers seek to use their available staff and facility resources efficiently. They strive to operate in a fiscally pru- dent manner by attempting to minimize the costs of regulat- ing, providing, operating, and enforcing commercial ground C H A P T E R 2

11 transportation services and the costs of providing and main- taining the facilities which they use. They establish policies and regulations which minimize the airport staff resources needed to oversee, control, and enforce commercial ground transpor- tation services while supporting other goals of airport manage- ment. For example, to reduce operating costs they may apply technologies which (a) restrict access to authorized commer- cial vehicles, (b) monitor the volume of commercial vehicle trips and the time these vehicles remain on airport roadways, and (c) minimize staff efforts required to collect airport fees. To better utilize staff resources and reduce operating costs, some airport managers utilize contract employees or third-party con- tractors to manage commercial ground transportation. Airport managers promote the efficient use of terminal building curbside space because of the competing demands for this space, the limited amounts of curb space normally available, and security regulations imposed by the Transporta- tion Security Administration prohibiting unattended vehicles at the curbsides. Typical supporting policies include (a) allow- ing commercial ground transportation vehicles to remain at the curbsides only while actively picking up and dropping off passengers, and (b) preventing ground transportation opera- tors from lingering at the curbsides to market their services or attract customers. When allocating curb space, airport staff consider the competing needs of private vehicles, the various forms of commercial ground transportation, and the ability of staff to effectively control the curb space. Airports provide supporting facilities such as hold lots to support the efficient use of curb space and to better control and accommodate commercial vehicles waiting to pick up airline passengers. Airport managers attempt to balance the size of the hold lots, considering the competing needs for areas located near the terminal. They seek to provide facilities with the flexibility to accommodate the industry’s future needs and changes in operations, volumes, services, and other characteristics. Support Airport and Regional Environmental and Sustainability Objectives Airport sponsors seek to be good neighbors, to support regional environmental and sustainability objectives, and operate in a “green” manner. Such a policy might call for an airport operator to provide high quality, efficient, and safe access to air transportation that is delivered in a socially responsible manner, is inclusive of environmental and com- munity interests, and does not compromise the needs of future generations. This policy could result in environmental and sustainability goals related to the following five goals: 1. Providing for the safe movement of passengers and vehicles. 2. Reducing the consumption of gasoline and vehicle-related emissions. 3. Building new ground transportation facilities in a sustain- able manner. 4. Balancing the financial return of transportation providers with the needs of the traveling public. 5. Establishing long-term relationships with key stakeholders. These environmental and sustainability goals are described in greater detail in the following paragraphs. Figure 2-1. Common airport management goals.

12 hybrids) or provide incentives to those operators using alternative fuels. These incentives may include grants to pay for engine conversions, reduced airport fees, or construc- tion of Compressed Natural Gas (CNG) fueling stations. Building New Facilities in a Sustainable Manner There are many guides available on how to build a sustainable building. These include Leadership in Energy and Environmen- tal Design (LEED) and the Sustainable Aviation Guidance Alli- ance (SAGA), among others. The common aspect of all of them is the incorporation of long-term operational and maintenance costs into the design decisions for the building. It is important to define the correct lifecycle prior to the design of a new facility, incorporate facilities in the building that will meet the needs of the building’s users over that lifecycle, and make equipment and design decisions that reflect the entire lifecycle of the building. Balancing Financial Returns of Providers and Customers There are many factors beyond fares that determine the overall financial return of transportation providers. For exam- ple, controlling the supply of transportation providers affects profitability, as does establishing vehicle standards. Business decisions by the airport should contemplate the potential impact on the financial return of transportation providers and the ability of the drivers to earn a fair wage. Establishing Long-term Relationships These relationships include those with the regional trans- portation agencies as well as the transportation providers. Relationship with the Metropolitan Planning Organiza- tion. The key regional agency responsible for environmen- tal and sustainability goals is likely the metropolitan planning organization (MPO) or regional planning agency. This agency is responsible for the Transportation Improvement Plan which prioritizes regional investments in transportation infrastruc- ture. The local MPO is also responsible for documenting the local goals and policies governing these priorities including those related to the environment and sustainability. Airport staff, including those responsible for airport ground transportation, can benefit from maintaining open and fre- quent communication with MPO staff. It is helpful to review with MPO staff the unique characteristics of airport ground transportation, including commercial ground transportation. Examples of these unique characteristics include: • Definition of High Occupancy Vehicles. Regional plan- ning agencies typically consider a High Occupancy Vehicle Providing for the Safe Movement of Passengers and Vehicles Airports and regions seek to ensure the safety of pedestrians and motorists. With respect to commercial ground transpor- tation, they do so by providing a safe environment for passen- gers, particularly in the passenger boarding and alighting areas and in roadway crosswalks. They may do so by discouraging jaywalking, providing clearly marked and well lit pedestrian pathways and crosswalks, and ensuring the sidewalks adjacent to boarding and alighting areas are properly sized to accom- modate waiting passengers and the transverse movement of passengers carrying baggage (to avoid their having to step into the roadway to bypass others). Reducing the Consumption of Gasoline and Vehicle-Related Emissions The amount of vehicle miles traveled on airport is directly related to fuel consumption and vehicle-generated air emissions. Airport managers discourage vehicle miles of travel by: 1. Promoting the use of public transit and privately oper- ated shared-ride transportation services by minimizing the airline passenger and employee dependency on the use of vehicles transporting a single party (e.g., private vehicles, taxicabs, and limousines). This objective can be achieved by (a) ensuring the availability of reliable, convenient, and inexpensive public transit and privately operated sched- uled buses/vans and shared-ride services, (b) allocating the most convenient boarding areas for these transit services, and (c) making airline passengers aware that these services are available by displaying signs and information regarding these services throughout the airport and on the airport website. They may prioritize transit services and facilities (i.e., a “transit first” policy), offering discount fares on public transit services and privately operated scheduled bus services. 2. Reducing the number of commercial vehicle trips. Airport managers may discourage unnecessary commercial vehi- cle trips by penalizing those operators making excess trips, promoting the use of consolidated courtesy vehicles and rental car shuttles, placing a cap on the number of annual or monthly vehicle trips a commercial ground operator may make, levying fines on commercial ground transpor- tation operators whose vehicles remain at the boarding area for excessive lengths of time or operate at unneces- sarily short headways, and discouraging “deadhead” trips by taxicabs and other vehicles. 3. Encouraging the use of alternative fuels. Airport managers may require commercial vehicle operators to use alterna- tive fuels (e.g., compressed natural gas, propane, or electric/

13 • Opportunities for use of public transportation. Public transportation is used by fewer than 15% of all airline pas- sengers at all but six U.S. airports and by fewer than 10% at most U.S. airports. This includes the use of all forms of public transportation including bus, rail, and shared-ride services. At those airports served by rail, fewer than 10 percent of all airline passengers use this service, with the exception of Washington Reagan National Airport. Thus, while air- port managers promote the use of public transit by airline passengers and airport employees, it is helpful for regional planners to have a realistic expectation of the volume of airline passengers who are likely to use public transporta- tion if made available. ACRP Report 4: Ground Access to Major Airports by Public Transportation provides detailed information about the use of public transportation at air- ports and the factors affecting its use by airline passengers and employees. • Jurisdictional responsibilities for airport access facili- ties. Airport sponsors may develop and operate roadways and other transportation facilities located on the air- port property but are prohibited by the Federal Aviation Administration (FAA) from developing or operating road- ways or other transportation facilities located outside of an airport unless these facilities are used exclusively by airline passengers, airport employees, or air cargo handlers. Thus the ability of an airport sponsor to affect the travel pat- terns of airline passengers or airport employees is limited, since only a small portion of a passenger’s or employee’s trip occurs on airport property. For example, a transit pas- senger’s experience is affected by the stations at both ends of their trip, not just the station on the airport. Relationship with commercial ground transportation providers. Many transportation providers dedicate their entire careers to providing transportation needs, and airport staff recognize that there is a benefit to establishing a long- term relationship with the management and staff of these companies. Responsible treatment includes ensuring strong public communication of policies and regulations, provision of equitable and rational policies, and that transportation providers are meeting the needs of external stakeholders. Establish an Environment Allowing Drivers to Earn a Fair Wage and Other Business Owners to Receive a Reasonable Return on their Investment Airport sponsors (e.g., the city, county, or authority which owns and operates the airport) seek to ensure that the access to the airport is open to all properly qualified and licensed commercial ground transportation operators, and that all such operators are afforded the opportunity to compete on fair and reasonable terms, consistent with their other goals (HOV) to be any vehicle transporting more than one or two people. Since most vehicles entering and exiting an airport have two or more occupants (e.g., taxicabs or private vehicles dropping off or picking up a single airline passenger), the standard HOV definition may not be applicable for airport transportation planning and operations. Some airport man- agers encourage the use of public transit, scheduled buses/ vans, and shared-ride vans rather than vehicles transporting a single airline passenger. These vehicles may be defined as “multi-passenger vehicles” rather than HOVs. • Role of public parking on an airport. One method used by city and regional planning agencies to encourage the use of public transit and reduce reliance on single occupant vehicles is to limit the amount of parking available in a city center or at a retail, residential, or office development. Some regional and environmental planners have proposed limiting the amount of parking available on an airport in order to achieve these same objectives—reduce airport traffic and increase airline passenger use of public transit. However, limiting the amount of airport parking has been shown to actually increase airport traffic. This is because when airport park- ing is not available, most airline passengers who previously parked at the airport for the duration of their trip prefer to be dropped off/picked up by friends, taxicabs, or limou- sines, with fewer than 10% choosing to use public transit instead. Passengers who park at the airport for the duration of their trip generate two vehicle trips (i.e., one inbound and one outbound trip), while passengers who are dropped off/ picked up generate four vehicle trips (i.e., one inbound and one outbound trip when dropping off plus one inbound and one outbound when picking up the passengers). • Employee use of parking and public transportation. To reduce single occupant vehicle trips regional and local planning agencies frequently encourage major employers to reduce the volume of trips generated by their employees through the use of car pools, transit subsidies, flexible work hours, increased parking costs, and other programs. Some regional and environmental planners have airport operators use similar programs to reduce the volume of trips gener- ated by employees working on an airport including those working for the airport sponsor, the airlines, and other ten- ants. However, such programs have proven less successful when implemented at an airport. Factors contributing to the lack of success of these employee trip reduction programs include (a) the large number of employers—few of the per- sons working on an airport are employed by the airport sponsor, (b) the employees’ work hours, which often start before or end after normal commute hours, when little tran- sit service is available, (c) the discrepancy between employee places of residence and the areas well served by public transit, and (d) the availability of low-cost and free or heavily subsi- dized employee parking provided under labor agreements.

14 fees that (a) reflect the business benefits derived by the vari- ous classes of commercial ground transportation operators, (b) encourage the efficient allocation of the limited airport ground transportation facilities among such operators, and (c) generate revenues for the airport operator that allow them to recover the costs of providing, operating, maintaining, and enforcing the airport facilities benefiting commercial ground transportation businesses. Airport sponsors establish commer- cial ground transportation policies and fees in a manner that is consistent with their other objectives. Each airport operator places different emphasis on these five goals (and the subsets of these goals described above), reflect- ing the unique characteristics of their airport. The unique characteristics guiding management’s policies may include the airport’s location, passenger volumes, customer demograph- ics, physical configuration, legal and political environment, governance structure, financial resources, type of commercial ground transportation services available, and the airport’s business relationships with the operators of these services. Few airport operators seek an equal balance among these five goals (i.e., a point in the exact center of Figure 2-1), with most operators emphasizing one or two goals above the others. For example, some airports have established a “transit first” policy and promote the use of public transit and scheduled buses/ vans, and may even subsidize express bus services to off-airport terminals, thereby foregoing potential revenues. Other airport managers seek to improve the experience of airport customers by providing supplemental curbside staff (e.g., passenger ser- vice agents or guest services representatives) or exceptionally high quality passenger waiting and boarding areas despite the increased operating and capital costs. Some airports promote environmental policies at the expense of decreased revenues and increased operating costs. Airports with multiple airline terminals will have differing priorities from peer airports of a similar size having a single terminal. Evaluating the Accomplishment of Management Goals and Objectives Airport management should have a clear vision of its rel- evant goals and policies concerning commercial ground trans- portation to guide its selection and evaluation of best practices. These goals and objectives should be consistent with the overall goals and objectives of the airport sponsor. With an established foundation of goals and objectives, airport management can then evaluate and select the best practices that support these objectives and the information needed to measure whether they have proven successful. Numerous departments within an airport organization are affected by or influenced by commercial ground transpor- tation operations. These include landside operations, park- ing management, airport security/police, legal, accounting/ (e.g., promoting the use of public transit and other high occupancy services). Airport managers recognize that providing drivers the opportunity to earn a fair wage and the ability of owners to receive a reasonable return will enhance the experience of airport customers and the quality of the transportation they are provided. Drivers and owners who are able to earn a fair wage are more likely to maintain their vehicles properly and less likely to refuse short trips, overcharge customers, or engage in other improper activities. When attempting to improve the incomes of drivers and owners, airport management seek to balance the fares charged to passengers with their other objec- tives. For example, excessively high fares will discourage the use of commercial ground transportation services and encour- age the use of single occupant vehicles and rental cars. Policies concerning fares charged for airport ground transportation services, especially taxicab fares, must be coordinated with the policies of the governing municipal authority. Often airport managers attempt to improve driver income (i.e., the number of daily trips made) by limiting the number of vehicles (e.g., waiting taxicabs) allowed to pick up passengers at the airport, thereby reducing the time drivers spend waiting for passengers. Airport goals and policies attempting to influence driver and owner income by regulating the number of authorized drivers or vehicles should recognize that the objectives of the companies controlling taxicab and shared-ride services are not always aligned with the goals of the individual drivers, regard- less of whether the drivers are employees or owner/operators. For example, limiting the number of authorized vehicles may benefit the drivers authorized to serve the airport but not the companies attempting to lease vehicles to drivers. Limiting the number of authorized vehicles may increase the value of air- port permits, allowing permit holders to sell their permits to others for a profit, if allowed to do so by airport management. Recognizing that some aspects of ground transportation may not have always been accessible to women, minorities, veterans, and other historically underutilized businesses, and to meet varying state, local, and federal inclusion policies, air- port managers have also adopted policies and practices that build the capacity of small and disadvantaged contractors and/or identify particular opportunities for these firms. Recover Costs, and to the Extent Possible, Increase Airport Revenues Consistent with the Above Goals Commercial service airports are required to be financially self- sufficient by the FAA. Airport operators consistently attempt to increase their non-airline revenues, a portion of which are gen- erated by the fees paid by the operators of commercial ground transportation businesses. As such, airport sponsors establish policies supporting the charging of appropriate and equitable

15 defining peers. However, since most medium, small, and non- hub airports serve few connecting passengers, the number of enplaned and deplaned or total airline passengers can be used to define peers at these airports. Passenger volumes are also a good indicator of the poten- tial volume of commercial ground transportation custom- ers, and thus the potential business opportunities. Because of the larger volume of potential customers, large hubs can support a wide choice of transportation options including more scheduled bus/van and on-demand shared-ride door- to-door services than a small hub. Similarly, increased num- bers of potential taxicab customers increases the likelihood that there will be taxicab service available at all times. Proximity. Airport staff (as well as senior management and airport boards/elected officials) frequently compare their operations with those of nearby airports, particularly those of a similar size. Nearby airports are likely to have passengers with similar demographic characteristics (e.g., trip purpose and household income), population densities, weather con- ditions, and may be subject to the same state laws. Distance to downtown. The airport’s distance from downtown and other major destinations will influence the cost of taxicab fares as well as the fares of shared-ride vans, limou- sines, and other commercial ground transportation services. This distance also affects the round-trip time of taxicab drivers (i.e., how long they need to return to the airport after dropping off a fare), and thus the time needed to replenish the waiting queue during peak periods. This factor influences the number of taxicabs, for example, required to serve an airport. Physical configuration or layout. The number of air- port terminals, and the distance from the hold lots to the terminal(s) will adversely affect the costs of operations and customer service for both the airport and commercial ground transportation providers. • Operating costs. Larger airports, particularly those with multiple terminals, will have higher operating costs as more personnel are needed to oversee curbside and commercial ground transportation operations. The operators of cour- tesy vehicles and scheduled buses/vans will have higher operating costs if they must travel longer distances between terminals and make multiple stops on the airport when dropping off or picking up passengers. • Customer service. At airports with many terminal build- ings, passengers in courtesy vehicles and scheduled buses/ vans may spend more than 30 minutes traveling from termi- nal to terminal before they exit the airport or arrive at their terminal. It is also more difficult to ensure an adequate sup- ply of taxicabs (or other vehicles) at each terminal and to do audit, public and community relations, facility maintenance, planning and engineering, environmental affairs, informa- tion technology, finance, risk management, and properties and concessions (depending upon the business relationships with the operators). Input from these departments should be sought when establishing and prioritizing the goals and policies. By doing so, and by considering the needs and con- straints of each of these departments, the resulting process of evaluating and selecting best practices can reflect the goals and policies of the entire organization. Benchmarking Airport staff frequently review the commercial ground trans- portation programs used at peer airports when evaluating the possible implementation of similar programs at their airport. As applied to airport commercial ground transportation, bench- marking is the process of comparing fees, types of available transportation services, the airport’s business relationship with the operators of these services, passenger boarding/alighting area facilities, airport rules and regulations, enforcement proce- dures, insurance requirements, and other aspects of an airport’s commercial ground transportation operation. Benchmarking, if applied correctly, can help airport staff understand how their commercial ground transportation operations rank or compare with other airports using a partic- ular metric or indicator (e.g., number of permitted taxicabs). Benchmarking can also increase senior management’s and air- port board members’/elected officials’ awareness of the pro- grams and fees in place at other “peer” airports. Thus airport staff frequently conduct benchmarking analyses when seeking the approval of senior management or board members/elected officials. A key step in a benchmarking analysis is the selection of the peer airports. Airport staff should determine whether the characteristics of a potential peer airport provide a reason- able and unbiased comparison with their airport. Some of the defining characteristics influencing benchmarking com- parisons of commercial ground transportation programs at airports are described in the following paragraphs. These fac- tors are not listed in order of priority, as the priorities will vary from airport to airport. Passenger volumes. Airport staff frequently compare their airport with airports serving similar volumes of sched- uled commercial airline passengers. Ideally, the comparison is based upon annual originating and terminating airline pas- sengers since these passengers are the customers who may use the commercial ground transportation services at the airport. Since over 50% of the passengers at some large hub airports may be connecting passengers, it is best to use originating and terminating passengers as the basis of the comparison when

16 dence (local residents versus visitors), type of airline (domestic versus international, or legacy versus low-cost carriers), pro- portion of passenger traffic occurring during the peak season, and the proportion of passengers traveling to/from locations concentrated in the downtown versus being dispersed through- out the surrounding suburbs. Other factors affecting the use of commercial ground transportation and individual transpor- tation services include the average household income in the region, automobiles per household, density of development, and availability of parking in the urban core. These factors influence the characteristics of the airline passengers choos- ing each type of commercial ground transportation service. For example, an international business traveler unfamiliar with the community is more likely to select a taxicab or limousine, while a local university student may be more likely to select a scheduled bus or shared-ride van. Legal and political environment/governance structure. Airport management’s ability to implement new programs, particularly those affecting the business opportunities or rev- enues of an existing class of ground transportation compa- nies or its drivers, may be influenced by the extent to which elected officials participate in establishing airport policies and overseeing the airport’s affairs. For example, it may be more challenging to introduce new policies, fees, or business pro- grams if these must be approved by a board comprised of elected officials as opposed to the board members of an inde- pendent authority, not directly influenced by elected officials. The extent of “political” influence and independent authority varies widely between these broad categorizations (e.g., elected officials and board members of independent authorities). Financial and staff resources. The available financial resources and staff resources also differentiate one airport from another. An airport with an experienced landside manager and supporting staff will have different capabili- ties than an airport where the management of commercial vehicles is the part-time responsibility of a duty manager, for example. so in an equitable manner (e.g., avoid having “orphaned” taxicab drivers waiting at a terminal where there are few customers when there are many customers seeking service at another terminal). The travel time/distance between the hold lot and curbside affects the time required to replenish the vehicle queue at the boarding area and the amount of curb space that must be reserved for taxicabs. • Competing needs for sites near the terminal. The location of a commercial hold lot affects many aspects of airport ground transportation services, including the amount of curbside that must be allocated to taxicabs, for example. At airports having physically constrained terminal areas or sites, it may be difficult to find an adequately sized hold lot near the terminal building. This is because there is apt to be competing demands for every parcel in or near the terminal area, resulting in limitations on the location and size of the commercial vehicle hold areas. Undersized hold areas can result in poor customer service, as it may make replenishing the vehicle queue at the boarding area more difficult. Business relationship with commercial vehicle opera- tors. As described in greater detail in subsequent chapters of this guidebook, some airport operators award exclusive or semi-exclusive concession contracts to the operators of taxi- cabs and/or shared-ride vans, while other airports allow all properly licensed and authorized taxicabs and/or shared-ride vans to pick up airline passengers. An airport operator’s abil- ity to control the quality of service, minimize staff resources, promote the use of alternatively fueled vehicles, generate rev- enues, and achieve other goals and objectives differs dramati- cally depending on the type of business relationship and the terms of the concession contract. While it may be helpful to use an airport with different business relationships during a benchmarking comparison, care should be used in reviewing the results. Customer demographics. Ideally the selected airport serves a similar mix of airline passengers in terms of trip pur- pose (business versus non-business travelers), place of resi-