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ACRP 01-35: TNCS: IMPACTS TO AIRPORT REVENUES AND OPERATIONS AUGUST 19, 2019 FINAL DRAFT DELIVERABLE Reference Guide | 1-1 | Introduction 1. INTRODUCTION 1.1 PROBLEM STATEMENT The objective of this research was to develop a reference guide for airport operators that identifies strategies for adapting airport landside access programs to reflect the evolution of ground transportation modes (e.g., transportation network companies [TNCs] and autonomous vehicles) and their impacts on other airport revenues and operations (e.g., parking and rental cars) for both a current timeframe and a projected 5-year outlook. 3 The Reference Guide addresses the following topics: ï§ Strategies for creating long-term sustainable revenue models, supported by a comprehensive analysis of landside revenue changes (e.g., trip fees, parking, rental car, roadway access fees) to include the impact on both aeronautical and nonaeronautical revenues and costs ï§ Responses to curbside and roadway vehicle congestion ï§ Customer service impacts (i.e., location of drop-off/pick-up areas, wayfinding terminology, and displays) ï§ Strategies to forecast shifts of customer preferences and demand, including the impact of technology and socioeconomic factors on mode choice ï§ Use of technology and access to data (i.e., tracking vehicle location, compilation of transaction data, collecting vehicle dwell time, volume, and speed data) ï§ Reflecting shifts in ground transportation business models, started by TNCs, into long range facility design and capital planning ï§ Operational considerations and common business terms in adopting new ground transportation agreements to include in sample documents ï§ Ground transportation policy enforcement and staffing ï§ Achievement of airport sustainability initiatives in the use of fuel-efficient vehicles or alternative-fuel vehicles ï§ Achievement of community or accessibility standards or initiatives in particular compliance with Americans with Disabilities Act (ADA) regulations The research conducted under this project was coordinated with the research performed for Airport Cooperative Research Program (ACRP) 03-47, âRethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue.â To avoid duplication of work, the principal investigators conferred regularly to discuss preliminary findings and the direction of their respective research. This TNC effort focuses on policy planning, landside operations, and financial impacts. ACRP 03-47 focuses on the design elements of the adaptive reuse or repurposing of on-airport parking structures. 1.2 PURPOSE OF THE REFERENCE GUIDE TNCs provide on-demand transportation services in most U.S. metropolitan areas. As of June 2019, TNCs also operate in the ground transportation markets at all major domestic commercial airports. The rapid emergence of TNCs has presented multiple challenges to airport operators, states, regional transit authorities, and city 3 Transportation Research Board, Airport Cooperative Research Program, ACRP 01-35: Amplified Work Plan, April 2018.
ACRP 01-35: TNCS: IMPACTS TO AIRPORT REVENUES AND OPERATIONS AUGUST 19, 2019 FINAL DRAFT DELIVERABLE Reference Guide | 1-2 | Introduction governments. The regional and metropolitan context is important to acknowledge, since TNCs are one example of a service provided in a shared economy, a service that has been broadly embraced by customers, but which has proven particularly resistant to control, regulation, analysis, and integration into transportation policies, plans, and operations. Airport operators traditionally have had a high level of control over commercial transportation services that enter their properties, and they have also had control over how these services operate on airport roadways and terminal curbs. This is due in part because, unlike cities, airports are treated as private property with controlled access. In addition, airports are highly lucrative sources of business for ground transportation operators, and thus commercial operators are generally responsive to airport requirements. Generally, ground transportation managers can rely on this relatively high level of control over services and facilities. At the same time, managers have always had limited resources available to address customer service issues and adherence to rules and regulations. With the entry of TNCs into the commercial ground transportation landscape, airport operators may find themselves struggling to maintain efficient, cost-effective, and safe operations in a dynamic environment. Now that TNCs have evolved to reach a critical mass in terms of their role in airport commercial ground transportation operations, the continued use of these services presents multiple challenges to airport operators. The purpose of this Reference Guide is to provide airport operators with information, best practices, and tools that will assist with managing TNCs within the overall airport ground access system. Specifically, this Reference Guide is intended to: ï§ Provide the basis for integrating TNCs into commercial ground transportation operations. ï§ Compile effective approaches to managing TNC operations. ï§ Present tools for estimating impacts of changes in fee structure and mode share. ï§ Present empirical data on the impact of TNCs on ground access revenue and capital programs. ï§ Outline a strategic approach to managing change and new technologies in airport ground access services. 1.3 APPROACH TO DEVELOPING THE REFERENCE GUIDE Five principles informed the development of the Reference Guide. The Guide must: ï§ Be broad enough to encompass a variety of topics and themes of importance to airport operators. ï§ Recognize that airports are at different levels of policy development and analysis. ï§ Offer practical and proven practices that have been used with success. ï§ Support strategic planning, as well as tactical actions. ï§ Recognize the rapid change in commercial ground transportation. Nine tasks comprised the research. As shown on Exhibit 1-1, the work was conducted to document how airport operators: ï§ Develop permitting procedures and enforce regulations. ï§ Locate passenger drop-off and pick-up areas within the overall context of ground access operations. ï§ Manage vehicle staging/holding areas.
ACRP 01-35: TNCS: IMPACTS TO AIRPORT REVENUES AND OPERATIONS AUGUST 19, 2019 FINAL DRAFT DELIVERABLE Reference Guide | 1-3 | Introduction ï§ Establish trip fees charged to TNCs and collect and confirm payment of such fees. ï§ Monitor and respond to revenue impacts and the effects on airport finances. ï§ Update capital plans to support evolving ground transportation operations. EXHIBIT 1-1 WORK PLAN NOTE: TNC â Transportation Network Company SOURCE: Transportation Research Board, Airport Cooperative Research Program, ACRP 01-35: Amplified Work Plan, April 2018. The first phase, âInvestigation,â included the research panelâs approval of the Amplified Work Plan, a literature review, interviews with airport landside managers, an online survey of the top 100 U.S. airports, and the initial development of ground access mode-choice models to analyze TNC impacts on mode share and revenue. The second phase, âInsights and Analysis,â included two tasks: (1) summarize the data and the impacts to revenue; and (2) write the Interim Report, which included an outline for the Reference Guide. The Interim Report compiled the results of the research conducted for Tasks 1 through 5, and it serves as the principal source for this Guide. Extensive supporting documentation, such as a searchable statistical database of the airport survey and an Excel- based simulation template that shows how the mode-choice model is applied to estimate revenue impact, is available on the TRB website by searching on âACRP Research Report 215â.
ACRP 01-35: TNCS: IMPACTS TO AIRPORT REVENUES AND OPERATIONS AUGUST 19, 2019 FINAL DRAFT DELIVERABLE Reference Guide | 1-4 | Introduction 1.4 AUDIENCE The primary audience encompasses operating, administrative, finance, and information technology professionals within an airport. As well, senior airport executives, and their governing boards, who make decisions regarding fees, regulations, capital spending, and overall commercial ground transportation policy are the audience for this Guide. The audiences are: ï§ Executive-level managers, chief financial officers, senior planners, and legal staff who are charged with ground access policy development and managing their airportâs regulatory framework and finances. These managers review revenue trends and evaluate tradeoffs as they develop recommendations for their policy boards. ï§ Landside supervisors and law enforcement officers with day-to-day responsibility for ensuring the safe and efficient operation of ground transportation operations and facilities; and transportation engineers and planners responsible for analyzing curb operations and developing capital improvements. This group of airport operators provides active curb management, enforcement, and security. The operators also collect data and perform traffic engineering analysis of terminal curbs, drives, and access roads. ï§ Finance and business development analysts who track the relative contributions and trends of commercial ground transportation revenue and the impacts on airport finances and capital programs. This includes the management and administration of concessions. ï§ Information technology staff responsible for implementing programs that track commercial ground transportation activities. These staff support financial and operating audits, as well as help landside supervisors track TNC activities for compliance with rules and regulations. 1.5 HOW TO USE THE REFERENCE GUIDE: OVERVIEW AND ORGANIZATION Section 1 presents an outline of the research tasks and the intended audience. Section 2 serves as a concise narrative describing the development and evolution of the TNC business model; this discussion is followed by Sections 3 and 4, which describe TNC impacts on airport operations and revenue, respectively. Section 5 presents 24 practices, as well as tools and policies, that airport operators can reference to address challenges or issues in four broad areas: ï§ Policy development, regulations, and permits ï§ TNC and ground access management, operations, and analysis ï§ Business and revenue analysis and capital programming ï§ Technology Section 5 begins by defining what is a âBest Practice,â and it then presents summary tables listing all 24 practices, with each practice accompanied by a brief description. This is followed by four separate sections corresponding to the four categories. For airport operators who need additional information, references to source material are also provided. An Excel-based simulation template, which shows how the mode-choice model is applied to estimate revenue impact (based on hypothetical policy changes at San Francisco International Airport [SFO]), is provided as a separate deliverable in addition to this Reference Guide.