Transportation Network Companies (TNCs): Impacts to Airport Revenues and Operations—Reference Guide (2020) / Chapter Skim
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Pages 25-43
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25 A second key component of the research effort focused on examining how TNCs are affecting airport revenue and rental car transactions. This Reference Guide presents analyses, tables, and exhibits mainly for large-hub airports.
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26 Transportation Network Companies (TNCs) : Impacts to Airport Revenues and Operations -- Reference Guide 15 medium hubs, and 21 small hubs.
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Impacts on Airport Revenues 27 As shown, for all sizes of airports -- large hub, medium hub, and small hub -- a significant share report a decrease in taxi revenue. This is expected as TNCs represent the most direct substitution for taxi services.
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28 Transportation Network Companies (TNCs) : Impacts to Airport Revenues and Operations -- Reference Guide 4.2.1 Parking Revenue The FAA CATS database combines parking revenue with revenue from other ground transportation services (taxi, limo, shuttle, TNC)
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Impacts on Airport Revenues 29 As shown in Table 4-5, after netting out the estimated TNC revenue, the adjusted FAA CATS data represented about 89 percent of the base (original) data in 2017, compared with 98 percent in 2015.
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30 Transportation Network Companies (TNCs) : Impacts to Airport Revenues and Operations -- Reference Guide 4.2.3 Longer-Term Trends In addition to examining the most recent data for 2015 to 2017, ACRP 01-35 research included an evaluation of longer-term trends in ground transportation revenue, as reported in the FAA CATS database.
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Impacts on Airport Revenues 31 passenger has decreased for traditional airport commercial ground transportation sources, and (2) new and incremental TNC revenues have provided a replacement source of revenue for airports.
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32 Transportation Network Companies (TNCs) : Impacts to Airport Revenues and Operations -- Reference Guide This data source includes two revenue categories that provide more detail compared with the FAA CATS data source: • Other ground transportation revenue: This includes taxis, limos, shuttles, and vans.
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Impacts on Airport Revenues 33 This source of additional airport data reinforces the general conclusions and results reported from the other sources, particularly regarding the significant increase in TNC revenues at large-hub airports from 2015 to 2017. The data collected from large-hub airports were also used to analyze trends in revenue per passenger.
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34 Transportation Network Companies (TNCs) : Impacts to Airport Revenues and Operations -- Reference Guide • Taxis.
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Impacts on Airport Revenues 35 revenue. The general trend in average airline cost per enplaned passenger is a gradual increase, as airports incur these costs to invest in their facilities.
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36 Transportation Network Companies (TNCs) : Impacts to Airport Revenues and Operations -- Reference Guide Most airports generate a significant amount of nonairline revenue from in-terminal concessionaires, such as retail and food and beverage companies.
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Impacts on Airport Revenues 37 Whatever the specific business arrangement, the airport is obligated to generate sufficient revenue to provide for annual operating expenses and debt service on outstanding bonds. Also, any decrease in revenue from a source must somehow be compensated.
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38 Transportation Network Companies (TNCs) : Impacts to Airport Revenues and Operations -- Reference Guide revenues, including revenues generated from commercial ground transportation activities, support the financing of airport capital programs.
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Impacts on Airport Revenues 39 For most U.S. airports, the total revenues generated from airport operations are used to provide for both annual operating expenses and payment of debt service for capital investments.
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40 Transportation Network Companies (TNCs) : Impacts to Airport Revenues and Operations -- Reference Guide The rating agencies track the annual trends in airline and nonairline revenue, and attention to the impact of TNCs and the changes in mode share and revenue generation has noticeably increased.
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Impacts on Airport Revenues 41 airport nonairline revenue and, as a result, would require increased airline revenue to fund capital improvement programs. More recently, airport operators have responded, developed strategies, and realized replacement revenue in connection with commercial ground transportation services.
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42 Transportation Network Companies (TNCs) : Impacts to Airport Revenues and Operations -- Reference Guide • Fees for TNCs: Airport operators have gradually increased per trip fees for TNCs.
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Impacts on Airport Revenues 43 Long-Term Future In the long term, considerations are likely to be related to the need for flexibility in facility development and to the anticipated development of autonomous vehicles. • Flexibility for Facilities: Whatever happens with new-technology companies, it will be in the best interest of airport operators to develop facilities that are flexible to accommodate various types of activities.
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