The 15th Airport Cities World Conference and Exhibition Day Three

The global airport cities community gathered in the Main Ballroom of the Shangri-la Hotel in the beautiful coastal city of Qingdao, for the third and final day of Airport Cities.

Conference Chair Professor John Kasarda opened the session with remarks on the upcoming programme and special words of praise for the very high quality of the Gala Dinner and the unique entertainment provided the previous evening. The entire audience clearly agreed with these comments and expressed their approval.

Keynote?Airport Cities as Non-Aeronautical Revenue Generators and Regional Economic Catalysts

The first speaker in the morning session was Patrick Heck, Chief Commercial Officer, Denver International Airport covering the topic “Airport Cities as Non-Aeronautical Revenue Generators and Regional Economic Catalysts” Mr Heck highlighted the following key points:

• Route Network development is key to success
• Denver Airport will welcome 58 million passengers in 2016.
• 65% O&D traffic provides opportunity to generate Non Aeronautical revenues
• More than 50%of Denver Airports total revenues are now generated from non-aeronautical sources. The longer-term target is to increase to 60 to 70%
• Revenue from Land use $12 million per annum
• Oil and gas revenues from 72 wells currently US$2 million
• Leased land for farming US$250,000
• Rental cars US65 million per annum
• Parking US$172 million (down 2-3%)
• UBER and other taking more passengers than traditional cabs so adjusting parking models and pricing to compete.
• Uber and Lift and off airport parking lots have applied pressure to rethink pricing strategy
• Westin Hotel owned and financed by DIA
• Meeting space in the new hotel has generated US$16.9 million in 2016, well ahead of budget
• Airport City driven revenue
• 10 mile driveway to airport
• Transport Oriented Development at 4 stops where DIA owns 250 acres of land
• Panasonic has relocated its USHQ for the Solutions Business in Denver at 61st and Pena
• Regional tax sharing with surrounding regions has paved the way for the airport city development

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