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CASE STUDIES
Portland International Airport - www.portofportland.com

Overview:

Jeanne Raikoglo, Portland International Airport (PDX) Concessions Manager engaged AC to draw on AC's experience and knowledge gained serving airport owners and retail / newsstand operators in major North America airports. Ms. Raikoglo and PDX are known throughout the North American Airport Industry as innovators in airport retailing, winning industry awards year after year.

In 1999 Ms. Raikoglo was getting ready to initiate the first of a three-phased Request for Proposal (RFP) process designed to significantly expand the amount of retail space and upgrade the existing program with new, more trend conscious concepts and operators. The resulting program would enhance revenue, upgrade customer service, and compliment the major terminal expansion program underway at PDX.

AC's work included analysis of the best deal structure for an innovation in the newsstand category where Ms. Raikoglo offered retailers the opportunity to create and deliver a new concept and brand -- which PDX initially identified as a Traveler's Convenience Concept.

Client Need: To develop a clear, quantifiable set of reasonable expectations for Phase 1 of the RFP, including the financial viability of the spaces, mix of concepts and financial terms offered.

Solution: Prior to the start of the Phase 1 RFP process, AC performed:

  • An analysis of nine different concession packages (spanning a range of concepts: newsstand, specialty retail, bookstores, and duty free) with recommendations on how to best structure business terms, mix and other proposal guidelines
  • A specific analysis of the Traveler's Convenience, Newsstands, and Snack Bars opportunities to assist PDX staff with determining the minimum requirements for mix of product, rent proposal guidelines, and financial viability of conceptual approach
  • A pro-forma analysis for each package, considering transition (construction) periods and related assumptions during a five-year period
  • An analysis of the impact of construction/interim facility operations on sales, and net revenue to PDX

After the proposals were received, AC evaluated over 30 submittal, and made recommendations and comments to support PDX staff's evaluation process.

Results: The Phase 1 RFP process was deemed a success by PDX. The Traveler's Convenience concept package was awarded to The Paradies Shops Inc. (1 of 6 proposals), while the Newsstands Package was awarded to Hudson Group (Hudson News) - the best proposal of 4. These two packages were fiercely competed for by Paradies and Hudson and have proven to be very successful for PDX and the operators. Both operators have continued to replicate their versions of the Traveler Convenience concept across a number of airports. And PDX has won industry awards for its innovation in this area.

The Traveler's Convenience concept (now known as Paradies Travel Mart, and Hudson's Euro Café) offers a significant mix of readable print, combined with a wide range of prepackaged snacks, fresh "To-Go" food/beverages and traveler necessities - often via a geographical, locally-themed design facilitating "one stop shopping" convenience.

Jeanne Raikoglo retired from her post as PDX Concessions Development Manager in 2002 and was president of Concessions Development and Management, a firm serving transportation facility owners including the Washington State Ferries.

 


"Launching a new concept is a difficult process. Kathleen's assistance in setting concept parameters and evaluating proposals made her a valuable asset to the PDX team."

Jeanne Raikoglo, Portland International Airport (PDX)
Concessions Manager thru May, 2002

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CASE STUDIES

Portland Airport