Deadline for San Francisco Airport duty free and luxury concession nears

USA. Bids on San Francisco International Airport’s International Terminal duty free and luxury stores concession close this Friday, 15 September at 2p.m. local time.

The contract covers the management and operation of ten duty free and luxury store locations in the international terminal and one in T1. The base term is 14 years, plus up to 365 days for construction of tenant improvements. An automatic extension period will be available to the tenant, if necessary, to ensure that the majority of premises in a new central retail plaza (if constructed) are operational for a full five years.

DFS Group, the long-time incumbent, is certain to face strong competition for one of its key concessions.

As reported, SFO issued its long-awaited Request for Proposals (RFP) for the concession on 21 March. Besides DFS, a briefing on 4 April drew representatives from ATU Americas, DFASS, Dufry, Duty Free Americas, Gebr Heinemann, Hotel Shilla, Hudson Group (Dufry), Lotte Duty Free and Setur, plus several specialist concession companies (see table).

DFS, the long-time incumbent, faces serious competition on multiple fronts this time around

The proposed minimum annual guarantee is US$42 million and the minimum acceptable percentage rent offer is 30% of gross revenues.

Sales reached around US$107 million last year. An award is scheduled for November. Scoring will be based on a 110 points system (see table below).

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Timeline to a tender: The key dates (above) and evaluation criteria (below) for the SFO tender

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Business 1ntelligence Service offers key insights into SFO passenger traffic

The tables below on San Francisco International Airport are courtesy of a new and exclusive relationship between The Moodie Davitt Report and leading travel retail research and analysis house m1nd-set. The Swiss company recently launched its Business 1ntelligence Service (B1S), a unique air traffic forecasting tool, developed with IATA and ARC’s ‘Direct Data Service’ (DDS) database.

The DDS program is built on travel agency sales data captured through ARC and IATA’s financial settlement systems and ticket sales contributed by airlines participating in the programme. DDS is able to estimate 100% of global airline sales data, including scheduled and charter flights and low cost airline traffic, and will even distinguish between travel classes. For more information e-mail m1nd-set Founder & CEO Peter Mohn at pmohn@ms-research.net

NOTE TO AIRPORT OPERATORS: The Moodie Davitt Report is the industry’s most popular channel for launching commercial proposals and for publishing the results. If you wish to promote an Expression of Interest, Request for Proposals or full tender process for any sector of airport revenues, simply e-mail Martin Moodie at Martin@MoodieDavittReport.com.

We have a variety of options that will ensure you reach the widest, most high-quality concessionaire/retailer/operator base in the industry – globally and immediately.

Similarly The Moodie Davitt Report is the only international business intelligence service and industry media to cover all airport consumer services, revenue generating and otherwise. We embrace all airport non-aeronautical revenues, including property, passenger lounges, car parking, hotels, hospital and other medical facilities, the Internet, advertising and related revenue streams.

Please send relevant material, including images, to Martin Moodie at Martin@MoodieDavittReport.com for instant, quality global coverage.

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