In the interests of transparency, Houston Airport Systems (HAS) held its Concessions Industry Day on July 17 to advertise its concessions – including duty free.

 

 

Randy Goodman, General Manager – Concessions presided over the event, which covered several RFP packages for both George Bush Intercontinental Airport and William Hobby Airport and incorporated guided tours around the airports.

 

According to HAS, Houston’s two airports have set new passenger records over four consecutive years. Management also points to exciting times ahead with Terminal B North due to be built in the international airport, while Terminal D has been approved, ahead of the international terminal opening in 2015.

 

HAS also believes the trading environment is ‘only going to get better’ with a strong and diverse economy in Houston, leading population growth between now and 2040 and the ‘most diverse population of any major US city’ enhancing Houston’s standing as a key international gateway.

 

Most interesting for potential partners is HAS’ promise that its retail and F&B packages are ‘win-win’ since the packages are big enough to provide an ‘attractive return’ (ROI) for concessionaires, market rent for HAS and subcontracting opportunities.

 

William P. Hobby Airport – shortly to begin international services.

 

HOW TO OBTAIN MORE DETAILS

There are far too many individual details such as ACDBE status, multiple RFP packages for F&B from specialty coffee, dining, yoghurt and snack bars to cover in this report here. However, all of these details can be obtained directly by clicking here: http://system.gocampaign.com/netisd_org/images/imagelibrary/620/74/6616/530379-Industry%20Day%20-%20July%2017%202014.pdf

 

Meanwhile, the George Bush Intercontinental Airport Retail/Duty Free Packages are being offered over a period of 10 years, with percentage rents being invited alongside a specified minimum percentage guarantee and the minimum investment in excess of $300 per square foot.

 

There will be no rent payable in year one but 85% of prior year rent due thereafter, while products are to be sold at street pricing plus no more than 10%. There is also a marketing fee of 50% of gross sales.

 

Retail Package one consists of 18 locations, with seven news and convenience outlets and 11 specialty retail – including electronics/gadgets, outdoor lifestyle, personal care, regional themes etc.

 

Retail Package two comprises 17 locations with seven news and convenience, 10-specialty retail and six automated retail outlets. Retail Package three includes three specialty retail outlets and four duty free shops in terminals A, B and D (2).

 

[HAS also advises that the west side of Terminal D will be demolished approximately four years from now and the east side will follow six years later. The RFPs will require concessionaires to make a full investment in these locations with provisions for HAS to buy out the value of any unamortized improvements-Ed].

 

 

One of the specialty local retail concepts at George Bush Intercontinental Airport.

 

 

SMALLER DUTY FREE OPPORTUNITY

The retail and duty free Retail Package one in William P. Hobby Airport will also consist of ten-year concession periods and identical base requirements to those required in George Bush Airport.

 

Package one will cover seven locations, plus automated retail in William Hobby. Additionally there will be four news and convenience outlets, two-specialty retail and one duty free outlet in the Central Concourse.

 

Package two comprises 14 locations, featuring four news and convenience shops, four-specialty retail and six retail merchandise units.

 

The ‘timeline’ for the RFP processes is designed to deliver the award of all contracts by the end of 2014. The RFPs will be formally advertised on August 8, followed by a pre-proposal conference on August 26. All proposals are due in by October 1 with decisions on the winners expected by the end of the year.

 

Current retailers operating at Houston Intercontinental include Nuance Tax & Duty Free in Terminals A and B (soon to become part of Dufry); Liberty Duty Free in Terminal D and Dufry Tax & Duty Free in Terminal E. There are also a host of international and local branded retailers in both Houston airports, across all terminals.

 

The total number of international departing passengers at George Bush International in the first six months of 2014 grew by 10.9% to 2,468,990, while Houston William Hobby passenger traffic rose by 9.3% to 2,944,308 departing ‘domestic’ passengers.

 

TOP IMAGE: Houston George Bush Intercontinental Airport.