Boston Airport duty free and F&B RFP enters final phase

By Doug Newhouse |

Boston-Logan-Airport-small-Photo-credit-David-WilsonThe Massachusetts Port Authority’s (MPA) F&B, News, Duty Free & Specialty Retail Concessions Programme at Boston-Logan International Airport has entered a new phase for its RFP covering shops based in Terminals A,B, C & E.

 

The concession premises being included in this RFP and the Concession Programme as a whole consists of 160 concessions over approximately 180,000sq ft, as MPA explains in the RFP.

 

“The Master Concessions Leases for the following Terminals will terminate on the following dates: Terminals B & E: June 30, 2017; Terminal C: December 31, 2017; and Terminal A: March 15, 2018.

 

Boston-Logan-aerial-view-Photo-credit-David-Wilson

Boston Logan Airport aerial view. [Photo credit: David Wilson].

Boston 2016 RFPa

Source: Boston Logan Airport.

 

RFP PROCESS ALREADY WELL ADVANCED…

“Thus, the Concession Premises in each Terminal will be added to the Concession Lease Agreement on the following dates (each a ‘Date of Beneficial Occupancy’): Terminals B & E: July 1, 2017; Terminal C: January 1, 2018; and Terminal A: March 16, 2018.”

 

MPA is already well into this RFP process, with the initial proposals now due on November 15, 2016, according to its latest documentation.

 

These proposals will be followed by the usual respondent presentations which have been scheduled for the weeks of 5 to 12 December 2016, followed by a review of the same at the Authority’s Board Meeting in February 2017.

 

Boston-Logan-Airport-TE-Photo-credit-hildgrim

International arrivals at Boston Logan Airport [Photo credit: Hildgrim].

CONCESSION PROGRAMME LEASE EXPIRY DATES…

Each proposal requires a $100,000 deposit and the authority has set out several goals and objectives. These include successful retailers developing ‘creative and innovative, nationally recognised’ and ‘award winning’ concession programmes, while increasing customer satisfaction and spending ‘with improved product choice, price points and customer service’.

 

It also [naturally] calls on successful bidder(s) to maximise net revenues to the Authority while enhancing the range and value of the products available. This includes a ‘price value relationship’ consistent with prices currently being offered by domestic retailers in off-airport locations in the Boston and Cambridge location.

 

The concessions programme in Terminal A is currently under a Master Concessions Lease, which commenced in 2004 and will expire on March 15, 2018.

 

Boston 2016 RFPb

Source: Boston Logan Airport.

 

53 NON-STOP INTERNATIONAL DESTINATIONS

There is approximately 33,000 total square feet of concession space and in calendar year 2015 the Terminal A concessions programme generated $33,720,474 in gross sales.

 

By contrast, the programme in Terminal B commenced in 2000 and will expire on June 30, 2017. There is approximately 56,000 total square feet of concession space and in calendar year 2015 the programme generated $60,575,793 in gross sales.

 

In addition, the Terminal C programme began in 1999 and will expire on December 31, 2017. There is approximately 51,000 total square feet of concession space and in calendar year 2015 this generated $51,265,928 in gross sales.

 

Boston 2016 RFPc

Source: Boston Logan Airport.

 

28M DOMESTIC AND 5M INTERNATIONAL PASSENGERS

Last, but not least, the Terminal E programme commenced in 2000 and expires on June 30, 2017. There is approximately 40,000 total square feet of concession space and in calendar year 2015 this generated $44,748,099 in gross sales.

 

In calendar year 2015, Logan handled approximately 33.4m total passengers, including approximately 28m domestic passengers and approximately 5m international passengers. There were 16.7m total enplaned passengers, of which 2.8m were international enplaned passengers.

 

Logan has four principal passenger Terminals with a total of 92 gates in active use and is served by 75 non-stop domestic destinations and 53 non-stop international destinations. Most of Logan’s international arrivals come through Terminal E for US Customs and Border Protection processing.

 

Boston Logan RFP 5

Source: Boston Logan Airport.

 

INTERNATIONAL INCLUDES PRE-CLEARED PASSENGERS

Some international flights, including various Canadian, Caribbean and Ireland flights, pre-clear US Customs at their point of origin and arrive at domestic terminals. Several international flights depart from domestic terminals and any readers interested in these businesses should study the documents for an accurate guide.

 

For more information on this RFP, contact: Ms. Leah H. Teeven, Airport Concession Business Manager, Massachusetts Port Authority, One Harborside Drive, Suite 200S, Logan International Airport, East Boston, MA 02128. Email: [email protected] Telephone: (617) 561- 1662

 

[See also earlier story: http://www.trbusiness.com/regional-news/the-americas/boston-logan-issues-duty-free-rfp-and-fb/107625]

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