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Home My WebLink About07/09/2013 00 PowerPoint PresentationASSOCIATES An STR Company .......................................................... ............................... .......................................................... ............................... .......................................................... ............................... .......................................................... ............................... .......................................................... ............................... Yakima Airport (YKM): Analysis of Commercial Flight Market J u ly 9, 2013 RRC Associates YKM Market Analysis: Objectives • Understand existing YKM market dynamics: — YKM passenger profile — Market leakage &competitive airports • Evaluate opportunities for YKM improvement: — Satisfaction with existing flight service — Preferences for improvement • The research program was developed and conducted by RRC RRC ASSOCIATES --------- Page 1 YKM Market Analysis: Data Sources • YKM air passenger survey: — Conducted at YKM March 25 — April 22, 2013 — 305 responses from departing passengers — 95% confidence interval +/ -5.6% • Yakima employer survey: — 96 responses; conducted online — Questions similar to YKM passenger survey • Air travel statistical databases: — Yakima resident air travel itineraries (ARC) — Passenger origin /destination by airport (BTS) RRC ASSOCIATES --------- Page 2 YKM Market Analysis: Outline • YKM passenger profile • Market leakage &competitive airports • Satisfaction with existing YKM flight service • Preferences for improvement RRC ASSOCIATES --------- Page 3 YKM Passenger Profile Yakima Area Residents Account for 2 /3rds of YKM Pax RRC ASSOCIATES 0 atn c�ra Visitorltraveler to the area, 33% Local resident of fhn nreater rea, 67% Source: 2013 YKM Air Passenger Survey; RRC Associates. Page 4 YKM Passenger Profile Trip Purpose: Pleasure focus for Residents, Business focus for Visitors YKM Passengers: Yakima -Area Residents Leisure/ personal / other, 32% Visit friends 24' RRC ASSOCIATES 0 atn c�ra Business/ professional, 37% business/ pleasure, 7% YKM Passengers: Visitors Leisure/ personal / other, 7% Visit friends/ relatives, 33% Combined businE pleasure, 3% Business/ professional, 57% Source: 2013 YKM Air Passenger Survey; RRC Associates. Page 5 YKM Passenger Profile YKM: Top 10 Origin &Destination Markets, October 2011— September 2012 1 SEA Seattle / Tacoma 19,988 18.0% 48% 2 PHX Phoenix 51234 4.7% 69% 3 LAS Las Vegas 41422 4.0% 91% 4 LA s Angel 41292 1 3.9% 55% 5 SAN San Diego 31175 2.9% 69% 6 SNA IFP Sa to An Bullhead City Sacramento 21943 2.7% 2.1% 77% 50% 52% 7 21380 8 21325 2.1% 9 DEN Denver 2,181 2.0% 63% 10 Chicago 21 132 4% Other US 44,587 40.2% 63% 84.5% 61% Total US 93,659 International (est.) 171199 15.5% n/a 100.0% n/a Grand total (est.) 1101858 RRC ASSOCIATES 0 atn c�ra Source: Aviation DataMiner based on US DOT 0 &D data; RRC Associates. Page 6 YKM Market Analysis: Outline • YKM passenger profile • Market leakage &competitive airports • Satisfaction with existing YKM flight service • Preferences for improvement RRC ASSOCIATES --------- Page 7 YKM Captures Just 28% of Yakima County Resident PAX Trips Purchased Through Travel Agencies (Online & Offline) Originating Airport: Yakima County Residents PSC of CO/ PDX 6% YKM 28% r� RRC ASSOCIATES Page 8 0SIM Source: May 2012 — April 2013 ARC Flight Itineraries for Yakima County residents purchased thru OTAs and travel agencies; RRC Associates. Market Leakage Primary Reason for Using YKM, SEA and PSC to Begin Air Minimize overall travel time Convenience of arrival /departure times from airport Minimize overall travel costs Cities served by direct flights to the airport Other r� RRC ASSOCIATES 0 atn c-xra Travel: Yakima Employers 0% 10% 20% 30% ■ Primary reasons for using YKM (employers) ■ Primary reasons for using SEA (employers) �i Primary reasons for using PSC (employers) 19% 10% 40% 50% 40% 46° 8% 60% 55% 60% 62% 62% 70% YKM (other): Convenient location; no driving; avoid pass; 3% 23% ease of travel; easier security /TSA better 14% SEA (other:) YKM layovers too long; YKM flights inconvenient or unreliable; trip times; cost; combine with other business in Seattle Page 9 Source: 2013 Yakima Employer Survey; RRC Associates. Market Leakage Mode(s) of Travel Used from Yakima Area to SEA in Past 12 Months (excluding this trip) Flew to Seattle via YKM (excluding this trip) Drove from Yakima area Seattle Airport Took van service from Yakima \area to Seattle Airport _,,o Have not traveled between Yakima area and Seattle i CFlewo Seattle via Tri- Cities Airport Other RRC ASSOCIATES 0 atn c.,Ara 0% 10% 20% 30% 40% 50% 60% 70% 80% 2% 3% ►,i ml 63% 67% 75 M 16° 11% ■ YKM Air Passengers ■ Yakima Employers (re: employee travel in a typical year) 11% � 20% 20% Source: 2013 YKM Air Passenger Survey; 2013 Yakima Employer Survey; RRC Associates. Page 10 350,000 300,000 250,000 200,000 E cc 150,000 w 100,000 50,000 N RRC ASSOCIATES 0 atn c�ra Enplanement Trends: YKM and ALW Flat, PSC Growing Yakima (YKM) enplanements Tri- Cities (PSC) enplanements Walla Walla (ALW) enplanements Source: US Bureau of Transportation Statistics T -100 Market Data. Page 11 YKM Market Analysis: Outline • YKM passenger profile • Market leakage &competitive airports m7mm] • Satisfaction with existing YKM flight service • Preferences for improvement RRC ASSOCIATES --------- Page 12 Satisfaction with YKM Air Service: Moderately Positive for SEA Connections, Mixed to Negative for YKM -SEA flight timing &frequency 10 I I I I I I - I I I I I I I I I I ^ I I I I I I I I I I I I - N ' I I I fYakima air passenger survey I y g --------- - - - - -- ;----------- - - - - -; --------- - - - - -- ;---------------- ,--- - - - - -- Yakima employer survey - - - -- I I I I I c E O � � I I I I I I I I I I I 7 6.7 - - - -I I I I I - - - -- ----- J - - - - -- L--------------- J---------------- I---------------- J---------------- I----------- - - - - -• I I I I I I �.% X I I I I I I I I I I I W y�� ° I 6 - - - -- 6.5 - - - -- ;- - - - - -- -- -' 6.1 I I I I - - - -- 5.5 - - - -- ;---------- - - - - -- --------- - - - - -- ;---------- - - - - -- ---------- - - - - -- 5.2 5.2 ❑ N I I I I I 4.8 I 5 --------------- JI ---------------- I I L - - - -- ------- J- - - - - -- -- - - - - -- I I , - - - -• -- - - - - -- - - -- - - - - -- - - - - -- cc U) I I 4.9 4.8 I I a' y 4 --------- - - - - -- ---------------- r--------------- , - - - -- ----- I I I _ I - - - - -- -- - - - - -- -------- I-- - - - - -- - - - - - -- I I I 4.2 ca I I I I I I I I I I I I I I I I O LI --------------- J -------- ________ J I - - - -- - - - - -- 3.3 - - - -• ------ 3 --------------- JI ----------- I I I I I I I I I Z I I I I I I I I I I I I I I I I I I " r I I I I I I I I I I I I I I I I I I I I I I I I I I 1 ' Variety of Convenience of I Total cost of Cost of airfare I I I Timing of flights Numberof Timing of flights connecting connecting airfare from from Yakima to departing flights between departing flights in Seattle flights in Seattle Yakima to final Seattle Yakima to Yakima and Seattle to RRC destination Seattle Seattle (3x /day) Yakima ASSOCIATES Page 13 ' ^�"' Source: 2013 YKM Air Passenger and Employer Surveys; RRC Associates. YKM Market Analysis: Outline • YKM passenger profile • Market leakage &competitive airports • Satisfaction with existing YKM flight service • Preferences for improvement RRC ASSOCIATES --------- Page 14 YKM: Suggestions for Improvement Other suggestions for improving flight service between YKM and SEA: *Add more flights to SEA for better connections / shorter layovers *Add flights to other cities (e.g. Spokane, Portland, Denver) • Lowe r a i rfa res *Reduce last minute cancellations / unreliability; offer alternate transportation when flights are cancelled Other comments or suggestions for improvement reeardine flight service at YKM: *Many people are very pleased with airport personnel and the airport overall *Many people also comment favorably on Alaska Airlines (some critical comments too) *several suggestions for improvement to YKM: *Add food and drink (coffee, local wine) service •Add /improve WIFI service in terminal *Have a manned information booth in airport for tourists and business travelers *Spruce up exterior appearance of airport *Improve interior aesthetics — e.g. show work by local artists *Improve passenger waiting area past security (e.g. add vending machine) *Eliminate parking costs for weekend travel *Promote tourism to Yakima RRC *Make standby limo service available (rather than call -for service) ASSEIGIATEE Page 15 "' Source: 2013 YKM Air Passenger and Employer Surveys; RRC Associates. Current Schedule and Connecting Flights RRC ASSOCIATES Page 16 ►laska's Seattle Arrivals by Hour Dept to YKM 0950 1705 2310 15 10 5 N U:UU 1:UU Z:UU 3:UU 4:UU 5:UU b:UU /:UU 8:UU 9:UU 1U:UU 11:UU 12:UU 13:UU 14:UU 15:UU 1b:UU 1 /:UU 18:UU 19:UU ZU:UU Z1:UU ZZ:UU 23:UU Arrivals 0 2 0 0 1 6 4 2 7 17 15 28 13 11 12 11 15 13 15 13 37 42 19 17 Alask 60 50 40 a, i 3 i Q 30 a) 0 N Q 20 10 w Departures 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00'18:00 19:00 20:00 21:00 22:00 23:00 Depts 0 0 0 0 0 0 17 49 26 15 23 21 17 20 27 18 10 15 14 29 19 10 14 8 YKM Passenger Survey Top Choices for New YKM Flights in the Future (Other than SEA) 0% 10% 20% 30% 40% 50% 60% Portland - PDX � 29% 4% 43%1 1 Spokane - GEG 12% 5% Salt Lake City - SLC 7% 9% 3% 20% Los Angeles - LAX 10% J§ 5% 19% Las Vegas - LAS 8% 6% 4% 18% Denver- DEN 8 %M 6"4% 18% San Francisco - SFO 140 Boise - BOI % 5°/ Phoenix - PHX 3,,, 5% Chicago - ORD, MDW 4% RRC ASSOCIATES 0 atn c�ra 70% 80% 90% 100% Page 19 Source: 2013 YKM Air Passenger Survey; RRC Associates. U cc 0- 0 a a @ CE i iw 0 II 0- 0 U� U Cc E a > ca a� a� z a 7@ E X w Yakima Employer Survey Anticipated Impact on Yakima Economy and Your Business 60% 50% 40% 30% if flight service to YKM was expanded .__________ ■ Impact on Yakima economy ---- _--------- ------ ■ Impact on your business ---------------------------1---------------------------J----- i i Q / i ---------------------------- -- -------------- 218% ------------- 20% --------------------- 10% ------------------- 0% 20/ 0% %0 -4: %5: %6 -8: %9, 10: Negative impact No significant impact Moderately positive impact Extremely positive impact RRC ASSOCIATES Page 20 Source: 2013 YKM Employer Survey; RRC Associates. Action Steps • Improve the relationship with Alaska to increase load factors and frequency — Cooperative marketing program • Improve the awareness of the service • Raise the YKM service as an option • Community provides the advertising vehicles • Alaska provides — Design and creative — Targeted promotional fares RRC ASSOCIATES --------- Page 21 Action Steps (continued) • Improve the relationship with Alaska to increase the frequency (continued) — Consider additional SEA flights or adding new service to Portland (PDX) • Improve the awareness of YKM in the visitor promotional programs • Approach sponsors of the charter programs RRC ASSOCIATES (Bullhead) to increase service and incorporate their message into the FLY YKM marketing program Page 22 .......................................................... ............................... .......................................................... ............................... .......................................................... ............................... .......................................................... ............................... ASSOCIATES.. .......................................................... ............................... An STR Company Questions and Comments Yakima Airport (YKM): Analysis of Commercial Flight Market J u ly 9, 2013 David Becher, Director of Research, RRC Associates