Accommodating Peer-to-Peer Carsharing at Airports: A Guide (2024)
Chapter: 3 Other Forms of Commercial Ground Transportation Commonly Found at Airports
CHAPTER 3
Other Forms of Commercial Ground Transportation Commonly Found at Airports
In addition to renting a vehicle, airline passengers can select from a broad range of commercial ground transportation services at most airports. (Commercial ground transportation services are those transportation services operated by for-profit businesses, as opposed to bus or rail services operated by not-for-profit regional transit agencies.)
Businesses providing commercial ground transportation services are required to be licensed by a city or county agency (e.g., taxicabs), a state agency (e.g., transportation network companies [TNCs] and limousines), or a federal agency (e.g., scheduled intercity buses). In addition, to do business at an airport (i.e., pick up and drop off airline passengers), all businesses providing commercial ground transportation services are required to obtain an airport license or permit, comply with airport rules and regulations (which may require drivers of commercial vehicles to obtain airport identification badges), and pay airport fees. These airport fees may include (1) annual permit fees calculated per company, per vehicle, or per vehicle operator/driver, (2) cost-recovery fees calculated per vehicle trip (i.e., per-trip fees), and (3) privilege or concession fees calculated as a percentage of a business’s airport-related gross receipts.
Table 3-1 summarizes the commercial ground transportation services that may be available at an airport as well as the basis for the fees paid by customers and examples of the fees charged by airport operators. (ACRP Report 146: Commercial Ground Transportation at Airports: Best Practices [LeighFisher 2015] describes the full range of commercial ground transportation services found at airports, the characteristics of these transportation services, and the basis of customer fares.)
Airport operators use several methods to monitor commercial ground transportation services. To indicate that the providers have a valid permit, airports frequently require them to display vehicle-mounted decals and require vehicle drivers to have airport-issued identification badges. To monitor vehicle trips and support the calculation of per-trip fees, airports often require commercial ground transportation businesses to have an automatic vehicle identification transponder affixed to each vehicle or require TNC companies to establish and use a geofence [i.e., a virtual boundary defined by coordinates in a global positioning system (GPS)] to detect and control vehicle trips. To support the calculation of percentage of gross receipts fees, rental car companies and certain other commercial ground transportation businesses are required to report their airport-related monthly gross revenues in accordance with airport-defined procedures.
The types of fees charged by airport operators vary by operator but include annual permit fees, privilege or concession fees, per-trip fees, and curbside dwell-time fees or other demand management fees.
The fee amounts and specific fees charged vary from airport to airport. For example, some airports charge annual permit fees on a per vehicle basis (e.g., $50 per vehicle per year), whereas
Table 3-1. Examples of commercial ground transportation services found at airports.
| Type of Transportation | Description | Basis of Customer Fares | Basis of Typical Fee Charged by an Airport |
|---|---|---|---|
| On-airport rental car | Renting company-owned vehicles from a site leased from the airport; may provide free shuttle to/from site if not walkable | Type of vehicle rented and length of rental, as well as other fees | Percentage of gross receipts from airport-related business, plus fees for property leased |
| Off-airport rental car | Renting company-owned vehicles from a site located off the airport; may provide free shuttle between the airport and the site | Type of vehicle rented and length of rental, as well as other fees | Percentage of gross receipts from airport-related business |
| Taxicab | Door-to-door, on-demand transportation for five or fewer passengers in sedan, SUV, or van | Calculated on basis of trip length and travel time in most communities, although some cities have flat fares to certain destinations | Fee per each vehicle trip leaving the airport with a passenger (i.e., a passenger pickup) |
| Shared-ride van | Door-to-door, multi-stop transportation between an airport and individual destinations, typically with up to eight passengers assigned to a common van | Flat fare per passenger depending on trip length | Fee per each vehicle trip leaving the airport with passengers |
| Transportation network company | Door-to-door, nonstop transportation typically in a vehicle seating five or fewer passengers, who use the TNC’s app to arrange for transportation and connect with drivers who use their personal, rented, or leased vehicles | Fares determined and payment made using the TNC’s app | Fee for each vehicle trip leaving the airport with a passenger, as well as for each trip dropping off a passenger at some airports |
| Pre-arranged limousines | Door-to-door, pre-arranged transportation, generally for five or fewer people in a sedan, SUV, or luxury vehicle | Flat rate or prenegotiated, regardless of the number of passengers | Varies, either an annual fee per company or vehicle or a fee for each trip leaving the airport with passengers |
| Scheduled buses and vans | Fixed-route, multi-stop transportation between an airport and one or more established stops | Flat fare per passenger | Varies, either an annual fee per company or vehicle, or a fee for each trip leaving the airport with passengers |
| Courtesy vehicles | Door-to-door van or mini-bus transportation offered as a service amenity between an airport and a hotel, motel, parking lot, or rental car facility | No direct charge; transportation cost incidental to the primary business | Fee per each courtesy vehicle trip (with rental car companies charged a percentage of gross receipts) |
Source: InterVISTAS Consulting, December 2023.
other airport operators charge fees per company (e.g., $300 per company per year). Annual permit fees may vary depending on the vehicle size, number of vehicles in the operator’s fleet, frequency of travel to the airport, type of ground transportation service, and the other fees charged.
As described previously, all airports require traditional on- and off-airport rental car companies to pay a privilege or concession fee. On-airport rental car companies are charged fees calculated as 10 percent of their airport-related gross revenues. The privilege fee amounts charged off-airport rental car companies vary but generally are between 8 percent and 10 percent of the company’s airport-related gross revenues. Many airports charge commercial ground transportation providers a fee calculated on a per-trip basis.
Airports charge per-trip fees most commonly to the operators of taxicabs, shared-ride vans, TNCs, limousines, buses, vans, and courtesy vehicles (e.g., those serving hotels and motels). Table 3-2 presents the per-trip fees charged to commercial ground transportation providers at Denver International Airport. As noted, these fees vary by vehicle size and the length of time a commercial vehicle remains at the designated passenger pickup area. Rental car companies and off-airport parking businesses must pay per-trip fees in addition to fees charged for annual permits and fees calculated as a percentage of airport-related gross revenues. Although TNCs are not listed in Table 3-2, those serving Denver International Airport are required to pay $2.15 for each drop-off trip and $2.15 for each pickup trip.
Table 3-2. Examples of per-trip fees charged commercial ground transportation providers by Denver International Airport.
|
Class I Vehicles (maximum carrying capacity of up to 15 passengers) $2.61 for the first 15 minutes $2.35 for each additional 10 minutes |
|
Class II Vehicles (maximum carrying capacity of up to 31 passengers) $5.15 for the first 15 minutes $3.61 for each additional 10 minutes |
|
Class III Vehicles (maximum carrying capacity of 32 or more passengers) $7.81 for the first 25 minutes $5.47 for each additional 10 minutes |
Source: Denver International Airport, August 2023.
