Reaching for Number Age Distribution Aging of the population Just U.S. or foreign travelers also? Age groups have different needs Wheelchairs, companion restrooms or play areas Are there different concession and amenity needs by age group? What is the travel frequency of each age group? Life cycle stage indicated by age groups, e.g., families, retirees, etc. Reaching for Number 2 Gender As indicated in passenger surveys, the gender split at SFO is balanced What’s the frequency of travel by gender? Are their travel reasons different? Are their shopping & dining needs different? Do we have the amenities that each may want/need? Which gender plans type of travel – business vs. leisure? Reaching for Number 3 Ethnicity Bay Area is diverse, as are visitors passing through the Airport Do ethnic groups require different amenities, concessions, and food choices? Are there different requirements for wayfinding? What is the ethnic make up of the bay area region? What are the ethnicities of arriving and connecting passengers? Reaching for Number 4 Education and the Traveler Education levels in the Bay Area are higher than the State or the U.S. Does level of school education equate to higher expectations for air travelers? Is there a correlation between school education levels a passengers needs? Knowledge versus school education - does this impact the amount of travel done by individuals? Knowledge versus school education - in what age groups would this matter? Is education an independent segment ? Reaching for Number 5 Income and the Traveler Per capita income is substantially higher in the Bay Area than in California or the U.S. Does higher income equate to higher expectations? What age groups are willing to spend more disposable income on air travel? Is there a trend? More income/more travel? Older travelers versus younger travelers? Is income an independent segment? Reaching for Number 6 Occupation and the Traveler Does occupation play a role in a travelers decisions? Do employers or employment sector s play a role in travel decisions? Many national and international employers Are there travel trends that may be impacted by occupation? Is occupation an independent segment? Reaching for Number 7 Residency & International vs. Domestic Travel During 2009 SFO’s enplanements were: 78% domestic 22% international According to SFO’s 2009 Customer survey, respondents were: 25% from the Bay Area 29% from other California 26% from other US States 19% from foreign countries Reaching for Number 8 International Passengers at SFO International Passengers country of residency breakdown in 2009 (SFO Survey) 54% from Pacific Rim 25% from Europe 20% from The Americas 2% from Africa and Middle East Europe 25 The Americas 54 20 Africa and Middle East Pacific Rim 2 9 Bay Area Residents & International Travel The Bay Area has the nation’s most diverse international population 35.7% of residents are foreign born, more than double the US average. Asian-born residents are nearly 1/3 of San Francisco’s population San Francisco has three times as many foreign consulates (77) per capita than Los Angeles. More than 30,000 foreign students study in Bay Area universities. Among large U.S. Metropolitan areas, San Francisco has the 2nd highest propensity to travel internationally 10 SFO is well situated to serve international travelers SFO has 96.9% of the Bay Area Airport’s international passenger market share SFO offers superior connectivity throughout North America Nonstop service to 75 destinations covers nearly ¾ of the US air travel market 11 Are shifts in international travel trends important to SFO? 2010-2014 forecast predicts record total international arrivals to US. Arrivals will reach almost 72 million, an increase of 31% from 20092014. From 2009/2014 largest increases in visitor volume expected from: China (117%) Brazil (113%) India (92%) Australia (57%) Argentina (55%) (U.S. Department of Commerce) How will this change SFO’s international passenger demographics? What will these passengers need/expect? 12 Domestic Passengers at SFO In 2009 SFO had 28,903,104 domestic passengers 62.2% of the Bay Area Airport market share Up 2.8% from 2008 +6.1% change for last 6 months of 2009 vs. same period 2008 13 Domestic Passengers at SFO Where are SFO’s domestic passengers flying to? Short haul vs. long haul? SFO has added more low cost carriers to its domestic airline mix: AirTran JetBlue Southwest Virgin America Does this affect domestic passenger demographics? How do their needs and expectations differ? 14 Domestic Passengers at SFO The Bay Area economy’s impact on domestic passengers: The Bay Area’s role as center of technology development, resilient tourism and convention market continue to support growth in demand for air transportation. The Bay Area economy yielded approximately $475 billion in gross regional product in 2006, roughly comparable in scale to the national economy of Turkey, Belgium, Sweden, or Switzerland.* Bay Area is becoming the leading center of knowledge-based industries, such as information technology, software, biotechnology, “clean technology”, and digital media. How does the Bay Area economy affect who is traveling to SFO? 15 Bay Area Residents Population growth is a key factor influencing the demand for airline travel. California is the most populous state in the nation 18th in the rate of population growth between 2000 and 2008, based on estimates by the U.S Department of Commerce, Bureau of the Census. In 2008, the San Francisco CSA had a population of over 7.3 million and was the second most populous CSA in California, after the Los AngelesLong Beach-Riverside CSA. Will changes in the Bay Area population change who is using SFO? What are the needs of Bay Area residents traveling to/from SFO? How will ground transportation issues affect Bay Area passengers? 16 Passengers travel for different reasons Business vs. Leisure Classic segment for airlines Are their needs at the airport really different? Business travelers – a declining share of travelers Dropped from 36% in 2004 to 24% in 2009 In recovery stage, but corporations trimming travel spending “Virtual trips” – will technology replace face-to-face Needs: frequency of flights, key destinations, productive environment (wifi, charging stations, flight reliability) Work/life balance – business travelers also travel for leisure Leisure travelers – increasing segment, perhaps an impact of low cost carriers In 2009, 24% on vacation and 24% visiting friends More flexible – really? Families Reaching for Number 17 How far are they going? Average distance traveled has declined 9% in three years Impact of low cost carriers on domestic traffic International passengers traveling slightly longer distances Short haul passengers Associated with lower spending rates Cost conscious Long haul passengers Correlation with more spending More stuff - bags, food, tech toys, etc. Getting around can be harder, for both arrivals and departures Reaching for Number 18 O&D or Connecting at SFO Approximately 23% of passengers are connecting to another flight A different stressor than O&D International to international issue between A&G, but small segment Domestic connections between terminals difficult O&D has increased to 77% after years of holding at 73% Needs of inbound and outbound passengers very different Reaching for Number 19 The Frequent Traveler Why do they keep coming back In 2009 survey, 20% of respondents made 3-6 trips What can we learn from them (LRA study) More familiar with surroundings, but security still an issue Registered traveler – bring it back? Want friendlier service, but is it airlines or airport? Need for facilitation with airlines Reaching for Number 20