King Khalid International Airport, Riyadh

At our operation in King Khalid International Airport in Riyadh, daa International have internalised the car parking operation, bringing huge benefits to our client RAC.

Preparation for the Car Parking Transition at T5

  • A 7-week Project Plan was implemented to prepare for the takeover of T5 Parking Operations
  • 50 staff were recruited and trained prior to start without access to car park or system
  • Support from Amano to get database access and users setup in background prior to takeover
  • Banking relationship established to provide for Cash, PoS, PoF

The Takeover

  • Takeover occurred at midnight on 1st March – a very busy time for traffic
  • Achieved with zero system downtime and zero downtime at Entry or Exit and minimal customer impact
  • Changeover of cash and staff was completed within 2 hours
  • Supported by RAC HR, Procurement, Finance, IT, Facilities, Security and Operations teams

Project Description

  • New Employee Parking Opened on 1st Sep 2019 with a Capacity of 305 spaces
  • Over 1,600 Employees Registered – almost 100% versus only 5% registered previously.
  • Estimated revenue impact of SAR 5 million annually through subscription fees and additional space for public

Rationale Behind Internalising Car Parking at RAC

  • The previous concessionaire was in breach of contract and RAC wished to terminate the contract. Their plan was to re-tender and replace them. However, we explained that there were alternative options:
  • Re-tender the Concession
  • Tender for a Management Contract – a fixed fee for operating that was not a % of revenue and therefore would not grow in line with any rapid revenue growth
  • Internalisation – RAC to create its own parking operation and run itself
  • A business case was developed to illustrate that Internalisation (although the most difficult and risky option) would be the most lucrative in the long run
  • The parking business was immature and predicted to grow rapidly over the coming years
  • While in 2019 the difference between the revenue share going to the concessionaire and the Opex RAC would incur under internalisation was small, when prices were increased and revenue grew rapidly, Opex would stay the same and internalisation would be much more profitable.

The main steps in the process were:

  • A Business Case for Internalisation was created
  • An Operations Integration Manager was appointed
  • An 8-week project plan to Internalise Operations was established
  • 50 staff and support contracts for Maintenance, Security, IT systems and Banking services were recruited and trained

The Parking Revenue Growth timeline illustrates the success:

  • Revenue growth in the 14 months prior to internalisation was 0%
  • Revenue growth in the 10 months after takeover was +14%

This was with no change in price or anything else – purely derived from operational efficiencies.

Car Parking Contract Management at T1 and T2

  • Another operator holds the concession for T1 and T2 parking
  • The story here focuses on the massively improved performance of the operator after daa International arrived and began to manage the contract closely
  • daa International established KPIs and reporting standards and insisted on receiving monthly reports and analysing the data and operation much more closely.
  • The Parking Revenue Growth timeline illustrates the success:
    • Revenue growth in 2018 prior to daa International involvement was negative -8%
    • Revenue growth for the remainder of 2018 with daa International involvement was positive +5%

ASQ Passenger Satisfaction

There has been a notable increase in customer satisfaction according to the Airports Council International’s Airport Service Quality (ASQ) survey.

T5 Q3 2018T5 Q1 2020
Parking Facilities3.874.15
Value for Money – Parking3.593.97

KKIA T5 Car Parking Transition – Summary

  • A seamless transition was planned and completed in only 8 weeks. 
  • The handover was completed in 2 hours with zero system downtime & minimal customer impact.
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