Concession Agreement For Airports

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2.4 Specialty Retail/News and Gifts Additional problems for specialty/news and gift concessions include: « Definition of Product Categories » – Commodity Wagons and Kiosks 2.4.1 Product Category Definition As dealers increasingly add brand names to their portfolios, they could increasingly offer not only special brands, but also branded products in the gift areas of the kiosks. This makes the classification of certain products a challenge. « Gifts » generally bring rents as a percentage other than « special trade. » Airports are encouraged to write down precisely which product categories are expected and on which sites (the PSR process should reflect these wishes). 2.4.2 Carts and kiosks Many airports supplement their retail offerings with product cars that do not have enough passenger space or equipment to support a full retail unit. Product cars are sometimes used to sell specific products (for example. B Rosetta Stone language software). Some airports are starting to offer electronic vending machines that sell electronics, cosmetics and even over-the-counter medical care. Concession agreements for cars and kiosks generally have a shorter duration, reflecting the decrease in investments and leasing structures to reflect margins. Similarly, agreements for these types of transactions will generally require flexibility provisions for the conversion of the product range, with the authorization of airports, in order to adapt to changing market preferences.

2.5 Passenger airports offer different passenger services. In the past, these services were limited to wax stands and business centres, but today these services range from battery charging stations and massage stations to full-service spas, pharmacies and medical centers. These services generally have a different range of rent levels and may, depending on the service and level of investment, have either percentage or fixed rents. 2.6 Parking Additional issues for park concessions include: « administrative liability » – tax control procedures – Additional Services 2.6.1 Management responsibilities As with all airport functions that involve direct contact between the contractor and the customer, it is important to ensure that, in the dominant contractual language, the contractor`s requirements are explicitly taken into account in all facets of the business. For fleet managers, different functions and services are often needed or considered, which may not be directly related to vehicle parking. It is particularly important to proclaim these functions in the language of the contract. 24 Guide to Airport Contract Development and Management 2.7.9 Vehicle Sales Car rental contracts should indicate whether vehicle sales are permitted on the airport website or not. Where vehicle sales are permitted, the definition of gross sales must indicate whether or not revenue from vehicle sales includes the gross definition of revenue. 2.7.10 Pass-through von Concessionsgeb-hren Car rental operators want to pass on concession fees to their customers and display the fees as a separate position on the customer letter. The purpose of the contract is to determine whether the fees can be passed on to customers and whether the fee can be posted. Excerpts from the IAH lease are available under CRP-CD-81 (below, below), appendix to Chapter 2, concession agreements.

2.7.11 Space Leases In addition to concession fees, airports may charge an annual fee per square metre for leased locations.

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