Revisiting the Ideal RFP

With Guests
John Cugasi, Paradies Lagardère
Stu Holcombe, Travel Retail Partners
Mookie Patel, Austin-Bergstrom International Airport
 
 
The RFP topic is so big, so important, we got through only half our agenda! For our December Forum, ARRA hosted three industry veterans who – along with host Andy Weddig – collectively have worked on more than 500 RFPs over their careers. This panel knows RFPs! And, as we all know, RFPs set the framework for a successful airport-concessionaire business relationship.

Motivating this conversation are many changes in the airport concessions industry that followed the pandemic and continue in the recovery. As our industry slowly recovers from the business impacts of the Covid pandemic, much has changed. We face long-term labor shortages, increasing product costs, and soaring capital costs, to name just a few of many disruptions. Some of these challenges emerged from the pandemic. Others pre-date Covid and were magnified by the pandemic. Either way, it’s clear that many challenges reflect structural changes and are likely permanent.
 
We are also, as an industry, seeing a large number of RFPs, and expect many more coming out next year. However, despite the structural challenges in industry, the form and terms of these RFPs is largely unchanged. Which prompted our question for this Forum: do RFPs reflect financial and operational realities of our new business environment?
 
This is not an easy question. But it is a crucial discussion our industry must have. Mookie, Stu, and John covered many facets of the Ideal RFP: balancing the needs of airports and concessionaires; industry lifecycles; moving the needle on MAG; the role of procurement rules; and more. Yet there’s so much left to discuss. ARRA plans to bring our panel together in the new year to continue the conversation.
 
Here are three key takeaways:
 

• It’s disheartening. Too many current RFPs appear to have been written pre-pandemic and were just “dusted off” and released. In some cases, there seems to be no consideration of the “trials and tribulations” industry stakeholders endured through the pandemic.

 

• It is easier to make changes at the beginning of a contract than in the middle. Hence, current RFPs present the perfect opportunity to make adjustments. The RFP is a chance to pull levers that can reduce risk for everybody. As Mookie puts it, “when there’s an opportunity to set up the pins correctly, you can bowl a strike every time.”

 

• Rather than a single ideal RFP, there may be many variations of the ideal RFP. Airports are in many different places: some small, some large; older concessions programs, new programs; maturity of financing plans; connecting hubs versus O&D; governance; airline agreements; and more. The many combinations of these (and other) factors frame the ideal RFP – from an airport’s point of view.

 
These are just three important takeaways. Our panel offered many more profound insights. We encourage you to watch the replay. And watch your email for information about Part 2 next month.

MEET OUR GUESTS

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​Mookie Patel
Chief Business & Finance Officer
Austin-Bergstrom International Airport
 
Mookie is an experienced aviation professional with 27 years of combined airport, airline, and consulting experience. Through his early career, Mookie worked in various positions as an airport properties manager, capital program budget consultant, airport planning and technology consultant, and airline corporate real estate and airport affairs manager.

More recently, Mookie was the Senior Vice President for Airline and Commercial Affairs at Denver International Airport and then Chief Aviation Administration Officer for San Antonio International Airport. In these roles, his responsibilities variously included stakeholder relations for expansion projects, administering the opening of on-airport hotels, fiscal administration, technology, properties, concessions, procurement, and the small and minority-owned business office.

Mookie joined Austin-Bergstrom International Airport as the Airport Chief Revenue and Finance Officer in summer 2020. Since joining, he has taken on similar responsibilities, including oversight of the City’s finance and properties functions. He is a passionate leader and always looking for ways to connect with his LinkedIn followers.

​Stu Holcombe
Founder/Managing Partner
Travel Retail Partners
 
Travel Retail Partners is committed to finding solutions that create opportunities for our client partners by empowering them with information, knowledge, and the tools necessary to succeed in travel retail.

With over 35 years of experience in food & beverage, retail management, and consumer product marketing, Stu has been instrumental in negotiating licensing agreements with national, regional, and local restaurants and retail stores throughout North America. He is an active participant and contributor to numerous industry associations including ACI, AAAE, and AMAC.

Stu brings a passion for retail and a great ability to develop win-win relationships with airport landlords, subtenants, and minority partners.
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​​John Cugasi
Vice President, Business Development
Paradies Lagardère
 
John is Vice President, Business Development for Paradies Lagardère. In this role, he is responsible for all aspects of the development function for select clients including strategic planning, marketing, finance, client relations, brand relationships, and proposal development. This is John’s third assignment with the company, having previously held the position of Senior Vice President, Planning and Development from 2011 to 2016, and providing consulting services since 2016. Prior to that, he held various leadership positions in the industry including Director of Concessions at Hartsfield-Jackson Atlanta International Airport where he managed the concessions program for the world’s largest airport.