COMMISSION 
AGENDA MEMORANDUM                        Item No.          6g 
ACTION ITEM                            Date of Meeting      March 26, 2019 
DATE:     March 8, 2019 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Michael McLaughlin, Director Maritime Cruise & Marketing 
Marie Ellingson, Cruise Services Manager 
Jeff Hoevet, Senior Manager Airport Operations, Landside 
SUBJECT:  Cruise Luggage Valet Program  2019 Cruise Season 
Amount of this request:               $1,120,000 
Total estimated project cost:           $1,200,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to enter into a contract with
Baggage Airline Guest Services, Inc. to provide cruise passengers Onboard Airline Check-in
("OAC") and AirlineBaggage handling, screening, and storage services for participating carriers
at Seattle-Tacoma International Airport for the 2019 cruise season. 
EXECUTIVE SUMMARY 
Port Valet allows cruise passengers to place their luggage outside their cabin door the night
before disembarking their cruise ship in Seattle. Their luggage is then off loaded from the ship
and delivered directly to Sea-Tac via truck for security screening and inducted into the baggage
system. The guest retrieves their luggage at their final destination airport. Guests participating
in the service also receive their boarding pass onboard the cruise ship. The program has
resulted in important operational efficiencies at both the cruise terminal and the airport.
Furthermore, without their luggage, these guests can easily enjoy area attractions, restaurants,
and retail opportunities prior to making their way to the Airport. 
JUSTIFICATION 
The success of the Port Valet program over the past two years has significantly improved the 
operational efficiencies of processing cruise passengers at both the seaport and at the airport.
The reductions in congestion and passenger wait times throughout the ship to plane process
have given the cruise lines the confidence in Seattle's ability to process larger ships. In 2019 the
Port of Seattle will welcome the Norwegian Joy and Royal Caribbean Ovation of the Seas, both
with upwards of 5,000 guests during peak season. We anticipate continued growth in cruise
passenger participation in the program, resulting in economic benefits to our community and

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. _6g_                                Page 2 of 5 
Meeting Date: March 26, 2019 
continued operational efficiencies in passenger processing/ baggage handling  at cruise
terminals and airport. 
The potential for the most beneficial impact to the airport is a reduction to the number of
cruise guests that arrive at the airport during the peak morning hours. For passengers with
flight times that require them to travel directly to the airport, this program will free them of
their luggage while making their way from the Airport's North East Ground Transportation Lot 
to security. Without their check luggage and a boarding pass in hand, wait times for elevators is
reduced and congestion at the check-in counters is reduced for all Sea-Tac passengers. The
program also reduces congestion on the baggage system during peak times. 
In  addition  to  the  operational  benefits,  the  program  also  allows  passengers  to  be
unencumbered from their luggage to sightsee and spend time in Seattle.  There is a small
incremental increase in spending, which results in increased economic benefits to down town
business and tourist attractions. It should be noted that in 2018 the Port's Internal Audit
Department offered valuable insight to utilizing the data available when evaluating the
economic impact of the program. In 2019, the economic benefit of this program is estimated at
an additional $46.01 per passenger. The service provides a competitive advantage for Seattle as
a cruise homeport by offering a  one-of-a-kind customer service that transforms cruise
passengers into tourists who can readily contribute to the local economy. By allowing guests to
disembark without their luggage and with their boarding pass in hand, they are easily able to
enjoy the city before heading to the Airport. While offering exceptional customer services to
the guests, the program also makes it possible for the seaport and airport to handle the
operations of larger cruise ships as the industry grows. 
DETAILS 
The Port Valet service, in partnership with Bags Inc., will offer luggage service, including airline 
boarding passes, to passengers flying all major airlines. 
Bags Inc. has proprietary software and special permissions from Customs and Border Protection 
and the Transportation Security Administration to offer this service. There is a CPO-(5) Policy 
Waiver effective for 5 years starting March of 2017. 
Bags Inc. has an offsite location near the airport where luggage is retagged and sorted 
according to flight times, then brought to the Airport in a metered fashion. This streamlined 
process removes congestion of operations at both the cruise terminal and the airport. 
The estimated cost of this program for 2019 is $1,120,000. The charges will be based on actual
services rendered. The port will pay a per-passenger-fee for only those passengers that sign up
for the service. 


Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. _6g_                                Page 3 of 5 
Meeting Date: March 26, 2019 
2017  Pilot Program 
1,071,594 Total Revenue Passengers 
63,000 Passengers Participated 
71,000 Bags Processed 
$545,669 Total Cost 
2018  Actuals 
1,114,888 Total Revenue Passengers 
121,172 Passengers Participated 
136,000 Bags Processed 
$ 832,844 Total Cost 
2019  Projected 
1,208,590 Estimated Revenue Passengers 
181,233 Estimated Eligible Passenger Participation* 
*Allowing for growth from about 10% participation in 2018 to 15% in 2019 
Participating Airlines 
Alaska 
American 
Delta 
Horizon 
JetBlue 
Southwest 
United 
Spirit 
Participating Cruise Lines 
Carnival Cruise Line 
Celebrity Cruises 
Holland America Line 
Norwegian Cruise Line 
Princess Cruises 
Royal Caribbean 

Scope of Work 
Following approval, staff would complete all necessary steps to have the program in place by 
the start of the 2019 cruise season. The first ship call with disembarking passengers eligible to 
receive this service is May 04, 2019. 
(1) Complete negotiations and execute service contract with Bags Incorporated. 
(2) Complete development of and kick-off 2019 promotional program for the courtesy luggage 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. _6g_                                Page 4 of 5 
Meeting Date: March 26, 2019 
valet service. 
(3) Collaborate with all stakeholders for a successful launch of the program at start of 2019 
cruise season. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Discontinue the passenger check-in and luggage valet service 
Cost Implications: $0 (however congestion will likely result in increased operational costs *) 
Pros: 
(1)   No cost to the Port at this time. 
Cons: 
(1)   Tourism opportunity and growth in economic impact (spending and job creation) is
lost. 
(2)   Congestion in the airport and cruise terminal resulting in reduced customer service.* 
(3)   Late vessel sailings and delayed passengers on larger ships calling Seattle for the first
time in 2019. 
This is not the recommended alternative. 
Alternative 2  Provide the Bags Inc. valet service to cruise passengers 
Cost Implications: $1,120,000 
Pros: 
(1)   Increases positive customer experience for cruise passengers 
(2)   Make it possible for the seaport and airport to handle the operations of a larger cruise
ships. 
(3)   Increase the economic impact to Seattle. 
(4)   Increase airport jobs. 
(5)   Reduce congestion at airport and cruise terminals. 
Cons: 
(1)   Increase in cost of investment by the Port. 
(2)   Not available to passengers with early flights or flights the next day. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary               Capital        Expense           Total 
COST ESTIMATE 
Estimated Service Contract Bags Inc. cost                  $0      $1,120,000               $0 
full season 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. _6g_                                Page 5 of 5 
Meeting Date: March 26, 2019 
AUTHORIZATION 
Request for authorizations                                 0       1,120,000                0 
Annual Budget Status and Source of Funds 
Funds are approved in the 2019 budget and come from two sources since the program benefits
both the Airport and the Cruise operations. Per SLOA IV, airlines have agreed to pay for 50% of
costs incurred by the Port to handle baggage transferred from cruise ships to the Airport.
Maritime costs are covered by revenues generated from cruise passenger and dockage fees.
This service is available as part of the premier services available to guests. We consider this
part of the premier service that allows us to charge a premier rate.  The benefits achieved in
Cruise and Airport Operations in processing baggage as a result of this program being in place
for the prior cruise season (2018), turned out to be crucial in meeting vessel sailing schedules
enabling quick movement of large volumes of people and baggage through the facilities.Funds
are approved in the 2019 budget and come from two sources since the program benefits both
the Airport and the Cruise operations. Per SLOA IV, airlines have agreed to pay for 50% of costs
incurred by the Port to handle baggage transferred from cruise ships to the Airport. Maritime
costs are covered by revenues generated from our cruise business.. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
February 27, 2018  The Commission was briefed with a Cruise Overview 
April 11, 2017  The Commission authorized the Cruise Luggage Valet Pilot Program- 2017 
Cruise Season 
April 10, 2018 - The Commission authorized the Cruise Luggage Valet Program- 2018 
Cruise Season 






Template revised September 22, 2016; format updates October 19, 2016.