"Item Number:   7a Exhibit C ]
Date ofMeeting: 12/13/201 1

SeamTaC
Airport
Concessions:
Focus Group
' Summary


Port Of Seattle 
Sea-Tac Airport

introduction
This report contains a summary of findings from three focus groups conducted on September 19, 21 and
22, 2011 as part of the Port of Seattle's SeaTac Airport Concessions Principles and Practices stakeholder
process. Sea~Tac Airport is at the midpoint between renewing'major concessions contracts (90% of units
will turn over in a two-year timefra me from 2015-17) and is developing policies and principles that will
help the Port develop a clearly articulated philosophy for how to manage and develop the concessions *
program. These focus groups were intended to gather input from the traveling public to help inform
concessions policy development. The focus groups were held as part of a larger stakeholder engagement

process that included input from current and prospective tenants, labor representatives, the airlines and
prime concessionaires.

One focus group (Sept. 19) was made up of business travelers and the other two groups (Sept. 21 and
22) included people who travel primarilyfor leisure. All three focus groups were held at PRR's office in
I
downtown Seattle from 6:30 to 8:30 pm. See Appendix A for participant profiles and Appendix B for a
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copy of the moderator guide.


Airport Experience
Right after passing through the security checkpoint, participants in all groups had a similar range of
thoughts. Some look for a place to eat or get some water or coffee and others go straight to'their gate.
The following are a few quotes from participant responses when asked what they are thinking about
immediately after they pass through security:

0  "I orient myself, update myself on my gate information and get coffee"

0  "Where's the nearest power outlet?"
'0 "I go to the Central terminal atrium"
o  "I go to my gate, then go to the bar"

0  "I usually bring a book and find a place to sit at my gate"

How do participantsfind things at the airport?

When asked where they would go to get information, participants in all groups said that they look at the
signage; theyjust know the airport; or have favorite locations that they always go to. One participant
said that she went online to find out where the play area \ivas for her kids. Several participants said they,
locate their gate first and then go to shops or restaurants near that location.

Would participants be interested in a mobile application to find information about SenTm:
restaurants and shops?

Most participants had experience with mobile apps. A few had never downloaded an app before

because they do not have phones with that capability. Participants expressed an interest in a mobile app
for airports in general, but mixed interest in an app that covers only Sea-Tac Airport as most participants
noted that they know Sea-Tac well enough or they don't spend much time in their "home" airport.
Participants would be more inclined to be interested if the app included other features such as:

0  Information about other airports

0  Store hours (whether shops or restaurants are open or not)

0  Flight status, delays, etc >

0  Parking information

0  Transit info (buses, light rail, etc)

0  Map showing restaurants and shops in each concourse

In general, business travelers were more enthusiastic about the mobile app than leisure travelers.

What would participants do if they are hungry or want a magazine before theirfiight that leaves in
'
one hour?

Most participants would focus on restaurants or shops that are near or on the way to their gate. For

some an hour is not a long time, so they would grab some fast food. Several participants noted again
that they would go to the gate first to check the status of their flight and then go' somewhere nearby to

get food or a magazine. Other than a few "favorites" that participants said they always seek out if they
have time (i.e. Dish D'Lish, Qdoba, Anthony's), most said they stop at whatever is most convenient.

The business travelers do not mind spending money when they are on expense accounts. Those who
find the airport too expensive report they bring their food along with them or have already eaten before
arriving at the airport. One participant from the leisure travelers said that he plans ahead and eats
dinner at the airport, "I plan ahead and have dinner at Anthony's. it's really nice and the cost is the same
as i would pay locally."

Mix ofAirport Offerings
.


.
During this phase of the discussion, the moderator used boards and handouts to spark a comparison
.
between different retail and food/beverage concepts (i.e. local, national and airport concepts).

Which restaurant concepts are most appealing?

Many in the business travelers group liked the concept depicting a national brand-name, Wolfgang Puck
Express, citing that location's ease and convenience as top reasons:

I)
"It's easy .           0
o  "i don't need to wait for a waitress"

0  "It's quicker"

The leisure travelers who liked Wolfgang Puck cited the fact that it was "express" and that they liked the
fast service. The second leisure travelers group did not like Wolfgang Puck at all. Some indicated that it
seemed over priced and they felt that they wouldn't get value for their money. Other participants noted
i
that it looked like a cafeteria. '

As a known local concept, Anthony's was very popular in both leisure groups because it is a hometown
restaurant, people were more familiar with it and most felt-it offered good value and food. Many who
liked Anthony's also preferred sit down restaurants to take-out/fast food restaurants. Some said they
feel Anthony's is higher class and they worry it would not be the same quality at the airport as at'other
locations. Some even doubted that it wasthe "real" Anthony's. Business travelers felt that Anthony's
was "fine" and said it has a good bar for longer layovers at the airport.

Shown as a "white labe III conceptl, Bigfoot Food & Spirits was less popular with all groups. Those who
did like it were primarily men and they cited the novelty aspect of it and the fact that it looks like a good
place to get a drink. Leisure travelers said that it looked uninviting ("too walled-in") and lacked the
familiarity of other concepts.

Which retail concepts are most appealing?

In terms of retail shops, a local concept, Fireworks was the most appealing for all groups. Participants
said it was familiar to them, had a wide variety of options. Several men mentioned that it looked like it
.
had "more than just handbags" compared to the photos of the other two concepts (one national mall
concept and an airport "white label"). Others liked it because it featured local artists. Some participants
do not typically shop at the airport citing various reasons such as "SeaTac is my home airport, not a
destination where I'm going" and "I won't shop. at the airport because it's expensive."

Participants found Talie and Brighton Collectables less appealing, saying they looked "told and sparse"
or that they seemed focused on only women's products. '

Local 1/5. National Brands

When asked whether they preferred local vs. national brands, many supported local because they liked
the idea of keeping their money in Seattle and also preferred local restaurants and shops becausethey
are more familiar. Participants felt that supporting local brands helps to better support the local
economy. In the business traveler group local brands were also preferred, but participants expressed
concern about the quality at the airport not being the same as at the main stores or restaurants.

0  "'At an airport, nothing seems truly local."

Some participants said that familiarity of the brand is more important than whether the brand is a local
business. In the last leisure group, convenience came up as more important than local vs. national.


1
A "white label" concept is one that is created solely for an airport environment, but
may "look" local.

What woul'd' participants like to see at the airport that is not there already?

Business travelers would like to see more duty free shops, locally made liquor, handcrafted'goods,
phone charger shop, and carts that go around selling sandwiches at the gates. The leisure groups would
like to see a good local brewpub (citing a lack of local beer), a pastry shop (Le. Essential Baking
,
Company), massage chairs, a place to buy collapsible water bottles, free bottles of'water, a nap room,
showers and more activities for kids.

Pricing
Overall, all groups expected to pay more at the airport, some considerably more:
>

o  "i feel iikel'm a captive audience; I have no choice, but the prices are way too overinflated."

0  "Do what you have to do before you get to the airport so that you don't spend a dime there."

When probed further, most people thought the food would be more expensive, but not the magazines
and books, anda few'others who thought that fast food prices would be the same everywhere.

Participants were asked to price four items:

0  Tail Starbucks Latte (standard two shots, regular milk, no syrup) (true cost: $2.50)

0  20 oz. bottle of water purchased at a news/gift/snack shop (true cost: $1.79)

0  ivar's 4-piece True Cod and Chips (true cost: $7.99)

0  People Magazine (true cost: $3.99)

Two participants in the last leisure group Were famiiiar with Sea-Tac Airport's street-pricing poiicy. Most,
however, were surprised after the correct prices were revealed. Many had priced the four items at the
highest choice price. Even afterfinding out that the Airport required restaurants and shops to keep
prices similar to non-airport locations, several business group participants remained very skeptical that
Sea-Tao has a street pricing strategy. The leisure groups were more accepting of the prices, although still
surprised. Some still thought that the given price for Water was too low as one female leisure traveler
recalled recently paying $3.00 for a bottle of water at the airport.
_ 

When asked ifthey would be willing to pay higher prices, a few Were willing to do so, but most were not.
Those that were willing to pay more acknowledgedthat the rents of the shops and restaurants may be
higher at the airport than at other places so they are willing to pay more. Others said they do not mind
paying more because they recognize it is just part (of traveling ("travel is a chore, so I treat myself"). One
leisure traveler cited an experience paying high prices at LAX, which prompted her to avoid purchasing
things at any airport.

Customer Service
Most participants reported that the customer service at Sea~Tac shops and restaurants is good.
Participants generally felt that they get better service from sit down places than from fast food or "grab
n-go" places. There was a mix of experiences. Several people had not had good service from the
newsstands but some reported good service; some reported poor service from the Starbucks ("doesn't
seem like a 'real' Starbucks"), and some reported good service from there. Some cited poor Engiish as a

problem with some employees. Other participants also reported that during busy times and holidays,
customer service is poor especially in the takeout places. Some participants reported that the customer

service at restaurants and shops at the S-gates was poor.vl.eisure travelers in Group #2 said they felt that

customer service was below average at the "institutional" restaurants because the employees did not

seem invested in theirjob. One leisure traveler referred to "the Aramark employees" and another
commented, "you know that they aren't real Starbucks employees because they don't seem to care
about the brand."

There was general consensus that the customer service at the airport was similar to that of non-airport
locations, but better than customer service at other airports. Some participants noted that local
restaurants and shops
seem to have better customer service because they are more invested in, the
community compared to national brands.

Sense of the Place
When asked about what stands out about the atmosphere at Sea-Tac, participants listed the following
elements:

6' The Central Terminal atrium

o  The airport being "open and accessible"

0  Gurgling fountains
I
o  Art (i.e. "fish in the floor" was mentioned by several people)

0  Easy. to navigate

0   Glass, metal, and other materials

0  Clean floors and clean restrooms

Participants did not spontaneously mention the Airport's Northwest atmosphere. When probed about it
specifically, participants said that the salmon on the floors and walls and other art give them a sense
that they are in the Northwest, but many did not report getting the impression of being in the
Northwest. Participants in all groups said that it is a good idea for SeaTac restaurants and shops to have
a Northwest character because services should be indicative of the area they are in and it gives travelers
who are not from Washington a sense ofwhat the region is like.

Participants also thought that it is important for the airport to have locally-Owned shops and restaurants
because it helps the local economy. Several participants mentioned that there shduld be a balance of
national and local brands. Some participants thought Sea-Tac should advertise which businesses
are
I

'
local. Comments included:

o  "It is important for tourists to have the opportunity to experience local flavor."

0  "You need both local flavor and national chains because sometimes peoplejust want what they
know."
9  "Shops and restaurants should represent what the city is about."

Location
,
When asked to name restaurants and shops available in the Central Terminal, many in all three groups
could quickly name various shops. Participants could think of fewer specific names for shops and
restaurants located in the concourses. Group #3 (leisure travelers) could name more shops and

restaurants in the concourses than other groups.

When asked to compare the shops and restaurants in the Central Terminal to those in the concourses,

many reported that the Central Terminal has better selections with more variety. The South Satellite
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'



,
was singled out as being particularly unappealing.

o  "The Central Terminal is very appealing, but the concourses are mixed and not as appealing."

Wrapuup
In closing, the moderator asked participants what they would like to see at Sea-Tac Airport that is not
there now. Suggestions included:

0  .lVlore restaurant options and more variety (e.g., a noodle restaurant)
6  More international-friendly service (Le. signs in multiple languages)

0  Locally-made products (microbrews, food, liquor, arts and crafts)

o  More entertainment (besides shopping)

0  Authentic restaurants and shops ("Bigfoot is a phony concept")

0  More play areas and activities for kids

0  Keep the cell phone lot, and consider installing additional electronic signage there about flight

'
arrival times
_

- Healthier food choices (especially for kids)

6  Skylights in the gate areas

- Advertise the street pricing policy

0  More power outlets and laptop plug~in' stations

@gdix A: Participanroles
Group #1: Monday, September 19, 2011




At least once a                         $100,000 or     Asian/Pacific
40-49
month                       more       Islander

.                                                                         White/Caucasian
At least once a
.                                                       (not
Busmess     40~49    $75,00099,999
month                             Hispanic/Latino
background) 
White/Caucasian
' 
At least once -
.                                                       (not
Busmess     40 49-     $50,00074,999 . . .      M
every 3 months                                 Hispanic/Latino
background)
At least once -                            Black/Afrrcan
Business             $20,00049'999                  M
every 3 months                                   American

.                                White/Caucasian :
At least once            .                                  (not             I
Busmess     30-39
every 3 months                     $59'000'74'999   Hispanic/Latino :
v                                             background) 
:
White/Caucasian  :
at least once                          $100,000 or
Business      60-65
Hispanic/Lanna.
(not
.
:
every 6 months                        more                  .
'                                                               background) :

l
At least once                         $100900 or                        I
Both -    3039               Asian Indian '
every 3 months                        more
' :

l
|
*                   White/Caucasian               I
At least once                        $75,000 to less       (not :
B0 ht        40 4- 9
. . .
M
every 3 months                      than $100,000   Hispamc/Latmo :
bacirou
.0 >_
7 _     "I

Grow #2: Wednesday, September 21', 2011




White/Caucasian
(not
Leisure     65
Hispanic/Latino
background)
White/Caucasian
(not
+
Hispanic/Latino
background)
White/Caucasian
$100,000 or
Leis'ure                                            '
(not
.1.
more                Hispanic/Latino
background)

White/Caucasian
At least                                    years old,
(not
once a    Leisure     9                    older
Hispanic/Latino
year                                  than 10
background)
years old
White/Caucasian
Older
(not
Leisure   40-49                     than 10
Hispanic/Latino
years old
background)
At least                                             White/Caucasian
once                               02 years     (not
Leisure   30-39
every 3                                    old    Hispanic/Latino
months                                    background)
White/Caucasian
at least                                        Older
$100,000 or                    (not
once a    Lelsu re                          than 10
more                Hispanic/Latino
month                            years old -
background)
At least
once                                       Black/African
Leisure
every 6                                            American
months

Group #3: Thursday, Sapiember 22, 2011




White/Caucasian
(not
50-59
Hispanic/Latino
background)
White/Caucasian
$100,000 or                    (not
6065                                 '
more                Hispanic/Latino
background)

White/Caucasian
years old,
(not
older
Hispanic/Latino
'  than 10
background)
years old
White/Caucasian
(Hispanic/Latino
background)
At least                                              White/Caucasian
once                                         (not
50-59
every 3                                          Hispanic/Latino
months                                    background)
White/Caucasian
(not
18-29
Hispanic/Latino
background)
White/Caucasian
At least             66
(not
once a    Leisure   and
Hispanic]Latino
year           older
background)

Black/African
60H65
American

White/Caucasian
0-2 years
(not
old, 2-5
Hispanic/Latino
years old
background)
.

Appendix B: Moderator Guide
Introduction (10 minutes)

a   Moderator introduces herself/himself.


0   [Explain:] A focus group is a group discussion where we can learn more in-depth about peoples'
_
ideas andvopinions (compared to telephone or written surveys).

o  Myjob is to facilitate the discussion and make sure that everyone has an opportunity to speak
and to make sure that no one dominates the conversation.

o  Mention observers in separate room.


0  Housekeeping  Bathrooms and refreshments.


o  Mention ground rules:

0 There is no right or wrong answer; we're interested in your honest and candid opinions
and ideas.
_
0 Our discussion is totally confidential. We will not use your contact information in any
report.
0
Our discussion today is being recorded. These recordings allow us to write
a more
complete report, and to make sure we accurately reflect your opinions. However,
please only speak one at a time, so that the recorder can pick up all your comments.
0 It is important to tell YOUR thoughts, not what you think others will think, or what you
think others want to hear.
0 Please turn off cell phones.

0 Your stipend wiil be provided as you leave.

o Relax and enjoy!
V
0   We're going to spend our time today talking about the restaurants and shops at SeaTar: Airport.
Any questions about the purpose of our focus group or the ground rules before we begin?

I'd like you each to introduce yourselves. Please tell us:

0  Your first name

0  On average, how often do you travel through SeaTac Airport each year?
'
0   When was your last trip?

o   What is the primary purpose for your travel ~ leisure, business, both?

Airport Experience (13 minutes)

To begin our discussion, I would like to ask you to place yourseif at the Airport. Imagine that you are
departing from Sea-Tac on the most common type of tripyou take. Perhapsyou've checked a bag at

check~in, or perhaps you've gone straight to the checkpoint. You have just passed through security,
collected your items, and "re-dressed" yourself.
What kinds of things are you are      about at this point? Feel free to take a minute to think or
thinking 
recollect. 

Say you need to find something at the airport - perhaps your departure gate, or a place to eat  how
would you typically figure out where to go? (Ask someone, stop and l00|< at a directory, technology?)

Have you ever downloaded and used'a mobile phone app? Would you'ever be interested in a mobile
app'to help you find your way at the airport? What about to find shops and restaurants at the airport?

Assume for a moment that you are at the checkpoint and your flightIS boardingin a little    than an
more
hour and you are feeling a little hungry. What would you do at this point?

Assuming again that your flight is boarding in a little more than an hour but this time you've already
found your gate and taken a seat in the waiting area. You are either hungry or you want to grab a
'
magazine for the flight. What would you do?

Mix of Airport Offerings  Local vs. National Brands (40 minutes)

(During the next phase of the discussion, the moderator will use boards and handouts that will spark a'
comparison between dljj'erent retail andfood/beverage concepts (:22. local, national and airport
concepts)

We would like to take some time to talk about the mix of offerings that you may encounter at Sea-Tac
Airport, either currently or at some time in the future.


likely attract yourbusiness, and a 2 by the one that would next most attract yoUr business. Put an X next
to the one that would be least likely to attract your business.

v
A meat.
PROBE QUESTIONS:

a.  Which of'these concepts do you like the best (why)?

b.  Which of these concepts do you like the least (why?)

c.  Which would be most likely to attract your business?

d.  Do you favor local concepts or national brands? (probe on local vs. national here)

Let's look at these images of different types of airport retail shops. Let's say you have time before your
flight to shop. On your
_    please put a number 1 next to the one that would most likely attract your
business, and a 2 by the one that would next most attract your business. Put an X next to the one that
would be least likely to attract your business.


PROBE QU ESTlONS:
-
a.  Which of these concepts do you like the best (why)?
lb.  Which of these concepts do-you like the least (why?)

c.
'Which would be most likely to attract
your business?

cl.   Do you favor local concepts or national brands? (probe on local vs. national here)

What kinds of things would you like to see at \Sea-Tac Airport that aren't there now? Are there specific
local or national brands that you would like to see? Are there types of restaurants or shops that you
would be more likely to frequent than some of the ones there now?

Pricing (20 minutes)

We would like to talk a little bit about what you pay for items you purchase at the airport. How would

you compare airport prices to the prices you would expect to pay at stores or restaurants outside of the
airport? More? Less? About the same? If more, how much more?

How do you think prices compare between Sea-Tao and other airports you have visited? Would you say
things are cemparable or more expensive or less expensive?

Now I'm going show you some typical items sold at Sea-Tac,_and ask you to estimate what you would

EXPECT to pay at the airport. On yourE
W7} ,
for each image check the box next to the price you
would expect to pay for each. ' '

0  Tall Starbucks Latte (standard two shots, regular milk, no syrup) true cost: $2.50
20 oz. bottle of water (if asked, purchased at a news/gift/snack shop) true cost: $1.79
'
lvar's 4-piece True Cod'and Chips true cost: $7.99
I
0  People Magazine true cost: $3.99

l'li now tell you what the actual price is for these items at the airport 
reactions? Are the actual prices higher or lower than what you chose?

Did you know that the Airport requires restaurants and shops to Charge prices that are comparable to
those you'd see in other non~airport locations? Would you be willing to pay a little more for items at the.
airport?

Customer Service Experience (10 minutes)

Now i'd like to ask you about your perceptions of the levei of customer service that you receive at the
airport, specifically from empioyees in theairport's restaurants or shops. Keep in mind, this kind of
service is separate and distinct from your interactions with security or airline personnel.

if you made a purchase at a restaurant during one of your most recent trips, how would you describe
the service? If you made a purchase at a shop during one of your most recent trips, how would
you
describe the service?

In general, do you feel that the quality of customer service from an airport restaurant or shop is better,
the same or worse that what you would expect outside of the airport, in the generai community? How?

Can you describe a time when you've had great customer service at the airport?

What about an example of poor customer service?

Are there any differences in the quaiity of customer service youreceive between restaurants vs. retail
'
shops, or between different parts of the airport?

What about between local businesses vs. national chains?

Sense of Place (12 minutes)

How would you describe the atmosphere at 'SeaTac Airport? What specific elements stand out?'

'Do you think you would have a sense, just by being at SeaTac airport that'you were in the Northwest?

When people talk about a Northwest character, what kinds of things to you think of?

PROBE:

a.  Do you think it is a good idea for Sea-Tac restaurants to have a Northwest character?
b. ' Do you think that it is important for Sea-Tac Airport to include locaily-owned shops and
restaurants? Why do you feel this way?


Location (10 minutes)

We'd iike to conclude our group this evening with some discussion about the locations of airport shops
and restaurants. Currently, the airport has both retail shops and restaurants in all of the terminals near
gates, as well as a number of locations at the center of the airport, in the Central Terminal atrium area
I
(the area with the big glass wall).

First, can you describe what restaurants and shops are available in the Central Terminal? What about
restaurants or shops on the contourses?

How would you compare the restaurants and shops at the Central Terminal compared to those at the
concourses?

Do you typically make your purchases at shops and restaurants in the Central Terminal or in the
concourses? Why?

Wrap Up (5 minutes)

t.) Now that we've completed our discussion, is there anything that particularly stands out for
you? Any other thoughts or comments?

Thank you for your time. Please see the host on the way out to collect your