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Study: Airport Rail Connections Worth $300 Million Per Year


Slick Vik

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Cities with a direct rail connection linking their airports with their downtowns command higher hotel rates than cities without them, translating to an average of more than $300 million in taxable revenue per year, a new study found.

The study, “A New Partnership: Rail Transit and Convention Growth” jointly released by the American Public Transportation Association (APTA) and the U.S. Travel Association (USTA), found that cities with direct rail access to airport terminals receive nearly 11 percent more revenue per room than hotels in cities without a rail airport connection. Luxury hotels do even better, generating 12.4 percent more revenue per room.

http://www.successfulmeetings.com/Conference-News/Research-White-Papers/Articles/Study--Airport-Rail-Connections-Worth-$300-Million-Per-Year/

 

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The relationship is tenuous at best.  There are other factors that go into the cost of a hotel room including taxes, supply/demand and prevalent type of room.  4 of the 5 non-rail towns are major tourist centers (Las Vegas, New Orleans, Orlando, and Tampa) while at least 4 0f the 5 rail towns are high-cost areas anyway (Chicago, DC, Portland, San Francisco).  Tourist destinations have a lot of competition that tends to lower the cost as they are trying to attract a broad range of travelers who, for the most part, are travelling on their own dime.  Business travelers don't care as much as the company is footing the tab.

 

BTW...at the very end of the article you quoted above there's this...

 

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Airport rail connections (besides between terminals and immediate hotels) is pretty impractical. I imagine it could work if downtown was the real "center" of town with hotels, tourist amenities, etc. (Las Vegas being an example), but Houston is not. If hotels or some other private entity wanted to foot the bill, fine. But it's impractical to make locals foot the bill for it, especially since they'll almost certainly never use this connection (even less so than light rail).

However, it might work if there was some substantially huge draw--like a rail from the Orlando airport to the Walt Disney World complex...but again, private investment should work.

The airport connection is a popular idea, and it's a bit of a common fallacy in planning, especially by light rail enthusiasts. The reasoning is that Location A is a popular destination, and Location B is a popular destination, therefore, linking A & B would be a smashing success.

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Airport rail connections (besides between terminals and immediate hotels) is pretty impractical. I imagine it could work if downtown was the real "center" of town with hotels, tourist amenities, etc. (Las Vegas being an example), but Houston is not. If hotels or some other private entity wanted to foot the bill, fine. But it's impractical to make locals foot the bill for it, especially since they'll almost certainly never use this connection (even less so than light rail).

Light rail will be more successful once the new lines open, and eventually one would like to think that we will have commuter rail connecting the suburbs to the light rail system in the core. so a rail line to the airport from downtown could be used by many people around the city.

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Light rail will be more successful once the new lines open, and eventually one would like to think that we will have commuter rail connecting the suburbs to the light rail system in the core. so a rail line to the airport from downtown could be used by many people around the city.

 

I think it's somewhat instructive that the MetroRail plans don't include connections to either airport even though Hobby isn't that far from the end of the Purple line and that Metro closed up their dedicated express bus service from IAH to downtown.  Doesn't look like a priority for those who are in charge, and maybe for good reasons.

 

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It could be that they intend to extend the Purple line in the future?  But at this time just didn't see the need to add that expense?  I would think a connection via lightrail to either airport would be a plus.  I remember working Downtown and having to drive to Hobby (which meant I had to drive that day) instead of just taking LR like usual.

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Airport rail connections (besides between terminals and immediate hotels) is pretty impractical. I imagine it could work if downtown was the real "center" of town with hotels, tourist amenities, etc. (Las Vegas being an example), but Houston is not. If hotels or some other private entity wanted to foot the bill, fine. But it's impractical to make locals foot the bill for it, especially since they'll almost certainly never use this connection (even less so than light rail).

However, it might work if there was some substantially huge draw--like a rail from the Orlando airport to the Walt Disney World complex...but again, private investment should work.

The airport connection is a popular idea, and it's a bit of a common fallacy in planning, especially by light rail enthusiasts. The reasoning is that Location A is a popular destination, and Location B is a popular destination, therefore, linking A & B would be a smashing success.

 

I disagree that a rail line to downtown from the airport is impractical, because that won't be the only line in a much larger more comprehensive system.  In a larger system, people from all over town can hop on the train/bus close to them and transfer to the line that goes to the airport.  Much cheaper than taking a cab, and much MUCH cheaper than paying for parking at the airport.  Plenty of people would use it.

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Airport rail connections (besides between terminals and immediate hotels) is pretty impractical. I imagine it could work if downtown was the real "center" of town with hotels, tourist amenities, etc. (Las Vegas being an example), but Houston is not. If hotels or some other private entity wanted to foot the bill, fine. But it's impractical to make locals foot the bill for it, especially since they'll almost certainly never use this connection (even less so than light rail).

However, it might work if there was some substantially huge draw--like a rail from the Orlando airport to the Walt Disney World complex...but again, private investment should work.

The airport connection is a popular idea, and it's a bit of a common fallacy in planning, especially by light rail enthusiasts. The reasoning is that Location A is a popular destination, and Location B is a popular destination, therefore, linking A & B would be a smashing success.

 

I disagree that a rail line to downtown from the airport is impractical, because that won't be the only line in a much larger more comprehensive system.  In a larger system, people from all over town can hop on the train/bus close to them and transfer to the line that goes to the airport.  Much cheaper than taking a cab, and much MUCH cheaper than paying for parking at the airport.  Plenty of people would use it.

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I think it's somewhat instructive that the MetroRail plans don't include connections to either airport even though Hobby isn't that far from the end of the Purple line and that Metro closed up their dedicated express bus service from IAH to downtown.  Doesn't look like a priority for those who are in charge, and maybe for good reasons.

 

 

The original plans had light rails going to IAH and Hobby. Also the reason the express bus didn't have ridership was because SuperShuttle sued METRO for infringing on its rights, and won, so METRO was not allowed to advertise the service at all.

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Airport rail connections (besides between terminals and immediate hotels) is pretty impractical. I imagine it could work if downtown was the real "center" of town with hotels, tourist amenities, etc. (Las Vegas being an example), but Houston is not. If hotels or some other private entity wanted to foot the bill, fine. But it's impractical to make locals foot the bill for it, especially since they'll almost certainly never use this connection (even less so than light rail).

However, it might work if there was some substantially huge draw--like a rail from the Orlando airport to the Walt Disney World complex...but again, private investment should work.

The airport connection is a popular idea, and it's a bit of a common fallacy in planning, especially by light rail enthusiasts. The reasoning is that Location A is a popular destination, and Location B is a popular destination, therefore, linking A & B would be a smashing success.

 

So impractical that many cities all around the world have them.

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The original plans had light rails going to IAH and Hobby. Also the reason the express bus didn't have ridership was because SuperShuttle sued METRO for infringing on its rights, and won, so METRO was not allowed to advertise the service at all.

 

Funny there's no mention of a lawsuit as the culprit in the news reports (or anywhere else I've been able to find) about the shutdown.  You have a source on that?

 

From the Chron...http://www.chron.com/news/houston-texas/article/Metro-to-eliminate-Airport-Direct-shuttle-service-2080445.php

 

Canceling the airport service was one of a dozen suggested route changes that were discussed at a public hearing Tuesday. Metro officials concluded after the hearing that they should proceed with plans to end the service, a decision that doesn't require board approval, spokesman Jerome Gray said.

The service is expected to stop late next month, Gray said. The local Route 102 bus, which also provides service from downtown to Bush Airport, will continue to operate.

Metro president and chief executive officer George Greanias said the agency had worked hard to make the service succeed, including lowering the fare in January from $15 to $4.50 for a one-way trip.

"Our concern for Airport Direct stemmed strictly from the costs of the service versus revenues we could realistically achieve, not its desirability or our personal wish that it succeed," Greanias said in a prepared statement.

 

 

 

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It could be that they intend to extend the Purple line in the future?  But at this time just didn't see the need to add that expense?  I would think a connection via lightrail to either airport would be a plus.  I remember working Downtown and having to drive to Hobby (which meant I had to drive that day) instead of just taking LR like usual.

 

It could be, and maybe they will someday, but I find it interesting that it's not a priority for those making the decisions.  Clearly they thought it was better to not go there at the moment.

 

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It could be, and maybe they will someday, but I find it interesting that it's not a priority for those making the decisions. Clearly they thought it was better to not go there at the moment.

It had to do with funding, nothing else

Funny there's no mention of a lawsuit as the culprit in the news reports (or anywhere else I've been able to find) about the shutdown. You have a source on that?

From the Chron...http://www.chron.com/news/houston-texas/article/Metro-to-eliminate-Airport-Direct-shuttle-service-2080445.php

Inside sources at METRO

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Because the rail goes by the airport and the hotel rates in Orlando won't go up as a result. That will directly contradict the tenuous premise made in the article.

There's a huge difference between by the airport and actually at the airport. See LAX and Dallad Love Field

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The relationship is tenuous at best.  There are other factors that go into the cost of a hotel room including taxes, supply/demand and prevalent type of room.  4 of the 5 non-rail towns are major tourist centers (Las Vegas, New Orleans, Orlando, and Tampa) while at least 4 0f the 5 rail towns are high-cost areas anyway (Chicago, DC, Portland, San Francisco).  Tourist destinations have a lot of competition that tends to lower the cost as they are trying to attract a broad range of travelers who, for the most part, are travelling on their own dime.  Business travelers don't care as much as the company is footing the tab.

 

BTW...at the very end of the article you quoted above there's this...

 

 

I think it's somewhat instructive that the MetroRail plans don't include connections to either airport even though Hobby isn't that far from the end of the Purple line and that Metro closed up their dedicated express bus service from IAH to downtown.  Doesn't look like a priority for those who are in charge, and maybe for good reasons.

 

 

It's become a common theme on here that transit is one dimensional with just one mode of public transit (rail in particular). It would work most fine once Uptown completes it's BRT as it has a very high concentration of hotels (most in the city?). Then of course DT is connected to some of the city's best and most accessible tourist areas, along with adding more hotels. Just finish connecting Houston's core together and then connect that with "premium bus service" from the airports. It's all about progressing through steps, Rome wasn't built in a day. 

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There's a huge difference between by the airport and actually at the airport. See LAX and Dallad Love Field

 

You're splitting hairs.  Even if the rail went right up the runway and through every terminal, by every baggage claim, past every security point, and came out the back side like a week-old enchilada it would still have no impact on overall hotel rates in Orlando.

 

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You're splitting hairs. Even if the rail went right up the runway and through every terminal, by every baggage claim, past every security point, and came out the back side like a week-old enchilada it would still have no impact on overall hotel rates in Orlando.

I'm not splitting hairs there's a huge difference between having it come to the terminal and having to take a bus to get to it. That being said you're speculating on a hypothetical scenario.

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It's become a common theme on here that transit is one dimensional with just one mode of public transit (rail in particular). It would work most fine once Uptown completes it's BRT as it has a very high concentration of hotels (most in the city?). Then of course DT is connected to some of the city's best and most accessible tourist areas, along with adding more hotels. Just finish connecting Houston's core together and then connect that with "premium bus service" from the airports. It's all about progressing through steps, Rome wasn't built in a day.

It would also help the residents. For many people the old bus service saved an hour rounds trip.

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