Template revised September 22, 2016.
AGENDA MEMORANDUM
Item No.
8c
ACTION ITEM
Date of Meeting
April 10, 2018
DATE: March 23, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Stephanie Jones Stebbins, Managing Director Maritime Division
Michael McLaughlin, Director Cruise Operations
SUBJECT: Cruise Luggage Valet Program – 2018 Cruise Season
Amount of this request:
$900,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to enter into contract to provide
cruise passengers Onboard Airline Check-in (“OAC”) and Airline Baggage handling, screening,
and storage services for participating carriers at Seattle-Tacoma International Airport for the
2018 cruise season. The estimated cost of this program for 2018 is up to $900,000. 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.
EXECUTIVE SUMMARY
This courtesy service offers cruise passengers exceptional customer service freeing them of
their luggage while transiting between the cruise terminals and the airport. 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. Without their luggage, these guests can
easily enjoy area attractions, restaurants, and retail opportunities prior to making their way to
the Airport.
This program will reduce congestion at the cruise terminal, improve efficiencies at Customs and
Border Protection clearance, and reduce wait times in the ground transportation lot. For
passengers with flight times that require them to travel directly to the airport, this program will
free them of their luggage while walking from the bus drop off at the Airport's North East
Ground Transportation Lot. In addition, having passengers arrive at the airport without their
luggage and with their boarding pass lessens wait times for elevators, reduces congestion in the
ticketing area, and reduces wait time for other passengers at airport check in counters. The
program also reduces congestion on the baggage system during peak times.
COMMISSION AGENDA – Action Item No. 8c Page 2 of 4
Meeting Date: April 10, 2018
Template revised September 22, 2016; format updates October 19, 2016.
JUSTIFICATION
The Port Valet service, in partnership with Bags Inc., will offer luggage service, including airline
boarding passes, to passengers flying all major airlines.
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.
Last season, more than 63k passengers participated in the Port Valet program, carrying over
71k bags through the summer season. An estimated 23k cruise passengers stopped and spent
time in the Seattle area before going to Sea-Tac Airport and spent an estimate of $4million in
the Seattle area. More than 3k passengers participated in the Port Valet program each week
from June through August, with more than 4k bags checked each week.
The port, cruise lines and airlines have worked with Bags, Inc. over the past winter on ways to
improve the system and streamline the process onboard the cruise ship and at the airport. With
these changes and effective promotion, the 2018 luggage valet program could easily serve
many more passengers.
DETAILS
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.
Scope of Work
Following approval, staff would complete all necessary steps to have the program in place by
the start of the 2018 cruise season. The first ship call with disembarking passengers eligible to
receive this service is May 05, 2018.
(1) Complete negotiations and execute service contract with Bags Incorporated.
(2) Complete development of and kick-off promotional program for the courtesy luggage
valet service.
(3) Collaborate with all stakeholders for a successful launch of the program at start of 2018
cruise season.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Discontinue the passenger check-in and luggage valet service.
COMMISSION AGENDA – Action Item No. 8c Page 3 of 4
Meeting Date: April 10, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Cost Implications: $0 to the Port, but customer experience would decline, and the local
economy potentially would not benefit from cruise passengers touring the area after
disembarking.
Pros:
(1) The cost would reduce below last year.
Cons:
(1) Does not take advantage of momentum gained in 2017.
(2) Congestion in the Airport and Cruise terminal is not reduced.
(3) Tourism opportunity and growth in economic impact (spending and job creation) is lost.
This is not the recommended alternative.
Alternative 2 – Provide the Bags Inc. valet service to cruise passengers.
Cost Implications: Program costs for service contract with Bags Inc. are estimated at:
Cost to Port of Seattle $ 900,000
Pros:
(1) Increases the customer experience for cruise passengers at the cruise terminal and at the
airport.
(2) Will reduce congestion in the cruise and airport terminals.
(3) Will increase airport jobs.
Cons:
(1) Increased cost of investment by the Port.
(2) Not available to passengers with flights before 11:00 am or next day.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Estimated Service Contract Bags Inc. cost
full season
$0
$900,000
$0
AUTHORIZATION
Request for Authorization
0
$900,000
0
COMMISSION AGENDA – Action Item No. 8c Page 4 of 4
Meeting Date: April 10, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Annual Budget Status and Source of Funds
Funds approved in the 2018 budget. The expenses are budgeted to be split
60% Cruise / 40% Aviation for Onboard Airline Check-in (OAC) program only. The Cruise funding
will be general fund and Aviation funding is Airport Development Fund.
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 Program- 2017
Cruise Season
