Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8e
ACTION ITEM
Date of Meeting
February 14, 2023
DATE: January 27, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Linda Springmann, Director Cruise & Maritime Marketing
Peter Lindsay, Senior Manager Airport Operations, Landside
SUBJECT: Cruise Luggage Port Valet Program - 2023 through 2025 Cruise Seasons
Amount of this request:
$0
Total estimated project cost:
$4,500,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a contract with
Baggage Airline Guest Services, Inc. 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 at an estimated cost of $4,500,000 for the 2023, 2024,
and 2025 cruise seasons.
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 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. As ships get
larger this program is key to our success. Furthermore, without their luggage, these guests can
easily enjoy area attractions, restaurants, and retail opportunities prior to making their way to
the Airport growing the economic impact of the cruise business to the region.
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.
COMMISSION AGENDA – Action Item No. 8e Page 2 of 5
Meeting Date: February 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
JUSTIFICATION
The success of the Port Valet program 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. Since the program started
in 2017, the Port of Seattle has welcomed additional homeports. Four of these new ships carry
upwards of 5,000 guests during peak season. We are seeing continued growth in cruise
passenger participation in the program year over year, resulting in economic benefits to our
community and continued operational efficiencies in passenger processing/ baggage handling
at cruise terminals and airport. This is especially important during the ongoing construction at
SEA.
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 Northeast Ground Transportation Lot to
security. Without their check luggage and with a boarding pass in hand, wait times for elevators
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 allows passengers to be unencumbered
from their luggage to sightsee and spend time in Seattle which results in increased economic
benefits to downtown Seattle business and tourist attractions. 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.
Diversity in Contracting
Cruise met with Diversity in Contracting Department. Because Bags, Inc. does not use
subcontractors, no WMBE goals are included in the contract.
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 currently in place which covers this service contract.
This request is for a term of up to three years, which would include the 2023, 2024 and 2025
cruise seasons. The cost of this program for 2023 is estimated to be $1,200,000. The charges
will be based on actual services rendered. The port will pay a per-passenger-fee for only those
COMMISSION AGENDA – Action Item No. 8e Page 3 of 5
Meeting Date: February 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
passengers that sign up for the service. It is anticipated that passenger participation will grow
approximately 20% year over year with growth in the port’s cruise business and increased
interest in the program. We estimate $4,500,00 program cost over three years.
Participating Airlines
• Alaska
• American
• Delta
• Horizon
• JetBlue
• Southwest
• United
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 2023 cruise season. The first ship call with disembarking passengers eligible to
receive this service is April 22, 2023.
(1) Complete negotiations and execute service contract with Bags Incorporated.
(2) Port staff work with Bags, Inc., airlines, and cruise lines to develop and implement a
plan to increase guest satisfaction, efficiencies, and participation in the program.
(3) Complete development of and kick-off 2023 promotional program for the courtesy
luggage valet service.
(4) Collaborate with all stakeholders for a successful launch of the program at start of
2023 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.
COMMISSION AGENDA – Action Item No. 8e Page 4 of 5
Meeting Date: February 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
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 and two ship
days.
This is not the recommended alternative.
Alternative 2– Provide the Port Valet service to cruise passengers.
Cost Implications: $1,200,000 in 2023 ($4,500,000 for a 3-year period with an annual cost
escalation assumed for increased passenger participation of 20% year over year)
Pros:
(1) Increases positive customer experience for cruise/airline passengers.
(2) Make it possible for the seaport and airport to handle the operations of larger cruise
ships and the growth in our cruise business.
(3) Eases impact to airport during ongoing construction.
(4) Increase the economic impact to Seattle.
(5) Increase airport jobs.
(6) 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
Capital
Expense
Total
COST ESTIMATE
Estimated Service Contract Bags Inc. cost
full 2023 season
$0
$1,200,000
$0
AUTHORIZATION
Request for authorization for a term of up
to three years anticipating year over year
growth of approx. 20% passenger
participation (2023, 2024, 2025)
0
$4,500,000
0
COMMISSION AGENDA – Action Item No. 8e Page 5 of 5
Meeting Date: February 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Annual Budget Status and Source of Funds
Funds are approved in the 2023 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 in prior
cruise seasons, turned out to be crucial in meeting vessel sailing schedules by enabling quick
movement of large volumes of people and baggage through the facilities.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
March 10, 2020 – The Commission authorized the Cruise Luggage Valet Program for three
years, 2020, 2021 and 2022 seasons.
March 26, 2019 – The Commission authorized the Cruise Luggage Valet Program – 2019
season.
April 10, 2018 – The Commission authorized the Cruise Luggage Valet Program – 2018
Season.
April 11, 2017 – The Commission authorized the Cruise Luggage Valet Program –
2017Season.