Template revised January 10, 2019.

COMMISSION

AGENDA MEMORANDUM

Item No. 8i

ACTION ITEM Date of Meeting February 11, 2025

DATE: December 23, 2024

TO: Stephen P. Metruck, Executive Director

FROM: Marie Ellingson, Senior Manager Cruise Operations & Business Development

Peter Lindsay, Assistant Director Airport Operations, Landside

SUBJECT: Port Valet Luggage Service Funding and New Contract, 2025-2027

Amount of this request: $6,500,000

Total estimated project cost:

$6,500,000

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 $6,500,000 for the 2025, 2026, and 2027

cruise seasons.

EXECUTIVE SUMMARY

Port Valet allows cruise passengers to place their luggage outside their stateroom door the night

before disembarking their cruise ship in Seattle. Their luggage is then off loaded from the ship

and delivered directly to SEA 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 airline boarding pass onboard the cruise ship. The program has resulted

in important operational efficiencies at both the cruise terminals and the airport. As ships get

larger, and we welcome more brands 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. This aligns with the Century Goal Agenda to double the

economic value of cruise.

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 fees and dockage fees. We consider this part of the premier service to our

guests that allows us to charge a premier rate.

COMMISSION AGENDA – Action Item No. 8i Page 2 of 6

Meeting Date: February 11, 2025

Template revised June 27, 2019 (Diversity in Contracting).

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 through 2027

This request is for a term of three years, which would include the 2025, 2026 and 2027 cruise

seasons. The current contract with Bags Inc is valid through 2025 but due to the success of the

program in 2023 and 2024, we would need additional funding for 2025. This request for funding

and contract through 2027 aligns with the CPO-(5) Policy Waiver that expires in 2027.

The cost of this program for 2025 is estimated to be $1,800,000. The charges will be based on

actual services rendered. The port will pay a per-passenger-fee for only those passengers that

in 2025 with the addition of a new cruise line and 20% in 2026 with the addition of two new

cruise lines and increased interest in the program. We estimate $6,500,000 program cost over

three years.

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. In 2025 five of our 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 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.

COMMISSION AGENDA – Action Item No. 8i Page 3 of 6

Meeting Date: February 11, 2025

Template revised June 27, 2019 (Diversity in Contracting).

Diversity in Contracting

Bags, Inc. does not use subcontractors, therefore no WMBE goals are included in the contract.

This was discussed with Diversity in Contracting.

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 one-

time competition waiver currently in place which covers this service contract.