CAAS uses ‘concept and price’ tender system for lounge concession tender; four contest hotel bid – 31/05/07

SINGAPORE. Civil Aviation Authority of Singapore (CAAS) is using an innovative ‘concept and price tender’ system for assessing rival bids for a pay-per-use lounge concession at Singapore Changi Airport’s new T3.

The lounge will be located in the Departure/Transit Lounge North, mezzanine level when the terminal opens next January. Bidding closed on 25 May.

The contract runs for three years from January 2008. Harilela Hospitality and Inzio Investments are contesting the bid. But their financial offers won’t be looked at until the qualitative proposal is accepted.

Explaining the procedure CAAS said: “The tender bid proposal will only be opened for qualified tenderers who have cleared the concept evaluation stage. Subsequently a corrigendum will be issued to update the tender bids respectively. Tender proposals which did not clear the concept evaluation stage will have their tender bids’ proposals returned unopened.”


In related passenger service news CAAS is evaluating proposals for a Transit Hotel concession at T3’s Departure/Transit Lounge North, Mezzanine Level. Bids closed on 21 May for the three-year contract.

The four bidders and offers were:

Harilela Hospitality: A minimum monthly guarantee payment of $80,080 or 25% of monthly gross sales for sales up to S$200,000 per month; plus 30% of monthly gross sales for incremental sales above S$200,000 per month and up to S350,000 per month; plus 50% of monthly gross sales for incremental sales exceeding S$350,000 per month, whichever is higher.

L.C. Hotels: An additional monthly rental of 10.1% of the total monthly gross sales or a minimum monthly guarantee of $28,000, whichever is higher.

Millennium & Copthorne International: A minimum monthly guarantee of $12,000 or 3% of gross revenue for gross operating profit up to 30%; 3.5% of gross revenue for gross operating profit above 30% and up to 35%; 4% of gross revenue for gross operating profit above 35% and up to 40%; 4.5% of gross revenue for gross operating profit above 40% and up to 45%; and 5% of gross revenue for gross operating profit of 45% and above.

Plaza Premium Lounge Management: An additional rental of 20% of total monthly gross sales or a minimum monthly guarantee of $65,000, whichever is higher.


The Moodie Report is stepping up its coverage of all airport commercial revenues, from foreign exchange to advertising to paid-for-lounges. We will also cover selected on-airport consumer services that add to the passenger experience. New sections dedicated to airport lounges, airport advertising, airport hotels, foreign exchange, car parking and rental and airport consumer services (miscellaneous) have been added to our drop-down menu under ‘Other Travel Revenues’ and will be highlighted further in a revamp of the site during the summer.

The Moodie Report Publisher Martin Moodie said: “We already have the platform in place to extend our remit as we provide extensive coverage of the key industry drivers that affect all airport commercial and non-aeronautical activities. There are many exciting developments in the world of airport car parking, advertising and lounges, to name just a few, that deserve a much greater media profile than they currently receive.”

Airports – please send us any news and photographs pertaining to all commercial/consumer activities.


Valiram and DFS in two-way race for Singapore Changi T3 fashionwear concession – 30/05/07

King Power and DFS win Changi T3 confectionery and delicatessen concessions – 29/05/07

Singapore Changi T3 will open on 9 January 2008 – 29/05/07

Nuance-Watson stages second Versace exclusive – 24/05/07

DFS seals its strong position at Changi with T3 delicatessen and souvenir contracts – 22/05/07

Food & Beverage The Magazine eZine