Expedia move signals long-term lease on Springfield

The new tenant of the Springfield-Branson National Airport terminal building could have an impact on keeping Springfield’s airfares low.

Airport spokesman Kent Boyd said the $430,000 annually that the Expedia Inc. lease brings to the airport represents part of a growing trend for airports nationwide.

“This revenue is very important in the regard that it is not a revenue stream that is related to aviation,” Boyd said, noting that 95 percent of the airport’s $12 million annual budget is directly tied to aviation including terminal staurant and retail leases.

Outside of stabilizing itself in a volatile industry, airport officials say nonaviation-related revenue may help to bring down airfares.

“It helps us hold the line to what we charge airlines to do business here and that translates to lower fares,” Boyd said, pointing to a growing trend among airports to broaden their revenue sources. There are some airports that have gone as far as developing golf courses on their property and hotels.”

In Springfield, another lease is under negotiation with the Missouri National Guard for space in the former terminal.

“We continue to talk to them, and that’s all I can say,” Boyd said of the discussions that began in September. “They still have an interest.”

Boyd said the airport will begin reaping the dividends of the Expedia lease during the next fiscal year, which begins July 1, after the remodel at the terminal building is complete.

As reported on sbj.net, Expedia signed a five-year lease to occupy the former Springfield-Branson National Airport terminal building beginning in the fall.

The Springfield-Branson National Airport Board approved the lease for 59,000 square feet in the northern portion of the 150,000-square-foot vacant building. The company will pay $4 per square foot annually – $236,000 a year – plus a common-area maintenance charge of $3.64 per square foot annually.

Springfield roots
Bellevue, Wash.-based Expedia (Nasdaq: EXPE) has a longer history in Springfield than some may realize.

Jeff Wasson and Chris Noble started the online travel company in Springfield in 1995 as TravelNow.com, which was purchased by Hotels.com in 2001. Expedia merged with Hotels.com in 2005.

The publicly traded company offers online booking for flights, hotels, rental cars and other vacation packages and employs 264 at its 4124 S. McCann Court office.

“A number of functions are handled at the location, including inbound sales, customer service, accounting and software development,” said Katie Deines-Fourcin, Expedia director of public relations.

“Expedia is all about being the best place to plan and book travel, and the work being performed by our employees in Springfield plays an important role in our ability to do that,” she added.

Steven E. Smith is the general manager at Springfield’s Expedia office.

Expedia’s lease on the McCann Court building with Osage Beach-based Shoreline Ranch LLC has yet to expire, and some workers will remain there “for the duration of the lease,” according to Deines-Fourcin.

Shoreline Ranch owner Phillip Hamner declined to say when Expedia’s lease expires but said he was actively seeking a new tenant.

Renovations to the terminal building are scheduled to begin in April, Deines-Fourcin said.

According to www.expedia.com, the company offers consumers tools to research, plan and purchase trips. The company provides direct access to travel products and services through its North American Web site, localized versions in Europe, and partnerships in Asia. Expedia-branded Web sites feature airline tickets, hotel reservations, car rental, cruises and other in-destination services from its partners.[[In-content Ad]]