GPI loses concession contract to Xanterra ...

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GPI loses concession contract to Xanterra ...

Postby pitamakan » Tue Aug 13, 2013 3:11 pm

Here's the press release from the Park Service. I heard about this on the grapevine earlier today, and I think it's really extraordinarily unfortunate news.

Mark

---------------

New Concessioner Selected at Glacier
Contract to Begin with Xanterra Parks & Resorts, Inc.

DENVER, CO –The National Park Service has selected Xanterra Parks & Resorts, Inc. (Xanterra) to provide a variety of visitor services in Glacier National Park for the next 16 years.

The new park concessions contract is anticipated to begin in January 2014 and includes lodging, food and beverage, retail, transportation and other visitor services within the park. This fall Xanterra is expected to work with Glacier Park, Inc. during a transition period. Glacier Park, Inc. has held the current park concessions contract since 1981.

Acting Glacier National Park Superintendent Kym Hall said, “Our friends at Glacier Park, Inc. have successfully operated the concessions in the park for 32 years and we appreciate the services they provided and the working relationship we’ve established over the years.” Hall added, “I and the staff at the park look forward to forging an equally strong and successful working relationship with Xanterra in the future.”

The new contract includes a minimum franchise fee of 1% that will be returned to the government each year based on annual gross receipts. The contract also includes a repair and maintenance reserve of 2.35% and a Red Bus Rehabilitation Reserve equal to 2.5%, each respective of annual gross receipts. The annual gross receipts are expected to be approximately $18,500,000.

The contract requires replacement of much of the lodging furnishings throughout the park, remodeling selected guest rooms in the Many Glacier Hotel and Lake McDonald Lodge, improved food and beverage services at Heidi’s in Many Glacier and the Two Medicine Campstore, improved sustainable and healthy choice food options, the addition of two accessible tour buses to the Red Bus Fleet, and the provision of administrative and support facilities located outside of the park.

The competitive process for the concessions contract was initiated December 11, 2012 with the release of a prospectus. All offers had to be submitted to the bureau by April 16, 2013. An evaluation panel of National Park Service and technical experts outside Glacier National Park performed a comprehensive analysis of the proposals and selected the best responsive proposal based on factors identified in the prospectus. For more information about the prospectus and concessions contracts in the National Park Service visit http://www.concessions.nps.gov/news.htm.

Xanterra Parks & Resorts, Inc. provides a variety of visitor services in several national and state parks across the country, including Crater Lake, Death Valley, Grand Canyon, Petrified Forest, Rocky Mountain, Yellowstone and Zion National Parks, and Mount Rushmore National Memorial.

For more information please contact:
Denise Germann – (406) 888-5838 or James Doyle – (303) 969 2321.

-NPS-
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Re: GPI loses concession contract to Xanterra ...

Postby toddnick » Tue Aug 13, 2013 3:57 pm

Potentially tragic in my opinion...but we'll see...
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Re: GPI loses concession contract to Xanterra ...

Postby pitamakan » Tue Aug 13, 2013 4:09 pm

Well, Xanterra has a well-established bureaucracy that I suppose must be comforting to the Park Service bureaucracy, but otherwise ....... :cry:

It will definitely be interesting to see what happens over the next few months ... especially since GPI owns Glacier Park Lodge, St. Mary Lodge, and the Prince of Wales Hotel outright. (They're not part of the NPS concession contract.) Will GPI sell those to Xanterra, too, or will they try to keep going with only their outside-the-park locations? If they do the latter, Xanterra won't have access to the central warehouses, laundry, and bus garages in East Glacier, and they'll really have to scramble to replace those.

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Re: GPI loses concession contract to Xanterra ...

Postby Hockey Ref » Tue Aug 13, 2013 5:00 pm

Wow. Just wow.
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Re: GPI loses concession contract to Xanterra ...

Postby daveparker » Tue Aug 13, 2013 5:24 pm

I am not stating an opinion one way or another on who got the contract, but I can say the new company is a giant and will have no problem replacing the facilities they need to when it comes to servicing this contract, they have done it in every park they have went into.
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Re: GPI loses concession contract to Xanterra ...

Postby Tsmith » Tue Aug 13, 2013 5:39 pm

Hockey Ref wrote:Wow. Just wow.


I agree as I spoke with several GPI employee's during our stay that weren't looking forward to this change.
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Re: GPI loses concession contract to Xanterra ...

Postby Selkie » Tue Aug 13, 2013 7:04 pm

My experience has been with Xanterra Grand Canyon. It was hard to escape the prescriptive feeling, but, as others suggest, I'll wait and see.
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Re: GPI loses concession contract to Xanterra ...

Postby pitamakan » Tue Aug 13, 2013 7:22 pm

Well, according to the Daily Inter Lake, GPI says it intends to keep operating its properties that aren't part of the concession contract. Of course, things could change over the next several months, but at the moment it seems that a century-old pattern of Glacier visitor services is about to be broken up thanks to this decision.

And this brings up another unanswered question: how will the public transportation system in the park change if the hotels are split up? Will Xanterra be forced to serve Glacier Park Lodge and the Prince of Wales if they're outside the park and now owned by a competitor? A lot of things are going to be awkward at best, at least for a while.
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Re: GPI loses concession contract to Xanterra ...

Postby daveparker » Tue Aug 13, 2013 7:59 pm

Folks it is always traumatic when concessionaires change at parks, I vividly remember the change at Yellowstone, but please lets not go into the political part of this, the NPS puts out the contracts on a certain schedule, but they do change things. We are all used to a certain company running the concessions, but now that has changed and they will probably change visibly, but remember the reason we visit and live close to Glacier, I know for Deb and I, it certainly has very little to do with who runs the hotels and stores. Lets give it some time and see how things progress.

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Re: GPI loses concession contract to Xanterra ...

Postby rayeraye » Wed Aug 14, 2013 8:47 am

Wow. I'm really surprised GPI lost the contract. I've spent a lot of time in Yellowstone over the years and while there are pluses and minuses to both companies, I'm still surprised. I guess we'll have to wait and see how it goes. Can't imagine, though, how things will go for GPI for the remainder of the season. They have no incentive to do anything other than cut corners until their time is up.
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Re: GPI loses concession contract to Xanterra ...

Postby DaveC » Wed Aug 14, 2013 6:23 pm

I'm quitting hiking because of this. Look for all my gear on Craigslist in a near future.
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Re: GPI loses concession contract to Xanterra ...

Postby Stmarypete » Wed Aug 14, 2013 6:28 pm

It will be interesting. GPI continues to own multiple facilities outside the park and has a vested interest in seeing that things go well. I think they will do the right thing and cooperate with the new management. Also they do have some monetary gain to be had with the change over that was outlined on one of the financial websites, so that may explain the reason for the change. I am just happy that they bought SML and improved the service.
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Re: GPI loses concession contract to Xanterra ...

Postby pitamakan » Wed Aug 14, 2013 6:31 pm

DaveC wrote:I'm quitting hiking because of this. Look for all my gear on Craigslist in a near future.


Put me down for the packraft.
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Re: GPI loses concession contract to Xanterra ...

Postby mikie » Wed Aug 14, 2013 6:45 pm

I see the change as a good thing. Xanterra will only control about 1/2 the rooms, and GPI will control the other half. It will create some competition between the two. Anticipation of change creates uncertainty, but it usually results in a better long term solution. I think we'll have to wait and see how it works itself out over the next couple of years.
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Re: GPI loses concession contract to Xanterra ...

Postby Stmarypete » Wed Aug 14, 2013 6:46 pm

I do need a float tube if you are liquidating?
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