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As Shutdowns Continue, One Parking Increases Transactions with Dynamic Pricing

Updated: Dec 11, 2020


One Parking's NYC location activated Smarking’s dynamic pricing on Oct. 1st and has since achieved a 138% revenue increase, outperforming 89% of Chicago locations in November.



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As COVID-19 related shutdowns re-emerge, commercial and residential real estate owners are looking for opportunities to maximize their net operating income by driving new parking demand and revenue to their locations.


Here’s what we’ve learned from real-time parking data across the US, amid COVID-19:


  • Commuter patterns have drastically changed as more offices adopt a work from home hybrid

  • Parking duration stays for each respective parker segment have changed as well

  • On-street parking demand is recovering at a faster rate than off-street parking as pick up dining options grow in popularity (by +15% as of Nov. 17th)

  • Many parking operators have not updated their parking rates since the beginning of the pandemic-related shutdowns in March 2020


Garages in regions like New York that previously relied heavily on public transportation are seeing faster recovery as more commuters opt for private transportation. However, with the rapidly changing dynamics of the market, it’s challenging to determine the new rates to assign parking inventory, and how often to update it.

NEW RATES IN A RAPIDLY CHANGING MARKET


Leading CRE parking operator, One Parking, faced the same challenge as the entire industry- keeping up with the optimal rate structure for the unique demand patterns of each location.


Recognizing this challenge and the opportunities associated with parking revenue, One Parking leveraged its strategic partnership with Smarking to activate automatic dynamic parking rates across many of their assets.


This dynamic pricing solution, called AYM (automated yield management), automatically updates their rates multiple times per day, for each property, based on the real-time and predicted demand of the location. Similar to the tried and true dynamic pricing methods of the airline and hotel industries.


When demand is low, rates reduce to become more competitive, and during peak hours of demand, rates go up to capture revenue opportunities and control occupancy.


WITHIN TWO MONTHS, DYNAMIC PARKING RATES INCREASE REVENUE BY 22-152%


One of One Parking’s locations in New York activated AYM on Sept. 24th and has since seen a +22% increase in only 2 months.














According to the parking industry benchmark, this location is significantly outperforming the market and outranks 89% of locations in the US and 85% of garages in New York. Their second New York location activated AYM on Sept. 24th and has seen a significant revenue increase as of Nov. 1.


Their first Chicago location went live with AYM on Oct. 1st and within one month, revenue increased 152%. Providing a YoY revenue increase of 397% with 186% more transactions.


Their second Chicago location, achieved a 138% revenue increase, outperforming 89% of Chicago locations.














CAN THESE RESULTS BE REPLICATED?