Proven Strategies to Mitigate Revenue Loss Amid COVID-19
Updated: Dec 17, 2020
Current State of the Industry
Recovery was higher in September/October but started to decline again in November
Back down to less than 50% recovered across the board
Winter is going to be tough, it may get worse before it gets better
Pricing Strategies: Old Strategies Meet New Challenges
New commuter patterns emerge as more people WFH and adopt hybrid in-office models
Peak entry times and duration of stay have shifted significantly
Are your monthly parkers shifting to daily?
Are your parking rates aligned with the current demand of the market?
We used to update rates quarterly/annually… how about now?
Is your current rate setting still captures the most demand?
Pricing Strategies #1: Measure Rate Change Impact & Adjust From There
Premier Parking Site Recovered +79% of YoY Revenue: As of October 2020, Premier Parkings’ Nashville garage has recovered +79% of YOY revenue, while the industry is down -54%, ranking the location’s YTD performance above 64% of off-st parking sites in the US.
Real-time data (market standard these days - you are behind if you don’t have it; but having it is just a start point)
Frequent & granular pricing management
Measure, adjust, measure, adjust...
Curb The Expenses: A Demand Data-based Approach To Staffing
New Staffing Challenges
Landlords/municipalities/clients request minimum expenses across the board due to COVID-19 impact
Recovery will take time to get back to pre-COVID levels
We still need people to keep the facilities running
Leading Parking Operator Manages Staffing upon Demand Data: In June, a leading parking operator in Chicago partnered with Smarking to update staffing allocation. Smarking used the location's real-time demand data (hourly entry/exit/occupancy changes…) to determine staffing needs, saving landlords up to $50,000 (annualized) per location, without compromising visitors’ needs.
With this digital capability, parking managers can effectively monitor and manage more locations at a time, safely and remotely.
Business Expansion During Covid: Highlight Your Success Against Market
One Parking Leverages Industry Benchmark Win New Business
COVID hit the entire parking industry heavily.
When put into context, while revenue was down YOY at a landmark parking facility in FL, One Parking was actually performing better than 71% of locations in the market.
This performance was representative of resilience and recovery, giving the team quantified success for both retaining existing clients and win new businesses on the market.
“Our client called to say, 'Mark, that graph you showed me in your office, can I get that to show our client? Did it really say we're doing better than 71% of the other garages? I said, 'Give me 30 seconds.' I pulled up Smarking, selected 'Benchmark', set the date range, selected 'Transient Only', screenshotted it, and emailed it to him, all in 30 seconds. This is a great tool." - Mark Pratt, COO, One Parking
Do More with Less: Automated Dynamic Pricing & Online Sales
ABM Industries Increased Online Parking Revenue By 95-250%: Since June 2020, Smarking’s dynamic pricing engine (AYM) has generated a 95-250% revenue increase for online sales, producing $90,000 - $200,000 of additional revenue per year at this site.
Smarking’s dynamic pricing solution (AYM) automatically creates unique pricing for each hour, each day, and each duration of stay per hour based on the real-time demand.
Maximize yield by pushing up prices at high demand times
Maximize demand by enabling promotions dynamically at low demand times
“Smarking’s dynamic pricing solution, AYM, has helped prevent our locations’ revenue from falling as much as others during COVID. And we didn’t have to spend time or resources trying to figure out what the new pricing should be. It just updates it throughout the day according to demand, resulting in our NY location generating 26% more revenue than the U.S. avg.” - John Leaf, Sr. Branch Manager (NY), ABM
Chicago based Global Real Estate Investor Increases Online Parking Revenue by 43-754%
Within one month of activating Smarking’s dynamic pricing (AYM) at their New York luxury apartment building, there was a 754% revenue increase, an estimated annualized revenue uplift of $25,344.
The real estate owner also activated AYM at their Downtown Chicago garage within a high-rise mixed-use property, resulting in a +43% month-over-month avg revenue growth between March and August, significantly outpacing the market while exceeding 2019’s revenue.
As of October, their Downtown Chicago garage has increased revenue by +27% YoY, and has increased transactions by +87% YoY.
Monthly Parking Programs: New Programs In An New Era
New Monthly Parker Challenges
The ‘3-2-2’ work week: 3 days in-office, 2 days work from home
Tenants cutting leases
Solutions to Drive New Demand and Manage Inventory
A data-driven monthly oversell program
Flexible monthly parking program
Access granular data for each parker segment to understand patterns
Strategically opening residential parking to the public
Summary and Recommendations for 2021
1. You Can’t Manage What You Don’t Measure
Real-time access to the performance of your parking assets, allows you to make data-driven pricing decisions and demand-based staffing decisions.
2. A Proactive Approach With Real-time Industry Benchmark Data
Benchmark your locations against the market, identify regional trends, and improve revenue & budget projections.
3. Leverage Dynamic Pricing To Drive Demand & Accelerate Revenue Recovery
It’s vital to keep up with the optimal rate structure for the unique demand patterns of each location.
Schedule A Consultation With Our Team To Learn More
Sales & Account Manager