Updated: Apr 16, 2021
Key learnings from our webinar with Todd Tucker, SVP of Market Development of Arrive, Peter Owusu-Opoku, Asset Manager of LaSalle Investment Management, Dr. Wen Sang, CEO of Smarking
State of the Industry: Less Than 50% Recovered as of March 15th
Commuter Behaviors & Parking Demand Has Shifted
Surveys have found that people prefer a hybrid mode: 50% remote, 25% work from home, and 25% in the office
Commuters shift away from public transit, a recent survey showed that 52% of commuters who previously relied on public transit are using it less frequently or not at all
As vaccination availability and re-openings rapidly change, it’s not enough to update parking rates seasonally
Traditional Pricing Strategies Cannot Accommodate for the Fluctuating Demand
Determining rates on your historical data, location, or competitor rates is not sufficient
It doesn’t consider the demand of each unique market nor does it consider the remaining daily supply
Frankly- it’s too slow to capture the revenue opportunities or to help you create demand
Dynamic Rates Optimize Rates to Increase Sales & Revenue
Smarking's dynamic pricing solution uses the real-time and predicted demand to assign the optimal price that maximizes sales and profits.
Saves time: Gets rid of the analysis needed to determine the appropriate rates for each location
Reduce costs: You can do more with less
Increases revenue: Adjusts the price point throughout the day to capture revenue opportunities
How Smarking’s Dynamic Rates Work
The algorithm learns the dynamics of the location
The more data that’s available, the faster the algorithm learns the unique demand fluctuation of the location.
Factors that impact demand include: day of the week, time of day, location, holidays, and weather conditions.
Rates are automatically updated throughout the day
AYM responds to the parking demand by updating the rate multiple times a day and assigning the optimal price (400+ rate options) for that unique location
Rates are updated in real-time
Set it & forget it - Smarking tracks the performance
During implementation, parking managers can set the parameters: operating hours, max and min price, or event days
After that, operators can let the program run and learn from transaction data
Do Reservation Apps Impact Your Transient Demand?
A doctoral study by Todd Tucker, showed that online sales channels proved to create additional demand parking.
The study was conducted at 30 parking locations, over the course of 180 days, totaling 5,400 total observations.