Premium Parking Drives Demand During COVID-19 with Demand-Responsive Pricing
Updated: Sep 22, 2020
As more commuters switch from public transportation to the safety of their private vehicles during the pandemic, behaviors are changing. People are searching before they go and compare their options. And with an excessive supply and limited demand, asset owners and parking operators are leveraging online parking reservation channels to drive the new demand to their garages.
Before the pandemic, activity was up almost 20% YOY, but once the shelter-in-place order was enacted, nationwide parking volume quickly fell to -95%.
At Premium’s Parking Garages in New Orleans, locations that use online sales channels and Smarking’s automatic demand-responsive pricing, are only down 22% in revenue YTD compared to the -77% average across the U.S. YTD.
When online sales channels are powered by automatic demand-responsive pricing (sort of like airline or hotel rates), parking rates become a powerful tool to control demand.
Higher rates during peak hours capture revenue opportunities while controlling occupancy levels, whereas lower rates during off hours help create a competitive advantage. Smarking’s AYM software, automatically changes rates to capture demand and has increased revenue by 163% on average, without additional effort.
In a recent doctoral study by Todd Tucker, 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.
“The results showed resounding evidence that online channels grew the pie, it didn't just move money from one channel to the other.” - Todd Tucker, Doctor of Business Administration
Schedule time with our team to automate your parking rates, drive new demand, and accelerate recovery. Try it out risk free and uncover the value, quickly. Easy implementation with no commitment required.
The leading Business Intelligence and Yield Management solution in North America, powering 2,000+ locations. Smarking specializes in turning transaction-level parking data into powerful, actionable insights. Partnered with real estate leaders including J.P. Morgan, Macerich, Unico, and Brookfield Properties. Learn more about Smarking’s solutions for Commercial Real Estate Owners.