The 1st Dynamic Pricing Engine for Parking: 163% Online Revenue Increase
Updated: Dec 16, 2019
Such an exciting time to be in parking!
Recently, Smarking launched a fully automated & algorithm-driven dynamic pricing engine. The Automated Yield Management (AYM, read as “aim”) system has produced an average of 163% revenue uplift for online parking sales at parking facilities in Chicago, NYC, Boston, and more than 10 metro regions in the US.
Consumers may start discovering extremely deep discounts on mobile apps like ParkWhiz in off-peak hours (particular to each site) and save time from circling on the streets for parking. Consumers may also see pricing surge during peak hours and decide to use alternative mobility solutions.
Parking lots and garages make up to 20% of total net operating income (NOI) for most commercial real estate (CRE) properties, such as office buildings and shopping malls. However, it has always been a black box to CRE managers. With uncertainty from rideshare, autonomous vehicles, and micro-mobility solutions, properties are facing the pressure of losing more money than ever, and old tech prevents them from leveraging data effectively to improve revenue. In fact, a study we conducted with more than 1,000 facilities showed nearly 30% of urban parking garages are less than 50% full during a typical week during peak occupancy.
Many industry leaders, including some of the biggest commercial real estate landlords in the world, integrated Smarking's AYM system and have had great success with NOI uplifts and asset value increases. Companies such as, LaSalle Investment Management, Millennium Garages, VPNE Parking, Premier Parking, and many others. See figure below for AYM results in red for a small size commercial garage in Boston before/after. The annualized revenue increase is estimated to be from $100,000 to $150,000, and the potential asset value increase is between $2MM and $3MM.
Smarking AYM increases the online revenue of a Boston commercial garage by ~$150,000/Yr (3.5X), netting $2MM-$3MM asset value uplift
Smarking's AYM system is developed by analyzing millions of historical and real-time parking transaction data from parking pay stations, ticket machines, online reservation apps, and many other data sources that exist today in more than 95% of all paid parking facilities. Similar to the pricing engines in the hotel and airline industry, only more advanced and automated due to the latest technologies employed by the Smarking data science team in deep learning and operations research.
This time, it’s for parking, a $100B+ hidden industry where the adoption of digital technologies are just getting started. With connected supply and demand based dynamic pricing, accessibility for parking inventory, a major mobility resource for consumers and fleets of all kinds, could be made available on various mobility and digital platforms from rideshare and micro-mobilities to navigation and automotive OEM apps, to enable seamless mobility experience for hundreds of millions of us.
Let's uncover opportunities for your parking portfolio, chat with our team to learn more.
Smarking is a San Francisco based tech company hired by big commercial real estate owners and parking management firms like Brookfield Properties, Hines, Tishman Speyer, and many others, to maximize the return of their conventionally overlooked parking assets. By providing market leading Business Intelligence and Yield Management Enterprise SaaS to the industry, Smarking has been empowering revenue increases at over 2,000 parking locations across North America. Smarking is a group of MIT data scientists, transportation experts, and battle-tested enterprise business professionals, backed by top investors including Y Combinator, Khosla Ventures, Slow Ventures, Govtech Fund, and many others.