Larger car parks (such as those located at airports) offering advanced reservations find the challenge of optimal pricing even more significant since multiple rates could be offered and are all part of the equation.
Industry advancements and these growing complexities have led car park businesses to begin asking themselves important questions such as, “How can we use big data and analytics to forecast, dynamically price and optimize revenue in parking?”
Many of today’s large car park operators rely on the use of spreadsheets as an integral part of their decision support tools to help understand their demand and determine the best pricing to offer. With such existing processes already in place, it can be easy for car park operators to abide by the common expression, “If it’s not broken, don’t fix it.”
But by doing so, the bottom line question will always remain: Is there money being left in the parking lot?
Moving Beyond Spreadsheets
Airports often offer a wide array of parking options; options that can range from a quick, one-hour stay to a stay that lasts a month’s time or longer – all available throughout multiple parking locations.
When moving out of an existing, manual process into automation, there are many questions regarding the business and its practices that tend to require careful evaluation:
- Are the price points across all of the car parks correct?
- Is the demand being accurately forecasted?
- Can this level of effort be manually sustained?
Solely relying on spreadsheets simply cannot offer the level of insight and granularity necessary in today’s market. Knowing when to move beyond spreadsheets and manually control parking pricing decisions is an issue facing many of today’s car park businesses.
Introducing automated revenue management into an organization may initially seem overwhelming, but it is well worth the effort in terms of maximized revenues, efficiency and streamlined processes. By considering the move to automation, an organization is immediately led closer to enhanced revenue performance.
One of the initial steps required for success is establishing (or enhancing) the revenue management culture within the organization. A strong culture goes beyond independent revenue management techniques and practices, and instead spreads a unified revenue management vision fostered throughout the entire organization. This kind of strategic vision should be clearly defined and may involve training people, refining information technology and creating standardized processes that lay the foundation for future growth.
For organizations ready to drive down the road to optimized revenue performance, it can be beneficial to seek outside expertise for guidance and establishing best practices. With extensive experience and success in delivering similar solutions for the hospitality industry, IDeaS Revenue Solutions can steer car park organizations throughout this journey. The team at IDeaS helps car park clients identify the strategies and tactics that create sustainable revenue management cultures – a key cornerstone of their success.
IDeaS also assists clients by scientifically determining the ideal price points for their various parking products. Clients deploying these optimal rates into their parking reservation system readily achieve the vast benefits of revenue growth. Through the application of a systematic and scientific approach to pricing, car park clients using revenue management automation make better (and faster) decisions to the benefit of both their business and their customers.
IDeaS has a very long and successful track record of delivering revenue management solutions that help solve complex business problems. This expertise has allowed the development and deployment of the parking industry’s first automated and self-learning revenue management solution specifically designed to address the unique needs of car parks. IDeaS understands the challenges of forecasting and pricing effectively, and works closely with airports and parking organizations across the world to redefine their maximum revenue performance.