Montréal-Trudeau International Airport Achieves Parking Revenue Growth with IDeaS’ Demand-Based Dynamic-Pricing Technology
Montréal-Trudeau International Airport (YUL), managed and operated by Aéroports de Montréal, served 19.4 million passengers in 2018, an increase of seven percent over the previous year. As passenger numbers continued to increase rapidly, the airport required a significant investment in infrastructure to address the growing capacity challenge. Commercial leaders set their sights on parking, the airport’s leading source of nonaeronautical revenues, to fund that growth.
The airport had invested in a parking reservation platform in 2013, but only three percent of parking transactions were being booked online in advance. Standard practice also meant the airport used fixed, seasonal pricing with manual rate changes taking place in the spring, summer, and fall. Taking a cue from the airlines and hotels, the airport’s commercial leaders identified demand-based pricing as a means to maintain customer satisfaction and unlock significant revenue growth from their 10,000+ parking spaces.
A TECHNOLOGY PARTNER & TRUSTED ADVISOR
YUL opened a formal tender to acquire an automated revenue management system (RMS) that would integrate with and complement their Chauntry online booking system and help them sell the right parking product, to the right customer, at the right time and at the right price. IDeaS Revenue Solutions was selected due to their extensive airport experience and available integrations with the airport’s other technology suppliers, becoming YUL’s partner and trusted advisor in implementing the first automated revenue management system for parking in North America.
IDeaS Car Park RMS combines historical transactional data with predictive analytics—replacing guesswork with revenue science and data-driven pricing decisions based on actual demand. The system automatically responds to demand to deliver the optimal product and price offering, calculating price elasticity by customer segment, season, day of week, special event, and days to arrival.
FAST RESULTS & SUSTAINABLE GROWTH
IDeaS kicked off the project by conducting a thorough analysis of the previous two years of historical data from the airport’s PARCS system (SKIDATA) and online reservation system (Chauntry). IDeaS also generated a roadmap for instilling a revenue management culture throughout the organization, managing change, increasing knowledge, and building lasting efficiencies.
The results were immediate and significant—in 2018 parking reservations were up 467 percent. Revenue grew 12.2 percent compared to 2017, even while losing 15 percent of capacity to construction. RevPAS, a key performance indicator that considers revenue earned from each available space, accounting for inventory that may have been taken out of service, grew 32 percent over the same period.
Intelligent automation has also enabled YUL’s commercial parking team to focus on revenue growth strategies and operational efficiencies. Today the airport uses insights from the RMS to understand when to run marketing promotions to build demand or shift occupancy from one lot to another in busy periods.
Due to the continued success of its IDeaS implementation, the airport has continued its investment in its revenue management program, hiring a dedicated revenue manager resource and growing its integrated marketing campaigns.