1. INTRODUCING REVENUE
MANAGEMENT
IN THE PARKING INDUSTRY
OR
HOW ADVANCED ANALYTICS
IMPRESSED ME
Albert Bogaard
17 April 2014

2. REVENUE MANAGEMENT FOR PARKING

3. REVENUE MANAGEMENT FOR PARKING
Full on Saturday.
Not on Tuesday.
Needs to find a parking
spot fast.
People do not like to pay
while doing their daily
groceries.

4. Fixed Capacity
Perishable Capacity
Demand Variability and Uncertainty
Low Marginal Cost
Customer Segmentation
REVENUE MANAGEMENT FOR PARKING

5. Increase Revenues by
Insight in customer behavior
Customer Segmentation
Fact based (data driven) decisions
Detailed Demand Forecast
Focusing on revenue (instead of volume)
Control Availability of (lower priced) Products
Balancing Demand and Capacity
Peak Pricing
REVENUE MANAGEMENT FOR PARKING

6. PARK ‘N FLY
Off Airport Parking
U.S. Market Leader
18 parking facilities at 12 airports
Over 25,000 parking spaces

7. PARK ‘N FLY

8. PARK ‘N FLY
8

9. PROJECT
Introducing Revenue Management at Park ‘N Fly
Strategy
Market Segmentation
Model
Implementation
Organization
Tools
Execution

10. MARKET SEGMENTATION
Customer Segment
Similar Customer
Characteristics
Similar Product/Transaction
Characteristics
Similar Price Sensitivity
Fencing based on price
10

11. MARKET SEGMENTATION

12. REVENUE MANAGEMENT STRATEGY
Attracting leisure customers
Price Sensitive
Not replacing current travelers
Additional online booking channel
Discount Rate
Control availability

13. DEMAND FORECAST

14. REVENUE MANAGEMENT MODEL
How much parking spaces to protect per day for drive-up customers and
regular bookings?
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
500 520 540 560 580 600 620 640 660 680 700
Aantal te bewaren plaatsen
Verkoopkans
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
Marginale
Opbrengst

15. RESULTS
Attracted new customers using discount booking channel
> 7% increase in revenues
Insights in customer behavior

16. CONCLUSION
Revenue Management can be
successfully applied to parking
and many other industries!

17. INTRODUCING REVENUE
MANAGEMENT
IN THE PARKING INDUSTRY
OR
HOW ADVANCED ANALYTICS
IMPRESSED ME
Albert Bogaard
17 April 2014
06 53254027
albert.bogaard@ortec.com