Since the pandemic, commuter behaviors and parking demand has shifted. Fewer drivers mean fewer spaces filled in the typical garage. As a result, building owners are struggling with how to fill those vacancies and bring revenues back to reasonable levels. Parking is an essential source of revenue for most owners of commercial buildings and complexes. Dynamic Pricing helps attract customers and maximize revenue for the building owner.
Dynamic Pricing refers to technology-enabled pricing based on real-time changes in supply and demand. Setting parking rates is critical to maximizing revenue and can be a delicate art. Setting one rate that stays constant every day can be very limiting. With integrated digital signs and analytics, operators can modify the parking rate based on occupancy, time of day, or day of the week.
Dynamic Pricing monitors occupancy levels continuously and automatically modifies pricing in real-time. When occupancy rises above a certain level, the price increases accordingly; if it falls, the price drops. As a result, owners and operators can base their pricing on actual usage rather than guessing how full or empty their facility will be on a given day. Signs at facility entrances tell customers how much parking will cost at that exact moment. When they leave, the system matches the ticket with the price that was in effect when they entered and displays it for the customer.
Pricing can also be applied to premium parking spaces. With License Plate Recognition (LPR), operators can charge a premium for parking spaces near the entry or elevator bays. You can also define specific stalls as “short-term” parking and charge an overage fee if cars go past the allotted time.
After analyzing parking patterns, one parking operator noticed they had higher volumes on two specific days of the week. So, they decided to raise the price by $1 per hour, only for those two days. Customers did not even notice the change, and the operator increased profit by $1,000,000 in the first year!! This decision paid for the initial investment in just a matter of months.
How can we help?
As the leading industry expert in Parking Control systems, Time Equipment Company makes complicated processes simple by offering world-class parking systems that are seamless, reliable, and bullet-proof. Time Equipment Company is the exclusive provider of TIBA Parking Systems for the Pacific Northwest.
For more information about Dynamic Pricing or our automated parking solutions, contact Time Equipment Company at 800-997-8463 or sales@timeequipment.com.
