Airport Parking Strategies in a Constrained Environment
2011 Operations & Technical Affairs Conference
April 4 – 7, 2011
Agenda
• Causes and Effects of Constrained Public Parking
• ACRP Report 34, Handbook to Assess the Impacts of Constrained Parking at Airports, March 2010
• Strategies to Address Parking Constraints
• Update on Cell Phone Lots
• Conclusions and Lessons Learned
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Causes of Airport Parking Constraints
• Imbalance Between Parking Supply and Parking Demand
• Parking Supply Constraints
• Land constraints
• Financial constraints
• Policies and regulations (airport, external)
• Imbalance between products
• Influences on Parking Demand
• Rate structure
• Airline service changes
• Policy influences
• Previous experiences with congestion
• Lack of ground access mode alternatives
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Effects of Constrained Airport Parking
• Reduced Customer Satisfaction
• Increased Roadway Traffic Congestion
• Increased Vehicle Emissions
• Increased Costs
• Peak period staffing
• Management/operations of overflow parking
• Decreased Revenue
• Shift to alternative modes
• Downgrade to lower price products
• Diversion to off‐airport parking
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Decision Process Effect on Demands
Source: ACRP 10‐06, A Handbook to Assess Impacts of Constrained Airport Parking, Final Report, Ricondo & Associates, Inc., DMR Consulting, and Resource Systems Group, Inc., March 2010
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Factors Affecting Parking Decision
• Total Trip Time and Cost
• Convenience and Characteristics of Parking Options
• Availability of Auto vs. Alternative Modes
• Curbside Drop Off Convenience and Congestion
• Perception Based on Past Experience
• Availability of Real‐Time Data
• Off‐airport Parking Competition
• Transport/Walk Between Parking and Terminal Building
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Airport Parking Products and Characteristics
•
Source: ACRP Report 34, Handbook to Assess the Impacts of Constrained Parking at Airports, 2010, updated by Ricondo & Associates, March 2011
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Strategies to Address On‐Going Constraints
• Increase Public Parking Supply
• Introduce New Parking Products and Services
• Reallocate Supply among Products
• Adjust Parking Rates (e.g., traditional, differential, variable)
• Introduce Technology Improvements
• Automated parking guidance systems
• Real‐time parking information
• Parking reservation systems
• Promote Use of HOV Modes
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Strategies to Address Short‐Term Constraints
• Hands‐on Management
• Demand Management
• Couponing and Discounting
• Public service announcements
• Temporary Overflow Parking
• Diversion to Off‐airport Commercial Parking
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Revenue Enhancement and Service Strategies
Value‐added parking strategies to improve customer service, increase airport revenues, and/or improve operating efficiency
• Sustained Marketing
• Promotions / Coupons (ATL, SFO, BWI)
• Sweepstakes (PVD)
• Frequent Parking Program: Brand Loyalty (BDL, STL, AUS)
• Reserved Zone or Guaranteed Space (SEA, IAH, ATL, BOS)
• Credit Card‐In and Card‐Out (e.g. AUS, DEN, DSM, IND, MSP, PDX, etc.)
• Naming and Branding (LAS, IAH)
• Cell Phone Lots
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Sustained Marketing
• Purpose of Coupons
• Offer discounted rate or fee
• Promote new and/or existing services
• Can help balance demand during peak periods
• Can Be Useful Tool in the Development of a Customer Database to Better Compete with Off‐airport Competitors
• Distribution Methods Include:
• Mail e.g., Valpak
• Internet web‐based coupons
• At parking lot (entrance or exit)
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Sustained Marketing (Cont.)
• T.F. Green Airport (Providence, RI)
• "Love Green. Love Parking. Love Bug”: Receive Volkswagen New Beetle raffle entry with each on‐airport parking transaction (July 2008)
• BWI Thurgood Marshall Airport (Baltimore, MD)
• "Express for Less“: Web‐based coupons that reduce cost of Express parking by $5 per day (November 2007)
• The “Parking Sale”: Hourly Garage discount
• Impact:
• Minimal Cost of Distribution
• Operational Benefit with Some Impact on Revenues
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Frequent Parker Program: Brand Loyalty
• Bradley International Airport (Hartford, CT)
• Auto‐Pilot Rewards ProgramSM
•
•
•
•
Earn 10 points per full day
Online rewards catalogue for merchandise
50 points = Free Economy Day
100 points = Free Long‐term Day
Source: Bradley International Airport
• Lambert‐St. Louis International Airport (St. Louis, MO)
• Super Park
•
•
•
•
•
Earn 10 points per full day
Rewards redemption for merchandise
100 points = Free Economy Day
200 points = Free Long‐term Day
500 points = 2‐days Garage Parking
Source: Lambert‐St.Louis
International Airport
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Frequent Parker Program: Brand Loyalty (Cont.)
• Austin‐Bergstrom International Airport (Austin, TX)
• ParkPerk™
•
•
•
•
Swipe ParkPerk ™ Card when enter and exit facility
Pay using ParkPerk ™ Card (which is linked to credit card).
For each $1.00 spent, you receive 20 points.
2,500 points = One day of free parking • Pros
• Can improve customer loyalty and retention
• Can increase spending of existing customers
• Can shift customers to higher margin products
• Cons
• Cost of implementation (mostly marketing and advertising)
• Cost of ongoing operations (cost of rewards at the discretion of the Airport)
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Reserved Zone or Guaranteed Space
• Sea‐Tac Airport (Seattle, WA)
• Passport Parking
•
•
•
•
Flat rate $350 per month
Unlimited parking
Guaranteed close‐in parking
Transferability Source: Seattle‐Tacoma International Airport
• George Bush Intercontinental Airport (Houston, TX)
• IAH Sure Park
Terminal Hourly Parking
Designated Sure Park
Area (Members Only)
0 – 3 hr.
$5.00
$7.00
3 – 5 hr.
$7.00
$9.00
5 – 24 hr,
$17.00
$20.00
Stay
• Guaranteed Parking Space within 400‐space Sure Park area
• One‐time application fee of $200 and a $50 refundable deposit for membership card
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Reserved Zone or Guaranteed Space (Cont.)
Atlanta Gold Lot
• Hartsfield‐Jackson Atlanta International Airport (ATL) • Gold Parker
• Advance payment of $200
• Set‐up fee of $25
• Annual minimum usage fee (AMUF) of $360
• Reduced daily rate $30 vs $32‐36 in Hourly Garage
• Capacity is planned based on the ratio of 4.1 members per space.
• Boston Logan International Airport (BOS)
• PASSport Gold
• Enrollment fee of $200
• Annual membership fee of $100
• Maximum daily rate is $29, compared to $24 for other spaces within the Terminal product. Airport Parking Strategies in a Constrained Environment
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Reserved Zone or Guaranteed Space (Cont.)
• Pros
• Proven successful in generating additional revenues • Have proven to be popular (with strong marketing and advertising program)
• Cons
• Cost of implementation • Can be minimal if nested in existing facility
• Predominately marketing and promotions
• Typically requires dedicated capacity with automated controlled access.
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Credit Card‐In and Card‐Out
• Insert Credit Card Upon Entry and Upon Exit
• Innovation Derived from Customer Acceptance of Paying at Gas Stations and ATM
• Ticketless
• Minneapolis‐St. Paul (E‐Park) 1/
•
•
•
•
Launched in 2003
79 percent of customers use system (2007)
34 percent reduction in fulltime equivalents (staff)
Raised rates by $2 per day and offered a $2 per day discount using E‐Park
• Technology also used at AUS, DEN, DSM, IND, PDX, SEA, SFO, SLC, SMF
• Pros
• Improved customer service (quicker exit time)
• Decreased operating costs
• Cons
• Potential customer confusion
• Capital cost of implementation (MSP = $1 million)
1/ Decker, Rick. At MSP –
Innovation, Thy Name is Parking. Parking Today, June 2007
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Naming and Branding
• Las Vegas (LAS)
• Distinctive name of each parking level corresponding to a specific Las Vegas casino.
• Casino’s given choice of level based on advertising dollars spent at the Airport.
• Parking Cents (IAH)
• Changed name of remote product from “City Economy Lot” to “Parking Cents” to improve product image.
• Promoted the name change.
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Why Cell Phone Lots
• Increased Enforcement to Restrict “Non‐active” Passenger Loading at Curbside
• Impact
• Meeter/greeters park along airport roadways
• “Orbiters” add to curbside and roadway congestion
• Revenue impact, e.g., parking grace periods
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Cell Phone Lot Current Status
• In 2005, 18 of top 75 US airports had a cell phone lot; by 2011, 58 had cell phone lots
Comparison of Available Parking Spaces at Cell Phone Lots at Top 75 US Airports
400
Source: Ricondo & Associates based on individual airport websites, USA Today Airport Guide, Flyer Talk forums, aerial photography, and project data 350
250
200
150
100
50
0
JFK
TPA
MSY
DEN
PHL
IAH
IAD
PHX
RDU*
JAX
ORD
STL
SMF
SDF
MCO
SEA
IND
ONT
MDW
RNO
DTW
PBI
SLC
LAX
SAT
LGB
CVG
SFO
MIA
BOS
CLT
ABQ
BWI
SAN
CLE
OAK
BNA
CMH
FLL
DAL
RIC
BHM
MSP
RSW
MHT
DCA
PDX
TUS
MEM
TUL
ANC
Parking Spaces
300
Airport Code
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Cell Phone Lot Amenities
Comparison of Amenities at Cell Phone Lots at Top 75 US Airports
No Amenities
65%
Flight Information Display System
22%
Restrooms
20%
Free WIFI
8%
Vending Machines
8%
Monitoring and Supervision
Coutresy Phone
4%
2%
Note: Amenities will not add upto 100% because some airports have multiple amenities
Source: Ricondo & Associates based on individual airport websites, USA Today Airport Guide, Flyer Talk forums, aerial photography, and project data
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Cell Phone Lots and Public Parking
Cell Phone Lots and Public Parking at Top 75 US Airports
No Cell Phone Lot or Parking Grace Period
9%
Parking Grace Period Only
14%
Cell Phone Lot and Parking Grace Period
17%
Cell Phone Lot Only
60%
Source: Ricondo & Associates based on individual airport websites, USA Today Airport Guide, Flyer Talk forums, aerial photography, and project data
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Cell Phone Lot Features and Planning Considerations
• Typical Lot Capacity (15 to 350+ spaces, median 75 spaces)
• Location
• Direct and clearly signed routes
• Pedestrian separation from terminal
• Compatibility with other land uses
• Safety and visibility
• Publicity and Marketing
• Cost of Implementation
• New vs reuse of parking
• Level of amenities
• Revenue potential
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Conclusions
• Pricing Can Be Used to Address Parking Constraints and Increase Revenue
• Off‐Airport Parking Operators are Difficult to Compete Against and Constrained Airport Parking Supply Works in Their Favor
• There are Multiple Strategies Available to Address Constrained Parking • Technology is Advancing Rapidly and is an Effective Tool
• Cell Phone Lots Have Become the “New Norm”, but Currently Not Considered a Major Revenue Generator
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