revenue management for parking - albert bogaard @ newpeople vip connect 17/4/14

INTRODUCING REVENUE MANAGEMENT

IN THE PARKING INDUSTRY OR

HOW ADVANCED ANALYTICS IMPRESSED ME

Albert Bogaard 17 April 2014

REVENUE MANAGEMENT FOR PARKING

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.

� Fixed Capacity

� Perishable Capacity

� Demand Variability and Uncertainty

� Low Marginal Cost

� Customer Segmentation

REVENUE MANAGEMENT FOR PARKING

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

PARK ‘N FLY

� Off Airport Parking � U.S. Market Leader � 18 parking facilities at 12 airports � Over 25,000 parking spaces

PARK ‘N FLY

+

PARK ‘N FLY

8

PROJECT

� Introducing Revenue Management at Park ‘N Fly

� Strategy � Market Segmentation � Model

� Implementation

� Organization � Tools

� Execution

MARKET SEGMENTATION

� Customer Segment � Similar Customer

Characteristics � Similar Product/Transaction

Characteristics � Similar Price Sensitivity

� Fencing based on price

10

MARKET SEGMENTATION

REVENUE MANAGEMENT STRATEGY

� Attracting leisure customers � Price Sensitive � Not replacing current travelers

� Additional online booking channel

� Discount Rate � Control availability

DEMAND FORECAST

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

Verk

oopk

ans

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

Marginale

Opbrengst

RESULTS

� Attracted new customers using discount booking channel

� > 7% increase in revenues

� Insights in customer behavior

CONCLUSION

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

INTRODUCING REVENUE MANAGEMENT

IN THE PARKING INDUSTRY OR

HOW ADVANCED ANALYTICS IMPRESSED ME

Albert Bogaard 17 April 2014

06 53254027 albert.bogaard@ortec.com