revenue management for parking - albert bogaard @ newpeople vip connect 17/4/14
TRANSCRIPT
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 [email protected]