Parking facilities are one of the most significant non-aeronautical revenue contributors to airport finances. However, airports vary significantly from each other in terms of revenue collected through operating parking facilities. A quick review of the top 10 business airports in the U.S. (as measured by total enplaned passengers) identified that parking revenue ranged from $36.6 million to $190 million in 2018. Parking revenues are not specifically tied to airport annual enplanements but are determined by many complex factors. Balancing optimal utilization of parking resources and generation of airport revenue increases benefits to the traveling public and other community stakeholders. This study aims to understand the factors affecting airport parking pricing decisions and to assist airports and their vendors in evaluating their circumstances when reviewing parking pricing decisions.
Despite many inquiries focusing on either urban and airport parking, no readily available resource exists for airport operators to answer questions such as "What factors are important and effect the rate that I should charge for my airport parking?" or "What factors should be considered when analyzing change from flat rate pricing to variable pricing?" Airport authorities would benefit from a compilation of airport parking pricing practices around the U.S.
The objective of this synthesis is to compile practices in airport parking pricing to better understand factors that airport managers use in setting parking rates. The audience for this synthesis is airport managers responsible for managing competing goals and setting airport parking pricing policy.
The following tasks and resulting information will be described in a concise report.
· Review existing literature. Although this synthesis of practice focuses on the US domestic market, some acknowledgement of examples that take account of location, such as international situations, may be useful.
· Gather existing reputable industry survey data (e.g., APA, ACI-NA) providing information about factors affecting parking pricing that describe these factors and pulse check on trends to parking issues at airports.
· Collect data from a minimum 30 airports varied by commercial service NPIAS categories and FAA regions on parking pricing and factors that affect decisions. The type of information might include:
o Description of airport parking operation and customers
o Rates, parking products, and amenities (e.g., location proximity, wayfinding)
o Who is responsible for rate setting, what is the process, how often rate changes are undertaken
o Competitive landscape (e.g., parking competition, catchment competition)
o Enabling technology and how it plays into pricing decisions
o Other issues that inform parking pricing strategies
· Summarize the data to enable effective interpretation of data for potential users of this synthesis study.
· Provide case examples from interview of at least five airports that highlight a range of practices for understanding factors that airports deem important in setting parking pricing.
· Describe further research from gaps identified in the research.
Partial Information Sources
Keefe, Jon. What are the key considerations for an airport in implementing a direct channel for car park and ancillary pre-booking, and what are the potential resulting incremental revenue benefits? Journal of Airport Management, Volume 8, Issue 4, 2014, pp 327-333 https://trid.trb.org/view/1339613
Improve Revenue Generation Partnerships. [Project]. Airport Cooperative Research Program, Federal Aviation Administration. Start date: 6 Aug. 2019. https://trid.trb.org/view/1528517
Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue. [Project]. Airport Cooperative Research Program, Federal Aviation Administration. Start date: 18 Apr. 2018.
Reynolds, Dave. Customized technology delivers single solution for off-airport parking. Parking, 2018, pages 30-32 https://trid.trb.org/view/1522308
Vogel, Ben; Cross, Barry. Parking market drives on: car parks are a crucial source of non-aeronautical income for modern airports, but careful revenue management is required to optimize their potential. IHS Jane's airport review, 2017, pages 16-17 https://trid.trb.org/view/1458847
Petro, Adam. Reserved airport parking: A creative parking product to enhance revenue and improve service. Journal of Airport Management, Volume 11, Issue 2, 2017, pp 129-135 https://trid.trb.org/view/1460571
Cruz, Armin J. Enhance the customer experience with technology and variable parking: a Dallas/Fort Worth International Airport case study. Parking, 2016, pages 20-23 https://trid.trb.org/view/1479376
Cross, Barry. Parking occupancy joins the Internet of Things: driven by the need to increase non-aeronautical revenues, airport operators are keen to ensure that car park occupancy levels remain healthy. IHS Jane's airport review, 2016, page 33 https://trid.trb.org/view/1409867
Bates, Joe. Parking technologies find a crucial niche: the airport car park sector is becoming increasingly competitive and technologically sophisticated. IHS Jane's airport review, 2015, pages 32-34
Vogel, Ben; Stokes, Robert. Parking boosts profits: car parks can contribute strongly to airport balance sheets--with the right technology and business model. IHS Jane's airport review, Volume 26, 2014, p. 29-32 https://trid.trb.org/view/1341848
Ward, Carol. Parking upgrades: airports embrace technology to enhance customer service, fight competition. Airport revenue news, Volume 12, 2014, p. 48-51 https://trid.trb.org/view/1334093
Munn, Charles R. A long flight home: DFW stakeholders land parking solution. Parking, Volume 54, 2014, p. 18-21 https://trid.trb.org/view/1333699
Keilthy, William. Airport parking: A US$2bn+ pot of gold? Journal of Airport Management, Volume 8, Issue 1, 2014, pp 34-41 https://trid.trb.org/view/1422967
Nix, Emma; Mundy, Ray A. Airport Drop-Off and Pick-Up Charges in Great Britain: Will They Come to the United States? University of Missouri, St. Louis; Midwest Transportation Center; Iowa State University, Ames; Department of Transportation; Research and Innovative Technology Administration, 2015, 39p https://trid.trb.org/view/1403227
Papayiannis, A., Johnson, P. V., Yumashev, D., & Duck, P. (2019). Revenue management of airport car parks in continuous time. IMA Journal of Management Mathematics, 30(1), 1-35. doi:10.1093/imaman/dpy015 https://www.scopus.com/inward/record.uri?eid=2-s2.0-85063397713&doi=10.1093%2fimaman%2fdpy015&partnerID=40&md5=299a9d5ccec7b5fa7427f2cb1df36d51
Henao, A., & Marshall, W. E. (2019). The impact of ride hailing on parking (And vice versa). Journal of Transport and Land Use, 12(1), 127-147. doi:10.5198/jtlu.2019.1392 https://www.scopus.com/inward/record.uri?eid=2-s2.0-85064228355&doi=10.5198%2fjtlu.2019.1392&partnerID=40&md5=79614c7aaee45d0a4939158824489f34
Zhang, Y. (2017) Impacts of autonomous vehicle to airport landside terminal planning and design. Vol. 454. Advances in Intelligent Systems and Computing (pp. 23-24).
Valerie Boston, Charlotte-Douglas International Airport
Kristian Wade, Salt Lake City Department of Airports
Amanda Wooden, Kalamazoo/Battle Creek International Airport
Ijaz Ali, Surface Mobility Consultants
Rawley Vaughn, Ricondo and Assoc, Inc.
Armin Cruz, Dallas-Fort Worth International Airport
Dawoud Stevenson, Savannah Hilton Head International Airport
Judith Jamison, FAA
Aneil Patel, ACI-NA
Nelly Alandou, InterVISTAS
Gail R. Staba
First Panel Meeting: 9/1/2020, via Zoom
Teleconference: 10/13/2020 1p EDT;fallback 10/16/2020 12p EDT
Comments Due(Email): 11/2/2020
Draft Report Delivered: 3/1/2021
Second Panel Meeting: 3/15/2021