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The National Academies

ACRP Synthesis 11-03/Topic S01-25 [Active (Synthesis)]

Airport Parking Pricing Strategies
[ ACRP 11-03 (Synthesis of Information Related to Airport Practices) ]

  Project Data
Funds: $45,000
Authorization to Begin Work: 10/23/2019 -- estimated
Staff Responsibility: Gail R. Staba
Research Agency: InterVISTAS
Principal Investigator: Peter Mandle
Effective Date: 10/1/2020
Fiscal Year: 2020

Final Scope

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.

https://trid.trb.org/view/1478079

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

https://trid.trb.org/view/1387674

 

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).

https://www.scopus.com/inward/record.uri?eid=2-s2.0-84996605706&doi=10.1007%2f978-3-319-38789-5_11&partnerID=40&md5=9ad84b1bfe2402b3f01c8a1a0a68d754

 

Topic Panel

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

 

Consultant
Peter Mandle,InterVISTAS
650-520-1410
peter.mandle@gmail.com

Nelly Alandou, InterVISTAS
510-710-3110
nelly.alandou@intervistas.com

TRB Staff
Gail R. Staba
202/334-2442
gstaba@nas.edu

Demisha Williams
202-334-384
dewilliams@nas.edu

Activities

First Panel Meeting: 9/1/2020, via Zoom 
Teleconference: 10/13/2020 1p EDT;fallback 10/16/2020 12p EDT
Workplan Delivered:10/26/2020
Comments Due(Email): 11/2/2020
Draft Report Delivered: 3/1/2021
Second Panel Meeting: 3/15/2021


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