By William Dupley
Using smart technology, businesses can increase their parking revenue. It all starts with evaluating the Smart Parking Value Chain.
There are four domains in the parking value chain:
Value chain analysis is a useful technique in the process of identifying how you can benefit from new smart parking technology.
It enables us to compare current and future value chains.
In this blog, we are going to continue digging into how to increase parking revenue using IoT technology.
First, we’ll review the importance of understanding your end-users so you can better optimize your parking lot.
The key to attracting customers to any service or product is to give them what they want.
So what are customers looking for when it comes to parking?
These are the types of questions we need to consider when it comes to increasing parking revenue as well as optimizing and integrating the solution.
Many drivers have a few preferred parking lots they check these first when parking in the city.
Some reasons parking lots are preferred are:
Although we’ve been focusing on the fact there is a shortage of parking spots, we must remember drivers have a choice about where to park.
Some users will pay a premium to be able to park faster or in a preferred area. Others might prefer to use a less convenient parking lot if they had a guaranteed spot.
This is all part of parking optimization.
Ensuring that all parking lots are adequately represented and that customers are presented with a choice where they can park.
Many customers would be quite happy to walk a few blocks if the parking was cheaper, easier to get into or had services that they want such as electric car parking.
Parking optimization is about ensuring that all parking lots are filled and that customers have excellent visibility of the options available to them.
Parking optimization allows parking lots to generate the maximum revenue that it can support and create a pay-for-better-service concept.
That means you can charge different prices for different levels of services and convenience.
Using smart technology and apps, customers can easily see more about services and alternative choices.
To increase revenue, the smart parking system must allow the parking optimization value step with the following capabilities:
Let’s review a case study and see how we helped integrate smart-parking technology to increase parking revenues.
VPNE is New England’s premier parking operations firm, managing Boston’s most sophisticated parking garages.
On one occasion, VPNE was asked if any of the lots could give a customer up to 50 parking spots from 11 am-3:30 pm every Friday.
Using their smart parking system, they nailed down the period the customer needed in 10 minutes since they were able to view all their lots with real-time occupancy history.
Here is an example of what their parking control operators can see:
They were also able to develop a financial model using the historical data that allowed them to properly offer rates based on the previous rate data of their parking.
Here is an example of that capability:
This type of visibility allows you to see the impact of parking rate changes. This way, you can increase your revenue without raising prices to the point you lose customers.
The City of Aspen is a beautiful mountain town in Colorado. They have thousands of tourists during the summer and winter months. So, they have extreme seasonal parking demand.
Using smart parking data analysis, they were able to uncover the magnitude of these changes.
The parking analysis allowed them to develop a variable parking rate.
They increased their parking rates by 50% during the peak season. Which allows the city to fund more transportation methods.
They also kept the parking rates low on off-street parking facilities and peripheral zones.
This program turned out to be a win-win for everyone. Not only did they increase parking revenue, but they also reduced the demand for parking.
This made it easier for locals to get a parking spot for private business reasons.
Integrating the parking system’s data with other systems’ data within a city environment allows services that exploit that integration to be created.
To increase parking revenue, you must enable the parking integration value step with the following:
Parking integration provides one source of data that can be used by external organizations and app developers. All of which will make finding a parking space even easier and the payment transaction seamless.
Parking authorities can increase parking revenue by charging for this data.
The information could also be used to reduce the frustration of a user who is commuting into the city by integrating the parking availability information with traffic conditions and GPS.
An example of this is the CityPulse Journey Planner.
The CityPulse Journey Planner in Aarhus, Denmark, integrates parking lot information with traffic information into a single guided system.
The user selects their location and then looks for parking lots that are within the area. After the user selects one, the CityPulse planner maps a route and provides instructions on how to get there.
If there is a traffic interruption during the journey, the user is notified of the issue and guided to a different route.
Also, if the parking lot becomes full while en route, the user is automatically directed to another parking lot that has space.
Santander, Spain, has built a system with 12,000 sensing devices that include conventional sensors as well as smartphones from citizens.
They put sensors on fixed locations such as lampposts, buildings, façades and bus stops as well as on mobile vehicles and taxis. As a result, they now have an integrated IoT infrastructure that collects data from the city.
This IoT infrastructure enables them to do more than just parking monitoring. Some of the functions that they can do are as follows:
Santander has implemented outdoor parking control on about 400 parking spots in the downtown core. These parking spots are managed on a limited availability service, and a private company is in charge of its control.
This company operates the user payment management and the surveillance of the parking lot to issue tickets to those exceeding the prepaid parking time or those who park without paying. The process is tedious.
But now, the smart parking monitoring technology lets users find an empty parking spot quickly.
It also allows parking enforcement personnel to quickly identify customers who have exceeded their time limit so they can promptly tag them with tickets.
The image below shows a satellite view of the parking detection sensors deployed on some of the streets in the Santana downtown area.
The foundation to both of these revenue-generating capabilities is the data that’s collected from the smart parking system.
Smart parking systems will provide firms with the information they need to identify and create new revenue from their existing parking assets.
We started off our discussion describing the parking rate objectives. The key to any project’s success is clearly defining measurable results or goals at the beginning. Smart parking projects are no different.
Here are a few recommendations:
 VPNE Parking solutions Smarking Case study
 VPNE Parking solutions Smarking Case study
 City of Aspen Smarking case study
 Smart City Services over a Future Internet Platform Based on Internet of Things and Cloud: The Smart Parking Case
Bill is the Digital Strategist for FoxNet Solutions. Formerly the Cloud Chief Technologist for Hewlett-Packard Enterprise Canada, Bill has provided Hybrid IT and IoT Strategic Planning advisory and planning services to over fifty Private and Public sector clients to help them migrate to a Hybrid IT Cloud Operating model. These transformation plans have helped both government and industry reduce the cost of IT, re-engineer their IT governance models, and reduce the overall complexity of IT. Bill is also a member of the Open Alliance for Cloud Adoption Team and has co-authored several documents on Cloud Maturity and Hybrid IT implementation.