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CATEGORY F: Revenue Enhancement Strategies F.1 Parking Rate Adjustments, 102 F.2 Strategic Pricing, 103 F.3 Web-Based Reservations, 104 F.4 Yield Management, 106 F.5 Coupons, 108 F.6 Advertising Sales--Interior, Exterior, Tickets, and Equipment, 110 F.7 Branding, 112 F.8 Marketing, 114 101

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CATEGORY F Revenue Enhancement Strategies F.1 Parking Rate Adjustments adjusted to discourage long-duration customers) leading to improved customer service and potential reductions in Purpose curbside traffic and emissions from circulating vehicles. Enhance parking revenues consistent with other goals of Improved availability of spaces in long-duration facilities the airport operator. Balance demand among available park- (e.g., if rates are adjusted to balance demand among avail- ing facilities. able facilities), leading to improved customer service. Potentially improved market share or maintenance of Use by Customers existing market share. Customers are presented a menu of airport parking prod- Implementation Actions ucts, available at a range of costs and level of convenience. Knowing the costs of each product, customers can select a Implementation actions appear to vary depending on the preferred product. specific goals of airport management as several types of poten- tial rate adjustments are available. Potential implementation Benefits actions and the corresponding goals include Potential benefits are reported to include 1. Encourage customer use of a desired facility by modifying the differential costs for parking. For example, increasing Increased revenue resulting from modifications to existing the cost differential between short-duration and daily parking rates. As a general guideline, the proportional facilities will encourage customers to use the less expen- increase in revenue is likely to approximate the propor- sive facility (typically, the daily parking facility). Similarly, tional increase in rates (assuming an across-the-board decreasing the cost differential between these facilities will increase), with adjustments for (a) customers who switch encourage customers to use the more expensive facility from one parking product to another higher or lower (typically, the short-duration parking facility). Reducing priced product, (b) new customers who would have other- the cost of parking in a structure, for example, may attract wise used other airport access modes or privately operated customers who would have otherwise parked in less expen- off-airport parking facilities, or (c) customers who decide sive surface facilities or in off-airport parking facilities, not to park because of the increased costs and choose to thereby increasing airport revenues. use other airport access modes or privately operated off- 2. Increase market share by maintaining or establishing airport parking facilities. competitive rates. For example, offering competitive rates The total parking demand at an airport is fairly inelas- and concurrently improving customer service may attract tic (i.e., increases in cost of $2 to $3/day are unlikely to customers who would have otherwise selected privately affect customer demand). In some locations, temporary, operated, off-airport parking facilities. Such changes can short-term reductions in demand (i.e., 3 to 6 months) lead to increased revenues depending on the expected have occurred as customers adjust to new prices, but change in market share. after this period, demand typically rebounds to former 3. Increase revenues by offering weekend or long-duration levels. parking discounts. For example, some operators offer Improved availability of spaces in short-duration facilities weekly rates or "free" parking for the 7th day to attract (e.g., if the cost of parking in short-duration areas is market share. Since a very small percentage of all cus- 102

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Category F: Revenue Enhancement Strategies 103 tomers park for 6 days or more, such discounts may attract from 1 to 12 months or more depending on the approval new customers and increase revenues. process and need for public meetings. 4. Increase revenues by offering weekly flat rates. For exam- ple, offering flat-rate, discounted fees for the first week (or Supporting and Complementary Strategies for 2 weeks) may attract long-duration, price-sensitive and Technologies in This Guidebook customers who would not have otherwise parked at the All duration-based parking products in Category A and airport (e.g., those traveling on non-business purposes-- Strategic Pricing (F.2). see Section A.8, Vacation Parking). Since very few cus- tomers park for 6 days or more, such discounts may attract new customers and increase revenues. Examples of Application 5. Increase revenues by altering the cost of each hourly incre- Most airport operators adjust their parking rates at regular ment. For example, an airport operator can increase rev- intervals to reflect the specific goals of airport management, enues by changing a rate from $1.00 for 30 minutes to inflationary trends, and customer demand. $1.00 for 20 minutes or $1.00 for 12 minutes. Adjusting the hourly rate increment to accelerate when customers reach the daily maximum rate may increase revenues by F.2 Strategic Pricing 3% to 10%. Changes to hourly rate increments may min- imize the concerns of approval boards/commissions, Purpose which often primarily focus on the daily maximum rate. Enhance parking revenues consistent with other goals of the airport operator. Maintain or increase market share. Key Considerations Those identified by airport operators when modifying or Use by Customers adjusting parking rates include Customers can make informed decisions (and be encouraged 1. Cost of public parking at peer airports. to use certain facilities) if they are aware of the cost and level of 2. Cost of parking in downtown areas. service or convenience of each available parking product. 3. Cost of the trip using other access modes, especially taxi- cabs, between the airport and downtown areas. Benefits 4. Length of time since last rate adjustment. Potential benefits are reported to include the ability to 5. Likely length of time until next rate adjustment. maintain or enhance market share and assure that customers 6. Process (if any) to obtain board, commission, or council are provided a choice of parking products even on the busiest approval in a public setting (at airports where such days of the year. Airport management--particularly where approvals are required, rate adjustments are requested less there are no nearby privately operated parking facilities-- frequently than at airports where the airport director or may provide customers with a low-cost parking option to dis- equivalent has the authority to adjust rates). courage or limit competition based solely on price. Implementation Costs Alternatively, an airport operator may choose not to serve a specific customer market if it expects that its operating costs The key costs are for the required staff time and the costs will exceed the potential revenues (e.g., when shuttle bus of changing signs, websites, and other locations where park- operating costs exceed the potential parking revenue). This ing rates are displayed. Modern parking revenue control sys- may occur when an off-airport parking operator is able to tems can easily accommodate changes to rates or hourly time offer very low rates. increments. For example, in 2006, daily parking rates at the long-term Ongoing O&M Costs parking facility at San Francisco International Airport were reduced from $13 to $12 in a market where off-airport park- No O&M costs are associated with maintaining existing ing operators were charging $13 to $15 a day. When airport parking rates or making rate adjustments. rates were reduced, off-airport parking operators responded with coupons and discount programs, but airport manage- Implementation Schedule ment reported that on-airport parking use increased about It is estimated that the total time to implement, including 27% and revenues increased 15% to 20% due to increased the actions required to obtain management approval may be market share.

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104 Guidebook for Evaluating Airport Parking Strategies and Supporting Technologies Implementation Actions F.3 Web-Based Reservations Implementation actions include establishing and adopting Purpose policies addressing parking operations and revenues. Improve customer service by allowing customers to reserve spaces over the Internet. Increase revenues and provide for Key Considerations the prepayment of parking fees. 1. The proportion of parking spaces operated by privately operated parking providers located near the airport and Use by Customers their rates (both published and discount rates). Using an airport operator's website (or a site hosted by a 2. The availability of property near the airport for parking private company on behalf of the airport enterprise), cus- development, both short duration and long duration. tomers choose from a menu of parking options, select, reserve, 3. Management's policy on the extent of cooperation versus and pay for their desired product and any additional services competition with privately operated parking providers in advance, just as they would reserve a rental car, hotel room, near the airport. (Some airport operators, particularly or airline seat. Typically, customers must reserve spaces those with small sites or constrained terminal areas, con- 72 hours in advance of their arrival at the airport. Upon their sider privately operated parking providers to be "partners" return from their trip, customers can exit faster, as their fees with the airport.) were prepaid. Most parking reservation systems require a customer to Implementation Costs prepay using a credit card, which may be verified upon entry The key costs are for required staff time to obtain manage- and exit. The reservation system in use at Manchester Airport ment and board/commission approvals. (U.K.) requires customers to also enter their license plate numbers, which are read by a license plate recognition system (see Section E.6) upon entry and exit, and used to calculate Ongoing O&M Costs parking fees. No ongoing O&M costs are associated with strategic pric- At most airports, customers pay the standard duration- ing initiatives. based parking fees. However, at some airports, customers who prepay receive a discounted fee that may be up to 50% Implementation Schedule less expensive than the standard rate. It is estimated that the total time to implement, including Benefits the actions required to obtain management approval may be from 1 to 12 months or more, depending on the approval Potential benefits are reported to include process and need for public meetings. Increased revenues, because web-based reservation systems Allow airport operators to intercept or attract customers Supporting and Complementary Strategies who might otherwise use the Internet to reserve space at and Technologies in This Guidebook an off-airport parking facility. All duration-based parking products in Category A and It is reported that 80% of airport parking customers Parking Rate Adjustments (F.1). select their parking product prior to arriving at the airport. Promote premium services, including car care services. Examples of Application Customers are likely to purchase a parking product Specific policies regarding strategic parking pricing to com- based on value, even if the price is higher, if they are pete with privately operated parking providers near the airport offered more services or more choices at the time they have been established at the airports serving Albuquerque, make their parking decision. Austin, Dallas/Fort Worth, Norfolk, Raleigh-Durham, Sacra- Improved customer service and convenience, particularly mento, San Francisco, and Tucson. The airports serving at airports where parking facilities (or preferred parking Brussels, Munich, and Paris offer weekly, biweekly, vacation facilities) are frequently full. parking, and other products to attract customers who might Increased awareness, and thus use, of economy or reduced- not otherwise have parked at the airport. rate surface lots.

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Category F: Revenue Enhancement Strategies 105 Increased revenues from customers who prepay for ad- 5. Determine process for identifying entering customers vanced reservations. In addition, some parking operators holding reservations. charge cancellation fees. With one method, customers enter and exit using the Ability to develop a customer database, using reservation credit card used to reserve the space. When customers data, which can be used for marketing, customer feedback, enter, the system recognizes the credit card and grants and other purposes. access to the customer. Upon exit, the system checks the reservation database to ensure that customers have not Implementation Actions exceeded the duration of their reservation. If they have, the system then charges the credit card the appropriate addi- Implementation actions include tional fees. 1. Prepare a benefit-cost analysis comparing the estimated 6. Confirm the reliability and performance history of the increase in parking revenues with the costs of establishing software provider. and maintaining the web-based reservation system. If using software provided by a private party, consider the Implementation Costs costs of this service. Also consider customer service goals and objectives. Costs include those for staff time to design the web page 2. Determine the basic design and content of the website. It and third-party costs incurred to develop the necessary soft- should clearly present a detailed explanation of the prod- ware to manage the website. The costs of developing software ucts and services offered, the standard rates, and available in-house were reported by one operator to be "reasonable." discounts (if any). The operator of Detroit Metropolitan Wayne County Air- 3. Acquire or develop the necessary software to manage the port, which has implemented a web-based reservations sys- website. Several businesses manage airport parking reser- tem for its guaranteed space program (Select Park), paid vation websites for a fee, which eliminates the need to about $418,000 for the necessary software upgrade to its develop an independent website. existing parking revenue control system. 4. Integrate the airport's parking access and revenue control system and audit records with the web-based reservation Ongoing O&M Costs software. 5. Ideally, the website is partnered with complementary web- Ongoing O&M costs are negligible, if performed by airport sites, such as those of the major airlines serving an airport staff (as opposed to by an outside contractor). One private com- or major travel websites (e.g., Orbitz, Expedia, etc.) so pany stated that its standard fees for providing the "engine" for that, when prospective customers are looking for air travel the website, providing airport staff with management reports, or airport services, they will be exposed to the airport and paying website commissions to publicize the service on the parking website. Internet consist of a service fee of $5 per reservation (paid by the 6. Assure that adequate spaces are available for customers customer at the time the reservation is made) plus the parking with reservations. At Manchester Airport (U.K.), about revenues from the first day of parking. Customers using 10% of the total available public parking spaces are typi- AirportParkingReservations.com are charged an $8 service fee. cally dedicated to prepaid web-based reservations. Implementation Schedule Key Considerations It was reported that up to 24 months were required to Those identified by airport operators include acquire and install the reservation system, including obtain- 1. Decide whether or not to integrate valet parking services ing management approval. into the system. 2. Consider allowances for cancellations and any fees for Supporting and Complementary Strategies cancelled reservations. and Technologies in This Guidebook 3. Identify appropriate number of spaces to be set aside for reservations. Monthly Billing--Pay per Use (B.6), 4. Determine whether to charge customers who prebook a Reserved Parking Zone--Pay per Use (B.7), discounted fee. At Manchester Airport (U.K.), the dis- Guaranteed Space--Unlimited Use (B.8), count may be up to 50% less than the standard rate, Vehicle Washing and Servicing (C.1), depending on the facility and the parking duration. Loyalty Programs (C.5),

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106 Guidebook for Evaluating Airport Parking Strategies and Supporting Technologies Use by Customers Using an airport operator's website (or a site hosted by a private company on behalf of the airport operator), cus- tomers select, reserve, and pay in advance for the desired parking product and services (as they would with any web- based reservation system). Upon returning from their trip, customers can exit faster, because they have prepaid. With yield management, the fee that a customer is quoted varies depending on when the reservation is made and the number of spaces available (or expected to be available)-- unlike traditional fixed-fee parking products. Typically, the Source: British Airports Authority. parking rate increases as the arrival date approaches and the Figure F.3. Home page of British Airports Authority's predicted occupancy of the facility nears capacity. Web-based parking reservation system. Benefits Credit Card In/Out (E.2), License Plate Recognition (E.6), Potential benefits are reported to include Parking Rate Adjustments (F.1), and Increased revenues, similar to the improvements experi- Yield Management (F.4). enced by other travel-oriented businesses that have used yield management techniques (e.g., airlines, rental car Examples of Application companies, and hotel operators). Data on the extent of the Customers can reserve parking spaces at the airport serv- revenue increases were not available from individual air- ing Detroit (scheduled for summer 2009) and at many Euro- port operators. pean airports, including those serving Dublin, Frankfurt, Managed demand by adjusting daily rates to attract or dis- London, Manchester, Munich, Paris, and other airports oper- courage additional customers. ated by BAA plc, and at many privately operated off-airport Improved service (reduced costs) to those customers who parking facilities throughout North America. reserve spaces in advance. Improved revenue because customers are more likely to An example of a privately hosted site is AirportParking request additional value-added services. Reservations.com (which serves privately operated off-airport parking facilities) and its subsidiary ParkingUSA.com (which Implementation Actions intends to serve airport-operated parking facilities). The man- agement of ParkingUSA indicates that its services were briefly Implementation actions are reported to include used on a test basis at Fort Lauderdale/Hollywood International 1. Decide whether to acquire the necessary software or Airport, and that negotiations with several airport operators develop the software using in-house resources. Most air- were under way at the time this report was prepared. port operators use commercially available software, but Some websites (e.g., the sites maintained by Aeroports de Fraport AG, the operator of Frankfurt Airport, developed Paris for Charles de Gaulle International and Orly airports) their software in-house. display not only parking rates and reservation information, 2. Issue an RFP or request for bids to vendors qualified to but also travel times, walking distances, and the availability furnish the software or to operate the yield management and frequency of bus or people-mover service for each park- system on behalf of the airport. ing product. See Figure F.3. 3. Integrate the airport's parking access and revenue control system and audit records with the web-based reservation software. F.4 Yield Management 4. Use historical parking activity data and airline passenger data to forecast parking demand, then compare the fore- Purpose casts with actual demand on a real-time basis. Adjust rates Enhance revenues by varying the cost of parking to reflect as necessary to manage demand to maximize revenues or actual or predicted space availability and customer demand. balance the use of available facilities.

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Category F: Revenue Enhancement Strategies 107 5. Modify the (existing) web-based reservation system to that can require several months or more. With a yield accommodate yield management. management program, the airport parking operator must have the authority to vary the rates instantaneously (within Key Considerations a fixed range) without prior approval of the board or commission. Those identified by airport operators include 1. System requirements. Requires a web-based reservation Implementation Costs system. Web-based reservations are a natural introduction Implementation costs are expected to be limited to the to this product. costs of implementing a web-based reservation system. 2. Audit management. Auditors at one airport were con- cerned because, with variable pricing/yield management, the revenue associated with each ticket varies not only by Ongoing O&M Costs parking duration and location, as with a static ticket, but Ongoing O&M costs are associated, initially, with one staff also according to the date/time the ticket was issued. member being available to predict daily space occupancies Vendors indicate that available software addresses this and determine future rates, but this task can be increasingly concern. automated. Alternatively, the services of a software vendor or 3. Customer confusion and potential dissatisfaction. Some third-party contractor can be used. The costs of these services operators were concerned that customers used to static were unavailable. prices may not understand why they are not quoted the same rate every time they use a parking facility. However, Implementation Schedule the airline, hotel, and rental car industries appear to have addressed this issue. It is estimated that implementation, assuming that a reliable 4. Prior approval of rate changes. At most publicly oper- web-based reservation system is already in operation, may ated airports, changes in parking rates must first be require 6 months or more depending on the time required to approved by an airport board or commission--a process obtain management approval. Source: Frankfurt Airport. Figure F.4. Home page of Frankfurt Airport's parking reservation webpage, which varies (or manages) parking rates in response to anticipated customer demand.

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108 Guidebook for Evaluating Airport Parking Strategies and Supporting Technologies Supporting and Complementary Strategies Increased revenues by encouraging customers to move "up and Technologies in This Guidebook market" by allowing them to try, and hopefully continue to use, a higher-priced product. Monthly Billing--Pay per Use (B.6), For example, to promote the use of a premium parking Reserved Parking Zone--Pay per Use (B.7), product, Dallas/Fort Worth (DFW) staff regularly issue dis- Guaranteed Space--Unlimited Use (B.8), count coupons to customers exiting lower priced parking Loyalty Programs (C.5), products. These coupons allow customers to park in a pre- Credit Card In/Out (E.2), mium area at a cost that is only slightly greater than what Web-Based Reservations (F.3). they just paid for parking in an economy area. Follow-up interviews indicated that 10% to 30% of the customers, Examples of Application depending on which parking product they formerly used, Airports where yield management is implemented include reported that they were likely to use the premium product Frankfurt Airport (software developed in-house), several air- again. ports in the United Kingdom (e.g., Glasgow-Prestwick, Increased awareness of airport parking products (e.g., Leeds-Bradford), and the airport serving Copenhagen. The when coupons are for a specific product). services of Chauntry, Ltd. are used at each of these airports, Encouraged use of "park and stay" versus "pick up/drop off" with the exception of Frankfurt Airport (see Figure F.4), to (patrons parking for less than 30 minutes) by distributing develop and host the website for the airport parking reserva- coupons to these customers. tion system and to furnish the dynamic pricing software. At DFW, over 150,000 discount coupons were distrib- uted to short-duration parkers with 3% returned (i.e., used Examples of parking facilities using yield management can by customers). Analysis of parking data indicated that this also be found in downtown locations or locations serving spe- resulted in a reduction in drop off/pick up customers and cial events. Rates in facilities serving downtown areas or special about a 5% increase in parking revenues. events may be adjusted based on the operator's experience, and Improved customer service by providing compensation to may not be linked to a web-based reservation system; therefore, customers required to use less convenient parking when they typically do not require the sophisticated yield manage- preferred parking areas are full. ment software that may be required of an airport application. Improved customer database (when coupons are offered via the Internet), which can be used to market to targeted customers or assess customer opinions of existing or pro- F.5 Coupons posed parking products. Purpose Implementation Actions Enhance revenues by increasing market share. Improve customer service. Implementation actions were reported to include 1. Determine which parking product(s) to promote and Use by Customers develop, and issue coupons directed toward the intended Customers may obtain airport parking coupons from an air- customers (e.g., curbside users). port website (increasingly popular), direct mail (e.g., Valpak), 2. Determine amount of discount. Typically coupons offer travel agents, airport staff (as they enter or exit a parking facil- a 10% discount, a seventh day free, or a discount of $3 ity), or other sources. Some parking operators accept coupons or less. issued by competitors. When opening parking facilities at new 3. Offer coupons through the airport website. Coupons can locations, some operators (particularly private businesses) be issued by sequential number, by e-mailing coupons to offer discounts to customers who present a receipt demon- customers upon request, or by allowing customers to print strating that they previously used a competitive product. their own coupons. 4. Assure that the parking revenue control system can accept Benefits coupons. 5. Develop a method for cashiers to validate coupons and Potential benefits as reported by airport operators include assure that they cannot be reused improperly. Improved market share and, therefore, revenues, particu- 6. Determine the duration of the coupon program. Often larly at airports where off-airport parking providers serve coupons are used for a brief promotional period, although a large share of the total market. some parking facilities have permanent coupon programs.

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Category F: Revenue Enhancement Strategies 109 Key Considerations Implementation Costs Those identified by airport operators include The costs of implementation are reported to be minimal. The primary costs are for printing, advertising, distributing the 1. Compatibility with the revenue control system. coupons, and--most importantly--the revenues "lost" because 2. Days of the week when coupons are to be issued. Many customers are able to park at reduced rates. Several airport airport operators issue tickets that are good for all dates. operators believe that they were compensated for lost revenues Others issue coupons good for specific dates to target spe- by increased market shares or customers moving up-market. cific markets (e.g., midweek business travelers). 3. Use of staff to issue discount coupons to existing cus- Ongoing O&M Costs tomers rather than distributing coupons through the Internet or other means. DFW management believes that Ongoing O&M costs are reported to be minimal. Printing issuing discount coupons to existing customers allows (e.g., if coupons are to be distributed through a service like Val- coupons to be issued to "targeted" markets, and results in pak), distributing, and managing the coupon system (including greater trust as customers tend to trust people handing out distributing coupons to existing customers) are typically the coupons who can answer questions and give them "peace responsibility of current staff. of mind," versus electronic distribution methods. 4. Some airport operators have experienced difficulty when Implementation Schedule the airport marketing department, rather than the park- It is estimated that the total time to implement, including ing department, was responsible for managing a parking obtaining management approval is about 4 months. coupon program, since marketing staff may not be sensi- tive to parking operations or customer needs. 5. Some airport operators have experienced difficulty when Supporting and Complementary Strategies the parking management contractor or concessionaire, and Technologies in This Guidebook rather than airport staff, were responsible for overseeing a Daily Parking (A.2), coupon program, since these companies may have differ- Economy/Long-Duration Parking (A.3), ent objectives than the airport operator. Business Parking (B.5), 6. There is a risk to revenues if coupons are not properly Reserved Parking Zone--Pay per Use (B.7), and managed and secured. Loyalty Programs (C.5). Source: Dallas/Fort Worth International Airport. Source: AMPCO. Figure F.5a. Parking coupon. Figure F.5b. Parking discount coupon.

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110 Guidebook for Evaluating Airport Parking Strategies and Supporting Technologies Examples of Application Increased airport revenues, while requiring little invest- ment by the airport operator. Airports where coupons are issued include those serving Improved customer service, if wayfinding is improved by Baltimore, Cincinnati, Dallas/Fort Worth, and Omaha. the use of facility names or visual clues provided by Customers purchasing a ticket through the airport website advertisement(s). at Capital Region International Airport (Lansing, MI) receive a coupon for a 50% discount off their airport park- Implementation Actions ing fees. Web-based coupons were issued at San Francisco and Oakland International Airports, but they were discon- Implementation actions are reported to include tinued because of management changes. See Figures F.5a 1. Document the volume of customers using the parking and F.5b. facility on a daily or annual basis. Document the demo- graphics (e.g., average household income, trip purpose, place of residence) of the typical customer who will be F.6 Advertising Sales--Interior, exposed to the advertisements. Exterior, Tickets, 2. Determine the type and extent of advertisements. Some and Equipment airport operators prefer to limit advertisements because Purpose of concerns about aesthetics or visual distractions, while others seek to maximize revenue opportunities. Increase revenues by increasing customer awareness of, 3. Determine if the existing advertising concessionaire (e.g., and willingness to use, airport parking products. the company responsible for soliciting and placing adver- tisements inside the terminal) has rights to advertisements Use by Customers placed in or on parking facilities. 4. Develop an RFP or bid document describing proposed Airport parking facilities are viewed by thousands of airline business terms/concession fees. Concession fees for in- passengers and parking customers each day. The average terminal advertisements are typically 50% to 75% of gross income of airline passengers is greater than that of the general public and many passengers are decision makers for busi- revenues. nesses, government agencies, and other institutions. Thus, 5. Establish an advertising policy if one does not already these customers represent an attractive market for companies exist. It is important to establish a policy indicating those wishing to advertise their products and services, and willing products, services, and messages that the airport operator to lease highly visible space on an airport to do so. will not allow to be advertised or displayed. 6. Solicit bids or proposals and award the concession Advertisements can be placed within parking facilities on contract. interior walls (e.g., in high-traffic areas, including walls and elevator doors); on exterior walls (e.g., parking wraps or Key Considerations three-dimensional objects); on the reverse side of parking tickets and receipts; on the reverse side of space reminder Those identified by airport operators include cards; on gate arms or other parking equipment; or on park- 1. Amount of rent. The airport operator may wish to consider ing stripes, parking barriers, or other locations within a park- ing facility. Advertisements also can be placed within airport charging lower concession fees if it wishes to maintain parking shuttle buses. In addition, an airport operator can sell design control, if the installation will require construction, the naming rights to a parking facility (e.g., Charlotte Dou- or if the airport operator wishes to have ultimate owner- glas International Airport's T-Mobile Cell Phone Lot) or a ship of the new fixture(s). Alternatively, lower rents can be single level. charged during the initial months to allow the advertiser to recoup its investment. 2. Length of term. As with in-terminal and other conces- Benefits sion contracts, the length of the term should be consis- Potential benefits are reported to include tent with the amount of the investment required by the concessionaire. Increased revenue without the need to adjust parking rates. The Greater Toronto Airports Authority receives about The Greater Toronto Airports Authority receives 40% of CAN $36,000 per year from advertisements placed on gate the revenues derived from column wraps and pavement arms, column wraps, and pavement stripes. stripes, and 40%--increasing over the term of the agreement

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Category F: Revenue Enhancement Strategies 111 to 50%--of the revenues derived from advertisements on gate arms. Implementation Costs Implementation costs are minimal, since they typically are borne by the concessionaire. Ongoing O&M Costs There are no ongoing O&M costs, as they are the respon- sibility of the concessionaire. Implementation Schedule It is estimated that the total time to implement, including Source: Jacobs Consultancy. obtaining management approval would be less than 4 months Figure F.6b. Honolulu International Airport. depending on the time required to prepare, advertise, and award a concession contract. other overseas locations than they are at U.S. airports. Exam- Supporting and Complementary Strategies ples of North American airports with advertising concessions and Technologies in This Guidebook include Space Locators (D.9) and 1. Interior walls and/or column wraps--Honolulu Interna- Branding (F.7). tional Airport and Toronto's Pearson International Airport. 2. Exterior walls--New York's LaGuardia Airport (faade of Examples of Application Central Garage facing Grand Central Parkway) and San Francisco International Airport (exterior of an elevator/ Many airports have advertisements or promotions for stair core). Non-airport garages also display advertise- airport-owned concessions, airlines, or other services within ments on exterior walls (Figure F.6c). parking facilities (see Figures F.6a and F.6b). Advertising dis- 3. Reverse side of parking tickets--Orlando International plays in parking facilities are more common in Europe and Airport and numerous non-airport locations. Source: Jacobs Consultancy. Source: AP Photo/Mark Duncan. Figure F.6a. Athens International Airport. Figure F.6c. Quicken Loans Arena in Cleveland.

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112 Guidebook for Evaluating Airport Parking Strategies and Supporting Technologies 4. Reverse side of space reminder cards--San Francisco Inter- Names of animals (Coyote Lot, Dolphin Garage), local fea- national Airport. tures (Mt. Elbert, Blue Deck), or street names (Terminal Road 5. Gate arms or other parking equipment--Toronto's Pear- Garage) help customers remember where they parked, but son, Calgary, and Vancouver international airports. do not indicate the value of a product or distinguish it from 6. Parking barriers and pavement markings--No airports other parking options. Similarly, names such as Fast Class or where advertisements are placed on wheel stops or barriers Peanut Lot do not clearly indicate the product offered. or pavement markings were identified, but such advertise- ments are placed in parking lots serving grocery stores, Benefits drugstore chains, entertainment venues, big-box electronic Potential benefits are reported to include stores, and home and hardware stores. 7. Naming rights--Several airport operators have sold nam- Distinguished parking products (both on and off airport). ing rights for an entire parking facility (e.g., the T-Mobile Conveyed level of service and convenience offered, if Cell Phone Lot at Charlotte Douglas International Air- named properly. port) or for portions of a parking facility (e.g., previously, Improved wayfinding by helping customers recall where each level of a parking structure at McCarran International they parked. Airport). Implementation Actions Implementation actions include F.7 Branding 1. Determine what customers want (e.g., type of product) Purpose and select potential product name(s) that respond to cus- Improve revenues by using name brand(s) to help cus- tomer preferences (e.g., cost, convenience, covered spaces) tomers select from available parking products located on and and wayfinding needs. off the airport. Improve wayfinding by helping customers 2. Consider whether to brand a single product or the entire recall where they parked their vehicles. menu of available parking products. 3. Determine the product's distinguishing features and select a large number of potential names. Use by Customers 4. Test these names with persons who are not familiar with There are two distinct types of branding. The first is the use the parking facilities (e.g., use a focus group) and select the of a name that clearly conveys the product being offered. The preferred name. second is the use of a name that will help customers remem- Often the services of an advertising or marketing firm are ber where they parked. used to supplement those of airport staff. 1. Product offering. Branding should convey the perceived value or benefit of a product. The brand name should help Key Considerations customers understand how a product differs from other It is reported that considerations when branding a product available products. include For example, names such as Red Lot, Lot D, East Lot, or Satellite Parking do not indicate how a parking facility dif- 1. Make it easy to remember and recognize the product. fers from other options. Names such as Remote Parking or 2. Attract attention. Shuttle Parking may be accurate, but may not convey a 3. Suggest product benefits or suggest use. positive message, while a Park 'n Ride Lot can easily be 4. Distinguish the product from the competition. confused with a commuter parking lot. Generally, Econ- For example, private operators have selected brand names omy Parking or Discount Parking is preferred. Using the such as Park'n'Fly, Easy Park, FastPark, Parking Spot, or airport's call sign in the brand can also be useful (e.g., Express Park. The airport parking facility brand names most ParkSFO, DIAPark). It should be noted that these specific commonly used are Hourly, Daily, and Economy Parking. examples are privately operated lots. 2. Wayfinding. Use of a naming convention helps customers Implementation Costs remember where they parked within a large facility. Com- binations of colors, symbols (e.g., flowers or animals), and The primary costs are reported to be for the time of staff or numbers are often used to support wayfinding. marketing consultants who select the name(s) and the costs

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Category F: Revenue Enhancement Strategies 113 of signs, advertisements, or websites used to promote the names. Wayfinding names are generally selected during the design of a new or modified parking facility, with the costs of installation included in the construction costs. Ongoing O&M Costs Ongoing O&M costs are minimal. Implementation Schedule The implementation schedule can vary from 1 month to 6 months or more, depending on the number of people who must approve the names. Supporting and Complementary Strategies Figure F.7a. Charles de Gaulle International Airport. and Technologies in This Guidebook All duration-based parking products in Category A, All value-added parking products in Category B, Vehicle Washing and Servicing (C.1), Source: Jacobs Consultancy. Figure F.7b. Chicago O'Hare International Airport. Source: Jacobs Consultancy. Figure F.7c. Chicago O'Hare International Airport.

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114 Guidebook for Evaluating Airport Parking Strategies and Supporting Technologies Concierge Services (C.2), to prepare a marketing plan. Numerous widely available books, Onsite Sale of Food, Beverages, and Other Products (C.3), articles, and other publications address these topics. Pre-Ordered In-Flight Meals to Go (C.4), A marketing strategy provides a comprehensive plan Loyalty Programs (Frequent Parker Programs) (C.5), that, when implemented, allows an airport operator to Pet Kennels (C.8), make the choices that will achieve its overall objectives Shaded Spaces (C.9), and (e.g., balance between improved customer service and Electric Charging Stations (C.11). improved net revenues). Since a single airport parking product cannot meet the price and service preferences of all Examples of Application customers, the marketing strategy determines which cus- tomers the airport operator wishes to target with each prod- All airport parking products have brands and names (see uct, the value it will deliver from these customers, and the Figures F.7a through F.7c). Many have distinctive names for tactical marketing mix. the value-added or complementary products they offer. Air- ports with distinctive names for duration-based parking The tactical marketing mix--"the four Ps" of marketing-- products include are product, pricing, placement, and promotion. As applied to airport public parking operations, a marketing plan provides George Bush Intercontinental Airport's Parking Cents in a comprehensive strategic plan addressing the following: Houston; Chicago O'Hare International Airport, where each level of 1. Product--An airport parking product consists of a blend the central parking garage is named after a local profes- of duration-based parking products (i.e., the strategies sional sports team; included in Category A) plus value-added products (Cat- Lambert St. Louis International Airport's SurePark; egory B) and complementary customer services (Cate- Minneapolis-St. Paul International Airport's MSP Value gory C). Parking products are designed based on an Parking at the Humphrey Terminal; and airport operator's analysis of its customers' needs and Toronto's Pearson International Airport Discount Parking. preferences, demographics, responses to changes in cost and convenience, and historical daily and seasonal varia- tions in demand. F.8 Marketing 2. Pricing--As applied to airport parking, pricing is the parking rate(s) (or adjustments to existing rates). These Purpose rates can be established tactically or strategically (see Sec- Increase revenues by creating high-value, but appropri- tions F.1 and F.2). ately priced parking products, and by communicating the 3. Placement--Placement refers to how the product is deliv- ered to the customer and the environment in which the availability of these products to prospective customers. product is sold. Airport operators have long recognized the importance of (a) locating public parking within a Use by Customers short walk of the terminal (or providing courtesy shuttle service), (b) assuring that customers encounter minimal Unlike many other strategies described in this report, cus- or no delays upon entering and exiting the parking facili- tomers do not "use" marketing, but marketing improves ties, (c) locating parking at sites that are readily accessible customer awareness of the available products and allows cus- and visible from the airport entry road, and (d) assuring tomers to benefit (i.e., make informed choices) by using the the safety of customers and their vehicles. information provided. 4. Promotion--As applied to parking, promotion refers to various methods of promoting the product, including a Benefits combination of advertising (Section F.6) and branding Potential benefits include improved revenues, market (Section F.7), potentially supported by web-based reser- share, and customer service. vations (Section F.3) and coupons (Section F.5). A standard marketing plan addresses Implementation Actions Objective--The relative goals and objectives of the airport This brief summary is not intended to present a comprehen- operator (e.g., improve customer service, enhance rev- sive description of a marketing program, or the steps required enues, reduce operating costs).

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Category F: Revenue Enhancement Strategies 115 Issues and Analysis--An assessment of the current situa- 4. Determine the perception of customers using competing tion (strengths, weaknesses, opportunities, and threats), products. including historical and forecast revenues, transactions, 5. Design and implement the marketing plan. space occupancies, market shares, and potential factors 6. Test the results of the marketing plan and modify or ter- that may alter historical trends. minate as appropriate. Strategy--The marketing and financial objectives that, if achieved, will comply with the goals of the airport operator. Implementation Costs Implementation--The specific actions to be performed to The costs of developing and implementing a marketing achieve the airport operator's objectives, and the schedule plan are highly variable, depending on the size of the airport, for implementing these actions, including changing the the local market, and the selected marketing plan. Preparing existing product mix (if appropriate). a marketing plan may cost from $25,000 to over $100,000, excluding advertising costs. Potential methods to promote products include 1. Sponsorship of public radio programs and advertising Ongoing O&M Costs during popular sporting events. 2. E-mails to frequent flyers (particularly at airports with a Ongoing O&M costs may include costs for regular cus- dominant hubbing airline). tomer surveys and periodic updating of written/broadcast 3. Airport websites. messages. 4. Billboards located along airport access roadways and within parking facilities. Implementation Schedule 5. Display of messages on the exterior of airport parking shuttle buses. It is estimated that the total time to conduct and imple- 6. Discount coupons (see Section F.5). ment a marketing plan, including obtaining management approval of the results, may be 3 to 6 months. Key Considerations Supporting and Complementary Strategies Those identified by airport operators include and Technologies in This Guidebook 1. Establish and document management goals and objec- Nearly every strategy described in this report could be tives, and a marketing budget. included in a marketing plan. 2. Determine if the airport operator's advertising and/or marketing consultant has had prior experience with park- ing facilities. Examples of Application 3. Determine customer perceptions of existing products, Airports where marketing plans have been implemented parking needs and desires, and evaluation of potential include those serving Atlanta, Houston, San Francisco, and products. many others.