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24 One method of developing goals and objectives and prior- Net Revenues itizing them is to compile a list of questions or scenarios to Net fees derived from public parking operations typically explore, have staff and executives consider them, and then work are a key revenue source available to repay debt service result- together to develop and prioritize them. Examples of questions ing from revenue bonds issued to fund airport capital expan- that may be considered in this process include the following: sion projects. As such, airport operators often look to increase parking-derived revenue streams in order to retire bond obli- · Is the airport operator obligated or inclined to provide a gations used to finance capital programs. parking space for every customer that desires one, includ- Many parking-related capital projects do not have comple- ing a space within the facility in which the customer wishes mentary, direct supporting revenue streams (e.g., service area to park? improvements and public roadway upgrades, among others) · What are the financial implications and tolerance levels for or adequate supporting revenue streams (e.g., employee park- losing parking market share to private parking operators? ing facilities). Net revenue generation must take into account Have concerns about the loss of market share caused the the ability to support those types of projects as well as direct airport operator to be tentative in its approach to address- revenue producing capital projects. Additionally, rather than ing on-airport parking constraints? simply covering the capital or operational requirements for · What is the relationship between customer convenience and parking and related facilities, net parking revenues could be a net revenue? significant source for repayment of other airport debt and · What role should the airport operator play in providing operating expenses. employee parking facilities? Net revenues derived from parking are directly related to · Where is the best location for public parking versus rental parking system operating expenses. Managing operating car ready/return and quick turn-around areas? expenses is one way an airport operator can improve margins · Is improved customer service for resident O&D passengers (net revenues) without increasing gross revenues (i.e., raising a higher priority than the convenience of picking up a rental parking rates) generated by the parking system. Key operating car for nonresident O&D passengers? expenses at most airports include direct and allocated indirect · Should the pricing of public or employee parking be used expenditures and costs associated with shuttle bus operations. as a tool to influence demand? If pricing has been used to Ironically, shuttle bus operations often represent one of the influence demand, has it been used effectively? largest recurring operating expenses for an airport parking sys- · Is a comprehensive approach being taken for providing tem, yet only serve parkers who choose the lowest cost parking public or employee parking in relation to overall policies for option (remote parking products) available. Therefore, remote airport ground access and land use, including the establish- parking products typically have the lowest net revenue margins. ment of the highest and best use of available land? · What is the tolerance for capital investment in the parking program in relation to the overall CIP for the airport? Costs · What is the return on investment for expanding existing Operating cost efficiencies enable the airport operator to parking facilities and what are the options? realize higher net revenues or to contain parking rates. Man- aging constrained parking with temporary solutions often Considerations in developing goals and objectives related to involves additional personnel, busing costs, and other operat- the provision and management of public or employee parking ing costs. There may be a breakeven point where the costs to in relation to financial, customer service, traffic management provide the temporary solutions are better applied to perma- and mode share, environmental, and land-use objectives are nent solutions, such as new technology or additional capacity. presented in the following sections. An example would be an airport where a remote parcel of prop- erty is used as temporary overflow parking 20 days per year. Financial Objectives The revenue from the overflow parking versus labor, busing, and other operating costs expended would be compared to the Financial objectives may be related to net revenue, operat- net revenue of developing a permanent solution. The net rev- ing and capital costs, and financing (i.e., the ability to borrow enues from the overflow operation compared with the net rev- money for CIPs). Parking rates should be developed based on enues from the potential permanent solutions would provide financial objectives, as well as other objectives, considering the answer. the perceived or actual price tolerance of airline passenger As mentioned in the previous discussion of net revenues, and employee parking customers. The provision of additional the airport operator's goals and objectives regarding financial capacity or new parking products, or the implementation of performance in relation to capital costs is important, such as new technology all will be influenced by financial objectives. the rate of return from a new facility, the timeframe for a new