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OCR for page 34
34 Varying Parking Supply Allocation at Tulsa International Airport A total of 1,929 spaces are offered in the short-term and long-term parking facilities in the ter- minal area at Tulsa International Airport. Of these 1,929 spaces, 111 spaces can be designated for either short-term or long-term parking depending on what the Tulsa Airport Authority deter- mines is needed to accommodate parking demand. The designation of these spaces is controlled by adding or removing signs. (15 ) parking customers most of the time. Another solution is to parking customers and parking revenues to privately oper- dynamically vary the allocation of parking space in response ated off-airport facilities or may result in shifts of parkers to to changes in demand through the use of variable signage, the being picked up and dropped off by private automobile and use of movable barriers, or the designation of "swing" spaces other single-party drop-off modes, which would add traffic that can be used for either long-term or short-term parking. to the terminal roadway system. In addition, political consid- erations may be an impediment to raising public parking rates significantly or frequently. Adjust Parking Rates The approach to adjusting parking rates varies from airport Parking rates can be adjusted to balance demand among to airport based on the nature of the problem the rate adjust- facilities, reduce demand for a specific facility, or reduce ments are intended to address, the desired change in customer demand for the entire public parking supply. A curbside behavior, and the airport operator's ability or willingness to drop-off fee is another potential strategy that may influence change the parking rate structure. Examples of ways that rates parking demand. Several parking rate strategies, as well as may be set or adjusted to influence behavior include the the potential for a curbside drop-off fee, are discussed in following: this section. Charge a higher daily rate for short-term parking compared to the daily rate for facilities designated for long-term park- Traditional Parking Rates ing. This price differential is intended to discourage long- Traditional parking rates may be adjusted as a means to duration parking in the short-term parking area. shift passenger parking demand among facilities or to reduce Charge a higher hourly rate in the long-term parking facility the demand for parking. Such adjustments are typically compared to the hourly parking rate in the short-term park- based on a detailed analysis of the relationship between park- ing facility. This price differential is intended to discourage ing transactions, demand, and revenue as they are affected short-duration parking in the long-term parking area. by relative changes in hourly and daily rates within a facil- Charge only a daily rate in the long-term parking facility ity, between parking products, and between on-airport and and charge an hourly rate in the short-term parking facility off-airport facilities. Alternatively, the adjustment may be to discourage short-duration parking in long-term parking based on an assessment of what the market will bear. A com- facilities. mon concern among airport operators is that a dramatic Increase the differential between the daily rate in the termi- increase in parking rates may result in a significant loss of nal area parking facility and the daily rate in the remote Reallocation of Valet Parking to Other Parking Products at Seattle-Tacoma International Airport In 2007, the Port of Seattle reallocated parking spaces at Seattle-Tacoma International Airport. The reallocation has resulted in more efficient use of hourly (short-term) parking, long-term park- ing, premium parking, and employee parking products. Valet parking was eliminated a few months before this reallocation because it was not well utilized. The reallocation of valet parking to other uses had virtually no effect on traffic, vehicle emissions, or customer service because its elimination affected a small customer base. (6 )

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35 Rate Changes to Shift Passenger Demand at Miami International Airport Parking rate changes at Miami International Airport require the approval of the Miami-Dade Aviation Department (MDAD) Board. In 2006, MDAD increased the daily rates at the airport's short-term parking facility from $25 to $30 (20%) and expanded the rate schedule for the long- term parking facility to provide a fee for the fifth hour of parking (effectively raising the daily rate from $12 to $15 [25%] with no adjustments to rates for the first 4 h of parking). These rate increases were intended to discourage long-duration parking in the short-term parking facility; however, MDAD staff does not believe the desired shift in parking behavior was achieved. Revenue increased at both facilities. (4) Rate Changes to Shift Passenger Demand at Port Columbus International Airport In 2008, the daily rate in the long-term parking garage in the terminal area at Port Columbus International Airport was increased from $15 to $17; the daily rate in the economy lots was not raised. The intent of this rate change was to shift demand from the long-term parking garage to the economy lots. Columbus Regional Airport Authority staff do not believe that this rate increase resulted in a shift in demand, but parking revenues did increase. (11) Rate Changes to Shift Passenger Demand at Huntsville International Airport The Huntsville/Madison County Airport Authority adjusted the daily rate for short-term parking at Huntsville International Airport twice to resolve a capacity constraint at the short-term (hourly) parking facility and to increase revenues generated at this facility. The daily rate for short-term parking was increased from $12 to $18 in 2004 and from $18 to $24 in 2006, while the daily rates for long-term and economy parking were increased from $8 to $9 and from $6 to $7, respectively, in 2004 and held constant in 2006. Authority staff believe that the 2004 rate change led to a small short-term shift in demand, while the 2006 rate change led to a long-term shift in demand that achieved the desired results. (14) parking facility to influence some price-sensitive long-term ities. Differential rates may be charged to accommodate peak parkers to shift to remote parking. travel times of different customer groups or to adjust imbal- Charge only a daily rate for valet parking to address a con- anced demand between facilities. Examples could include offer- straint in terminal area long-term facilities if the intent of ing a different daily rate depending on the day of the week a valet parking is to accommodate demand for long-duration parking customer enters the facility, the number of days a park- parking in a convenient terminal area location. A daily rate ing customer parks in the facility, or the specific dates a parking would discourage short-duration valet parking. The daily customer parks in the facility. Implementation of this strategy rate for valet parking may be set in relation to the daily ter- requires the airport operator to have a parking revenue control minal area parking rate and may be lower, equivalent, or system in place that is capable of processing differential rates. higher than that rate depending on the desired behavioral Approaches to charging differential rates vary with the change. nature of the issue to be resolved, the desired change in behav- ior, and the airport operator's ability or willingness to change Differential Parking Rates the parking rate structure. The best approach depends upon the goal of the airport operator (e.g., maximizing revenues ver- Different parking rates may be charged in the same facility to sus managing the demand for parking). Examples of the imple- influence demand for a facility or balance demand among facil- mentation of differential rates for parking at an airport were