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36 not identified in this research; however, the following examples ence parking behavior to better balance demand between describe how rates may be set or adjusted to influence cus- parking facilities. It also would provide the airport operator tomer behavior in addressing constrained parking: with parking reservations data as a basis for estimating demand in advance of busy parking periods, and provide the airport If the economy parking supply is constrained during week- operator with historical information as input to forecasting ends and terminal area parking is typically busy on weekdays future demand. Implementing variable rate parking strategies and underutilized on weekends, the daily rate in the termi- requires the airport operator to have a parking revenue con- nal area could be set to be equivalent to the daily rate for trol system in place that is capable of processing the variable economy parking for a customer entering the terminal area rate structure. facility on a Friday and departing prior to Monday morning. This approach would provide an incentive for the weekend Curbside Drop-Off Fee leisure traveler to use terminal area parking, while ensuring that the price-sensitive traveler will continue to patronize An airport operator can implement a curbside drop-off fee economy parking on weekdays. The pricing structure in the to enhance the effectiveness of other strategies aimed at reliev- terminal area facility would ensure that space would be pre- ing constrained parking by reducing the potential mode shift served for the weekday customer base. from parking to the use of curbside pickup and drop-off If terminal area parking is constrained because of a high modes. As an example, vehicles entering Dallas/Fort Worth percentage of automobiles parked for a duration exceeding International Airport are charged a fee to access the airport a certain number of days (a threshold), while a significant roadways that serve the terminal curbsides and parking percentage of those automobiles are parked for a duration facilities; however, it should be noted that this fee was not below the threshold, the daily rate could be adjusted to be implemented to address a constrained parking condition, significantly higher for durations longer than the thresh- but serves as an example of how a curbside drop-off fee old. For example, if 80% of exiting vehicles were parked for could be implemented. For this strategy to be implemented less than 3 days, and the remaining 20% were parked for effectively, an airport must be configured in a way that 3 days or more, the daily rate may be set lower for stays of less allows such a fee to be collected from curbside users and the than 3 days, and much higher for stays of 3 days or more. The regulatory environment must allow the airport operator to daily rate for economy parking would be set in relation to the collect this fee. rates for terminal area parking to further encourage cus- tomers who park for 3 days or more to use economy parking. Introduce Technology Improvements The introduction of technology can be effective in manag- Variable Parking Rates ing constrained parking by allowing for better facility use or Setting a variable daily parking rate schedule is similar to the by providing parking customers with information about air- yield management systems used by airlines and hotels. Under port parking based on availability in advance of their arrival at this rate scheme, airline passengers may reserve a space at a the airport. facility in advance, which may be offered at a different rate than the rate charged they if they arrived at the parking facility with- Automated Parking Guidance Systems out a reservation. Therefore, similar to the experience of airline passengers or hotel customers, two vehicles parked side by side When a parking facility reaches its functional capacity (i.e., in the same facility may be charged different parking rates. approximately 85% to 95% occupancy), airport operators Within a facility, parking rates may vary by length of stay, by typically will deploy staff to assist customers in finding parking season, and by when (i.e., how early) the customer makes a spaces or close the facility and redirect customers to another reservation for a parking space. In addition, the price differen- facility to avoid excessive recirculation within the near-capacity tial between facilities may be dynamic. Parking rates are based facility and resulting customer frustration. The first alternative on forecasts of parking demand and parking occupancy, and (assisting customers in finding parking spaces) is costly--it may be set based on experience with parking demand on vari- either adds overtime hours or draws staff away from other impor- ous days of the week and times of the year or through a more tant duties. The second alternative (redirecting customers to complex parking demand forecasting effort. Parking reserved another facility) results in a facility not reaching its maximum in advance would be prepaid, and may be nonrefundable or revenue potential and may still require overtime hours for subject to a cancellation penalty. management. The intent and value of charging variable parking rates in Parking space location technology, also referred to as auto- the context of constrained airport parking would be to influ- mated parking guidance systems (APGS), provides customers

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37 Variable Parking Rates at Manchester Airport, United Kingdom Airline customers at Manchester Airport in the United Kingdom may reserve a space at a specific parking facility in advance under a variable pricing scheme, or they may pay a daily rate to park when arriving at the airport, referred to as "turn up and park." The rates offered for reserving a space in advance may be 50% lower than the turn up and park rates. The table below provides the quoted advanced-booking parking rates by facility for a weekday trip and a weekend trip in Feb- ruary 2010, and for a weekend trip in August 2010, as well as the turn up and park rates for those facilities where this option is available. Quotes for each trip were obtained in mid-November 2009, early December 2009, and early February 2010. The rate quoted for Multi-Storey Short Stay parking differed between the two trips in February 2010 when quoted on November 12, 2009. The Multi-Storey Short Stay, Long Stay, and Shuttle Park rates for the same trip in February differed between reservation dates. Advanced booking rates were significantly lower than the turn up and park rates for those facilities that offer the turn up and park option. (18) Parking Rate for Trip Duration Reservation Multi-Storey T1/3 Long Stay Travel Dates Date Short Stay (T1) Valet (T1) T1/3 Long Stay (Early Bird) Shuttle Park Mon, 8 Feb 2010 12 Nov 2009 29.00 39.99 29.99 22.99 23.99 Wed, 10 Feb 2010 3 Dec 2009 29.00 39.99 29.99 22.99 23.99 3 Feb 2010 29.99 39.99 23.99 n.a. 14.99 Thu, 11 Feb 2010 12 Nov 2009 35.99 39.99 29.99 22.00 23.00 Sat, 13 Feb 2010 3 Dec 2009 29.99 39.99 29.99 22.00 23.00 3 Feb 2010 29.99 39.99 23.99 n.a. 14.99 Fri, 20 Aug 2010 12 Nov 2009 n.a. n.a. 29.99 n.a. 14.99 Sun, 22 Aug 2010 3 Dec 2009 n.a. n.a. 29.99 n.a. 14.99 3 Feb 2010 n.a. 39.99 29.99 n.a. 14.99 Turn Up and Park n.a. 81.00 n.a. 45.00 n.a. n.a. Transfer Time: 01 min. walk 02 min. walk 510 min. walk 510 min. walk 15 min. shuttle 10 min. shuttle 10 min. shuttle Notes: Assuming that parking customer will use Terminal 1, and will enter the parking facility at 10:00 a.m. on day 1 and depart the facility at 1:00 p.m. on day 3. T1--Terminal 1; T1/3--Terminals 1 and 3; n.a.--rate not available. Source: (as of November 12, 2009 [November 12, 2009 reservation date rates], December 3, 2009 [December 3, 2009 reservation date rates], and February 3, 2010 [February 3, 2010 reservation date rates and turn up and park rates]). Automated Parking Guidance System at Portland International Airport In 2008, the Port of Portland introduced a new automated parking guidance system (APGS) in its parking garage. The APGS informs customers of the number of spaces available by floor and guides parking customers to available spaces. This technology allows for a high utilization of the garage, reduces the amount of time parking customers spend looking for available parking spaces (which reduces vehicle emissions), and lessens the need for extra staff to be positioned in the garage during busy periods to assist parking customers in finding available parking spaces. (12)