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Directing Parking Customers to Off-Airport Privately Operated Parking Facilities
at Boston Logan International Airport
At Boston Logan International Airport, Massport occasionally directed parkers to a privately
operated off-airport parking lot. Massport received $4 per automobile per day from the private
operator for the referral. Because the private operator transported the airline passengers to the ter-
minal area in its shuttle, Massport did not bear the cost of operating an additional shuttle serv-
ice that would have been required to serve overflow lots. Massport discontinued diverting passengers to
privately operated lots because it felt that the parking customer is provided with a better level of service if accom-
modated on the airport. (1)
Considerations for Evaluating Financial considerations related to cash flow and debt ser-
Strategies to Resolve or Manage vice associated with increasing the permanent public parking
Constrained Parking supply may include the following:
The financial, vehicle traffic, environmental, and customer · Current debt capacity of the airport owner or operator;
service considerations for each strategy identified earlier in this · Amount of time it will take the airport operator to recover
chapter are summarized in this section by strategy. All consid- any capital investment associated with increasing capacity
erations should be interpreted in the context of an airport (return on investment);
operator's goals and objectives for its parking program. · Differential of net parking revenues from the existing con-
strained parking supply and expected net revenue with the
Strategies to Respond additional capacity (i.e., marginal increases in revenues
to Ongoing Constraints resulting from increased public parking supply); and
Increase Public Parking Supply · Estimation that the airport's debt service coverage require-
ments still are met after the addition of new parking
When considering an increase in the public parking supply capacity.
to accommodate demand, the following financial, vehicle
traffic, environmental, and customer service issues should be Financial considerations related to providing or expanding
considered. overflow parking facilities may include the following:
Financial Considerations. Financial considerations related
· Comparison of the net revenue per space and per event with
to operating and capital costs associated with increasing the
the revenues that could be earned from the development of
parking supply may include the following:
new permanent public spaces to determine the point at
· Design and program management fees; which the addition of permanent capacity or the implemen-
· Construction; tation of another strategy makes better financial sense; and
· · Revenue lost from customers who may choose privately
Revenue control equipment;
· Staffing costs or management fees for increased staffing; operated off-airport parking options rather than the over-
· Shuttle operations; flow facilities provided by the airport operator.
· Safety and security (such as new fire fighting equipment);
· Opportunity cost of the land if it has a higher and better use; Vehicle Traffic Considerations. Considerations related to
· Leasing cost if the land is owned by a third party; vehicle traffic generated by the airport as a result of increasing
· Sunk capital and temporary operating costs necessary for the supply of public parking may include a change in vehicle
providing temporary replacement parking so that the per- trips generated by attracting parkers lost as the result of park-
manent parking supply can be expanded; ing constraints back to the on-airport parking supply. It
· Sunk capital costs for permanently relocating airport facil- should be noted that this strategy may result in a reduction in
ities to expand the public parking supply; and trips generated if fewer pickup, drop-off, taxicab, and single-
· Long-term reduction in operational costs to manage con- party limousine trips are made to the airport, and an increase
strained parking, if they are reduced with the additional in trips if parkers shifted from HOV modes to the on-airport
capacity. parking supply.
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Other considerations related to vehicle traffic generated by public parking supply may include how the provision of addi-
the airport may include reduced vehicle circulation within tional permanent capacity improves customer satisfaction
parking facilities if new capacity eliminates the need for recir- compared to other strategies under consideration.
culation by parkers searching for parking spaces and reduced Customer service considerations related to the increased
vehicle traffic on airport roadways if parkers are no longer overflow on-airport public parking supply may include
redirected to alternate parking facilities. inconvenience to the parking customer related to the use of
Considerations related to vehicle traffic generated by the air- overflow parking compared to other strategies under consid-
port as a result of the provision of overflow parking inventory eration and importance of providing information on over-
may include the following: flow parking in advance of the airline passenger party's trip
to the airport.
· Increased vehicle traffic on airport roadways if parkers are
redirected to overflow parking from the constrained park-
Introduce New Parking Products
ing facility,
· Reduced numbers of redirected automobiles if information When considering the introduction of new parking prod-
on overflow parking is provided to parkers before they arrive ucts to address a constrained parking condition, the following
at the constrained parking facility, and financial, vehicle traffic, environmental, and customer service
· Increased curbside congestion if overflow parking solutions issues should be considered.
result in parkers dropping off and picking up members of
the travel party at the curbside prior to parking or after Financial Considerations. Financial considerations asso-
retrieving the automobile. ciated with the introduction of new parking products may
include the following:
Environmental Considerations. Environmental consid-
erations related to airport and regional vehicle traffic conges- · Costs to develop, maintain, and operate a new parking facil-
tion and vehicle emissions as a result of increasing the public ity or reconfigure the existing parking supply (whether per-
parking supply may include the following: manent or overflow);
· Costs of construction, parking revenue control systems
· Potential changes in regional VMT and related vehicle emis- (new or expanded system capabilities), changes in staffing
sions resulting from changes in trips to and from the airport requirements, changes in shuttle operations, security;
once the parking constraint is resolved (it should be noted · Opportunity costs of the land if it has a higher and better
that this may result in a reduction in the number of trips use, or leasing cost if land is owned by a third party;
generated if fewer pickup, drop-off, taxicab, and single- · The net revenue potential of the new product;
party limousine trips are made to the airport); · Comparison of the projected financial performance of
· Changes in vehicle emissions related to the operation of new the total public parking supply including the new prod-
shuttle bus service to the new parking product or overflow uct with the financial performance of the public parking
facilities or the elimination of shuttle service due to closure supply in its existing configuration; analysis should consider
of overflow parking facilities; and capital costs and changes to operating and maintenance
· Changes in curbside traffic congestion and emissions if the (O&M) costs, and an estimate of changes in net revenue from
additional parking capacity causes changes in curbside activ- lost customers if the new product reduces capacity of an
ity levels (e.g., fewer curbside drop-offs or pickups). existing parking product; and
· Changes in operational costs to manage constrained parking.
Environmental considerations related to development of a
new parking facility at an airport may include the following: Vehicle Traffic Considerations. Considerations related
to vehicle traffic generated by the airport due to the provision
· Creation of additional impervious surfaces or storm water of new parking products may include the following:
impacts if overflow parking facilities are developed or
expanded on unpaved areas and · Changes in vehicle traffic patterns within facilities if new a
· The potential requirement of FAA environmental review parking product requires changes in parking circulation
and approval of a project to increase the public parking systems;
supply depending on the scope of the expansion project · Changes in vehicle traffic patterns on airport roadways due
and necessary changes to the ALP. to shifts in the use of parking products (e.g., new valet ser-
vice offered at curbside location); and
Customer Service Considerations. Customer service con- · Changes in vehicle traffic levels on airport roadways if new
siderations related to the increased permanent on-airport products change the total number of vehicles accessing the
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airport (e.g., new service attracts parkers from off-airport · Changes in vehicle traffic on airport roadways if the reallo-
parking facilities or from other access modes, resulting in cated supply alters the need for travel between facilities dur-
increases in on-airport vehicle traffic). ing constrained conditions; and
· Changes in airport roadway traffic volumes if the reallocated
Environmental Considerations. Environmental consid- supply attracts parkers lost to pickup and drop-off modes or
erations related to airport and regional vehicle traffic conges- HOV modes back to the on-airport parking supply.
tion and vehicle emissions due to the provision of new
parking products may include the following: Environmental Considerations. Environmental consid-
erations related to airport and regional vehicle traffic con-
· Potential changes in regional VMT and related vehicle gestion and vehicle emissions may include changes in VMT
emissions resulting from changes in trips to and from the and emissions resulting from increases or decreases in the
airport once the parking constraint is resolved (it should number of vehicle trips, as well as from changes in vehicle trip
be noted that this may result in a reduction in the num- length on airport roadways generated by parkers using real-
ber of trips generated if fewer pickup, drop-off, taxicab, located parking products and those parkers displaced by real-
and single-party limousine trips are made to the airport); located products.
· Changes in vehicle emissions related to the operation of
Customer Service Considerations. Customer service
new shuttle bus service to the new parking product or the
considerations related to the reallocation of the public parking
elimination of shuttle service due to closure of overflow
supply may include the level of satisfaction of customers ben-
parking facilities; and efiting from the reallocation or displaced by the reallocation.
· Changes in curbside traffic congestion and emissions if the
new product causes changes in curbside activity levels (e.g.,
Adjust Parking Rates
fewer curbside drop-offs or pickups).
When considering the adjustment of parking rates to bal-
Customer Service Considerations. Customer service con- ance demand among facilities, reduce demand for a specific
siderations related to the introduction of new parking prod- facility, or reduce demand for the entire public parking supply,
ucts may include the level of satisfaction of customers using the following financial, vehicle traffic, environmental, and cus-
new parking product(s) and of those customers displaced (if tomer service issues should be considered.
applicable).
Financial Considerations. Financial considerations asso-
Reallocate Supply among Public Parking Products ciated with changing parking rates may include the following:
When considering the reallocation of parking spaces among · Reprogramming of parking revenue control system(s);
parking products to balance capacity with demand, the fol- · Enhancements to, or replacement of, the current parking
lowing financial, vehicle traffic, environmental, and customer revenue control system (if necessary) for new parking prod-
service issues should be considered. ucts offered or being developed; and
· Changes in gross and net revenues before and after the rate
Financial Considerations. Financial considerations asso- adjustments, including estimates of induced parking
ciated with a reallocation of the existing public parking supply demand if rates are lowered or diversion of parkers to other
may include capital costs necessary to reallocate supply and modes or privately operated parking facilities if rates are
comparison of the projected financial performance of the exist- increased.
ing allocation of the public parking supply with the financial
performance of the potential new allocation of the public park- Differential and variable parking rates are commonly
ing supply. Analysis should consider capital costs and changes charged for some parking products, such as downtown park-
to O&M costs, as well as potential loss of parkers to other oper- ing garages or garages that serve entertainment venues. How-
ators or modes of airport access. ever, differential and variable parking rates at airports in the
United States generally are not implemented. The airport oper-
Vehicle Traffic Considerations. Vehicle traffic consider- ator may wish to consider the following if contemplating
ations related to reallocation of the public parking supply may charging differential or variable parking rates to manage park-
include the following: ing demand during peak periods:
· Changes in vehicle traffic circulation within a constrained · Advertising and promotion costs;
parking facility if the reallocated supply alters internal circu- · Procurement of a new or upgraded parking revenue control
lation systems; system that supports differential or variable rate pricing; and
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· Analysis to determine the projected financial performance · Return on investment (increased revenues versus cost of
of the airport parking supply with differential or variable technology system[s]), including estimated changes in park-
rate pricing. ing system management and staffing costs with technology
versus costs to manage constrained parking.
Vehicle Traffic Considerations. Vehicle traffic consider-
ations related to the adjustment of parking rates may include Vehicle Traffic Considerations. Vehicle traffic consid-
the following: erations related to introducing technology improvements
may include the following:
· Changes in vehicle trips on airport roadways resulting from
shifts in demand between airport parking facilities and shifts · Reduced travel distances and circulation time within a park-
between airport-operated and privately operated off-airport ing facility if technology includes parking guidance and
parking facilities; and wayfinding systems and
· Potential changes in vehicle trips and the effects on curbside · Fewer parkers redirected to alternative facilities because of
congestion resulting from shifts between airport-operated increased use of the existing parking supply or advanced
parking, privately operated off-airport parking, pickup and information about parking alternatives to the constrained
drop-off modes, and HOV modes. facility, thereby reducing traffic on airport roadways during
high demand periods.
Environmental Considerations. Environmental consid-
erations related to the adjustment of parking rates, including Environmental Considerations. Environmental consider-
regional traffic congestion and vehicle emissions, may include ations related to the introduction of technology improvements,
changes in regional vehicle emissions based on changes in including regional traffic congestion and vehicle emissions
vehicle trips generated by the airport resulting from passen- may include the following:
gers being attracted to, or discouraged from, using on-airport
parking. · Reduced emissions and improved air quality in parking
facilities, particularly parking structures, where parking
Customer Service Considerations. Customer service guidance and wayfinding systems are deployed; and
considerations related to the adjustment of parking rates · Reduced emissions associated with a reduction in traffic on
may include the level of customer satisfaction with rate struc- airport roadways resulting from reduced diversion of vehi-
ture changes (will vary by the rate structure adopted and the cles to alternative facilities.
effect of the rate change on level of service).
Customer Service Considerations. Customer service con-
siderations related to the introduction of technology improve-
Introduce Technology Improvements ments, such as parking guidance and wayfinding systems, may
When considering the introduction of technology include and acknowledge that parking guidance and wayfind-
improvements to manage constraints, such as improving ing systems are a customer service improvement in constrained
parking facility use with an automated parking guidance sys- parking facilities and those facilities nearing capacity because
tem or influencing airline passenger ground access behavior they reduce the amount of time necessary to find available
by providing information in advance of the airline passen- parking spaces.
ger's arrival at the airport, the following financial, vehicle Customer service considerations related to the provision
traffic, environmental, and customer service issues should be of real-time parking information to parking customers may
considered. include, but not be limited to the concept that parking cus-
tomers may be displeased that their parking facility of choice
Financial Considerations. Financial considerations rela- may not be available, but the customer who accesses this infor-
ted to investments in technology improvements to manage mation in advance will be prepared for the inconvenience,
constrained parking may include the following: rather than reacting to it upon arrival at the constrained park-
ing facility.
· Capital and O&M costs of technology systems;
· Comparison of the projected financial performance of the
Promote Use of HOV Modes
existing public parking supply with the financial perfor-
mance of the projected parking supply with the implemen- When considering the promotion, enhancement, or pro-
tation of technology improvements, including capital costs vision of HOV services, the following financial, vehicle traf-
and changes to O&M costs, and potential shifts of parkers to fic, environmental, and customer service issues should be
or from other modes of airport access; and considered.
