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· Strategy F: Introduce Technology Improvements, Auto- and objectives. The adjustment of rates through the use of a
mated Parking Guidance System (APGS)--Install APGS variable pricing strategy (A3) was eliminated because airport
technology to guide customers to available spaces in the management was unwilling to invest in upgrades to the new
parking garage. In conjunction with the APGS, computer- parking revenue control system. The strategy to expand the
ized signs will be placed along the airport entrance road- terminal area parking supply (E) was eliminated because
ways that indicate the number of spaces available in the land is not available in the terminal area to accommodate an
parking facilities. expanded garage.
Initial Filtering Phase Step 3--Evaluate Strategies for Potential
to Achieve Threshold Results
Potential strategies identified in the previous section are
qualitatively evaluated in the initial filtering phase. As shown in Table 20, one strategy (C--the introduction
of a premium parking product) was eliminated because it does
Step 1--Define Targeted and Threshold Results not have the potential to achieve the threshold results. The
initial determination was that the strategy would preserve
Targeted results for the airport are defined as (1) the elimi- spaces for customers who value parking in the garage the most,
nation of garage closures and (2) reduction in the number of but it would not reduce garage closures or the need for extra
days extra personnel are needed to manage the parking opera- personnel.
tion to 10 days or less per year. This equates to an 80% reduction
in the number of days extra personnel are needed compared to
Initial Filtering Phase Summary
2008 numbers, and a 100% reduction in garage closures.
The airport operator defined threshold results for strategies As follows, the remaining strategies will be carried through
based on whether a capital investment is needed to implement to the alternatives analysis phase to predict parking-related
the strategy. For strategies that require a capital investment, outcomes and assess their suitability to achieve the targeted
the minimum threshold for the number of days extra personnel results:
are needed is less than or equal to 10 days, and a threshold has
not been specified for garage closures, but closures cannot · Strategy A1: Adjust Rates, Traditional;
exceed 2008 levels. For other strategies, the threshold of 40% · Strategy A2: Adjust Rates, Differential;
of targeted results must be achieved, which is equivalent to no · Strategy B: Relocate Employee Parking;
more than 33 days of extra personnel per year and no more · Strategy D: Introduce Valet Parking; and
than 12 garage closures per year. · Strategy F: Introduce Technology Improvements, APGS.
Step 2--Evaluate Strategies for Consistency Alternatives Analysis Phase
with Goals and Objectives
Each strategy that was not eliminated in the initial filtering
As shown in Table 19, two strategies were eliminated phase is carried through for analysis to determine its potential
because they were not consistent with airport operator goals to achieve the threshold and targeted results and to determine
Table 19. Example strategy selection, Step 2 evaluation results,
theoretical airport.
Barriers to Adoption Based on
Parking Goals and Objectives
Strategy or Other Reasons? Advance to Step 3?
A1. Adjust Rates, Traditional No Yes
A2. Adjust Rates, Differential No Yes
A3. Adjust Rates, Variable Yes No
B. Relocate Employee Parking No Yes
C. Introduce a Premium Product No Yes
D. Introduce Valet Parking No Yes
E. Expand Terminal Area Supply Yes No
F. Introduce Technology Improvements, APGS No Yes
Source: DMR Consulting, November 2009.
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Table 20. Example strategy selection, Step 3 evaluation results,
theoretical airport.
Potential to Achieve
Strategy Threshold Results? Advance to Step 4?
A1. Adjust Rates, Traditional Yes Yes
A2. Adjust Rates, Differential Yes Yes
B. Relocate Employee Parking Yes Yes
C. Introduce a Premium Product No No
D. Introduce Valet Parking Yes Yes
F. Introduce Technology Improvements, APGS Yes Yes
Source: DMR Consulting, November 2009.
the compatibility of other related effects with the airport oper- parking lot. The remaining 50% would remain in the
ator's goals and objectives for the parking program. garage because of contractual agreements with airport
employers. Implementation of this strategy would have
Step 4--Project Outcomes of Strategies approximately the same result as a 25% increase in the
daily rate for garage parking. This strategy would achieve
Using predictive methodologies, the following changes 100% of the targeted results for garage closures and 74% of
in parking-related activity were estimated for each of the the targeted results for the number of days extra person-
remaining strategies. nel would be needed; thus, this strategy would achieve the
threshold results.
· Strategy A1: Adjust Rates, Traditional--It is estimated · Strategy D: Introduce Valet Parking--Analysis indicates
that a 25% increase in the daily parking rate in the garage that curbside valet services offered at a daily rate that is
would eliminate garage closures, but extra personnel 15% higher than the daily rate for parking in the garage
would be needed for approximately 20 days per year. That would eliminate garage closures and reduce the number of
is, there would be a 58% reduction in extra staff needed days extra staff would be needed to approximately 6 days
during the year. This strategy would achieve 100% of the per year. This strategy would achieve 100% of the targeted
targeted results for garage closures and 74% of the targeted result for both garage closures and numbers of days extra
results for the number of days extra personnel would be staff are needed and, therefore, would achieve the thresh-
needed; thus, this strategy would achieve the threshold old results.
results. · Strategy F: Introduce Technology Improvements, APGS--
· Strategy A2: Adjust Rates, Differential--Application of
Through introduction of an APGS, the airport operator
this strategy would not change the daily rate for customers would be able to eliminate all days that extra personnel
parking in the garage for up to 3 days. The daily rate for would be needed, but garage closures would increase from
customers parked longer than 3 days would increase equiv- 20 to 38 days per year, as the extra 5% of capacity achieved
alent to a 25% increase in the average daily rate for each in terms of spaces not typically available to the public
day parked. It is estimated that this strategy would reduce would not be possible without management by extra per-
garage closures to 6 days per year, and extra personnel sonnel. Although 100% of the targeted result for extra staff
would be needed for approximately 28 days per year. That would be achieved, this strategy would fail for the number
is, there would be a 42% reduction in extra staff needed of garage closures per year. Therefore, it would not achieve
during the year. This strategy would achieve 70% of the the targeted or threshold results established for strategies
targeted results for garage closures (i.e., 14-day reduction involving capital projects.
in closures divided by the target reduction of 20 days) and
53% of the targeted results for reducing the number of days
Step 5--Evaluate Strategies for Ability
extra staff would be needed to manage the garage during
to Achieve Targeted or Threshold Results
constrained events (i.e., 20-day reduction divided by the
target reduction of 38 days); thus, this strategy would Based on the analysis conducted in Step 4, Table 21 pre-
achieve the threshold results. sents the recommendations on which to advance to Step 6,
· Strategy B: Relocate Employee Parking--Through appli- which were determined by evaluating whether the strategies
cation of this strategy, 50% of employees with garage per- would achieve the targeted or threshold results. Strategy F
mits would be required to park in the remote employee (Introduce Technology Improvements, APGS) is eliminated
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Table 21. Example strategy selection, Step 5 evaluation results, theoretical airport.
Potential to Achieve Potential to Achieve Advance to
Strategy Threshold Results? Targeted Results? Step 6?
A1. Adjust Rates, Traditional Yes No Yes
A2. Adjust Rates, Differential Yes No Yes
B. Relocate Employee Parking Yes No Yes
D. Introduce Valet Parking Yes Yes Yes
F. Introduce Technology Improvements, APGS No No No
Source: DMR Consulting, November 2009.
from further consideration as a strategy to resolve parking ing constrained events as the result of vehicles traveling
constraints at this time because it would not achieve the thresh- from the closed parking facility to the terminal curb-
old results as discussed previously under Step 4. side, remote parking, and privately operated parking,
but the average net daily vehicle trips on the airport
roadway system would increase 1.2%. This increase
Step 6--Calculate Related Effects of Strategies
would not result in an unacceptable level of service on
Related effects of the strategies--such as financial, vehicle the airport roadway system.
traffic, and customer service effects--were estimated based on 3. From a customer service perspective, a 25% increase in
the primary goal of maintaining or enhancing net revenue, and rates is a steep increase, but rates at the airport have not
secondary goals of considering customer service implications been adjusted for 3 years. The airport operator believes
and minimizing vehicle traffic impacts, with the following that this rate increase is the highest increase customers
results: would tolerate. The analysis indicates that total public
parking exits would decrease 1%. These customers would
· Strategy A1: Adjust Rates, Traditional--The financial, shift to other modes because they are dissatisfied with
vehicle traffic, and customer service effects resulting from the parking rate increase.
this strategy were estimated, with the following results:
· Strategy A2: Adjust Rates, Differential--The financial,
1. Net revenue impacts would be positive, as it is estimated vehicle traffic, and customer service effects resulting from
that a 25% increase in the daily parking rate would this strategy were estimated with the following results:
result in a 7.5% increase in gross revenues, and operat-
ing costs would decrease because of a reduction in extra 1. Net revenue effects are estimated to be positive. A 25%
personnel costs for from 48 days to 20 days. increase in the average daily parking rate for customers
2. The analysis of vehicle trips generated indicated that parking for more than 3 days would result in a 2.5%
public parking exits would decrease by 1%. Public park- increase in gross revenues, and operating costs would
ing customers are projected to shift from parking at the decrease as the result of a reduction in extra personnel
airport primarily to being picked up and dropped off costs from 48 days to 28 days.
by private automobile or to using taxicabs and single- 2. The analysis of vehicle trips generated indicated that
party limousines. A few customers are projected to shift public parking exits would decrease by 0.5%. Public
to privately operated off-airport parking facilities and parking customers would shift primarily to being picked
HOV modes. Shifts to single-party drop-off modes up and dropped off by private automobile or to using
would result in additional vehicle traffic generated on taxicabs and single-party limousines. A few customers
the airport roadway system compared to airline passen- would shift to privately operated parking facilities and
gers traveling by private automobile and parking for the HOV modes. Shifts to single-party drop-off modes
duration of their trips. In addition, some customers would result in additional vehicle traffic generated on
who shift from garage parking to remote parking would the airport roadway system compared to airline pas-
pick up and drop off other members of their travel party sengers traveling by private automobile and parking
at the terminal curbside prior to entering or after exit- for the duration of their trips. In addition, some cus-
ing the remote parking facility, which would generate tomers shifting from the garage parking to remote
additional vehicle trips. The airport operator does not parking would pick up and drop off other members of
have data on the number of vehicle trips generated dur- their travel party at the terminal curbside prior to
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entering or after exiting the remote parking facility, ative customer service implications for airport employ-
which would generate additional vehicle trips. The air- ees working in the terminal area who would lose their
port operator does not have data on the number of ability to park in the garage. Employees and their
vehicle trips generated during constrained events as employers may be dissatisfied.
the result of vehicles traveling from the closed parking
facility to the terminal curbside, remote parking, or · Strategy D: Introduce Valet Parking--The financial, vehi-
privately operated off-airport parking, but estimates cle traffic, and customer service effects resulting from this
that the average net daily vehicle trips on the airport strategy were estimated with the following results:
roadway system would increase 0.8%. This increase
would not result in an unacceptable level of service on 1. Gross revenues would increase about 2% and operating
the airport roadway system. costs would decrease as a result of a reduction in extra
3. From a customer service perspective, a 25% increase in personnel costs from 48 days to 6 days. Factoring these
parking rates is a steep increase, but rates have not been changes in with the estimated costs to operate the valet
adjusted for 3 years. The airport operator believes that service, implementation of this strategy would have a
this rate increase is the highest increase customers would negative effect on the net revenues generated by public
tolerate. A differential rate has not been introduced at the parking.
airport, and customers may have difficulty understand- 2. Vehicle trips generated by customers using valet park-
ing the rate or may feel it is unfair for customers who park ing would increase because of the shuttling activity
for a longer term to be singled out for a rate increase. The required for the parking staff to transport the vehicle
analysis indicates that total public parking exits would from the terminal curbside to the valet parking area
decrease by 0.5%. These customers would shift to other and to transport the valet parking employee back to
modes because they are dissatisfied with the parking rate the terminal area (and vice versa on the airline passen-
increase. ger's return trip). The airport operator does not have
data on the number of vehicle trips generated during
· Strategy B: Relocate Employee Parking--The financial, constrained events as a result of vehicles traveling from
vehicle traffic, and customer service effects resulting from the closed parking facility to the terminal curbside,
this strategy were estimated with the following results: remote parking, and privately operated parking facili-
ties, but estimates that the average daily net vehicle trips
1. Net revenue effects are estimated to be positive. Each on the airport roadway system would increase 0.5%.
parking space occupied by an airline passenger that was This increase would not result in an unacceptable level
previously occupied by an airport employee will have a of service on the airport roadway system.
positive effect on net revenues, as the fee for employees 3. Implementation of this strategy would be a customer
to park in the garage is a small fraction of the daily rate service improvement for airline passengers who prefer
for public parking in the garage. Although the airport terminal area parking.
operator does not have data to estimate the increase in
gross revenues from implementation of this strategy,
Step 7--Evaluate Related Effects
the airport operator assumed that implementation of
in Context of Goals and Objectives
this strategy would result in an approximate 1% increase
in gross revenues. The strategy would also decrease oper- Based on the analysis in Step 6, Table 22 presents the recom-
ating costs because of a reduction in extra personnel costs mendations on which strategies to advance to Step 8, which
from 48 days to 28 days. was determined by evaluating whether the strategies were
2. In this theoretical example, the airport operator does not compatible with the airport operator's goals and objectives
have data on the number of vehicle trips generated dur- for the parking program. All strategies were carried forward
ing constrained events as the result of vehicles traveling to Step 8, except for Strategy D (Introduce Valet Parking),
from the closed parking facility to the terminal curbside, because it did not meet the financial objectives of preserving
remote parking, or privately operated parking facilities, or enhancing net revenues.
but estimates that the average net daily vehicle trips on
the airport roadway system would decrease 0.2%.
Step 8--Identify Packages of Strategies
3. From a customer service perspective, implementation of
this strategy would be an improvement for airline pas- The strategies that would achieve the threshold results
sengers using the parking garage, and would have neg- but not the targeted results--Strategies A1, A2, and B--were
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Table 22. Example strategy selection, Step 7 evaluation results, theoretical airport.
Compatibility of
Related Effects to
Potential to Achieve Potential to Achieve Goals and Objectives Advance to
Strategy Threshold Results? Targeted Results? for Parking Program? Step 8?
A1. Adjust Rates, Traditional Rates Yes No Yes Yes
A2. Adjust Rates, Differential Rates Yes No Yes Yes
B. Relocate Employee Parking Yes No Yes Yes
D. Introduce Valet Parking Yes Yes No No
Source: DMR Consulting, November 2009.
reviewed to determine if the strategies could be packaged to implementation of the strategy package would resolve the
improve results. Two strategy packages were identified: constraint. Therefore, this strategy package would achieve
the targeted results.
· Strategy Package 1--Adjust Rates, Traditional (Strategy A1) · Strategy Package 2 (Strategy A2: Adjust Rates, Differential
plus Relocate Employee Parking (Strategy B); and plus Strategy B: Relocate Employee Parking)--By combin-
· Strategy Package 2--Adjust Rates, Differential (Strategy A2) ing a differential rate increase with elimination of half of the
plus Relocate Employee Parking (Strategy B). employee parking permits for the parking garage, this
strategy package is estimated to achieve 100% of the tar-
In addition to the two strategy packages, the airport operator geted results for garage closures, and extra personnel would
decided to retain Strategies A1 and B as stand-alone strategies be needed on 10 days to manage the garage during con-
because both would almost achieve the targeted results. Table 23 strained periods. Therefore, this strategy package would
summarizes the strategies and packages of strategies retained achieve the targeted results.
at this step.
The Step 4 through 7 analyses of the two strategy packages Return to Step 5 for Strategy Packages--
defined in Step 8 are discussed below. Evaluate Strategies for Ability to Achieve Results
Based on the analysis conducted in Step 4, both packages of
Return to Step 4 for Strategy Packages-- strategies are projected to achieve the targeted results. Table 24
Project Outcomes of Strategies presents recommendation on which strategy packages to
· Strategy Package 1 (Strategy A1: Adjust Rates, Traditional advance to Step 6 based on the results of the evaluation of the
plus Strategy B: Relocate Employee Parking)--By combin- ability of the strategy packages to achieve either the targeted
ing a traditional rate increase with elimination of half of the results or the threshold results.
employee parking permits for the parking garage, this strat-
egy package is estimated to eliminate garage closures and the Return to Step 6 for Strategy Packages--
need for extra personnel to manage the garage because Calculate Related Effects of Strategies
Related effects of the strategy packages, such as financial,
Table 23. Example strategy selection, Step 8 vehicle traffic, and customer service effects, were estimated
summary of strategies retained, theoretical airport. based on the primary goal of preserving net revenues and
secondary goals of considering customer service implications
Achieves Advance to Next
Strategy Targeted Results? Step of Analysis?
and minimizing vehicle traffic impacts.
A1. Adjust Rates, Traditional No a Yes--Step 9
· Strategy Package 1 (Strategy A1: Adjust Rates, Traditional
A2. Adjust Rates, Differential No No
B. Relocate Employee Parking No a Yes--Step 9
plus Strategy B: Relocate Employee Parking)--The finan-
Strategy Package 1 (A1 + B) To be determined Yes--Step 4
cial, vehicle traffic, and customer service impacts were esti-
Strategy Package 2 (A2 + B) To be determined Yes--Step 4
mated with the following results:
Note:
a
1. It is estimated that implementation of Strategy Package 1
Strategy almost achieves targeted and threshold results, so airport operator
decided to advance the strategy. would have approximately the same gross revenue effects
Source: DMR Consulting, November 2009. as implementation of the 25% traditional rate increase
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Table 24. Example strategy selection, Step 5 evaluation results
for strategy packages, theoretical airport.
Potential to Achieve Potential to Achieve Advance to
Strategy Threshold Results? Targeted Results? Step 6?
Strategy Package 1 (A1 + B) Yes Yes Yes
Strategy Package 2 (A2 + B) Yes Yes Yes
Source: DMR Consulting, November 2009.
(i.e., a 7.5% increase in gross revenues). Operating costs area who have lost the ability to park in the garage. The
would decrease with the elimination of the need for employees and their employers may be dissatisfied.
the 48 days of extra personnel costs to manage the con-
strained parking conditions. · Strategy Package 2 (Strategy A2: Adjust Rates, Differential
2. The analysis indicated that public parking exits would plus Strategy B: Relocate Employee Parking)--The finan-
decrease 1%. Public parking customers are projected to cial, vehicle traffic, and customer service impacts were esti-
shift primarily to being picked up and dropped off by mated with the following results:
private automobile or to using taxicabs and single-party
limousines. A few customers are projected to shift to 1. It is estimated that implementation of Strategy Pack-
privately operated parking facilities and HOV modes. age 2 would have approximately the same gross revenue
Shifts to single-party drop-off modes would result in impacts as implementation of the differential rate struc-
additional vehicle traffic generated on the airport road- ture for the parking garage (i.e., a 2.5% increase in gross
way system compared to airline passengers traveling by revenues). Operating costs would decrease with the
private automobile and parking for the duration of their reduction from 48 days to 10 days of excess personnel
trips. In addition, some customers shifting from the needed to manage the constrained parking conditions.
garage to remote parking will pick up and drop off other 2. The analysis indicated that public parking exits would
members of their travel party at the terminal curbside decrease by 0.5%. Public parking customers are pro-
prior to entering or after exiting the remote parking jected to shift primarily to being picked up and dropped
facility, which would generate additional vehicle trips. In off by private automobile or to using taxicabs and single-
this theoretical example, the airport operator does not party limousines. A few customers are projected to shift
have data on the number of vehicle trips generated dur- to privately operated parking and HOV modes. Shifts to
ing constrained parking events as the result of vehicles single-party drop-off modes would result in additional
traveling from the closed parking facility to the terminal vehicle traffic generated on the airport roadway system
curbside, remote parking, and privately operated park- compared to airline passengers who travel by private
ing, but estimates that the average net daily vehicle trips automobiles and park for the duration of their trips. In
on the airport roadway system would increase 1.2%, but addition, some customers shifting from the garage to
the level of service on the airport roadway system would remote parking would pick up and drop off other mem-
not decrease. bers of their travel party at the terminal curbside prior
3. From a customer service perspective, although a 25% to entering or after exiting the remote parking facility,
increase in the parking rate is a steep increase, rates which would generate additional vehicle trips. In this
have not been adjusted for 3 years. The airport opera- theoretical example, the airport operator does not have
tor believes that this is the highest rate increase customers data on the number of vehicle trips generated during
would tolerate. The analysis indicated that total public constrained events as a result of vehicles traveling from
parking exits would decrease 1%. These customers would the closed parking facility to the terminal curbside,
shift to other modes because they are dissatisfied with remote parking, and privately operated parking, but
the parking rate increase. Combined with the additional estimates that the average net daily vehicle trips on the
capacity from relocating employees, customers using the airport roadway system would increase 0.8%, but the
garage would be able to find a parking space without level of service on the airport roadway system would not
assistance from personnel and would not be diverted to decrease.
remote parking, which is a customer service improve- 3. From a customer service perspective, although a 25%
ment. There would be negative customer service impli- rate increase is a steep increase, rates have not been
cations for airport employees working in the terminal adjusted for 3 years. The airport operator believes that
