Cover Image

Not for Sale



View/Hide Left Panel
Click for next page ( 70


The National Academies | 500 Fifth St. N.W. | Washington, D.C. 20001
Copyright © National Academy of Sciences. All rights reserved.
Terms of Use and Privacy Statement



Below are the first 10 and last 10 pages of uncorrected machine-read text (when available) of this chapter, followed by the top 30 algorithmically extracted key phrases from the chapter as a whole.
Intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text on the opening pages of each chapter. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

Do not use for reproduction, copying, pasting, or reading; exclusively for search engines.

OCR for page 69
69 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.

OCR for page 69
70 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

OCR for page 69
71 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

OCR for page 69
72 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

OCR for page 69
73 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

OCR for page 69
74 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