Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenues (2021)

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84 Innovative Payment Systems and Technologies for Public Parking and Ground Transportation Together with Chapter 6, this chapter addresses the question, “What strategies and technologies are available to offset the revenue reductions airports have observed (or anticipate) due to continued growth in the TNC mode share?” This chapter includes information on technologies that can be deployed to (a) enhance net airport parking revenues or (b) increase non-aeronautical revenues through strategies related to commercial ground transportation and airport roadway operations. Information provided in this chapter expands upon and/or updates information provided in ACRP Report 24 and ACRP Report 146. 7.1 Innovative Payment Systems and Technologies for Parking There are numerous technologies that may be deployed to make on-site airport parking more attractive to patrons and more lucrative for airports. In general, these technologies seek to accomplish one or more of the following goals: • Providing customers with easier methods of payment; • Reducing parking operating expenses; • Increasing net revenue per parking transaction; • Increasing the share of airport passengers choosing to park at the airport; and • Increasing capacity at a reduced capital cost. This section presents several of these technologies and describes typical goals, benefits, costs (current as of January 2020), implemen- tation considerations, lessons learned, and other aspects. Technologies presented in this chapter include: • Online pre-booking systems; • Revenue management systems; • New payment methods; • Bluetooth beacons; • Self-service virtual accounts; • Central control room; • Virtual nested parking areas using camera-based guidance; • Automated robotic valet; C H A P T E R 7 As noted in Section 2.2, TNC trip fees are substantially offsetting (and often exceeding) reduced revenues from traditional ground transportation services. On a per-passenger basis, TNC fees have also somewhat offset declines in airport parking revenues. As TNCs are a relatively new service, rules and regulations governing their operations at airports continue to evolve, and it is possible that TNC revenues to airports could be impacted through legislation and/or court cases. For example, in early 2020, the Arizona Attorney General challenged that a proposed change in TNC fees at Phoenix Sky Harbor International Airport violated a provision in the state constitution. While the Arizona Supreme Court ultimately ruled that the fee changes were legal, the case demonstrated the potential risks associated with TNC-related airport revenues. To offset that risk, airports may increasingly need to focus on strategies and technologies that seek to maximize the net revenues associated with public parking.

Innovative Payment Systems and Technologies for Public Parking and Ground Transportation 85 • Automated shuttles; • Marketing and branding; • Loyalty programs; • Valet parking as a capacity enhancement tool; and • License plate recognition. 7.1.1 Online Pre-Booking Systems An online booking system (OBS) allows a user to pre-book a parking space at a specified parking facility and price and pre-pay for all or part of the parking. The system issues a facility entry credential (such as a bar code or QR code), usually integrated with the facility’s parking access and revenue control system (PARCS), that is read at the entry and exit of the parking facility. If the user has overstayed the duration paid for, the PARCS will require additional payment before granting egress. OBS websites typically have a standardized layout and a standard process customers use to create and purchase a reservation. The website can be customized to an airport using the airport logo, font, colors, and imagery. Administrative functions allow airport staff to change many blocks of text and images, products, and pricing, so they are not reliant on the supplier to keep the website current. The most robust systems have sophisticated rule-based pricing mechanisms that allow pricing by multiple criteria, including time of entry, day of week, product occupancy, time in advance of booking, stay length, etc. Other common features include: • Acceptance of payment methods, including credit/debit card, mobile wallets, or other online payment mechanisms; • Storage of user and transactional data in a data warehouse that combines parking data with data from other sources, facilitating email marketing and sophisticated data analysis, such as that provided by revenue management systems (discussed in the next section); • Full suite of standard reports as well as the capability for users to create customized reports; • Built in customer loyalty programs; • Existing integrations with larger PARCS providers and payment service providers; and • Established application programming interfaces (APIs) to facilitate new integrations. 7.1.1.1 Typical Goals and Objectives The main objectives for implementing OBS are to increase revenues by using a platform for variable products and pricing (which may be used for yield management), to optimize occu- pancy by influencing each customer to choose the product that provides the best yield for their transaction, to provide a better (more seamless) customer experience, to collect data to make more informed product and pricing decisions, and to collect email addresses to communicate directly with the parking passenger. 7.1.1.2 Potential Benefits The potential benefits of OBS include increased revenue and improved customer experience through the system’s ability to: • Deliver “the right product, to the right customer, at the right time, for the right price” (During periods of high demand for premium products, such as terminal garage parking, the system can provide customers the assurance that space will be available for them. During periods of lower demand for a premium product, the system can offer customers that higher value product for a price similar to what the customer would have paid for a lower value product.); • Improve reporting, product and pricing development, and operational decision-making through a deeper understanding of customer behavior that results from tracking and analyzing

86 Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue the unique travel behavior, product selection, and price points for numerous individual customers; • Build a robust customer database that facilitates better marketing by communicating personalized offers (including upselling to higher-priced parking products) in real time digitally, as well as supporting automated surveys and ratings; • Have a ready-made platform for marketing and sales across multiple platforms (mobile phone, desktop, in-person) to present a customer with a seamless experience regardless of which platform they may be using at any step of the process; • Provide a loyalty program mechanism; and • Provide a more seamless and integrated passenger journey, which includes the ability to cross-sell both parking and non-parking products (e.g., concessions, food and beverage, and lounge access) through the online platform. U.S. airport operators with OBSs interviewed as part of this research have been unable to isolate the incremental change in revenues solely attributable to the OBS. This is primarily due to (a) the relatively recent adoption of such systems, which limits the ability for historical analyses, and (b) continued changes in passenger propensity to park versus use TNCs, which complicate the ability to isolate the impact OBSs have on customer behavior. Revenue benefits vary greatly depending on many factors such as the marketing budget, the historical level of engagement with parkers (e.g., past promotions and parking website traffic), and airport staffing. Information provided by overseas airports with OBSs indicates that the combina- tion of OBS and yield management (discussed later in this section) can increase gross parking revenues by 5% to 10% in the first year of implementation. 7.1.1.3 Typical Implementation and Operating Costs Currently, contracts for OBSs blur the lines between implementation and operating costs. OBSs may be quoted in a variety of ways. Most common is either an annual license fee plus transaction costs or a fixed fee per year (which may contain a defined number of transactions or may be bundled with other services). The balance between license and transaction costs can vary widely. Some providers offer a more comprehensive service that includes marketing and customer service, and some also include yield management. Providers offering yield manage- ment typically charge a percentage of sales or a percentage of revenue above a certain threshold. Implementation costs include the licensing cost of the software, set-up costs, and costs for customized development. Additional costs incurred by the airport may include consultants for procurement, project management, and program advice. Internally, the airport will need to commit time from staff in parking, finance, information technology, and marketing to support website development; parking products and prices; identification of policies and standard operating procedures: and integration with PARCS, finance, business intelligence, and other systems. While there may be an initial set-up fee which can exceed $50,000, depending on the system’s complexity and contract arrangement, the bulk of the OBS cost is charged on a per-transaction or percent-revenue basis. Typical transaction-based costs quoted by vendors reflect the complexity of the system and the extent of yield management and/or dynamic pricing employed. OBSs that use simple pricing tables (such as standard rates or rules-based rates that may vary depending on the month, day of entry, and/or parking duration, but are not dynamically adjusted) can cost approximately $0.50 per transaction, in addition to set-up fees. OBSs that employ yield manage- ment and dynamic pricing can cost 5% to 10% of gross revenues processed by the system. Other ongoing operational costs include system license fees and credit card transaction fees (which are typically 2% to 3%), potential additional integration and transaction fees by the

Innovative Payment Systems and Technologies for Public Parking and Ground Transportation 87 PARCS provider, ongoing costs for third-party services such as “save to PassKit” (PassKit is a mobile wallet payment method described later in this chapter), ongoing license fees for “extra” OBS modules such as a loyalty program (which could cost $10,000 per year for the module), and ongoing software development fees for issues resolution and custom development (which could cost up to $20,000 per year). Combining all these costs would result in a set-up fee of $50,000, annual fixed costs of up to $30,000, and ongoing variable costs directly based on the transaction or revenue volume processed through the system. 7.1.1.4 Implementation Considerations The gathering and storing of personally-identifiable information, including license plate data and how it is used, may be governed by legislation relevant to an airport or city. An airport’s legal team should prepare a privacy statement or a legal document that discloses some or all of the ways an OBS gathers, uses, discloses, and manages customer or client data. The privacy statement fulfils a legal requirement to protect customer or client privacy. Additionally, a Tennessen warning and “opt in” notice should be available prior to booking. The warning provides individuals notice when private or confidential information is to be collected from them and enables users to make informed decisions about whether to give information about themselves to the airport. If a user does not “opt in” then they will not be able to complete a reservation. Lastly, terms and conditions detailing rules by which one must agree to abide in order to use a service should also be clearly outlined and available on the website. Another key consideration is the extent to which airport parking prices are subject to regulation by the controlling jurisdiction. OBSs, when linked with yield management/dynamic pricing systems, have the capability to both decrease prices to attract customers to certain facilities and increase prices to divert customers away from certain facilities. Airports that require board or other approvals for parking rate changes should determine how such approvals may limit the airport’s ability to implement the price changes recommended by their OBS. While board or other approvals may not be required to offer reduced prices, they may be required if the system recommends increasing the price beyond a set threshold, such as the price charged for customers not using the OBS. 7.1.1.5 Implementation and Lessons Learned OBSs are common at airports throughout Europe, Asia, Australia, and New Zealand. As of January 2020, U.S. and Canadian airports with OBSs, in varying levels of sophistication, include Hartsfield Jackson-Atlanta International, Boston Logan International, Chicago O’Hare Inter- national, Denver International, Dallas/Fort Worth International, Fort Lauderdale-Hollywood International, Ontario International, Phoenix Sky Harbor International, Raleigh-Durham International, San Diego International, and San Francisco International airports; airports operated by the Port Authority of New York and New Jersey (John F. Kennedy International, LaGuardia, and Newark Liberty International airports); and airports operated by the Metro- politan Washington Airports Authority (Washington Dulles International and Washington Reagan National airports). U.S. airports currently in the process of implementing an OBS include Charlotte International, Minneapolis-St. Paul International, Mineta San Jose International, Seattle-Tacoma International, and Tampa International airports. Several Canadian airports employ OBSs, including Calgary International, Edmonton International, Montreal-Trudeau International, Ottawa International, Quebec City International, Toronto Pearson International, Vancouver International, and Winnipeg International airports. Prior to implementing an OBS integration with an airport PARCS system, airport staff should determine the ability of their existing PARCS for such a deployment. A PARCS should facilitate commercial best practices in parking, including supporting potential third-party

88 Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue integrations, in particular an OBS and a data warehouse. While the data collected by PARCS is comprehensive, there are a limited number of fixed reports provided by most systems, and reports should be defined depending on the airport’s required reporting needs. These considerations also apply to airports procuring a new PARCS. In such cases, PARCS can best incorporate commercial best practices if PARCS offers an “open platform” that accommodates most third-party sourced software programs, such as OBS and Loyalty software, and a variety of payment technologies. Additional considerations include the following: • The OBS will need to integrate with a variety of systems including, but not limited to, the PARCS, the airport financial system, and systems operated by the payment solution provider and acquiring bank. Additional integrations with space guidance, business intelligence tools, and other third-party providers are also available. The larger suppliers of OBS will have prior integrations with many of these systems; new integrations will likely incur additional cost and time. • The airport will need to create new policies for online booking relating to entry and exit grace periods, fees, and refunds, and new standard operating procedures will be required to address specific issues with prepaid parking and the associated entry credentials and policies. • Airports will need to determine the objectives for launching their OBS, how they will achieve those objectives, what the success factors are, and how to measure them. If driving online usage is an objective, marketing budgets will often need to be increased, along with an increase in management and oversight. If yield management is contemplated, that skill set may need to be recruited if it does not exist currently. Overall, active management of an OBS will require a cross functional team that will need to be identified. Table 7-1 summarizes other lessons learned. 7.1.2 Revenue Management Systems—Business Intelligence and Data Analytics for Parking Revenue management systems apply data science to automate the yield management of parking. Parking yield management is the optimization of revenues from a perishable parking asset or service through variable pricing and products that are offered to the customer based on rules, occupancy levels, booking pace, and other variables. Airport passengers are familiar with yield management from its use in the airline industry and other travel industry sectors where seats, hotel rooms, and other elements are constantly fluctuating in price. Parking yield management requires the use of an online pre-booking system and has been practiced by yield managers at sophisticated international airports, particularly those in Europe, for many years. Automating yield management is not yet as common in parking as it is other travel verticals, such as airlines, hotels, and rental cars, but its use is growing. Revenue management systems allow parking operators to take historic parking data and build models for projected prices, revenues, and occupancy, and then refine these models based on real-time data through data analytics and machine learning. This automation of forecasting and pricing uses information from the drive-up (i.e., parkers without a reservation) and online systems, as well as competitive rates, to try to create the most compelling and competitive set of prices—“the right product, to the right customer, at the right place, at the right time.” According to one supplier (IDeaS), their system enables clients to perform the following day-to-day tasks: • Determine the most appropriate pricing in every situation; • Accurately forecast business demand;

Innovative Payment Systems and Technologies for Public Parking and Ground Transportation 89 • Identify and attract the most valuable business mix; • Account for lost revenues through cancellations and no-shows; • Evaluate the profitability of group inquiries; • Effectively distribute the client’s strategy across all distribution channels; • Make time-sensitive decisions on the go with a mobile app; and • Factor online reputation into the client’s pricing decisions. Automation becomes particularly useful in circumstances where there are many spaces, products, and prices, as well as multiple tiers of customers (e.g., corporate and loyalty members) and distribution channels (e.g., airlines and online travel aggregators). With advanced technology taking care of daily pricing decision-making and updates, airport parking managers can manage by exception, leaving them more time to be strategic while simultaneously driving more revenue for their airport. Aspect Lessons Learned Operations Include a proof of concept in the OBS contract Include technical support in the contract Conduct extensive testing prior to any type of launch Ensure multiple internal staff members are properly trained in administering the online system Ensure staff are focused on customer experience and service Soft Launch Use a soft (beta test) launch to identify issues specific to the equipment, software, and local customers Conduct research during the beta test to learn customer/user experiences and address their concerns prior to hard launch Ensure that the focus on customer needs is present during soft launch period Ensure customer service and call center staff are fully trained prior to the soft launch Hard Launch and Marketing Do not launch until fully ready Have a definitive plan. Know the airport’s parking market, products, capacity, operations, systems, competitors, target audiences, and priorities; understand and be able to articulate the value proposition(s) for your customers/prospects, define goals, schedule, and budget Track all elements of the marketing plan and adjust as needed Know your priorities. Early hard launch priorities are typically increasing customer awareness, account creation (database building), increasing market share, and ensuring a positive customer experience Employ effective marketing methods, which generally include: - Airport website with widget on the home page - Digital advertising channels. The success of each channel may vary greatly and should be evaluated to identify the most successful ones - Email is typically the most effective method for conversions - Publicity and earned media (e.g., social media mentions, shares, reviews) Coordinate hard launch with a drive-up price increase, which allows the airport to highlight the lower prices available through the OBS Following launch, continue research efforts to identify strategies to improve the customer experience Use positive customer comments in promotions Table 7-1. Online booking systems lessons learned.

90 Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue 7.1.2.1 Typical Goals and Objectives Common objectives of revenue management systems are to maximize occupancy and revenues while providing choices for consumers that fit their budget and have the desired amenity; to defer investment in additional parking assets until it is truly needed; and to compete with off-airport operators and other transportation modes (e.g., TNCs) that are employing similar tactics. Other goals include providing management reporting and forecasting, improving operational efficiency and reducing costs, improving knowledge of customer preferences, and developing better products to satisfy those preferences. 7.1.2.2 Potential Benefits Revenue management systems can greatly improve parking revenues, optimize the use and allocation of airport parking assets, enhance decision-making with real-time evidence, improve budget accuracy and performance monitoring, and improve customer satisfaction. Some revenue management service providers claim airports will see a 10% increase in revenues in the first year of implementation. Airport managers and consultants estimate a range of 5% to 15% improvement and caution that after the first year, the size of the improvement will likely reduce. 7.1.2.3 Typical Implementation Costs Business models vary among the companies offering revenue management systems. Airports with 20,000 to 40,000 spaces may see a price range between $180,000 and $250,000 per year. In additional to annual software license fees, fees may be added for setup and consulting. For example, Smarking’s model is based on an initial set-up fee plus an annual service fee. Annual costs depend on the airport’s selection of services, but the core business intelligence and data analytics package can cost between $25,000 (a more simple reporting package) and $250,000 per year depending on the complexity of the airport parking operation, PARCS, and the related systems installed. Set-up fees are typically about 20% of the annual charge. 7.1.2.4 Typical Impacts to Ongoing Operating Costs Such systems will incur annual software license fees, and ongoing consulting fees may be needed as well. Any changes to integrated systems (such as the integration of PARCS and OBS) will incur integration charges. In theory, there should be savings in time and effort to produce and analyze reports, which can result in lower staffing or management costs; however, for air- ports that are not already sophisticated, there may be a requirement to increase resources to actively manage the system, which should not be seen as “set it and forget it.” As online booking becomes more prevalent and the data becomes more robust, it is possible that the parking occupancy projections could result in cost savings as staffing and other operations, such as busing, are optimized. 7.1.2.5 Implementation Considerations As with OBS, revenue management systems may require a review of existing airport policies on parking pricing and required approvals. Regarding privacy and payment card industry compliance, there are no identifying details associated with the data collected, so there should not be any issues. While revenue management systems require access to PARCS and online pre-booking databases (or aggregating database) for transactional and revenue information, they do not require access to any customer-specific data or other confidential data sources, such as bank card details. Other key implementation considerations include: • Such systems will require some staff and management training to upgrade skill sets and develop awareness of the tools available to system users.

Innovative Payment Systems and Technologies for Public Parking and Ground Transportation 91 • While airport management may wish to see that their investment cost is being covered or exceeded by the incremental returns of the system, measuring the discrete returns may be challenging as there are multiple factors simultaneously influencing parking activity and revenues. • Most systems will have at least some existing integrations with leading PARCS providers and online booking suppliers, but if they do not integrate with an airport’s existing systems, the integration will require additional time and money. Smarking, for example, states they have developed integrations for more than 40 PARCS system vendors, including more than 400 versions of their hardware and software systems. As such, a typical implementation time (for systems with which they are integrated) is 39 days. • Implementation is ideally based on detailed past transaction data for at least 1 year and ideally 2 years, which, depending on the systems in use at the time, can be difficult to access and may need to be reviewed and modified for accuracy. Such review and “data scrubbing” may increase implementation time. For example, implementation of revenue management systems at John F. Kennedy International, LaGuardia, Newark Liberty International, and Raleigh-Durham International airports was more protracted because, while the revenue management system was being integrated with each airport’s PARCS, these airports had not yet had a year of pre-booking information to provide as a basis for the system. 7.1.2.6 Implementation Sites and Lessons Learned Revenue management systems have been implemented at airports worldwide, including: North America. Boston Logan International, Edmonton International, John F. Kennedy International, LaGuardia, Montréal-Pierre Elliott Trudeau International, Newark Liberty International, Raleigh-Durham International, San Diego International, Savannah/Hilton Head International, and Winnipeg International airports. Europe. Bordeaux International, London Heathrow International, Lyon International, Nantes International, Oslo International, Paris International, and Stuttgart International airports, and airports in Sweden operated by Swedavia Airports. Asia. Queen Alia (Amman, Jordan) International, Bengaluru (Bangalore) International, Delhi International, Hyderabad International, and Kuala Lumpur International airports. Oceania. Auckland International and Sydney International airports. South America. Carrasco (Uruguay) International Airport. Lessons learned from these installations include: • Allow generous time for the integration and setup of the system, as well as for subsequent setup testing. • Align system recommendations with the airport’s public messaging. For example, an airport with an “always cheaper online” policy may need to revise it if the revenue management system does not recommend a cheaper online price for products that frequently fill. • Such systems are not meant to be “set it and forget it” and should be actively managed to ensure they reflect specific circumstances at the airport, such as facility capacity reductions due to construction, introduction of new off-airport parking competitors, or changes in TNC prices. • Allow adequate time for staff training and familiarization with the system. Training should be provided for multiple staff because of the risk that parking managers and other staff may frequently move to other positions within the airport’s organization. 7.1.3 New Payment Methods Larger airport parking reservations providers, such as Advam and AeroParker, have been incorporating modern payment options into their parking online booking systems, including

92 Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue Apple Pay and Android Pay; integration with PassKit (mobile wallet) and Apple and Google Wallets; and one-click purchase. New payment methods provide more options for the consumer, particularly millennial who are the fastest growing group using mobile payments. “Save to PassKit” is a conve- nience, storing an entry credential (a “pass,” such as a QR code) along with other travel credentials. Combined with Bluetooth beacons, often placed on a parking access entry column, PassKit can be used with parking reservations systems to push the parking reservation QR code to the customer’s phone so it is easily accessed at the time of entry. Bluetooth beacons also facilitate other location-based notifications and advertising to a customer. One-click purchases, where encrypted payment details from customers are stored with industry-compliant payment service providers, enable a quick and seamless customer experience, similar to that provided by online market leaders like Amazon. Further, at least one airport parking reservation vendor, Advam, has integrated with airport app provider M2mobi to provide a native payment option for parking pre-purchase within an airport app so that the customer need not switch from the airport app to a payment processor. With over 50% of OBS users accessing it via mobile phones (as reported by OBS vendors and the Port Authority of New York and New Jersey), it is important that airports try to simplify their mobile apps such that mobile users considering parking purchases complete the transaction at rates currently seen via more traditional methods (e.g., desktop, laptop). 7.1.3.1 Typical Goals and Objectives The objective of new payment methods is to acquire and convert more customers to the parking pre-payment service by providing a seamless customer purchase experience and reducing the need for the customer to stray from the booking journey. 7.1.3.2 Potential Benefits While benefits are difficult to quantify, they follow online retailer best practices and have become part of an overall effort by airports and their vendors to improve ease of use of their pre-booking functionality, hence driving usage of the system, increasing the customer data (transaction and email addresses) collected, and ultimately allowing the airport to improve revenues through better product and pricing decisions (informed by the additional customer data and analysis) and effective marketing. U.S. airports currently implementing these initiatives include Charlotte International, Dallas/Fort Worth International, Seattle-Tacoma International, and Tampa International airports. 7.1.3.3 Typical Implementation Costs The cost of implementing the payment options varies depending on whether the desired functionality is negotiated into the pre-booking vendor’s license fee. If not, software develop- ment should be charged at a pre-agreed hourly or daily rate, which is typically $1,200 per day. 7.1.3.4 Typical Impacts to Ongoing Operating Costs Airports may also encounter charges associated with a mobile wallet. For example, when using PassKit, there are monthly charges based on the number of total active passes downloaded by customers. That cost may vary from as low as $36 for 100 to 500 active passes, up to over $7,000 for more than 300,000 active passes. However, if an airport signs up for its own Apple developer account at a cost of about $100 per year, and integrates its pre-booking system directly with Apple, passes in an Apple Wallet may be provided free of charge.

Innovative Payment Systems and Technologies for Public Parking and Ground Transportation 93 Generally, ongoing operating costs for implementing newer payment options should not be significantly different from existing costs, assuming customers are already predominantly paying for parking with bank cards at exit lanes and pay-on-foot machines. 7.1.3.5 Implementation Considerations A key consideration in implementing such payment methods is whether the airport’s payment service provider (PSP) (a third party that allows a merchant to accept electronic payments such as credit cards and mobile wallets) is willing to store encrypted customer payment details and whether the airport’s acquiring bank supports tokenization (a process that replaces sensitive data with unique identification symbols that retain all the essential information about the data without compromising its security). Another consideration for PSPs generally is what types of information they may require to keep airport transaction costs low. For example, some providers will require a customer zip code or other verifying information in addition to a credit card number and card verification value (CVV). Implementation of these payment methods may engender a nominal ongoing increase in the pre-booking vendor’s license fee (several thousand dollars) and a small increase to the vendor’s transaction fee. 7.1.3.6 Implementation Opportunities and Lessons Learned PassKit is available on multiple mobile wallet applications but with varied availability and capabilities depending on the operating system (iOS or Android). Billing for PassKit is monthly against active passes, and a pass becomes active as soon as a user downloads it. To keep costs down, it is important to manage and track volumes closely and deactivate passes after the user has exited the facility. Administrative user rights allow customizable, specified time periods where a pass becomes deactivated after the user has left the facility. When integrating with a mobile app, it is preferable to provide payment capability within the app to avoid a large customer drop-off rate (i.e., if the customer has to leave the app to complete the payment in a web browser, sales conversion drops). The integration should also be a seamless experience between the web service and the mobile app. The solution should allow customers to make a reservation in one platform (mobile app or web) and then make an amendment or cancellation on the other platform that may not have been used on the original booking. Additionally, transactions made in the mobile app should effectively post to the web service with all required information (first name, last name, email address, etc.) for a transaction to take place. This is especially important if a customer raises an issue with a reservation, does not know the reservation number, and the airport parking operator needs to quickly locate the reservation. Some issues associated with new payment methods include supporting a wide variety of devices in the bring-your-own-device environment, users changing/losing devices, device compatibility, and low/dead batteries. 7.1.4 Bluetooth Beacons Bluetooth beacons are small wireless devices that broadcast a short-range Bluetooth low energy signal that is detected by an app on a mobile device as it comes in proximity to the beacon. The detection can trigger actions and notifications, open web pages, or push advertisements directly to that mobile device. For a beacon to communicate with passengers, each passenger must download the relevant airport or parking app and have Bluetooth enabled on their device. The beacons do not collect data.

94 Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue Bluetooth low energy devices typically have the following properties: • Low power requirements, often operating for multiple years on a button cell battery; • Small size and low cost; and • Compatibility with a large installed base of mobile phones, tablets, and computers. Bluetooth applications for parking may be stand-alone access solutions, separate from installed access equipment, or integrated with existing parking equipment. Several parking access providers, including Designa (Smart Move) and HUB (JPass), are developing and launch- ing integrated Bluetooth solutions for parking. Other vendors have installed beacon-based systems that are used to track and monitor commercial ground transportation vehicles. Generally, these systems work as follows: • Drivers must download the parking app in advance and activate Bluetooth on their device. • When drivers approach the parking facility entry, the app will communicate with the Bluetooth beacon integrated with, or near to, the entry column and perform an action—automatically lift the gate, call up a QR code on a reservation, or ask drivers if they wish to enter. • The driver performs the required action, if needed, such as scanning a QR code or pushing “OK” on the app—the gate raises and the clock begins ticking on the parking stay as the driver continues to a parking space. • When ready to exit the parking facility, if the driver has prepaid and has not overstayed, they drive to the exit where the system identifies the driver’s device and lifts the gate for exit. • But if the driver has not paid or has overstayed, they may pay by phone or, in some cases, at a pay-on-foot machine equipped with a beacon. Once fully paid, the driver continues to the exit where the system identifies the driver’s device and lifts the gate. 7.1.4.1 Typical Goals and Objectives In parking, the most common objectives for such beacons are to improve the parking facility entry and egress process by recognizing an individual or a reservation at the entry point and facilitating a speedy payment and exit. In some facilities, beacons are installed for wayfinding purposes where the objective is to help parkers remember where they parked and find their car. 7.1.4.2 Potential Benefits Most commonly, beacons provide an improved passenger experience, increasing throughput at entries and exits, and enabling mobile payments or recognition of a prepaid reservation. Beacon-powered systems eliminate tickets, provide e-receipts, and may enable remote extension of a parking session. They may also serve to reduce the frustration of a lost vehicle if they are installed throughout a facility. Other potential benefits include: • Real-time Updates and Navigation. An airport can deliver real-time “day of travel” infor- mation directly to passengers in the airport or parking facility. Beacons can help the airport communicate directions directly to the traveler’s smartphone, providing guidance without the need for staffing. Beacons can be used as landmarks (e.g., attached to a garage column or wall) for a mobile device to determine its location, which can then be used for example, to help a customer locate their vehicle. • Facilitating Entry to Parking Facilities. Beacons installed on entry columns can detect a reser- vation saved to a wallet and trigger a bar code to appear as a traveler approaches a parking facility. Some parking suppliers have developed an integrated beacon that will trigger the gate to open automatically if a reservation is detected. • Generating Non-Aeronautical Revenues. Beacons can help promote parking products as well as non-parking products such as in-terminal food, beverage, and retail concessions.

Innovative Payment Systems and Technologies for Public Parking and Ground Transportation 95 For example, beacons can send information about parking specials, nearby food vendors, or nearby stores, along with a coupon. • Passenger Flow Management (mostly used within an airport rather than in parking). Beacons generate information about passenger pathways throughout the airport and may be used to plan and manage service capacity, resources, and staffing. • Improved Operational Efficiency and Security. Beacons can help airports track their employees. If a traveler has an issue, the airport can identify employees located nearby who can assist. This allows for a faster and more efficient response to issues as they arise. Additionally, beacons can help detect if any employee or individual is trying to access a restricted area, which improves airport security. 7.1.4.3 Typical Implementation Costs Implementation costs reflect the number of beacons required and the costs to integrate with the airport’s parking system. As of January 2020, a typical beacon cost is approximately $30. For uses such as communication with mobile wallets or for location tracking, they can typically be installed onto existing infrastructure. For a more complete beacon-based parking access solution, installation costs are estimated at a one-time cost of $8,000 per lane. 7.1.4.4 Typical Impacts to Ongoing Operating Costs Parking access equipment and software suppliers may charge a transaction fee that would vary according to volume. As of January 2020, such fees are approximately $0.35 per parking transaction. 7.1.4.5 Implementation Considerations Implementation considerations for individual battery-powered beacons in a car park include: • Beacons should be installed where they are easy to reach to change out batteries, preferably without requiring the relocation of parked vehicles; • Weather extremes may reduce beacon performance; and • Beacon read radius and possible signal interference will influence placement. Implementation considerations for a parking access system using beacons include: • Customer apps must be downloaded in advance, which means consumer communication is key to increase use of the system; • Push notifications to a customer’s smartphone may require user permissions; • Not all customers who enter a parking facility may have a smartphone with Bluetooth capability (or they may have disabled it), so a backup system and/or lane may be required; • The system should undergo multi-lane testing to ensure there is no cross-talk where a beacon reads a Bluetooth device in an adjacent lane; and • A system may improve accuracy and control by incorporating antennas pointing to an in-lane “hot spot,” a geofence around the vehicle location, and/or in-lane induction loops to detect a vehicle. 7.1.4.6 Implementation and Lessons Learned A few European airports are using Bluetooth as a means to automatically call up an entry credential provided by an OBS. Tampa International and Seattle-Tacoma International airports are in the process of evaluating it as an option. There are several non-airport instances of Bluetooth entry and exit, such as parking facilities owned by the City of Anaheim. A few airports, including Seattle-Tacoma International and Tampa International, are considering deploying Bluetooth as a means to automatically call up an entry credential provided by an OBS,

96 Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue making it a speedier process for the customer than searching for the credential on their device. There are also a number of non-airport examples of Bluetooth entry and exit, such as Parking Sense’s operations for the City of Anaheim. Lessons learned from these implementations include: • The app will likely need to be integrated with another parking access system or third party system, such as a pre-existing reservation system or a business intelligence system (if so, choice of a Bluetooth beacon system should consider which systems already have existing integrations); • Airport staff evaluation of such products should consider existing data to determine if the data is sufficient, if the data includes reliability statistics from other users, and if there are warranty conditions; • The parking owner and/or operator will need to educate customers about the app through strategies such as ambassadors, signage, billboards, and information at points of payment; and • The system should include a method for accommodating customers who do not have the app or do not have a Bluetooth device. 7.1.5 Self-Service Virtual Accounts Many airports manage specific customer groups (e.g., employees, corporate accounts, frequent parkers, and commercial vehicle operators) through account-based parking, which links customers or parking access cards to an account and allows the airport to issue monthly statements. A number of airports have looked for “plug and play” solutions to automate the management of these accounts. NuPark is an example of a parking management system that is well suited to groups using the airport on a frequent and ongoing basis. This system allows members of a group to use the system online to elect a product or service, sign up with required details (such as email and license plate), and gain access to specific parking areas via virtual permits. The airport can then monitor compliance using license plate recognition technology. Another system designed for frequent parkers is Advam’s ParkCharge. Like NuPark, customers sign up directly in the ParkCharge system. They choose from three different payment methods (pre-pay, pay-as-you-go, account top-up) tied to a stored payment card or account. They may use several types of identifiers to enter a parking area, such as license plate or radio-frequency identification (RFID). Because the customers have accounts tied to entry and exit identifiers, their transactions and behavior can be monitored and, if desired, rewarded by tying activity to a rewards program. There are other vendors that offer similar solutions implemented at university campuses and other sites. In addition to saving administrative time and cost, these systems also provide enhanced customer data. Common features include the following: • Automated or self-service loading of customer data into a customer database; • Automated entry to parking areas using license plate recognition (LPR); • Automated enforcement via license plate inventory (LPI), often accomplished through a vehicle-mounted camera; • Virtual (email) warnings or tickets (that may be reviewed in advance if desired); • Creation of and changes to permits, products, and permissions in the system in real time; • Creation of flexible reports using the database to monitor transactions and customer behavior; • Virtual event tickets and validations; and • Integration with the existing PARCS and sensor-based occupancy system. Figure 7-1 depicts a sample self-service account interface offered by an airport.

Innovative Payment Systems and Technologies for Public Parking and Ground Transportation 97 7.1.5.1 Typical Goals and Objectives The major goals and objectives with these systems are to automate data entry and payment to lower administrative time and cost, as well as reduce errors relating to information entry. By providing groups with self-service input, the groups take ownership of the accuracy of the data, as well as the overall accuracy of the names in the group being billed for product use. Further, compliance, infringement issuance, payment, and billing are all automated, reducing the need for staff. Some systems even automate the process for contesting an infringement through forms provided to the parker that are then forwarded to the relevant email address for review by the parking manager. 7.1.5.2 Potential Benefits Key benefits are operational savings and improved accuracy. The additional benefit of more and better customer data allows the airport to better allocate resources, develop future product and staffing plans, and influence behavior through rewards and penalties. 7.1.5.3 Typical Implementation Costs Licensing costs of the systems themselves vary but may be as low as a $30,000 flat fee or based on a per movement fee (common if the system is used for commercial vehicles). Implementation and integration will depend on the associated systems (e.g., parking access and revenue control) in use, but a cost of around $10,000 is common. These systems require tokenization for payments, and therefore, a cost may be incurred to integrate with the airport’s PSP. If an entry credential other than a license plate or existing pass is used (e.g., a card with RFID or programmable chip), there may be costs associated with procuring that credential and ensuring it is recognized by the barrier system. Source: Brisbane Airport webpage, July 2019. Figure 7-1. Example of a self-service virtual account web-based interface.

98 Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue 7.1.5.4 Typical Impacts on Ongoing Operating Costs PARCS providers may charge a monthly maintenance fee to have a fully supported integra- tion with the third-party software. PSPs will charge ongoing transaction costs for payments and tokenization. If a new and separate entry credential is introduced, new users will need to be provided with that identifier on an ongoing basis. If access systems (e.g., barrier or tolling systems) are replaced, a new integration will have to take place. Raleigh-Durham International Airport has estimated the ongoing costs of their system to be approximately $30,000 per year. 7.1.5.5 Implementation Considerations Reduction in staffing due to automation may be an issue that has to be addressed, particularly in a union environment. Also, employers inputting user data must understand their respon- sibility to keep information correct and up to date or be liable for the parking fees incurred. 7.1.5.6 Implementation Sites and Lessons Learned As noted above, Raleigh-Durham International Airport staff report ongoing costs of $30,000 per year. They also estimate a return on investment in less than 3 years based on savings in administration, primarily due to the self-service entry of customer data. Advam’s ParkCharge is in use at international airports, including airports serving Adelaide, the Gold Coast, and Brisbane, Australia; and Auckland and Queenstown, New Zealand. Staff at these locations indicate it has improved the customer experience by offering frictionless entry and exit and automated billing for various classes of customers, including premium parkers, employees, and commercial vehicle operators. Self-service systems are not always integrated with the existing PARCS. Even if the supplier of the self-service system does not charge for integration, the PARCS system provider may. If a self-service system provides a work-around to full integration with the PARCS, this may result in an unstable or unreliable system. Not all PSPs will support tokenization. Those that do, will likely charge additional fees for it. 7.1.6 Central Control Room U.S. airports are unique among their international peers in the high use of cashiers at parking facility exits. Airports in Europe, Australia, and Canada are heavily automated, relying on a system with almost all parking fees (a) prepaid via online pre-booking or (b) paid at pay-on-foot machines located in the terminals or at the pedestrian access points to the car parks. Customers can also pay for their parking using a valid bank card at any of the unmanned exit lane terminals. Any customer service issues are handled by a small team of supervisory staff located in a central control area where they can observe via closed circuit television (CCTV), communicate via two-way digital intercoms, and intervene to manage the lane equipment remotely. While many of the benefits described in this section can be attributed to the emphasis on self-pay parking systems, the central control room is a fundamental component of such systems as it provides an efficient way for the parking operator to address customer issues that may occur at any location within the parking system. 7.1.6.1 Typical Goals and Objectives The main objectives of a central control room are operational savings and increased effi- ciency for the customer. The control room enables the parking business to reduce the number of operational staff responsible solely for taking customer payments and employ fewer, higher skilled “trouble-shooting” roles that oversee all lanes and can solve problems immediately.

Innovative Payment Systems and Technologies for Public Parking and Ground Transportation 99 7.1.6.2 Potential Benefits Benefits include the following: • Improved efficiency and resource allocation, and reduced operating costs (assuming there are minimal legal and other barriers to reducing the number of cashier positions); • Minimizing or eliminating queuing at exits by making all exit lanes available to all customers at all times (assuming no lanes accept cash); • Optimizing the capabilities of the installed PARCS and thereby improving asset utilization; • Reduced pressure on cashiers from customers by providing distance from argumentative or inflammatory situations; and • Provision of higher skilled, better paid roles that may be more attractive for recruitment and retention. 7.1.6.3 Typical Implementation Costs Control room setup includes application server(s), software to manage calls and issues, multiple screens to show each lane via CCTV cameras (which may be pinhole or “pan tilt zoom” capable), intercom (usually voice over internet protocol) hardware and software, PARCS work station(s), central cashier terminal(s), online validation station(s), and the associated power and communications to support these systems. Costs vary significantly based on the size of the installation and what equipment and facilities may already exist at the airport. Control room costs often fall in the range of 3% to 5% of the total new PARCS installation cost. In 2018, a large-hub airport with about 60 entry and exit lanes received quotes for a new control room in the range of $175,000 to $325,000, with the upper range driven by the number and cost of required servers put forth by the bidder. To fully leverage the investment in a centralized control room, additional costs may be incurred if some exit lanes do not already have fully automated payment capabilities. Exit stations with such capabilities currently cost $10,000 to $15,000. Other transition costs include staff training and communications with, and education of, customers accustomed to dealing with cashiers at exits. There may be some staff redundancy costs to consider if staff numbers are reduced, but in some cases, cashiers can be re-deployed within the airport or by the parking lot operator. 7.1.6.4 Typical Impacts to Ongoing Operating Costs Ongoing system costs may include server maintenance and software licenses. Any potential increase in credit card processing cost is typically offset by reduced cash collection cost. Labor costs should reduce, but the precise savings will depend on the local situation, including contractual obligations with parking contractors. Generally, a parking business with about 20,000 spaces and three to five garages or lots would not require more than three to five control room staff at a time. Depending on the goals and objectives of a given airport, additional staff may be deployed in a central control room to enhance the customer service provided, address misreads in LPR systems, and resolve other issues. 7.1.6.5 Implementation Considerations Where a control room environment is new, the key issues are likely to be labor-related (such as local union negotiations, if required) as the overall system relies on fewer staffed exit lanes. Staff training and reallocation and new standard operating procedures will also be required. Customer communications and education are also vital to ensure benefits are communicated and that customers are aware that (a) there will be a person at the end of the intercom and (b) there is someone who can come to their aid in-person if required. Further,

100 Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue if cash is being eliminated in exit lanes, customers need to be informed if there is a cash option (e.g., a pay-on-foot machine) and where it is located. 7.1.6.6 Implementation Sites and Lessons Learned As noted above, automated and self-pay parking payment systems are common throughout airports in Europe, Canada, and Oceania. Such installations typically incorporate a central control room. Lessons learned from these operations include: • During transition to a more automated system, an airport should manage, negotiate, and communicate with cashier staff at all stages to ensure that they are offered attractive options, including different roles within parking operations, transfer options within the airport, and/or redundancy terms for any interested in leaving. • Airport staff and/or the parking operator should communicate with parking customers well in advance of the change, throughout the transition, and for months after the actual changes are implemented to minimize adverse experiences at the exits. • To eliminate cashiers, a few pay-on-foot kiosks are a key component of the system as they provide opportunities for cash transactions. The airport should ensure that all pay-on-foot machines are working and well-signed for customers who may prefer to use cash or to pay in advance without “pressure” at the exit lane. 7.1.7 Virtual Nested Parking Areas Using Camera-Based Parking Guidance Systems A virtual nested parking area is created when several dedicated spaces are defined by some- thing other than physical barriers and entry and exit hardware. Currently, these areas require the use of camera-based parking guidance systems that use different colored lights above the spaces to convey information about that space (such as whether the space is occupied, part of a product, or reserved for a particular customer). The cameras in the installed hardware read the license plate and identify the space where the car has been parked and its associated parking fee, which is programmed into the PARCS so that the car is charged appropriately at exit. For this system to work, LPR must be in place at the entries and the exits of the parking facility since the license plate read determines the duration the car has been parked. 7.1.7.1 Typical Goals and Objectives The most common objective is to quickly designate areas of tiered products and pricing without the time and expense associated with creating traditional nested areas with physical barriers and equipment (that may also require expensive additional power and communications) and without needing to take away existing spaces to install equipment and circulation lanes. Further, entry and exit to the car park and the products using LPR create a more streamlined customer experience that requires no need to lower the car window to show an identifier (e.g., QR code, ticket, or proximity card) to get a gate to lift. Airports may also use virtual nested areas for staff or other specific groups and require they park their vehicles in specific spaces or an assigned area. The members of these groups will have their license plates stored in an administration component of the system and, if the airport elects to do so, the airport can penalize them (e.g., charge the posted parking rate instead of a preferential rate) if they do not park in their assigned area. 7.1.7.2 Potential Benefits Key benefits are cost savings, flexibility in the number and location of spaces allocated to a product or price point, and optimization of revenues and occupancy. In the case of designated

Innovative Payment Systems and Technologies for Public Parking and Ground Transportation 101 spaces for staff or specific groups, spaces not needed by the designated persons could be tempo- rarily used by the public, potentially providing more efficient space utilization. 7.1.7.3 Typical Implementation Costs As of January 2020, camera-based LPR systems typically cost between $330 and $600 per space. Generally, the cost is dependent on the size of the installation, the condition of the existing PARCS and parking facility, and whether the client is in a location of importance to the vendor. Key considerations include: • Is LPR in place already at entries and exits? If not, cameras will need to be purchased and installed and integrated with the PARCS system. Also, there may be a requirement for civil works (such as changing lane configuration and building curbs or islands) to ensure front or rear license plates can be read. • Are there sufficient servers, power, and communications to support the system? If not, these additional works may be carried out by the airport or the vendor, depending on how the contract is structured, and there should be consistency in the specifications and aesthetics throughout the garage. • If the installation is in an outdoor lot, cameras must be mounted on existing or new poles with clear sightlines to license plates. In addition, software required to vary rates by space, unless included in the overall software fee, could cost between $60,000 and $120,000, depending on how the agreement is structured. Most camera-based parking guidance systems will offer a comprehensive administration and reporting suite, which is usually included, and a “find your car” kiosk, which may be priced separately at approximately $60,000 per kiosk. 7.1.7.4 Typical Impacts to Ongoing Operating Costs Ongoing costs for virtual nested areas will be a part of the overall system costs for a camera- based space guidance system. System maintenance and extended warranty costs may range between 1.5% and 5% of the total installation cost. Some airports find it more efficient and less expensive to take on the maintenance themselves or have an existing vendor provide it after receiving training from the supplier. If the space or price requirements for a virtual nested area or areas vary frequently, more dedicated staff may be required to interpret data and program the system. 7.1.7.5 Implementation Considerations Implementation considerations include those associated with LPR installations: (a) the gathering and storing of license plate data, and how it is used, may be governed by local or state legislation and (b) LPR data may require more storage capacity than an airport may have for its existing PARCS. Other considerations include: • Camera effectiveness may be affected by weather extremes, including large temperature swings (can cause condensation), extreme heat or cold, and driving wind and rain. • License plate reads can be affected by myriad factors, including sun exposure, which varies by time of day, lack of light, reflection, and a variety of “exception” license plates like tempo- rary paper plates, vanity plates, dirty and partially or totally obscured plates. Thus, the system may require manual support to correct misreads. • For states that do not require front license plates, vehicles that have backed into spaces will not be recognized by the camera-based system. In such cases, license plate information may need to be manually observed and entered into the system. • Different types of installations are required for outdoor lots (e.g., cameras mounted on tall poles throughout the lot) than are required for indoor lots (which use cameras mounted on channels along the center of each drive aisles).

102 Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue • The camera-based system will need to integrate with the PARCS system, which must, in turn, have an integrated LPR system. Unless the camera-based system vendor has prior integrations with a particular PARCS provider, integrations will require additional time and cost. • The ability to vary the price of spaces in real time may be limited if the airport requires the vendor to implement the changes in the system. • The installation usually requires project management and/or oversight by airport staff and will require parking areas to be progressively cordoned off and cleared of vehicles during installation. 7.1.7.6 Implementation Sites and Lessons Learned As of January 2020, virtual nested parking areas using camera-based parking guidance systems have not been used in an airport setting but have been deployed at the University of Texas at Dallas and at several shopping malls. In addition, several airports, such as Austin- Bergstrom International, Fort Lauderdale-Hollywood International, Nashville International, and San Francisco International airports have installed camera-based parking guidance systems but have not yet used them to create virtual nested areas. Lessons learned from existing installations include the following: • Angled spaces are more difficult to read than 90-degree parking spaces. • Space allocation within the garage needs to mirror what is displayed on wayfinding and other signage. • Systems that use camera installations down the center lane of a garage will be easier to install and maintain since parked cars will not have to be moved. Such installations, however, must consider height clearances and compatibility with existing signage. • Many garages may not have the existing power and communications support required of such systems and will need additional conduits or cabling, along with servers, to support the installation. 7.1.8 Automated Robotic Valet A robotic valet allows a valet parking operator to substantially reduce staff associated with a valet parking operation. There are at least two separate robotic valet vehicles in airports currently. They are: • Ray (shown on Figure 7-2), made by Serva Transport Systems, has been in use at Dusseldorf International Airport since 2014. • Stan (shown on Figure 7-3), from Stanley Robotics, started operations at Lyon International and London Gatwick International, in 2019. Stan was also trialed at Paris Charles de Gaulle International in 2017. With both systems, a customer pre-books parking at the airport. With Stan, when pre-booked customers arrive at the parking facility, they are directed to a line of parking garages or boxes. With Ray, they are directed to marked parking or transfer bays. Customers exit their vehicles, remove their luggage, and lock their cars, taking their keys with them. They register at a data terminal and once their booking is confirmed and arrival validated, they head towards the terminal. Shortly after the customer leaves, an automated robot arrives, measures the vehicle, inserts “arms” under the tires of the vehicle, and lifts it clear of the ground (the operation is similar to a forklift). The robot then drives with the car to an enclosed parking area and deposits the car As the level of automation increases in vehicles, an increasing number of manufacturers will provide a “self-parking” option, whereby an unoccupied vehicle can be directed to park by itself. Such systems may reduce the attractiveness of robotic valets.

Innovative Payment Systems and Technologies for Public Parking and Ground Transportation 103 Source: Serva Transport Systems. Figure 7-2. “Ray” robotic valet equipment. Source: Stanley Robotics Figure 7-3. “Stan” robotic valet equipment. in a row or block of other cars, noting where the car has been parked. This process allows very compact parking of like-sized cars. The Ray provider claims to be able to park up to 60% more cars in a given area while the Stan provider claims 50%. The systems record the expected date and time of return of the motorist through integration with the pre-booking system or flight arrival software, and park the cars accordingly. Vehicles that are not needed for several days may be “deep stacked” more than those required in less time. When the customer is due to return, their car is either ready and waiting based on the scheduled return time in the system or called via an app and transferred back to a pickup point so that the vehicle is waiting for the customer when they return to the car park. 7.1.8.1 Typical Goals and Objectives The objective is generally to maximize car park occupancy and reduce operational costs, particularly staffing. Robotic valets may also drive revenues as more cars are parked in the same area. This type of system may extend the time before additional parking assets are required to be built or procured, saving money and freeing up capital in the short term for other uses. In cases where airports are space constrained and do not have good options to acquire or build additional lots or garages, robotic valet may provide an attractive method to allow more passengers to park at the airport. 7.1.8.2 Potential Benefits The clearest benefit is the improved space utilization in the parking lot or garage. For example, at London Gatwick International, airport staff expect they will be able to park 8,500 robot- parked cars into the 6,000 existing self-park spots once the system is fully operational. Better space utilization enables more parkers and more parking revenue per square foot.

104 Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue Another benefit is cost savings relating to reduced staffing as well as the flexibility provided by an automated system (it can ramp up or down as needed without having, for example, required 4-hour shifts for a typical human valet). Nonetheless, the operations are not completely unstaffed. With Ray, a staff member does monitor the automated valet registration kiosk to ensure a smooth experience. Another benefit is a reduction in emissions—as much as 60% to 80% according to Serva— with electric robotic valets moving (mostly non-electric) cars and with the elimination of cars circulating through a facility searching for a space. There is also a potential benefit in fewer damage and accident claims, with robotic parking providing less opportunity for human error while parking cars very close together. 7.1.8.3 Typical Implementation Costs Implementation costs may be high. Recently an overseas airport was quoted €16 million for an installation in four designated areas of an outdoor parking lot with a total of 8,000 spaces. Another airport received a quote of €6.5 million to achieve an increase of 1,000 spaces. In many instances, it may be that the capacity increase provided by robotic valets can be achieved for a lower cost using traditional (i.e., manual) valet parking practices. As robotic valet manufacturers continue to evolve and gain experience, their cost basis will likely reduce. 7.1.8.4 Typical Impacts to Ongoing Operating Costs Operating costs should be reduced in terms of human labor, but they will be increased by licensing and maintenance fees for the robotic equipment, which may approach 30% of the capital costs. Amounts will vary depending on the current airport situation and the location and size of the operation. 7.1.8.5 Implementation Considerations Implementing robotic valet in garages may be challenging depending on the internal design of the garage. While wide, clear, straight aisles are best, these may not be available, particularly in older garages. Columns, low ceilings, and other design elements may limit maneuverability of a robot in a garage. For this reason, Stanley Robotics concentrates its installations in outdoor parking lots where it is easier to achieve a successful operation and return on investment. In addition, this technology would not be applicable to airport valet operations where customers drop off and pick up their vehicle at the airport curbside or nearby courtyard. Legal considerations include the management of liability should a vehicle be damaged or a passenger injured by the robot. In the case of Ray at Dusseldorf Airport, passengers are not per- mitted in the valet parking area that is used by the robot. There are staff members in the vicinity who keep an eye on the designated area, but they must always be prepared for the eventuality that a parker may wander into it. 7.1.8.6 Lessons Learned Customers like the concept of being able to keep their keys and not hand them off to a valet and are generally pleased with the system, feeling it is a premium service. The “wow” factor of the automation is repeatedly expressed by customers. Customers appreciated the quick drop-off and pickup processes, with their vehicle ready and on time. Despite the automation, however, many airports feel a “host” or customer service representative is required to reassure customers, ensure customers follow the correct procedures, and resolve any issues should they arise. For the airport, there are various implementation considerations, including allocation of time and resources to integrate the robotic valet vendor with other parking systems, as well as

Innovative Payment Systems and Technologies for Public Parking and Ground Transportation 105 to potentially integrate with a flight information display system (FIDS) or other system tracing airline arrivals. At times, the vehicle storage containers were too small for the vehicles being driven. That issue should be considered at an early stage in the planning process and could be a key concern in the United States given the market preference for larger vehicles, such as pickup trucks and sport utility vehicles. Clear explanations of the service and the process to use the service are required at the customer’s first point of contact with the product (such as at the point of online booking, if online booking is available) but need repeating at the point of vehicle drop off. Good signage on site, directing parkers to the correct location, is recom- mended. Drive aisles must be wide enough to comfortably accommodate the robot. Multiple tests determined that the robotic valet was best deployed in an outdoor setting as opposed to a garage setting, which frequently did not allow for sufficient density in the stacked parking to provide an acceptable return on investment in a reasonable time frame. 7.1.9 Automated Shuttles Automated, driverless, self-driving, or robotic vehicles are vehicles capable of moving safely from point to point with no human input. They are controlled by sophisticated software and use a variety of sensors to perceive their surroundings, such as RADAR, LiDAR, sonar, GPS, odometry, and inertial measurement units. Providers include Navya (which has partnered with Aeroport de Paris and London Heathrow International Airport), Oxbotica (which has trialed cargo area vehicles at London Gatwick International Airport with IAG Cargo), Westfield POD (London Heathrow International Airport’s driverless pods in the business car park), EasyMile (which has tested a parking shuttle at Austin-Bergstrom International Airport), and Aurrigo (driverless luggage trolleys at London Heathrow International Airport). Such vehicles are being used to carry passengers within a parking facility (such as between the extreme ends of a garage and the vertical circulation cores) and between a parking facility and an airport terminal. Currently, automated shuttles at airports are predominately electric. 7.1.9.1 Typical Goals and Objectives The objectives for implementing automated shuttles are to improve airport performance by providing a more “on demand” service schedule, reducing staffing costs, possibly reducing fleet size, and, ideally, improving safety. Many providers call their products “first mile” and “last mile” solutions intended to efficiently move passengers between a parking facility and the airport terminal. 7.1.9.2 Potential Benefits Automated shuttles offer the following benefits to airport parking and transportation operations: • Reduced staff costs; • Improved flexibility and efficiency in providing shuttles on demand to passengers (in large part because it may be difficult to rapidly increase or decrease staff throughout the day); and • Improved safety as an unmanned vehicle programmed to follow all safety rules should be as safe or safer than a manned vehicle, and is not subject to driver fatigue or distraction. 7.1.9.3 Typical Implementation Costs A single driverless shuttle, including implementation costs, costs between $300,000 and $600,000, depending on the complexity of the operating environment. In addition to supplier costs, costs will include airport participation in defining the operational design domain, developing and implementing the operational plan, training, stakeholder engagement, and addressing the legal and insurance risks involved.

106 Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue 7.1.9.4 Typical Impacts to Ongoing Operating Costs Estimates of ongoing energy cost range from $4 to $5 per 6-hour shift for a low-speed electric shuttle (such as those provided by Navya). As with other electric shuttles, AVs require storage, charging, and maintenance. Changes to routes must be mapped in advance, an exercise that typically requires up to 3 days of staff time. There also may be ongoing licensing fees of about $1,000 per month, depending on the provider and, potentially, the cost of an on-board attendant. 7.1.9.5 Implementation Considerations In the United States, the federal government oversees regulation regarding design, manu- facture, and safety of vehicles, which must comply with the Federal Motor Vehicle Safety Standards. According to automated shuttle vendors, the standards do not yet address all the issues relating to automated vehicles. Until legislation is in place for AVs, federal exemptions must be sought for any AV trials. Further, the state must have legislation permitting AVs on its roads. While several states permit AVs to be tested, legislation to operate with or without a driver outside a test environment may not be in place. Local regulations, as well as any regulations applying to the test site itself, will also have to be consulted. Stakeholders who will regularly come in contact with the vehicles also need to be informed about the vehicles and their operation and these stakeholders may bring insights themselves to assist with the route and operation of the vehicles. Other important considerations include: • Privacy or what data is gathered in or from the vehicles and how it is protected. • Risk or any ridership restrictions and insurance. • An incident response plan needs to be in place. • The operating environment must be defined. The vehicle route itself must be mapped in advance. The route must take into account the traveling speed of the AV so that it is not mixing with vehicles that may be traveling at significantly higher speeds, or that the speed is appropriate should pedestrians be encountered. • The length of any AV route is influenced by the battery life of the vehicle. As with many electric vehicles, extreme cold reduces battery capacity, and the heating and cooling of the interior of the AV will draw down battery life more quickly in more extreme weather conditions. • Any changes to the route—perhaps due to construction, accident, or diversion—may result in suspension of the AV route, unless the alternate route is already mapped. 7.1.9.6 Implementation Sites and Lessons Learned As noted above, airports currently using automated shuttles include London Heathrow and London Gatwick international airports. In addition, Austin-Bergstrom International Airport has tested an automated shuttle on the roof of a parking garage and Dallas/Fort Worth Inter- national Airport has tested an automated shuttle within a remote surface parking facility. Lessons learned from existing users include: • The system should include a close and convenient storage and charging location. A typical shuttle may be able to operate up to 9 hours, which may not be long enough for a full day’s operation. If the shuttle can be taken out of service and charged during downtime, that can extend the time/charge the shuttle has to run a route. • The number of required vehicles should reflect that the shuttles are typically slower moving than a traditional shuttle and have a specific battery limit. • Airports may wish to start operations with a smaller fleet to allow customers and airport staff time to get used to the operations.

Innovative Payment Systems and Technologies for Public Parking and Ground Transportation 107 • Currently, AVs designed as passenger shuttles may still require a “safety conductor” on board who has undergone rigorous training on how to operate the shuttle. In this case, the potential operating cost savings may be reduced, though the wage rate for an attendant or safety conductor is likely less than that of a bus driver holding a commercial driver’s license. 7.1.10 Other Strategies and Technologies ACRP Report 24 describes over 65 strategies and technologies that were available as of the 2009 publication date. For each strategy and technology, the report provides the goals and objectives; use by customers; intended benefits; implementation actions, considerations, costs and schedule; ongoing costs; and examples of its application. This section augments informa- tion provided in this report for some of these strategies and technologies to reflect ongoing improvements in the technologies and evolutions in how airports are using them. For each strategy and technology described below, the title references the appropriate category and number used in ACRP Report 24. 7.1.10.1 Marketing and Branding (ACRP Report 24 Category F.7 and F.8) ACRP Report 24 summarizes the concepts behind the marketing and branding of airport parking facilities. Since the publication of the report, the marketing and branding of airport parking facilities rely increasingly on the roles played by mobile apps, websites, and social media. Apps and websites that bring together the information most needed by travelers can be effective tools to drive businesses toward on-airport parking. Information on parking avail- ability, options for reservations, and loyalty program options for parking can be included with other important information like flight status, security wait times, and dining options. Airports are also increasingly using social media platforms to advise customers of new services and disruptions, as well as respond to customer comments. Airport users may appreciate having this information integrated into one portal, which could influence them toward parking at the airport, having been alerted to availability, perks, and fees. The portal may also alert a user to options that they were unaware of, such as loyalty programs, reservations, and luggage drop services. 7.1.10.2 Loyalty Programs (ACRP Report 24 Category C.5) ACRP Report 24 highlights a loyalty program’s ability to attract users to use an airport’s parking with the promise of eventual free parking or other perks. The intention is that whatever amount of free parking revenue is lost from these awards, it is more than compensated by drawing users away from competing resources, such as off-airport parking, with these incentives. At many airports, business users comprise a large percentage of the user base. With a loyalty program in place, a situation analogous to how an airline’s frequent flyer program can be pre- sented, a user may pay for parking and earn reward credits (or points) while traveling for business and be reimbursed by their employer or client, and then use these parking loyalty rewards for personal travel. Since the completion of ACRP Report 24, parking loyalty programs have evolved to incor- porate bar codes or QR codes provided through a smartphone app. This option is attractive to airports because no credential needs to be mailed to the user. In addition, airport staff and parking operators increasingly report that parking customers prefer to receive free or dis- counted parking as a reward as opposed to discounts on in-terminal food and goods. For this reason, a free-standing parking loyalty program is preferred over one linked to in-terminal purchases of goods and services.

108 Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue 7.1.10.3 Valet Parking as a Capacity Enhancement Tool (ACRP Report 24 Categories B.1 through B.4) ACRP Report 24’s discussion of valet parking focuses on its ability to provide a premium product. This report also noted the potential benefit of using valet parking as a way to use airport property otherwise ill-suited for self-parking or other uses. Over the last decade, however, some airports have begun to look to valet parking to significantly increase close-in parking capacity while avoiding the costs of constructing a parking garage. These airports are choosing to incur higher operational expenses (labor and insurance costs associated with moving the valet-parked vehicles) to delay or avoid higher capital costs. These operations also do not portray the product as a premium product. Rather, they portray it as a close-in parking option similar to the “daily” and “hourly” products offered by other airports. Manchester Airport in the United Kingdom uses their “Meet & Greet” product in this manner. 7.1.10.4 License Plate Recognition (ACRP Report 24 Category E.6) As LPR technology improves, PARCS vendors are increasingly integrating with LPR systems that can read and record the license plates of vehicles entering and exiting the parking lot. These systems offer the potential to operate without tickets, although this use has not been proven in the United States on a widespread basis. In this model, the patron pulls into the entry lane, and as soon as the LPR camera is able to successfully read the license plate, the gate opens. Payment is taken via credit card at the point of exit after the license plate is reread. At the time ACRP Report 24 was published, accuracy of LPR systems in the United States was typically 90% or lower. As a result, many U.S. airport operators were unwilling to consider LPR systems as replacements for conventional parking facility access control. Since ACRP Report 24, LPR accuracy in the United States has increased due to improved camera technology, use of multiple cameras, use of infrared, and improved optical character recognition capabilities. As of 2018, LPR systems deployed for over-the-road roadway toll collection reported capture and accuracy rates of 97.5% (Swonsen 2018). 7.1.11 Parking Technology Scalability The technologies described above vary in their ability to scale to airports of varying activity levels. Table 7-2 summarizes each technology’s appropriateness for consideration based on the size of the airport. The appropriateness generally reflects the likelihood that new revenues and/or reductions in operating costs resulting from the technology will exceed expected capital and/or ongoing operations costs. Where Table 7-2 indicates “may be appropriate,” the success of the technology will likely depend on local conditions unrelated to the airport’s total level of activity, such as the portion of passengers who are local residents and/or traveling for business purposes (and thus, may be more time-sensitive and less cost-sensitive), and characteristics of the airport’s parking facilities. 7.1.12 Value of Customer Data U.S. airports have access to myriad sources that provide customer data. Airports are increasingly looking at ways to monetize that customer data, especially in ways that can support other areas of the airport’s operation. For example, a parking loyalty program can provide the customer’s home address, frequency of travel, and travel duration patterns. That data can then be used to promote other concessions or services within the airport that are targeted at that individual’s specific travel patterns. The data, when combined with demographic data for zip codes or neighborhoods and known preferences of certain demographics, can inform airport decisions regarding concessions being offered and advertising modes such as online,

Innovative Payment Systems and Technologies for Public Parking and Ground Transportation 109 print, and television. Furthermore, with the customer’s email address, an airport can reach out to them to participate in targeted surveys, focus groups, or other activities the airport may use to improve its parking products and services. Given the potential value of the customer data, airport management should consider ways to ensure that the airport owns and controls the data when such data is collected by third parties, such as a parking operator, PARCS vendor, or loyalty program operator. 7.2 Innovative Rate Setting for Commercial Ground Transportation FAA requires that U.S. commercial service airports be financially self-sustaining (i.e., operate in a breakeven manner). Thus, U.S. airports rely solely upon the revenues they receive from fees and charges that they establish and do not receive financial support from state or local governments. These requirements are also contained in FAA Grant Assurances. As described in Chapter 2, many airports are experiencing reductions in parking revenues per passenger. Thus, an airport may wish to evaluate the fees it charges its commercial ground transportation operators as a strategy to offset current or forecast reductions in parking revenue. 7.2.1 Types of Airport Commercial Vehicle Fees The businesses required to pay airport fees include those commercial ground transportation operators that drop off or pick up customers on an airport (i.e., do business on an airport). Technology Non-Hub Airport Small-Hub Airport Medium-Hub Airport Large-Hub Airport New Payment Methods Appropriate Appropriate Appropriate Appropriate Self-Service Virtual Accounts Appropriate Appropriate Appropriate Appropriate Revenue Management Systems / Dynamic Pricing Not appropriate Not appropriate May be appropriate May be appropriate Central Control Room Not appropriate May be appropriate Appropriate Appropriate Robotic Valet Not appropriate Not appropriate May be appropriate May be appropriate Virtual Nested Areas May be appropriate May be appropriate May be appropriate Appropriate Online Pre-Booking Maybe appropriate Appropriate Appropriate Appropriate Bluetooth Beacons May be appropriate May be appropriate Appropriate Appropriate Automated Shuttles May be appropriate May be appropriate May be appropriate May be appropriate Marketing and Branding Appropriate Appropriate Appropriate Appropriate Loyalty Programs May be appropriate Appropriate Appropriate Appropriate Valet Parking for Capacity Enhancement Not appropriate May be appropriate May be appropriate May be appropriate License Plate Recognition May be appropriate May be appropriate Appropriate Appropriate Source: Walker Consultants and InterVISTAS, 2020. Table 7-2. Airport technology implementation and scalability.

110 Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue Typically, commercial ground transportation operators wishing to do business on an airport are required to enter into a formal business agreement with the airport operator. By entering into this agreement or operating permit, the ground transportation operator indicates that it agrees to comply with airport rules and regulations. These rules may specify vehicle and driver safety standards, passenger drop-off and pickup locations, permitted and prohibited roadway operations, required insurance coverage, and the type and amounts of fees that the operator must pay. These fees are established by airport management to preserve existing revenues and generate additional revenues, consistent with the other relevant goals of the management. As described in ACRP Report 146, most airports require that commercial ground transporta- tion businesses pay one or more of following fees. Airport permit fees. Airport operators require commercial ground transportation busi- nesses to pay a fee that, at a minimum, allows the airport operator to recover the costs it incurs in issuing and administering the airport permits and vehicle-mounted decals (or other equipment) that the ground transportation businesses are required to display to signify that a specific vehicle is authorized to operate on the airport. These fees, com- monly referred to as permit fees, are normally charged on a per-vehicle or per-commercial ground transportation operator basis. At some airports, all commercial ground transpor- tation operators pay the same fee, while at other airports, ground transportation businesses pay permit fees that vary according to the type of ground transportation service provided, the size or type of vehicle used, the type of fuel used by the vehicle, or the size or location of the individual ground transportation business. Cost-recovery fees. Many airport operators require that commercial ground transportation businesses pay fees that allow the airport to recover all or a portion of the costs the airport incurs in providing, maintaining, operating, and enforcing the facilities (e.g., the roadways, boarding areas, vehicle holding areas) used directly by commercial ground transportation businesses. Such costs can typically include: – Allocable debt service from existing and future bonds to fund roadway projects; – Allocable debt service coverage and other financial reserve requirements, if justifiable; – Amortization of historical capital expenditure paid from internal funds, using estimated economic life and a discount factor, typically as incremental borrowing costs; – Allocable direct operating and maintenance expenses, which may include expenses related to landside operators, traffic controllers, dispatchers, police officers, mainte- nance personnel, and other personal and non-personnel expenses; and – Allocable indirect operating expenses, which is the airport overhead allocable based on a fair and transparent process. Cost-recovery fees are often calculated based on the number of vehicle trips each com- mercial ground operator makes on airport roadways. As such, they are sometimes referred to as “per-trip” fees. The amount of these per-trip fees may vary by the type of ground transportation service, vehicle size or capacity, type of fuel used, or other measures. Demand management fees. Some airport operators impose fees or fines that are intended to encourage the efficient operation of and reduce congestion on airport roadways and curbsides. There are two basic types of demand management fees or fines: – Dwell time fees are charged to commercial ground transportation vehicles that remain at a curbside or passenger boarding area in excess of an established time limit. These time limits, which are measured using RFID or other technologies, typically vary based upon the type of service (e.g., charter bus versus courtesy vehicle) or size or capacity of a vehicle. – Interval fees are charged to commercial ground transportation businesses whose vehicles make excessive airport trips, either measured by the number of trips made each day or month or by the time interval between successive vehicles. Most frequently, these

Innovative Payment Systems and Technologies for Public Parking and Ground Transportation 111 interval fees or headway controls are imposed solely upon the operators of courtesy vehicles. Privilege fees. Many airport operators require that commercial ground transportation businesses pay fees that reflect the overall business benefits or privileges received as a result of the presence of the entire airport (not just the roadways and other facilities used directly) and from the ground transportation businesses’ access to the traveling public. These privilege fees are typically based upon the volume of airport-related business or revenues a commercial ground transportation operator receives. On- and off-airport rental car companies and off-airport parking businesses are frequently charged privilege fees. These fees can be calculated in a variety of ways but most frequently are between 4% and 12% of the commercial ground transportation businesses’ airport-related gross revenues. 7.2.2 Recent Developments TNCs have become much more prevalent since the publication of ACRP Report 146 and now represent a significant proportion of the commercial ground transportation vehicles and total traffic at many airports. Airport operators recognize that the increased number of TNCs has adversely impacted (1) taxicab and door-to-door shuttle businesses and the fees the operators of these services pay to an airport, (2) the revenues received from public parking and the fees paid by rental car businesses, when measured on a per-passenger basis, and (3) contributed to increasing congestion on curbside and other airport roadways. Federal courts allow airport management to set commercial vehicle fees considering: • The amounts and types of fees charged by other airports; • The fees paid by other companies doing business at the airport including those providing similar services businesses; and • The estimated revenues the airport operator would receive from the imposition of the potential fees. As of January 2020, most U.S. airports require that each TNC company pay airport fees, generally calculated according to the number of trips their affiliated vehicles make when picking up customers and, at some airports, when dropping off customers. At some airports, TNC fees were initially established based on the fees charged taxicab and limousine services. As airports now have a better understanding of the impacts TNCs have upon the revenue airports receive from parking and rental car businesses, many airports set fees that recognize the business benefits TNC companies receive from doing business on the airport or fees that are not directly linked to the costs to be recovered (i.e., market-based fees). Thus, many airports require TNCs to pay market-based fees that are significantly greater than those charged taxicab or limousine services. In addition, airport management may establish fees that vary based upon where a customer boards a TNC vehicle, with higher fees charged for preferential or more convenient locations. This approach can be used to encourage customer pickup in a parking facility, for example, if an airport seeks to reduce curbside traffic congestion. 7.3 Airport Access Fees An airport access fee may be defined as a fee an airport operator charges motorists in private vehicles for either entering the airport or using a designated passenger drop-off or pickup area. While many airports in Europe and South America charge motorists an airport access fee for entrance to the airport in a private vehicle, only one airport in North America does so, Dallas/Fort Worth International Airport.

112 Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue The types of access fees charged by airport operators include: Fees charged for access to the entire airport. With this type of access fee all vehicles must pass through a control gate or toll plaza at the airport entry or both at the entry and exit. At some airports, entering motorists are charged a flat fee. At other airports, exiting motorists are charged a duration-based fee (i.e., a fee calculated according the length of time the vehicle was on the airport). At DFW, motorists are charged fees that vary depending on how long they were in the terminal area—whether they parked for the duration of their trip, dropped off or picked up a passenger, or simply drove from one end of the airport to the other. Fees charged for access to the terminal curbside. With this type of access fee, only those motorists dropping or picking up passengers at the curbside are charged. The terminal curbside entrance and exits are gate-controlled, with exiting motorists paying a fee (at a kiosk) prior to exiting the curbside area. Those motorists who bypass and do not stop at the terminal curbside area are not charged access fees. Such fees could result in increased traffic on airport access and circulation roadways as drivers may wish to wait until the last possible moment to enter the curbside area to pick up a passenger. This behavior could be mitigated by providing a free waiting area (such as a cell phone lot) located away from the curbside. Fees charged for access to an alternative passenger drop-off/pickup area. With this type of fee, only vehicles operated by authorized commercial ground transportation businesses may enter the curbside area immediately adjacent to the terminal building. Motorists in private vehicles are directed to one of several alternative passenger drop-off and pickup areas. Typically, motorists must pay a fee to use conveniently located drop-off and pickup areas (i.e., those within a short walk of the terminal building). Less conveniently located drop-off and pickup areas are available at no cost but may involve the use of a shuttle bus. Similar to terminal curbside fees, such fees could result in increased traffic on airport access and circulation roadways. 7.3.1 Typical Goals and Objectives Airport operators choose to impose access fees for many reasons including: • Promoting sustainability by encouraging the use of public transit and long-stay parking (thus reducing vehicle-miles of travel and the associated vehicle emissions and fuel consumption), • Responding to federal security requirements by reducing traffic volumes in the terminal area and preventing unattended vehicles at the curbside areas, • Reducing roadway congestion and deferring potential roadway expansions, and • Commercializing or enhancing airport revenues. 7.3.2 Potential Benefits The major benefit of such fees is reduced traffic congestion at curbsides and thus, improved access for public service and permitted commercial vehicles, which results in additional airport revenues. 7.3.3 Typical Implementation Costs The capital costs involved depend on the number of barrier-controlled lanes to be installed and the technology used to collect the revenues. For example, for a curbside that is gate- controlled by two entry and two exit lanes, the cost is likely to be less than $150,000 for the following elements: • Two entry lanes, two exit lanes with pay machines, plus associated power, communications, LPR systems, CCTV, and voice over internet protocol (VOIP) intercoms; • Road marking;

Innovative Payment Systems and Technologies for Public Parking and Ground Transportation 113 • Signage; and • Curb realignment. However, this cost excludes potentially significant costs, including those for: • Roadway widening, which could be expensive if the roadway is an elevated structure; • Utilities; • Pay-on-foot kiosks, if not already available (pay-on-foot kiosks located in the terminal would minimize transaction times at the exit lanes); • Costs to educate airport users and customers about the curbside access control (potentially resulting in communications costs) and to police non-compliance until usage patterns normalize; and • Upgrades to airport websites, maps, and internal signage. Other technologies, such as the use of LPR as part of an over-the-road tolling approach, would require no gates, pay-stations, or roadway widening, but would require several LPR readers and overhead gantries to mount the LPR equipment. With this approach, the LPR system would read the license plate as a vehicle enters the tolled area (such as a curbside or even the entire airport), read the license plate as the vehicle exits the tolled area, calculate the fee, and send an invoice to the address associated with the license plate. Such systems typically experience uncollected revenues due to LPR misreads, customer refusal to pay invoices issued by the LPR system, and inconsistencies in vehicle registration information. 7.3.4 Typical Impacts to Ongoing Operating Costs Including Per User Costs The new equipment will require management and maintenance, typically 10% to 20% per year of the capital cost, but as the airport is likely to have a PARCS system already in place along with an existing maintenance program, incremental costs should be nominal. The overhead costs associated with management and operation of the airport parking service should absorb the costs of the new system after the initial learning period. Additional staffing should be in place for at least 2 weeks to assist the public in learning to use the new system. Over time (6 months or less), staff time to police the new system should be less than what is required without the system once the public becomes accustomed to it. 7.3.5 Implementation Considerations The biggest challenge is the management of change for customers accustomed to dropping off and picking up at no direct cost to themselves. In one case overseas, a local TV station took a keen interest in the new system, which resulted in negative coverage for 3 days, after which opposition quickly dissipated. For changes with the potential to significantly disrupt traffic or impact the airport user, a robust communications plan to the local media and public is highly important to preempt or mitigate potential negative publicity. If an airport is implementing curbside charges, it may be appropriate to implement a grace period in nearby parking facili- ties to accommodate any diverted traffic, particularly in the first months of implementation of curbside charging. Before any change of this magnitude is implemented, individual airport policies should be reviewed, and the airport board or city council should be given ample time to review and comment on the proposed action. New standard operating procedures must be developed for curbside officers and customer service staff. Key talking points should be provided to relevant internal and external stakeholders. The airport should socialize the concept with its own key stakeholders (e.g., airlines, concessionaires) and solicit input from specific user groups, including Americans with Disabilities Act representatives, well in advance.

114 Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenue 7.3.6 Lessons Learned An airport implementing an airport or curbside access fee for the first time should expect an initial negative customer response, along with potential negative media coverage. After the initial period, however, customers will likely adjust to the new situation. For example, following implementation of a curbside access fee, congestion on the curbs should reduce as some drivers choose to use parking facilities instead (especially if short-duration parking stays are less expensive than the curbside access fee), resulting in improved traffic flow and improved experi- ence. Furthermore, if such fees are charged to all vehicles accessing an airport, the fee could be relatively low (e.g., $2.00) and could still generate significant revenues. While such access fees could require large toll plazas to process the high transaction volume, this could be substantially mitigated by charging fees via a toll tag or other stored value devices (e.g., linked to LPR or an account) due to the much shorter transaction times. 7.3.7 Example Installations Several airports in the United Kingdom require that passenger drop-off and pickup occur away from the terminal area, and charge motorists for the use of the more convenient drop- off or pickup areas. Table 7-3 summarizes fees charged for the use of these areas at airports. Table 7-3. Curbside access charges, United Kingdom airports, October 2019. Airport code Cost per time spent at curbside Airport 5 minutes 10 minutes 15 minutes 30 minutes Aberdeen ABZ £2.00 £2.00 £2.00 £10.00 Belfast BFS £1.00 £1.00 £3.00 £5.00 Birmingham BHX £2.00 £2.00 £5.00 £20.00 Bournemouth BOH £3.00 £3.00 £3.00 £3.00 Bristol BRS £1.00 £1.00 £3.00 £5.00 Cardiff CWL Free Free £5.00 £10.00 Doncaster Sheffield DSA £2.00 £2.00 £2.00 £5.00 East Midlands EMA £2.00 £2.00 £7.00 £22.00 Edinburgh EDI £2.00 £4.00 £10.00 £15.00 Exeter EXT £1.00 £1.00 £1.00 £1.00 Glasgow GLA £2.00 £2.00 £4.00 £10.00 Glasgow Prestwick PIK Free £2.00 £2.00 £4.00 Guernsey GCI Free Free Free Free Inverness INV Free Free £3.60 £3.60 Isle of Man IOM £1.00 £1.00 £1.00 £1.00 Jersey JER No waiting allowed; active loading/unloading only Leeds Bradford LBA £3.00 £3.00 £3.00 £3.00 Liverpool LPL £3.00 £3.00 £3.00 £10.00 London (Gatwick) LGW No waiting allowed; active loading/unloading only London (Heathrow) LHR No waiting allowed; active loading/unloading only London City LCY Free Free Free Free Luton LTN £3.00 £3.00 £8.00 £23.00 Manchester MAN £3.00 £4.00 Not allowed Not allowed Newcastle NCL £1.00 £3.00 £3.00 £3.00 Newquay NQY Free Free Free Free Norwich NWI Free Free Free £2.30 Southampton SOU £2.00 £2.00 £2.00 £3.50 Southend SEN Free £4.50 £4.50 £4.50 Stansted STN £3.50 £3.50 £8.50 £25.00 Source: Staveley Head and UK CAA.

Innovative Payment Systems and Technologies for Public Parking and Ground Transportation 115 As shown, the fee amount varies between £1.00 and £3.50 for up to a 5-minute stay, and fees may increase significantly thereafter (e.g., up to £25.00 for a 30-minute stay). In contrast, as of January 2020, motorists at Dallas/Fort Worth International who remained on the airport for 8 minutes or less (i.e., those driving from one end of the airport to other) were charged $4.00 while those staying between 8 and 20 minutes (i.e., those dropping off or picking up passengers at the curbsides) were charged $2.00. Implementation of such fees can generate significant revenues. For example, about 1 to 2 million vehicles per year might be expected to enter the curbside area at an airport serving about 5 million originating passengers. Imposition of a $3.00 fee for the use of an alternative curbside area at this airport could yield over $4 million in new revenues annually depending on the proportion of customers preferring the less convenient free curbside.