Rethinking Airport Parking Facilities to Protect and Enhance Non-Aeronautical Revenues (2021) / Chapter Skim
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Pages 84-116
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From page 84... ...
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?
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From page 85... ...
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)
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From page 86... ...
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)
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From page 87... ...
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)
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From page 88... ...
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.
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From page 89... ...
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)
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From page 90... ...
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.
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From page 91... ...
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.
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From page 92... ...
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.
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From page 93... ...
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)
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From page 94... ...
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.
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From page 95... ...
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)
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From page 96... ...
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.
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From page 97... ...
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.
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From page 98... ...
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 integration with the third-party software. PSPs will charge ongoing transaction costs for payments and tokenization.
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From page 99... ...
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)
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From page 100... ...
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.
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From page 101... ...
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 temporarily 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.
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From page 102... ...
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.
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From page 103... ...
Innovative Payment Systems and Technologies for Public Parking and Ground Transportation 103 Source: Serva Transport Systems. Figure 7-2.
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From page 104... ...
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)
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From page 105... ...
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.
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From page 106... ...
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)
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From page 107... ...
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.
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From page 108... ...
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.
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From page 109... ...
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.
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From page 110... ...
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.
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From page 111... ...
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.
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From page 112... ...
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.
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From page 113... ...
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)
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From page 114... ...
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.
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From page 115... ...
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)
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