Our top tips for developing your parking business with data

We have previously written a blog post explaining the overall role of data when it comes to parking management. If you haven't already read the post, you can find it here.

Don't miss our webinar on data-driven and digitalized parking management: “This is how you maximize your operating net from the parking stock - millions of dollars are hidden in the parking lot and garage.”

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Reserved or unreserved parking spaces

Before we go into how you can develop your parking business with data, we wanted to explain how we look at reserved and unreserved parking spaces. When is one better suited than the other? Reserved parking spaces are preferable if your parking spaces look very different. For example, if the sizes differ and if there are very varied floor plans. Unreserved parking spaces are best suited when your parking spaces are homogeneous, i.e. when they look about the same.

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Business development for reserved parking spaces

Dynamic pricing. Inventory the locations based on, for example, size, proximity to exit or floor level and pricing accordingly. A larger site should cost more than a small place and a place that has close to the exit should reasonably be more attractive than one that is far away from the exit. The result is that you can package the parking spaces such as “small”, “standard” and “premium” with different prices.

“This means that a person who is looking for, for example, a large parking space can queue for one himself and see the price and availability at once.”

Automated queue management and filling. When you have dynamic pricing, you can go further and automate queue management and provisioning based on your different parking space types. This means that a person who is looking for, for example, a large parking space can queue for one himself and see the price and availability at once. The result is, in addition to reduced administration for you, a better coverage and data that gives you a clue as to which types of sites are popular and not.

Convert reserved parking spaces to unreserved parking spaces. Many parking spaces that today are tied to contracts with reserved spaces could just as easily be rented out as unreserved. The reason it is not done is often about it not being administratively possible because the handling is analogous. But with unreserved parking spaces comes benefits both for the tenants and for you as a property owner. Therefore, it can be smart to digitize parking management and convert the agreements from reserved to unreserved. With a digital system, the conversion can take place automatically and gradually in line with the changing needs of tenants. Someone might want to switch to a less costly place, someone might have bought a bigger car and need a bigger seat, etc.

“For tenants, there will be more contractual options that will allow them to customize their parking based on needs. For you as a property owner, this means higher occupancy rates and the ability to use your parking spaces for more things.”

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Business development for unreserved parking spaces

Time-based right of use. When you have unreserved parking spaces, you can offer usage rights based on what time of day a tenant needs parking. If the tenant needs the parking space during business hours, it is possible to offer use rights during that time only. For the rest of the day, the place is available to someone else. For example, for residents in the area who rent a parking space with an evening permit. A perfect way to maximize the use of parking spaces.

Dynamic right of use for electric vehicle charging. An electric car does not need to be charged every time it parks. This means that electric car owners sometimes need a charging point, and sometimes a completely ordinary place. In order to make it as cost and space efficient as possible, it is smart to offer a dynamic right of use for electric car charging.

“When you have unreserved spaces, you can optimize the use of parking spaces by letting someone else use the space when it is empty.”

Controlled overcrowding. When you have reserved parking spaces, it is difficult to overfill because all spaces have a dedicated user. But the truth is that many of these parking spaces stand empty much of the day because the tenant uses their vehicle. When you have unreserved spaces, you can optimize the use of parking spaces by letting someone else use the space when it is empty. Generally speaking, you can say that an overcrowding rate of 10 per cent is fully manageable. This means that you will be able to meet more people's need for parking spaces. In practice it means overcrowding but in reality it is optimization of unused spaces.

Camera-based visitor parking. Once you know what kind of flexibility you have in your parking flows, you can add visitor parking that adapts to availability. You could call it a dynamic topping up of coating. The smartest way to do this is to count the number of visitors using a camera that records reg numbers at entry and exit. When the dynamic quota for visitor parking is reached, the booms are closed.

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Business development for both reserved and unreserved parking spaces

Organic Condition Change. If you have things you want to change in your offer, it is smart to do so using organic terms change. In practice, this means that you add the new offers and packages to the queue list and remove the old ones. As existing tenants lay off their seats and new tenants take office, the old parcels will be phased out in favour of the new ones. You simply decide what you want the parking offer to look like in the future and your digital ERP system starts the work of phasing out the old in favor of the new.

“You simply decide what you want the parking offer to look like in the future and your digital ERP system starts the work of phasing out the old in favor of the new.”

Offer electric car pool for those who need a car only occasionally. There are many people, especially in the big cities, who reluctantly have a car and associated parking space just because they need it a few times per is. By offering tenants the proximity of an electric car pool, you can help these rare-car drivers get money for other things. In addition, parking space is freed up for those who need it more.

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Smart things you can learn from parking data

See how many time-based right-of-use agreements you can offer of each type. When you are going to offer usage rights based on different times of the day, you need to be aware of approximately how many permits for the different time periods you can offer. For example, there must always be room for residents in the area to work from home without leaving those who use the parking spaces as day parking spaces without a place. When you have a digital ERP system for parking management, you can easily test yourself and get data on what levels are sustainable.

“By digitising parking management, you will have a better track of all the agreements and the types of pricing you have here. Based on that information, you can ensure that everyone pays the right price.”

Understand the flow in and out of your parking spaces. By measuring how your tenants and visitors use your parking spaces, you can gain a better understanding of how you can customize your parking business based on their needs and behavior.

Ensure that all tenants have the right pricing in their agreements. If you have many rental agreements, it is easy to happen that some fall between the seats and that the pricing does not correspond to the type of parking that is rented. In some cases, it may be that your parking spaces do not keep market prices, and in other cases, tenants are paying the wrong price based on the categorisation of the parking space. By digitizing parking management, you will have a better track of all agreements and what types of pricing you have here. Based on that information, you can ensure that everyone pays the right price.

Use the queue list to investigate demand. If you have a new offer that you want to launch to your tenants, for example if you want to test a new class in a car park or a different type of use right, you can post it as an offer in your queue list and see how many people choose to queue for it.

“The common thing is that parking will be better for both you and your tenants.”

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What are you guys waiting for? Get started with business development now!

Data is a key factor for those who want to develop the parking offer in business. Some things are low-hanging fruit and others are more demanding, but the common thing is that parking will be better for both you and your tenants. What you need to get started is a digital ERP system for parking management. Read more here: Now it's time for the digital parking revolution!