Car Park clients increased revenue, on average, by 26.3 percent in 2023 while delivering a seamless, personalized, and positive customer experience
MINNEAPOLIS—May 15, 2024—Parking is a critical source of revenue for airports. Yet, many operators continue to rely on a one-size-fits-all approach to parking rates, often ceding revenue opportunities to public transportation and ride-sharing services. IDeaS, a SAS company and the world’s leading provider of revenue management software and services, announced today that Ace Parking at Phoenix Airport (PHX) has optimized revenue and operations through investments in its modern technology stack. After integrating an online booking system in 2019, the Ace Parking team began using analytics to develop variable pricing to optimize revenue. IDeaS Car Park RMS now helps with demand management to ensure the business uses the capacity to its fullest potential.
Air travel has rebounded smartly in the post-pandemic economy, and the need for easy, convenient parking at airports has risen. According to the 2023 Airport Economics Report, parking represents roughly 37 percent of all non-aeronautical revenue in North America, growing as travel and consumer activity increases. Car Park RMS is another example of the IDeaS product portfolio’s diversification. As the company grows this segment, it continues to scale its investments accordingly. IDeaS also revealed an uptick in the need for its Car Park RMS product. Car Park clients, on average, grew revenue by 26.3 percent in 2023.
- Improved operational efficiencies—Positive results for Ace Parking at PHX include the ability to sell during low-demand and high-demand periods, helping the company generate new revenue. The team has also experienced operational efficiencies by combining IDeaS and its online booking system, resulting in revenue growth from pre-COVID peak levels by 55 percent.
- Providing an optimal customer experience—Parking is an essential service among a variety of options for travelers. Pre-book parking is the first step in establishing a direct relationship with the customer and providing a seamless, personalized, and positive experience. For example, a guaranteed preferred parking spot or a guaranteed price upfront helps airport and off-airport parking entities compete against rideshare competitors. Phoenix’s Ace Parking notes the software has helped shift demand to various facilities and achieve near-full occupancy without having significant spillover.
- Delivering effective discounts through dynamic pricing—The most common concern airports have before adopting revenue optimization technology is the perception that such strategies take advantage of “surge pricing” trends. Surge pricing increases rates in response to demand, while effective dynamic pricing discounts rates within a preset minimum and maximum window. As a result, travelers benefit from the best possible rate without discouraging travel due to surge pricing.
Shane Henning, general manager/director, Ace Parking Phoenix Airport, said: “IDeaS has helped us on our modernization journey through revenue and commercial management. From helping us understand how best to use our parking facilities to leveraging marketing and helping us evolve, IDeaS brings key insights and knowledge to help us succeed. The company has the most sophisticated analytics in the airport parking industry.”
Ryan MacLagan, director, Car Park global sales and account management, IDeaS, said: “Airport parking closely resembles the hospitality industry regarding operation and opportunities when growing revenue. Both parking facilities and hotels benefit from demand-based dynamic pricing models–and both industries have ample runway to benefit from adopting these tools and capabilities. We are thrilled to see the growth of our division and look forward to working with new clients from around the world as they look to invest in the future of travel through IDeaS Car Park RMS.”
