Because IDeaS Car Park Revenue Management System is an automated system that takes the many variables of a car parking business into consideration, it is capable of integrating sophisticated analytics into existing car parking solutions to maximise productivity and profitability.
IDeaS is showcasing its progressive approach to optimising car parking revenue at this year’s 25th ACI EUROPE Airport Commercial & Retail Conference & Exhibition. Pauline Oliver, Business Development Manager, IDeaS, briefs Marta Dimitrova on the potential of data science and analytics to forecast true demand and set optimal rates for car parking.
The introduction of online reservation systems for car parking was a true game-changer, and the industry hasn’t looked back. Today, reservation systems remain an important business component for airport parking operations, which now face new business challenges – growing revenues and cutting costs with big data, and implementing revenue management practices to better handle pricing decisions.
Progressive players in the industry are using data science and analytics to forecast true demand and use that to sell car park spaces at optimal rates determined by modelling on price sensitivity. The key is bringing the discipline of revenue management, which is well established in industries like hospitality and airlines, to car parking.
“Traditional online booking systems and reservation systems often lack any real forecasting and accurate pricing capabilities because they involve manual processes to set rates or automatic rules driven tiered rates, commonly known as bucket pricing,” says Pauline Oliver, Business Development Manager, IDeaS.
IDeaS Car Park Revenue Management System (Car Park RMS) is an automated, self-learning software solution that analyses complex demand dynamics to generate the optimal product mix and pricing in real-time. “It utilises powerful, science-based analytics to forecast, manage and optimise revenue opportunities at a revenue per available space level,” Oliver adds. “The system is fully based in the cloud and leverages revenue management principles to balance demand uncertainties with demand-based price optimisation and length-of-stay controls, fully integrating with the airport’s existing reservation systems.”
Optimised rates and pricing is not a one-size-fits-all approach – rather it is one that is the best in any moment in time. IDeaS Car Park RMS creates an optimised rate by looking at the numerous variables present in a car parking business, including intelligent analytics and algorithms for a particular car park or customer segment.
Accurate forecasting is, of course, extremely valuable when making pricing decisions for a car parking facility. Rates must be adjusted and promotions or campaigns must be executed for specific periods of high or low demand. “Trends, capacities, events and local competition can – and will – all change, and more accurate data analytics are needed to truly identify business opportunities in the future,” Oliver comments.
Meanwhile, the crux of Big Data Analytics and revenue management for car parks is that today’s stream of data simply cannot be managed manually. “Complex spreadsheets and human decision-making are not able to handle the sheer amount of information available when it comes to pricing decisions – data that is key for optimal revenue performance,” Oliver says.
IDeaS forms partnerships with clients for long-term success and growth. Its first car park client London Heathrow Airport is still a committed partner 11 years on. Auckland Airport is also a perfect example of a car parking business utilising sophisticated manual processes to revenue management tasks for their online channel. “With more than 14 million domestic and international travellers using the airport annually, optimising revenue for the available space at 11 car parks across the airport had become increasingly critical for the organisation,” Oliver explains. “A pricing model based on an increasing level of online reservations as well as their valuable ‘roll-up’ businesses demanded more accuracy and sophistication than a manual revenue management process could provide.”
Revenue management is a relatively new discipline for parking, and IDeaS has an exciting mix of airports planning automated car park revenue management alongside airports seeking advisory services around revenue opportunities. “A reservation system is not the same as a revenue management system, and both technologies are now necessary for a car park’s overall commercial success,” Oliver concludes.
