Parking Revenue Management
8 July 2022
The Ultimate Guide to Parking Revenue Management – How it Works, the Benefits, and More
One of the most important aspects of a business is revenue, and managing your accounts properly is critical for your organisation. Parking revenue management is a system that helps companies do just that. It is a tool that can be used to manage both parking and revenue.
There are many benefits to using a parking revenue management system; one of the most apparent benefits is that it can help you increase your revenue. By managing your parking better, you can make sure that more people can park in your lot, which will lead to more customers for your business.
If you are able to manage your parking better, you will be able to save money on things like rent and insurance.
But there’s more to know, and we will cover all the areas of Parking Revenue Management here below.
What is Parking Revenue Management?
Parking revenue management is a system that helps your business manage your parking revenue. Also, it is a tool that can be used to increase revenue and save money on parking costs.
Other than that, it can help with handling banking transactions and online payments, doing audits and verifying transactions, and even cash counting and processing.
To sum up, if you’re willing to handle all the finances coming from your parking business properly, then a Parking Revenue Management is the ideal choice.
How Does it Work?
There are a few different ways that parking revenue management systems work. One way is by doing a forecast of the parking capacity to maximise the business’ revenue and improve the customer experience and satisfaction.
Of course, there are other factors involved when it comes to satisfaction, but parking revenue management is only based on real and existing data that was previously captured.
Secondly, it helps you make decisions about the pricing, which is undeniably helpful, especially when you don’t know where to start or have too many or too few available parking spaces.
Moreover, you will be able to have a descriptive analytics window showing all the booking and arrival patterns, as well as predictions and decisions to help you sell as much as possible.
Finally, the system will optimise your parking capacity at various times of the day, allowing you to manage it better and make more money in the long run and increase customer retention.
Benefits of PRM
There are many benefits to using parking revenue management systems, and the most obvious one is that it can help your business increase its revenue.
By managing your parking better with a data-driven approach, instead of handling everything manually, the parking revenue management will segment the different types of customers and make sure to sell the right product at the right time.
Also, eReservations and pre-bookings have become extremely popular for parking lots and letting your PRM system handle them will increase your revenue.
Last but not least, most PRMs are equipped with a length stay management system allowing you to forecast how long the customers will remain, hence having a better understanding of the peak times.
When using a PRM, you will have a much better idea of your availability and when to promote your business to have as few parking spaces as possible.
Challenges With PRM
Just like any software, using a parking revenue management system has some pitfalls, but they aren’t generally deal-breakers.
First of all, the installation and set up costs usually are quite high, which isn’t ideal for smaller parking lots of new businesses. For instance, automated ticketing, statistical features and reports, and regular maintenance will significantly increase the service price. For smaller parking lots, licence plate recognition management system might be preferable.
Also, a PRM system may be complicated to use, especially for those who aren’t familiar with computer programs. That being said, generally speaking, an account manager is assigned to you and the onboarding should be relatively smooth.
While there are multiple pros and cons to using parking revenue management, we can say that the whole system will definitely help your business.
Parking revenue management is a complex process that can involve a variety of different strategies in order to maximise profits. In this article, we’ve outlined how the whole system works and how to improve your parking revenue.
While these tips are not an exhaustive list, they provide a good starting point for any parking manager looking to improve their lot’s bottom line.