Airport parking revenue soars with new analytics technology
Airport parking revenue is receiving a significant boost thanks to the advanced analytics and revenue management software solutions from IDeaS, a SAS company. Their solutions have helped Ace Parking optimise revenue and operations, implementing an effective demand strategy to ensure the business maximises its capacity use.
Ace Parking adopted the industry-leading IDeaS Car Park RMS technology as part of their modern drive towards digital transformation. Since investing in the new software and integrating an online booking system in 2019, the firm has utilised data analytics to develop variable pricing. The system enables more effective selling processes during both high and low demand periods, driving new revenue for the company.
The integration of IDeaS Car Park RMS and their online booking platform has reportedly led to operational efficiencies, increasing revenue growth from pre-Covid peak levels by 55%. Discussing the impact, Shane Henning, General Manager/Director of Ace Parking Phoenix Airport, said, “IDeaS has helped us on our modernisation journey through revenue and commercial management…The company has the most sophisticated analytics in the airport parking industry.”
As travellers explore an array of transportation options, pre-book parking serves as the initial step towards cultivating direct relationships with customers, whilst also providing a seamless and personalised experience. Ace Parking has noted a shift in demand towards various facilities, achieving near-full occupancy without significant overspill, thanks to the analytical software.
Addressing common concerns, IDeaS noted that dynamic pricing should not be confused with “surge pricing”. While surge pricing increases rates in response to demand, dynamic pricing discounts rates within a preset window, benefiting travellers by offering the best possible rate without discouraging travel due to price surges.
Ryan MacLagan, Director of Car Park global sales and account management at IDeaS drew parallels between airport parking operations and the hospitality industry. He mentioned, “Both parking facilities and hotels benefit from demand-based dynamic pricing models … 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.”
In a rapidly rebounding post-pandemic economy, the need for convenient airport parking is evident. With the diversification of IDeaS’ product portfolio, including the Car Park RMS product, clients have reported revenue growth of on average 26.3% in 2023. As this segment continues to flourish, IDeaS plans to escalate its investments to accommodate and enhance this growth trend.
