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A parking management system monitors an area continuously to relay information on parking space availability. It combines various equipment and software – such as cameras, parking meters, sensors, and automatic gates – to improve security and ensure the seamless flow of traffic. Let’s look at some major benefits of a parking management system.

There are two kinds of parking management systems, off-street, and on-street. Off-street systems have only one point of interaction between access points and parking areas. On-street systems, on the other hand, provide real-time information about parking spaces – which are occupied, and which will be available momentarily through mobile, web, and voice-based solutions.

Clearly, a parking management system simplifies the parking process for both customers and parking businesses.

Benefits of a parking management system.

• Widens Customer Base

A parking management system provides a real-time omnichannel capability to ensure that customer demands of convenience and speed are fulfilled. This system can also be customized to include a bespoke loyalty program, whereby repeat customers can be rewarded. By creating a customer profile that collects data on buying patterns and behavior, a reward system can be created to retain customers.

• Increases Revenue Generation Capabilities

Parking management systems also increase reservations and boost loyalty. On the other hand, receiving payment in advance secures customer’s commitment and reduces staff labor in the parking lot. It will also act as a check on employees who may be tempted to pilfer cash sales. Your profit margins will be secured from slipping.

• Deriving Optimum Results from Data

One of the major benefits of a parking management system is that it can be customized to perform revenue management functions. This implies that it will manage revenue and operations, study and track customer patterns and behavior, and then put together and analyze all data to arrive at credible predictions and to forecast business needs, such as staffing, at a future date. It efficiently leverages valuable customer data collected during online reservations to form a firm foundation for strategic decision making.

On critical aspect which must be taken care of is that the data collected from customers must be adequately safeguarded from unauthorized access or use. In this climate of massive personal data leaks, customers are wary of sharing information, and any lapses in this regard can swiftly damage the credibility of the business.

Here are some ways the collected data can be put to use:

1. Surge Pricing – Parking management systems with inbuilt dynamic pricing allow the parking lot owner to decide on the right time to charge the right price. The pricing tools analyze historical data based on traffic surges, days of the week, time of the day or night, inventory availability, and consumer trends regarding demand to arrive at a revenue-maximizing price in real-time. This allows for flexibility in pricing. Some parking reservation systems also allow for the creation of “price tiers” which can be constructed and then separately tracked for agility.
2. Inventory Management – A parking management system can assign specific price tiers for specific spaces based on analysis of demand forecast of customers and dynamic pricing aims. So, the right space is allotted the right price at the best time. Parking lot owners can then reserve spaces, assign blackout periods and days, and allow spaces to be released in real-time.

Smart parking solutions are essential to the parking industry and customers alike. With innovative parking reservation systems, which are adaptable, dynamic, and can be highly customized, parking lot owners can effectively optimize revenue and improve customer satisfaction.