Maximizing Revenue with Smart Parking2 min readReading Time: 2 minutes
For cities and parking operators, parking revenue is a crucial source of income. Ticketing and enforcement of payment thus form a core tenet of the parking value chain. Tech-enabled solutions can not only bring about improved management but also maximize revenue with smart parking for both private and public players.
Using Technology for Dynamic Pricing
Dynamic pricing models charge parking fees based on changes in demand and supply of parking lots. This leads to revenue maximization as parking lot operators can charge premium rates when supply is low and also collect real-time data about demand from nearby vehicles to price vacant spaces accordingly.
New technology innovations such as sensors, Wi-Fi networks, and smart parking meters can be a significant revenue generator by aiding payment models like demand pricing. Such systems can boost prices for spots in high demand or charge additional fees for parking space reservations.
Maximize Revenue with Smart Parking
Adding a dynamic pricing capability can open up new market segments for operators. During popular events when demand is high, an increase in prices can control occupancy while enabling them to earn the most from these opportunities. During times of low demand, prices can be reduced in order to attract additional customers to empty spaces.
Government authorities also benefit as they police the streets better with smart parking sensors. These pick up signals from errant drivers violating traffic rules, helping law enforcement officers collect penalties and enforce rules better. Moreover, routes, where violations are high, can also be detected, thereby helping them to cite vehicles in a synergistic manner.
Smart parking can also boost revenues by enabling drivers to easily pay fines via their smartphones and increasing the number of tickets through officer alerts. Additionally, both the government and the parking lot operators can monetize the data collected on parking. This data can be sold to interested parties such as automakers who can gauge the purchasing behavior as well as sense and intuit future preferences of car owners.
Thus, smart parking can allow drivers to book and pay for space in advance and enable dynamic pricing that changes through the day to maximize smart parking revenue and space utilization. Payment for these services can be fully automated such that collection and enforcement costs can be reduced and driver satisfaction improved. Smart Parking represents the convergence of new generation technologies such as AI, Big Data, and Predictive Analytics with the emerging revolution in Urban Governance enabled by Smart Cities. Thus, both private and public authorities stand to increase their revenue in adopting smart parking solutions.