Have you ever decided to go somewhere else because there was no parking at the original place?
Parking is more than just providing an available space for a guest’s car. It presents an opportunity to improve a guest’s overall experience and therefore leads to great reviews and raise brand image. Parking also provides an area to see strong returns on investment, since it requires little additional spending but can generate significant revenue. The American Hotel and Lodging Association’s 2024 State of the Industry report, emphasizes the importance of parking, pointing out that it:
- Affects overall experience and therefore repeat bookings
- Affects reviews and ratings
- Is the first and last physical touchpoint
- Is tied directly to your brand and reinforces your reputation
Existing parking amenities can be improved for low or no financial investment and can be easy to implement. For example, you can improve valet parking through technology such as text-to retrieve, self-park and gateless, digital solutions.
The AHLA offers various examples of how to use technology to create a better guest experience:
► “License plate recognition: Automatically reads and recognizes license plates, allowing for ticketless parking, streamlined enforcement, and easy tracking.
► Wait-time monitors: Provides real-time data on expected wait duration.
► Text-to-retrieve: A simple text alerts a valet to retrieve the guest’s vehicle.
► Integrated payment methods: Modern valet and self-parking solutions integrate with various payment systems, offering contactless payment options and integration with customer relationship management, property management systems, or billing software for easy payment.
► Self-parking gateless solutions: Provide convenient and seamless experiences while reducing operational costs. Many hotels are starting to take advantage of these new solutions, and 54% opt for gateless technology with digital, mobile-friendly solutions.”
Beyond its crucial role in guest satisfaction, your parking facility presents a valuable opportunity to drive additional high-margin revenue. Just like hotels strategically manage their room inventory to maximize revenue, these same principles can apply to generate more value from parking.
The AHLA says that hotels using “a proactive approach to parking asset management can significantly contribute to accelerating revenue per occupied room (RevPOR), turning parking facilities into a dynamic revenue driver and an important part of a hotel’s revenue mix.”
AHLA’s revenue generation strategies
► “Rate optimization: Analyzing historical data, market trends and competitor pricing to determine the optimal rate for parking.
► Dynamic pricing: Adjusting parking rates in real-time based on demand, seasonality and local events.
► Segmentation: Different pricing tiers based on the length of stay, time of day and type of vehicle.
► Aggregators: As for rooms, technology can be used to optimize multiple aggregators to maximize parking utilization and revenue.”