Dynamic pricing is a way for parking facilities to provide better parking experience to their customers based on demand levels. Dynamic pricing strategy can also help for increasing revenue and improving the parking operating process.
In today’s article, we will talk about the advantages of dynamic pricing for parking and the best solution for your parking facility:
What does dynamic pricing for parking mean?
Dynamic pricing in the parking management industry means artificial intelligent (AI) system that provides real-time parking pricing changes depending on peak/non-peak times or other factors.
The AI solution predicts consumer demand, usage patterns and congestion. Based on this real-time information, it is possible for parking owners and operators to modify parking pricing dynamically and automatically.
That system includes special cloud-based software that makes reports and analyses for the parking occupancy, availability and frequency of use. That way we can track exactly how many vehicles are parked in each block face at the moment. The main purpose is the occupancy of each block face to equal 70-80% throughout the whole day. So, parking pricing is dynamically set.
Dynamic pricing is an important part of the smart parking concept for on-street and off-street. It provides a more effective parking management process and reduces congestion.
What are the benefits of dynamic pricing for parking?
Flexible demand management and optimized capacity utilization
Demand management is the process of controlling the prices of a scarce resource. Dynamic pricing for parking allows the demand management to be flexible and the parking capacity utilization becomes optimized.
How does it work?
Where parking prices are lowered, there is a higher demand. That means a bigger flow of drivers looking for an empty parking space. That leads to better utilization of those parking stocks. On the other hand, where parking prices are raised, the flow of circling drivers is lower. Therefore, in those areas parking stocks are not full. This means that it is easier to find an empty parking space for those who are willing to pay a higher cost.
Maximization of revenue and effective parking management
Thanks to this modern technology, parking owners and operators can predict future demand for their parking facilities. They also can set appropriate parking prices. They will be able to raise the price of parking spaces when there is high demand. That way, parking owners and operators can maximize revenue and offset potential losses during periods of low demand and empty parking spaces.
Whereas, when the demand is lower and parking prices are lower too, drivers are encouraged to use more empty parking lots.
In addition, parking operators can achieve effective parking management through a good dynamic pricing strategy. It is possible by making pricing relevant to the current supply and demand, instead of static pricing.
Reduced traffic and air pollution
Dynamic pricing as a parking management solution helps for reducing the number of vehicles circling for an empty parking space. This, in turn, reduces traffic, congestions and air pollution.
Not only that but the increase in parking prices encourages drivers to use greener modes of transport – public transport, cycling or sharing vehicles.
Better parking experience for parking users
Dynamic pricing for parking is also beneficial for parking users and their parking experience. Actually, thanks to this AI parking system, drivers pay parking charges that are based on the actual value of the parking space. In addition, they will find empty parking spaces fastly and easily, without circling and losing time in congestions.
Parking Telecom’s dynamic pricing solution
Parking Telecom’s dynamic pricing parking solution collects information for parking availability and customer demand levels via technology and algorithms. After that, our cloud-based software analyses the data gathered and makes daily, weekly or monthly customer parking space demand forecasts.
Thanks to our Complete Parking Management Solution, parking owners and operators can also collect data from parking enforcement officers and take into account information for weather, local events, etc. For example, when the weather is bad (it is rainy or cold), demand may be higher because people prefer to go out with their vehicles.
In addition, drivers can benefit from our Parking Telecom Mobile App to check where and when there are empty parking spaces. Not only that but they can also see the dynamic prices, book a parking space and pay in advance for their stay.
Unfortunately, many parking owners and operators are not yet using a dynamic pricing system for their parking facilities. So, they cannot release the full potential and value of their parking stocks.
As we said above, dynamic pricing helps for maximizing revenues, optimizing parking space utilization and improving parking experience and parking management.
So, if you are a parking owner and want to run your parking facility in its best way, learn more about our smart parking on-street and off-street solutions here!