Commercial Parking Pricing at Two US Airports: Strategies to Accomplish Multiple Objectives



Commercial Parking Pricing at Two US Airports: Strategies to Accomplish Multiple Objectives

Authors

RICARD D, Cambridge Systematics, USA

Description

Parking is a major revenue source at many U.S. Airports, since the private auto is typically the predominant ground access mode of choice. Some airports may adopt commercial parking policies and pricing structures primarily to meet revenue objectives, and

Abstract

Parking is a major revenue source at many U.S. Airports, since the private auto is typically the predominant ground access mode of choice. Some airports may adopt commercial parking policies and pricing structures primarily to meet revenue objectives, and some may even be hesitant to encourage passenger use of alternatives to the auto for fear of the implications on parking revenues. The two airports presented in this paper have developed commercial parking pricing structures to accomplish revenue and non-revenue objectives.

This paper focuses on commercial parking pricing structures and related goals at Boston Logan International Airport in Massachusetts, and Tampa International Airport in Florida. It focuses on the methods and rationale, as neither airport was able to provide much data to indicate if the pricing structures had achieved the desired results. The case studies focus on the on-airport daily rate structure, and where appropriate, include the hourly rates. Off-airport parking is not discussed.

Based on air passenger utilization, Logan is considered to be a large airport, and Tampa International is a medium airport. The majority of passengers using each airport begin or end their travel in the region ~. This type of passenger is referred to as an origin/destination passenger. In 1995, Logan processed more than twice as many air passengers as Tampa International. During the same period, the Logan commercial parking supply was less than 50 percent higher than the supply at Tampa International. There are several reasons for this, including a parking moratorium at Logan, and a higher reliance on the automobile in the Tampa Region.

The Logan case study represents a strategy that was developed at one point in time to address a particular set of circumstances. The Tampa International case study presents the history of pricing changes over a twenty year period and the circumstances surrounding the changes. Development of the pricing structure at Logan was based on a detailed analysis of passenger demographics. The Tampa International pricing decisions have been more experimental in nature, and have taken customer perception into account.

At Logan, the pricing structure was developed to maintain or enhance revenues during a recessionary period, and at the same time, serve as one measure aimed at reducing vehicle trips to the airport, which would improve on-airport and regional traffic conditions, and improve air quality. At Tampa International, parking prices have been adjusted several times, to shift the proportion of demand among facilities, and achieve revenue goals, while maintaining high customer service levels, and avoiding negative reaction from the public and the media.

Publisher

Association for European Transport