Macerich Case Study

Macerich

Case Study

Business Intelligence for Parking – Leveraging ParkHub’s BI Tool at Macerich

Who's Involved

Peter DeLucia Jr. | Property Manager

Rodolfo Donadi, CPP | Manager, Parking Strategy & Operations

Customer Takeaways

Peter DeLucia Jr. | Property Manager

“It is important for us to balance increased parking revenue with customer satisfaction. We are in the business of serving shoppers, and being able to more effectively manage our parking operations through ParkHub’s data helps us to achieve our mission.”

Rodolfo Donadi, CPP | Manager, Parking Strategy & Operations

“This rate increase was a success. We analyzed the rate changes using ParkHub’s Business Intelligence Platform. We were able to measure the impact that the rate change had on occupancy and revenue. We would be in the dark without ParkHub.”

Summary

Macerich, a fully integrated, self-managed, and self-administered real estate investment company, wanted to ensure every customer had a place to park at its retail regional town centers around the country. Macerich partnered with ParkHub to improve occupancy tracking and make informed decisions about parking rates at all of their commercial assets with paid parking. The goal was to make sure that every customer had easy access to parking, so optimizing parking rates to incentivize parking turnover was important.

The Challenge

1) Tracking Occupancy

Manually measuring cars in parking lots is time-consuming and inaccurate. Before ParkHub, the Macerich team was in the dark about occupancy levels and daily turnover at their facilities.

2) Encouraging Turnover

When customers depart after completing their shopping, new customers can use the parking spaces. An optimized turnover rate decreases the risk that potential shoppers will leave when they cannot find a spot.

3) Retaining Customer Satisfaction

The Macerich team did not want to deter customers from parking. It was important to increase the existing parking transaction volume.

The Solution

ParkHub’s Smarking BI Tool

Macerich sought to optimize parking rates at two of its properties, and they used ParkHub’s “Smarking BI” tool to measure the impact of those rate changes. ParkHub’s Business Intelligence tool provided insight into the performance of pricing and operating decisions. Macerich created multiple parking rate tiers at one property and upped the rate at another property, then measured the effects of the rate changes.

Rate Changes


Property 1— On May 1, 2022, multiple parking rate tiers increased
Property 2— On July 1, 2022, the $5/hour price tier increased to $6/hour

The Result

1) Increased Revenue

In July 2022, the parking team at Macerich raised the $5/hour rate to $6/hour in order to incentivize turnover so all shoppers would be able to find a parking spot.

Fig. 1 (February to November 2022 Macerich Parking Garage $5 and $6 transactions by month)— The orange bars show the monthly transaction volume for the $5/hour rate for the 5 months before the rate change. The pink bars show the monthly transaction volume for the $6/hour rate for the 5 months following the rate change.

2) Sustained Traffic

The total transaction volume increased. Thus, the rate increase didn’t discourage parkers from using the parking garage. The parking management team at Macerich felt assured that there was no decrease in traffic experienced due to the parking rate increase

Fig. 2 (Macerich Parking Garage average monthly transaction totals) This graph compares the 5 months before the rate change with the 5 months after the rate change. The total number of transactions increased from February through June to July through November.

Learn More

With integrated payments, devices, and business intelligence, ParkHub is paving the road to a brighter digital future. On that road, ParkHub customers are driving away from cash, quickly and seamlessly. To learn more about ParkHub services, visit parkhub.com/request-a-demo.

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