Case Study
Premium Parking
Driving Demand During COVID-19 with
Demand-Responsive Pricing
Summary
During the COVID-19 pandemic, parking operators struggled with decreased demand. Premium Parking’s New Orleans garages that used online sales channels and ParkHub’s Automated Yield Management (AYM) solution were able to buck the trend and preserve revenue.
The Challenge
Navigate pandemic-driven drastically reduced parking demand and identify effective strategies to maintain revenue.
The Solution
Pricing Optimization
ParkHub’s AYM software automatically changes rates to capture demand and has increased revenue by 163% on average. Higher rates during peak hours capture revenue opportunities while controlling occupancy levels, whereas lower rates during off hours help create a competitive advantage.
The Results
Retained Revenue
At Premium Parking’s garages in New Orleans, locations that used online sales channels and automatic demand-responsive pricing were only down 22% in revenue compared to an average 77% drop across the United States in the first eight months of 2020.
In Conclusion
Premium Parking’s results are consistent with a recent doctoral study by Todd Tucker that showed online sales channels created additional demand for parking rather than just moving existing demand online. Premium Parking’s adoption of ParkHub’s AYM solution and online sales channels enabled its New Orleans garages to minimize revenue losses during the pandemic.
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.
Experience How ParkHub Can Transform Your Parking Operations
“ParkHub was designed to revolutionize an antiquated industry by providing an agnostic and open technology platform for finding, reserving, and paying for event parking online. As we expanded, we developed a best-in-class, mobile-point-of-sale device and comprehensive management suite, currently used by hundreds of parking operators, sports & entertainment venues, universities, festivals, & more, at thousands of locations across the U.S. With our recent acquisition of Smarking, we also offer full-scale business intelligence, dynamic pricing, and pre-paid reservation products, utilized by numerous municipalities across the country.”
Chris Elliston
ParkHub Chief Revenue Officer