Preparing for Congestion Pricing in Manhattan

Preparing For Congestion Pricing in Manhattan

New York City is set to introduce congestion pricing in 2024 in an effort to alleviate traffic jams and bolster public transportation. 

While these changes are expected to finance essential projects, reduce congestion, and decrease the environmental impact of drivers, they will also likely fundamentally change parking operations in Manhattan overnight. 

Such drastic changes will create winners and losers in the Manhattan parking market. Garage owners and operators who are well prepared will benefit, while those who are stuck flat-footed will suffer.  

Congestion Pricing is Coming in 2024 

The congestion pricing zone encompasses Manhattan below Central Park (south of 60th Street), excluding major highways, such as FDR Drive, West Side Highway, and the Battery Park underpass.

A six-member Traffic Mobility Review Board will determine the toll amount. Though the exact fee remains undecided, pricing is expected to range from $9 to $23 during peak hours (6 A.M. to 8 P.M.). 

Impact on Manhattan Parking Structures 

Parking garages already have struggled to fully recover from the pandemic’s impact on customer numbers, especially on Mondays and Fridays, which are common work-from-home days. The impending introduction of congestion pricing in Manhattan has raised concerns for parking garage owners south of 60th Street. 

As per an MTA environmental assessment, potential tolls may deter drivers from entering the area, impacting the viability of the 88 garages with 11,541 parking spaces in that zone. Many drivers are considering shifting to public transportation to avoid congestion pricing. 

North of 60th Street, demand for parking garages could increase as commuters park outside the congestion zone and take subways or buses. Some fear the surge of cars into residential neighborhoods directly north of 60th Street could cause disruptions. 

Adapting to Congestion Pricing

Adapting to these changes is essential, regardless of whether your parking garage falls within or outside the congestion pricing zone. 

Leveraging best-in-class digital tools such as Business Intelligence and Automated Yield Management (AYM) is essential for thriving in this evolving environment. ParkHub, a leading technology provider, offers both solutions and is well-positioned to assist New York City garage owners and operators in navigating these changes effectively.

Business Intelligence (BI) tools provide valuable insights by analyzing data from various sources. For parking garages, BI can help in understanding customer behavior, peak hours, and occupancy rates. This data-driven approach allows garage owners to make informed decisions, optimize operations, and enhance customer experiences. With congestion pricing potentially altering traffic patterns, having access to BI tools will provide real-time data and trends to quickly make key operational, product, and pricing decisions. 

AYM refers to a pricing strategy that aims to maximize the average revenue or yield generated. It enables garage owners to adjust rates in real-time based on demand. As congestion pricing influences driver preferences, dynamically pricing parking spaces can maximize revenue and ensure efficient space utilization. Garage owners can attract customers during off-peak hours with competitive pricing while optimizing revenue during high-demand periods.

ParkHub’s expertise in providing these digital solutions makes it a valuable partner for garage owners and operators in New York City. Our tools empower businesses to adapt swiftly to changing market conditions, maintain competitiveness, and thrive in a post-congestion pricing era.

Get Help From the Parking Experts

To learn more about how ParkHub can help you effectively plan for congestion pricing, contact us today for a free demo and a discussion with our parking experts.