Keeping Up With Key Trends
Common parking challenges — like finding a parking space and feeding the meter — may soon be a relic of the past as new technologies step in to make the whole process smoother and more user-friendly for everyone.
Technological innovations are transforming the parking industry, enhancing user convenience and operational efficiency for parking administrators. Advanced digital payment methods, dynamic pricing strategies, and more have revolutionized how we manage parking facilities. The move to embrace these solutions highlights a key change in the industry, underlining the need to meet changing consumer expectations and streamline operations.
As we enter a creative renaissance in the technological realm, ripples can be felt throughout the parking industry. As such, it is important to keep up with the times and adapt to ever-changing customer expectations.
This article will explore the top parking trends shaping the future of parking, offering insights into how these developments promise to transform our parking experiences for the better. We’ll discuss innovative solutions to make parking facilities more efficient, accessible, and user-friendly than ever before.
Decline in Full Monthly Parkers
Prior to the pandemic, around three-quarters of the workforce commuted to the office every weekday. The pandemic has had a drastic impact on the recent job landscape, with many workers adopting hybrid schedules, coming into work at irregular intervals, or working entirely from home. This has resulted in the decline of consumers looking for monthly contract parking passes and instead looking for parking packages that offer more flexibility at a cheaper rate.
Businesses looking to solve this problem seek tools that create a highly flexible and streamlined process for creating and maintaining monthly, prepaid, weekday, and other passes.
In response to shifting demand, parking operators are innovating to offer unparalleled flexibility through customizable parking packages. They are leveraging digital platforms to allow customers to tailor their parking needs, whether for a day, a week, or on a flexible monthly basis.
These platforms enable users to purchase passes that suit their hybrid work schedules, pay for parking in advance, and even reserve spots in parking lots and parking garages for specific days. This adaptability caters to the modern commuter’s lifestyle and ensures parking spaces are utilized efficiently, maximizing availability and convenience for everyone involved.
Rise of Online and Prepaid Reservations
In order to fill the void created by the shift away from monthly parking passes, prepaid and flex passes have risen to prominence to streamline the modern parking industry. The rise and proliferation of the internet and smartphones have coincided with the emergence of online and prepaid parking reservations.
Parking consumers in the smartphone age want the convenience of purchasing a flexible pass. To stay competitive in today’s market, offering online and prepaid parking passes is a necessity.
Shift in Days of Demand
Another parking trend sparked by the pandemic is the shift in demand for parking spaces on certain days over others.
Data analysis post-pandemic has revealed that the highest demand for parking occurs from Tuesday through Thursday, with a marked decrease on Monday and Friday. This corresponds with the rise of the hybrid work schedule and the decline of the standard in-person five-day work week.
Shifting workplace demographics make flexible parking passes increasingly important to maintain revenue and customer satisfaction.
The Growing Need for EV Infrastructure
As the market for electric vehicles continues to grow, the necessity for electric vehicle infrastructure, such as EV charging stations, continues to rise along with it. Although the United States is still in the early stages of transitioning to electric vehicle dominance, the seeds for this transition must be sown now to capitalize upon it in the coming years.
In 2022, the global market for EV chargers was valued at $9 billion, and by 2032, it’s expected to grow to $105.84 billion, a remarkable increase that creates a great opportunity for the parking industry. Now, more than ever, is the time to begin Implementing smart charging infrastructure in modern parking lots and parking garages. Taking this step is essential for:
- Improving the customer experience. Even in 2024, EV charging stations can be tough to find, especially in smaller communities. Drivers of electric vehicles desire convenience when it comes to charging, and fortunately, your company has the power to provide it.
- Boosting your parking revenue. As more and more people switch to driving electric vehicles, offering charging options will be vital for attracting parkers. Incorporating EV infrastructure into your parking lots and garages will give your organization a competitive advantage, resulting in increased revenue and improved customer loyalty.
The installation of EV charging stations involves significant upfront costs for physical hardware and infrastructure upgrades necessary for their operation. However, ROI comes in the form of increased traffic and environmental goodwill.
EV stations are particularly beneficial in places with high dwell times, such as universities, shopping centers, and office parks. These locations offer the perfect opportunity for EV drivers to recharge their vehicles while engaging in daily activities, encouraging the adoption of electric vehicles.
The presence of charging stations serves a practical function and signals a commitment to sustainability, attracting environmentally conscious consumers and employees.
Dynamic Pricing
As competitors become more sophisticated with their pricing strategies, parking operators turn increasingly to data-driven price models for their businesses. Dynamic pricing uses data analysis to vary the prices of goods and services based on market conditions, such as high demand for parking spaces at certain times.
For example, MGM International wanted to maximize parking revenue without impacting volume at their seven Las Vegas properties. They adopted an automated yield management system and reported a $2.4 million annual revenue increase.
Using data to make informed pricing decisions will help businesses set prices that reflect real-life conditions. With real-time data, businesses can dynamically adjust parking rates based on current demand, special events, and peak hours, ensuring prices are aligned with market needs. This approach not only maximizes revenue opportunities but also improves customer satisfaction by offering fair pricing that matches the value of the parking experience at any given moment.
Mobile Point-of-Sale
Operators are increasingly turning to mobile point-of-sale (POS) devices to enhance service delivery and operational efficiency. Customers are increasingly expecting mobile options in virtually all aspects of their lives, including parking, due to their convenience and efficiency. The widespread adoption of mobile technologies in retail has set a new standard for customer service across industries.
Mobile POS devices support various payment methods, including credit cards, mobile wallets, and even cryptocurrency, catering to the diverse preferences of today’s consumers. These devices allow parking attendants to process payments and manage parking spaces easily and quickly.
With mobile POS technology, parking operators can significantly streamline their operations. With real-time data synchronization, operators can monitor parking space availability, manage peak times more effectively, and even offer dynamic pricing adjustments based on live demand. This maximizes revenue opportunities while improving the customer experience with reduced wait times and more personalized service options.
Mobile POS systems are also equipped with robust security features that handle customer payment information safely and in compliance with the latest data protection standards. This added layer of security builds trust between parking operators and their customers.
App-Agnostic Payments
With app-agnostic payment options, customers can pay for parking with any number of mobile apps for payments they may already have on their devices. Customers are not restricted to a single app designated by the parking provider.
Customers can choose the payment method they prefer or one that offers the best benefits for them, such as rewards or discounts. The customer-centric strategy acknowledges and adapts to varied consumer preferences.
For parking operators, offering app-agnostic payment options can lead to increased usage and customer satisfaction. When customers find it easy and convenient to pay for parking, they are likely to use the service more frequently. Flexibility can also attract a wider user base, including visitors or infrequent users who may be deterred by having to download a new app for one-time use.
The City of Richmond, Virginia, enhanced its parking system by integrating app-agnostic payment options. This initiative allowed residents to use their preferred mobile apps for a seamless parking experience. The change resulted in a 16% increase in mobile payment transactions within the first year, showcasing the direct impact of improved customer convenience on revenue growth.
Eliminate Pain Points By Staying Updated on Trends
Stay ahead with the latest parking trends to maximize operational efficiency and profitability. Ensuring your parking solutions meet customer expectations keeps you competitive and secures a steady revenue flow.
Facing challenges in this evolving market? ParkHub is ready to assist! Reach out to a Parkhub parking expert today to discover how to enhance your parking operations.