Rezcomm - Airport Travel, Parking and Ancillary Pre Book Systems

We live in an online age, but what exactly is a digital strategy for parking? Neil Robson from Rezcomm seeks to answer the question

Over the past two decades the parking industry has been transformed from a sleeping giant to a lucrative revenue stream for local authorities, asset owners, service providers and operators. The transformation is continuing, now being driven by the changes in technology and communication that are shaping everyday life.

The transformation of the parking sector is due to many factors, with some of the key ones being asset values, technology and the changing status of the customer.

Firstly, the asset value of parking has been realised in terms of both physical worth (land, bricks and mortar, etc.) and revenue opportunities. Simply put, higher rents and more expensive leases mean higher tariffs, which have had the consequence of a shift away from lease toward management contracts. Management rather than ownership results in lower earnings for parking operators.

Secondly, new technology has resulted in different operating structures, products and channels, which has created options and opportunities to reduce costs, increase the flexibility and range of products and extend the reach to the consumer through multiple channels.

Thirdly, and the most important of the uncontrollable variables, is the consumer. While there are fixed costs associated with running physical car parks and operators can make decisions around technology and operating structure, the customer exercises choice on a daily basis. The customer is influenced by experience, their perception of parking and the value of specific sales propositions.

If an operator has made the most of their asset value and choice technology, the customer remains as the only lever left in their tool kit. Research shows that when it comes to parking the main decision factors influencing ‘turn-up’ are:

• location/convenience
• security and wellbeing
• availability
• price
• habit and routine

These are the factors that need to be communicated through an online or digital strategy. This is where offering the opportunity to reserve parking, with a value proposition added, becomes key dimension of business models.

A parking operator’s and in particular an airport’s online digital strategy needs to increase the availability of pre-book parking. Some operators have achieved spectacular results, with some seeing like-for-like growth of over 80% and migrating ‘turn-up’ customers to 80% of their airport's pre-book parking revenue. In both cases these are six or seven digit figures and therefore significant in themselves.

As pre-book parking becomes more common it is apparent that third party aggregator websites are grabbing the lion’s share through the sophisticated use of web techniques such as pay per click (PPC) and search engine optimisation (SEO). In doing so, consolidators are demonstrating the value of digital or web techniques. The experience of other players, such as off-airport parking operators, also demonstrates that the online customer is increasingly valuable and that businesses can be built on them alone.

Online pre book systems for parking is actually a mature sector in the UK, but true digital strategies are in their infancy, save for some truly online parking businesses and digital savvy airports.

How many parking operators really know who their customers are and interact with them through direct communications, social media or emerging web techniques? This is a question that few running on-site (on or off street) parking or parking at airports, shopping centres and venues could answer with confidence.

The consumer has become the central factor in the business of parking. It is thus essential to use data and technology to improve consumer engagement through web services via desktop, tablets and mobile phones. Embracing digital parking as a concept enables operators to contact consumers through media channels but, more importantly, via ‘real time, near proximity marketing’ that creates a connection between the consumer, the destination and the associated car park.

For example, if the destination is a retail or leisure venue, the sale of parking can be combined with websites and apps promoting products, services or selling tickets. The link between the purpose of the journey and the act of booking a parking space can be offered as a logical and contemporaneous process. Creating an online parking pre-booking sales channel is important in itself. However, this is just another sales channel unless it has the associated services such as active Customer Relationship Management (CRM) in order to maximise consumer engagement and revenues.

Indeed, CRM is the critical element that joins up the on-site parking technology with the online/mobile sales through both direct or indirect channels. Adopting a joined-up approach enables the maximum return for both the consumer and the operator. CRM is thus becoming the glue that bonds together many of the sub-systems that the customer engages with: parking systems; pre-booking; mobile payment; season tickets; and permits.

The main difference between an online and digital strategy is the first involves taking the money and growing revenue/volume through a sales channel, while the second is about using customer data and engagement to add long-term value.

A comprehensive pre book parking reservation solution needs to work with and incorporate the CRM elements in order to make the most of the customer contact database. This means a focus on loyalty, cross and upselling and general communication with the consumer. A key feature of a digital strategy is a CRM platform built around data covering demographics, geographical locations, gender, spending habits, vehicle types and so on. This data can be used to serve up the best and most appropriate content to the consumer in a timely manner. Getting the timing right helps ensure higher sales and better customer engagement.

Having spent many years in the parking industry, it is clear that the sector will increasingly bridge digital solutions. Mobile payments started the trend toward cashless and ticketless transactions, and this has continued with the development of ANPR and RFID based ticketless solutions. The next generation will move to an ‘in car’ channel combining availability, navigation and ultimately the ability to pay for parking. The technology exists today to deliver a myriad of sales channels online and via mobile. Announcements being made by automotive companies make it clear that, soon, in-car transactions will be commonplace. The key will be to get digital, collaborate with neighbouring businesses and use the data and relative offers to talk the consumers language.