Town and city car park operators are missing out on revenues worth millions of dollars simply because most car parks are half empty, or less, for most of the time, according to research by ORTEC Consulting Group.
The research involved applying applied advanced Revenue Management techniques derived from its experience in working with major international airlines and airports to increase passenger yields and revenues. Extrapolating from this, ORTEC believes that town and city car park operators could be earning millions of dollars more in revenue just by applying these proven techniques. How much? “We think 5-7% is realistically achievable,” says Maarten Soomer, Senior Marketing Analytics Consultant at ORTEC Consulting Group. “In the case of major operators, that’s tens of millions of dollars more for very little upfront investment.”
Benefits of variable pricing
ORTEC’s advanced mathematical models make it possible for car park operators to map current demand patterns, such as business, short stay, event, full day, weekend, for example, and then implement variable pricing periods that reflect, steer and stimulate utilization at different times of the day and week.
“People park for different reasons at different times and view parking options accordingly,” says Soomer. “Matching these varying requirements with clear and clearly differentiated propositions increases yields and generates volume growth at similar average prices, and helps build customer loyalty.”
About ORTEC Consulting Group
ORTEC Consulting Group is the specialist in business analytics. We provide companies with the insights they need to become more adaptive and responsive. Since 1981, we’ve been helping companies grow their turnover, lower their costs, reduce their environmental impact. In short, achieve better results. And we do this in our own unique, quantitative way.
ORTEC Consulting Group is a business division of ORTEC, the world’s leading provider of advanced planning and optimization solutions and services. ORTEC has over 1,800 customers worldwide, over 750 employees and offices in Europe, North America, South America and the Pacific Region. More About ORTEC Consulting Group