Real-Time Pricing in the Real World

The last few years have seen a real explosion in terms of the number of people using mobile devices, including smartphones and tablets. As we know, the mobile industry is a fascinating, fast-paced environment where technologies, devices, and companies change every day.

Love them, or hate them, mobile devices are here to stay. So, as is the case with your mother-in-law, you just have to get on with it and embrace them.

It is crucial for parking operators to keep pricing information as up to date as possible because like it or not, many drivers make decisions based on price, and there is nothing worse than arriving at your chosen destination and realizing that the space will now cost you more.

Many of you will scream, “No, constant price changes are not convenient for the driver! They create confusion!” Some of you will be in agreement that dynamic pricing allows for better yield management, which in turn optimizes revenue.

Those in the “green” corner have realized that up-to-date pricing achieves the goal of opening up spaces, reducing unnecessary driving around. This has been seen in San Francisco, where intentionally raised on-street prices (on high-demand blocks) are steering drivers to park on another street or in a neighboring parking lot, opening up prime street spots.

Still not convinced? I’ll leave you with a story that illustrates the value of distributing real-time information about parking pricing:

The operator of a parking lot at a railway station recently agreed to a price change whereby drivers leaving their cars at the station parking lot and continuing their journey by train were entitled to a discount of nearly 50 percent on the posted daily parking rate. All they had to do was purchase the ticket at the counter instead of at the payment machine or online. But this information wasn’t conveyed to customers in real time (as it would be via mobile), and 99 percent of the drivers there didn’t know about it.

The operator is still receiving complaints three weeks later.

 

About Christina Onesirosan Martinez

Christina Onesirosan Martinez, MBA MCIM, is marketing director at Parkopedia, where she is responsible for the company's global marketing operations. She serves on IPI's International Outreach Committee.

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