Guidebook for Evaluating Airport Parking Strategies and Supporting Technologies

157 Pages·2009·3.09 MB·English

by  Jacobs Consultancy

A I R P O R T C O O P E R A T I V E R E S E A R C H P R O G R A M
ACRP
REPORT 24
Guidebook for Evaluating
Airport Parking Strategies and
Supporting Technologies
Jacobs Consultancy
Burlingame, CA
IN ASSOCIATION WITH
WALKERPARKINGCONSULTANTS
Indianapolis, IN
MANNIXGROUP
Orlando, FL
DMR CONSULTING
Pasadena, CA
Subject Areas
Aviation
Research sponsored by the Federal Aviation Administration
TRANSPORTATION RESEARCH BOARD
WASHINGTON, D.C.
2009
www.TRB.org
AIRPORT COOPERATIVE RESEARCH PROGRAM ACRP REPORT 24
Airports are vital national resources. They serve a key role in trans- Project 10-03
portation of people and goods and in regional, national, and inter- ISSN 1935-9802
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connects with other modes of transportation and where federal respon- Library of Congress Control Number 2009940240
sibility for managing and regulating air traffic operations intersects
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to adapt appropriate new technologies from other industries, and to
introduce innovations into the airport industry. The Airport Coopera-
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C O N T E N T S
1 Chapter 1 Overview of the Guidebook
1 Purpose of the Guidebook
1 Distinguishing Characteristics of Airport Parking Customers
2 Distinguishing Characteristics of Airport Parking Operators
3 Methodology
4 Organization of the Guidebook
5 Chapter 2 Documenting the Goals of Airport Management
5 Evaluation of a Parking Strategy Begins with Management Goals
5 Confirming and Documenting Relevant Management Goals and Objectives
7 Developing Metrics to Evaluate the Performance of Selected Parking Strategies
8 Benchmarking
10 Chapter 3 Assessing Customer Needs and Preferences
10 Data Collection and Analysis
10 Focus Groups
11 Stakeholder Groups
11 Customer Surveys
13 Experience
14 Chapter 4 Parking Strategies and Supporting Technologies
14 Parking Strategy and Technology Categories
15 Examples of Strategies Not Included
15 Potential Parking Strategies and Technologies
17 Category A: Parking Products—Duration Based
33 Category B: Value-Added Parking Products
53 Category C: Complementary Customer Services
68 Category D: Parking Space Availability and Guidance Systems
86 Category E: Cashierless Transactions
101 Category F: Revenue Enhancement Strategies
116 Category G: Safety and Security Strategies
120 Category H: Operational Enhancements
128 Chapter 5 Selecting Potential Strategies
and Supporting Technologies
128 Provide a High Level of Customer Service
129 Enhance Parking Revenues
130 Improve Operational Efficiency
139 Chapter 6 Evaluating Potential Strategies
and Supporting Technologies
139 Consider the Specific Characteristics of the Airport and Its Customers
139 Airport Customers
141 The Airport Operator
142 Physical Airport Facilities
143 Evaluate the Implications on Affected Organizations and Stakeholders,
as Appropriate
144 Determine the Required Implementation Actions
144 Estimate the Costs and Benefits of Implementation
146 Chapter 7 Key Implementation Steps
146 Obtain Management Approval to Proceed
147 Develop an Implementation Plan
148 Implement the Strategy
148 Conduct Follow-On Review and Evaluation
150 Appendix A Cost Estimates
153 Appendix B Glossary
156 Appendix C Suggested Sources for Further Information
158 Appendix D Bibliography
C H A P T E R 1
Overview of the Guidebook
This Guidebook for Evaluating Airport Parking Strategies and Supporting Technologiesdescribes a
broad range of parking strategies and supporting technologies that have been used by the opera-
tors of airport and other public parking facilities to provide a high level of customer service, enhance
revenues, improve operational efficiency, and achieve other relevant management objectives.
As used in this guidebook, the term parking strategyrefers to the entire spectrum of parking
products, value-added services, rates and rate structures, safety and security features, and the tech-
niques used to control parking revenue, promote operational efficiency, manage capacity, and bal-
ance facility use. Many of these strategies can be enhanced through the application of supporting
technologies. The term, technologiesrefers to parking access and revenue control systems, ticket
and ticketless payment systems, vehicle detection and guidance systems, parking reservation sys-
tems, and other parking-related hardware and software.
Purpose of the Guidebook
This guidebook is intended to help airport management and the operators of airport parking
facilities compare and contrast various parking strategies and supporting technologies to achieve
their specific objectives. The information provided herein may be used to evaluate and select poten-
tial strategies and their applications considering the specifics of the airport and its customers. The
objectives of airport parking operators, as described in the following section, differ from those of
the operators of other parking facilities because airport parking customers differ from those using
hospital, university, office, center city, or other public parking facilities.
The information contained in this guidebook is applicable to the operators of all commercial
service airports regardless of location, passenger volumes, customer demographics, and parking
facility size or configuration. The guidebook can be used by the managers of all airports regard-
less of their goals or objectives. As such, it presents a broad range of potential strategies and tech-
nologies, not all of which are applicable to every airport.
Distinguishing Characteristics of
Airport Parking Customers
Some of the characteristics that distinguish the customers of airport parking facilities from the
customers of other public parking facilities include the following:
• Airport customers are concerned about flights.Airport parking customers are likely under
greater stress than the customers of most other parking facilities. This stress results from the
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2 Guidebook for Evaluating Airport Parking Strategies and Supporting Technologies
realization that their inability to readily find an empty parking space or other minor delays
may cause them to arrive too late to check baggage, claim a reserved seat, store their baggage
in an overhead compartment, greet an arriving passenger, or—in an extreme case—miss a
flight. Thus, airport parking customers are less tolerant of long waits for a shuttle bus, long
searches for an empty space, long walks to/from a terminal, and long entrance or exit delays.
• Airport customers use facilities infrequently.Compared to customers who park in office,
university, hospital, or downtown parking facilities, airport parking customers rarely park at
the airport because most airline passengers fly fewer than four times a year. As a result, they
may be unfamiliar with the current parking fees and services, the shortest vehicular and pedes-
trian circulation paths, or the optimum parking location to meet their needs. Because they
travel infrequently, it may take these customers several months to recognize and respond to
changes in parking fees, services, or products. Thus, airport parking operators may require
4 months or more to evaluate how customers are responding to new parking fees, services, or
products. Some customers may be intimidated by structured parking or a large parking system
with multiple choices, particularly at airports that draw customers from a region or community
containing few multilevel parking facilities.
• Airport customers park for long durations.Airport customers often park for several days, or
occasionally several weeks, while users of other public parking facilities rarely park for more
than 8 hours. Airport customers parking for longer than 24 hours (i.e., long-duration cus-
tomers) typically account for less than 30% of all entering and exiting vehicles, but occupy more
than 70% of all parking spaces and generate most of the parking revenues. Some long-duration
customers, particularly those who travel infrequently, forget where they parked their vehicles
and require assistance from airport staff to locate their vehicles. As described in Chapter 4 of
this guidebook, the needs of customers parking for short durations (especially those parking
for less than 4 hours) must be accommodated to minimize congestion on curbside roadways
and recirculating traffic volumes.
• Airport customers pay higher fees.Airport parking rates are often higher than, or equivalent to,
those in downtown parking facilities. Because of these rates and multiple-day parking stays, air-
port parking customers frequently pay higher fees than customers parking in other public park-
ing facilities. It is not unusual for airport parking customers to pay more than $25 for the use of
airport parking facilities, which is uncommon in public parking facilities in all but a few large
cities. Airport customers pay these fees because (1) the cost of parking represents a small percent-
age of the total door-to-door travel cost (e.g., airfares, rental car charges, lodging, and other costs),
(2) they place high value on time and convenience (particularly those traveling on business pur-
poses), and (3) some have no option other than driving to, and parking at, the airport.
Distinguishing Characteristics of
Airport Parking Operators
Some of the characteristics that distinguish the operators of airport parking facilities from
those operating other publicly owned parking facilities include the following:
• Emphasis on customer service.Airports, which often serve as the gateway to a community or
region, represent a visiting passenger’s first or last impression of a community. Similarly, air-
port parking facilities may provide a resident’s first or last impression of the local airport. As
a result, airport operators seek to provide customers with higher levels of service than those
provided at most other public parking facilities. Therefore, airports are often the first location
for implementing many innovative parking products, services, and technologies.
• Need to be financially self sustainable. Federal law in the United States requires that
commercial-service airports be as financially self-sustaining as possible. To meet their financial
obligations, airport operators rely on revenues from (1) airlines, including landing fees, termi-
Overview of the Guidebook 3
Source: FAA, AAS-400, CATS, Report Form 5100-127.
Figure 1.1. Revenue sources at U.S. airports.
nal rents, and other charges and (2) concessionaires and other non-airline tenants (e.g., in-
terminalfood and retail concessions, rental car companies, ground transportation providers,
and publicparking facilities). As shown in Figure 1.1, the single largest revenue source at U.S.
airports is usually public parking, representing approximately 25% of all airport revenues and
more than 40% of non-airline revenues. Often, surplus revenues generated from public park-
ing provide cash flow to support other airport functions (e.g., general aviation, public areas of
terminals) that either generate no income or require subsidies. Surplus parking revenues also
represent the single largest source of debt-free cash flow to fund airport capital improvements.
At some airports, parking revenues are shared with the airlines, which helps attract new airline
service or maintain existing service by reducing airline costs.
• Larger parking facilities required. Typically, over 1,000 parking spaces are provided at
commercial-service airports, and over 15,000 public spaces are provided at several large-hub
airports. Most of the very large parking structures in the United States (e.g., those with over
5,000 spaces)are on airport grounds. These large parking facilities are required to accommodate
the needs of airline passengers traveling in private vehicles (typically over 70% of all passengers)
and those who park at the airport for multiple days.
• Large amount of revenue handled.Annual parking revenues are frequently over $10 million at
small-hub airports and over $100 million at the largest airports. Although all parking operators
strive to minimize theft and fraud, this objective is particularly important to airport operators
because of the magnitude of the revenues, their importance to airport operations, and the neg-
ative implications (and potential high profile) of theft or fraud associated with such losses in
a public agency. Therefore, airport parking operators often use state-of-the art procedures and
technologies to protect and control their revenues.
Methodology
The information contained in this guidebook was gathered by identifying innovative parking
strategies and technologies, and then conducting interviews with nearly 100 individuals and
agencies familiar with the strategies. Those interviewed included employees at airports in the
United States, Canada, and Europe; parking equipment manufacturers and vendors; private
parking operators; parking consultants; and others. The information contained in the interviews
4 Guidebook for Evaluating Airport Parking Strategies and Supporting Technologies
was supplemented by a comprehensive literature search, which is summarized in the bibliogra-
phy presented in Appendix D.
The information in this guidebook was verified to the extent possible through interviews with
multiple sources. As such, the data describing the costs and benefits of the strategies represent the
best data available during the research period. However, limited or no data were available for those
strategies that have only been implemented by private parking operators or at privately operated
airport parking facilities. Similarly, some strategies have been implemented at only one or two
airports and, again, limited or no data were available at the time this guidebook was prepared.
Finally, the information contained in this guidebook is current as of spring 2009. After com-
pletion and publication of the guidebook, it is expected that (1) additional strategies and tech-
nologies not described or anticipated will be introduced, (2) additional airport parking operators
will implement some of the listed strategies (and be able to describe their experiences), and (3) some
strategies in use at airports mentioned in the guidebook may be discontinued.
Organization of the Guidebook
Subsequent chapters of the guidebook describe the following:
• Documenting the goals of airport management and using those goals to evaluate potential
strategies (Chapter 2),
• Assessing customer needs and preferences (Chapter 3),
• Potential parking strategies and supporting technologies organized in eight functional categories
(Chapter 4),
• Selecting potential strategies and supporting technologies (Chapter 5),
• Evaluating potential strategies and supporting technologies (Chapter 6),
• Key implementation steps (Chapter 7),
• Estimated costs of implementing, operating, and maintaining a strategy (Appendix A),
• Glossary of terms (Appendix B),
• Suggested sources for further information (Appendix C), and
• Bibliography (Appendix D).
C H A P T E R 2
Documenting the Goals of
Airport Management
This chapter provides an overview of how to document the relevant goals of airport management
and the metrics that can be used to evaluate the performance of potential parking strategies.
Evaluation of a Parking Strategy Begins
with Management Goals
When identifying and evaluating potential parking strategies, it is beneficial to confirm and define
the relevant goals of airport management prior to implementation. The goals for each airport are
unique and reflect management’s vision for the airport, its mission statement, and its specific values.
To achieve these goals, management may have a strategy or long-term plan of action consisting of
new parking products, services, or supporting technologies (see Figure 2.1).
The following three parking-related goals are frequently cited by airport managers:
• Provide a high level of customer servicefor the traveling public and employees.
• Improve operational efficiencyby reducing the costs of parking operations while maintaining
or improving customer service and safety, and enhancing revenues.
• Enhance net parking revenues,consistent with achieving airport management’s other goals.
Each airport operator places different emphasis on these three goals (and subsets of these goals),
reflecting the unique characteristics of the airport, the degree of competition (or partnership) with
off-airport (private) parking operators, the adequacy of available parking facilities, the interval
before the next required parking facility expansion, and other factors. Few operators seek an equal
balance among these three goals (i.e., a point in the exact center of the triangle in Figure 2.2),with
most operators leaning toward one goal or another. For example, some airport operators prefer to
forego potential revenues to provide improved customer service (e.g., provide a high proportion
of close-in, covered parking spaces), while other operators choose to enhance net revenues by
avoiding or postponing capital costs (e.g., deferring construction of structured parking and,
instead, expanding surface lots that are distant but within walking distance of the terminal), and
some seek to improve efficiency at the expense of both customer service and revenues.
Confirming and Documenting Relevant
Management Goals and Objectives
The airport operator should have a clear idea of its short- and long-term goals and objectives
for the parking program to guide its selection of parking strategies. Furthermore, it is impera-
tive that these goals and objectives are consistent with the overall goals and objectives of the
organization. With an established foundation of goals and objectives, the airport operator can
5
6 Guidebook for Evaluating Airport Parking Strategies and Supporting Technologies
Figure 2.1. Typical management process.
then determine the technologies and level of investment necessary to implement strategies that
support these goals and objectives, and the types of data that must be collected to measure
progress.
Numerous departments or divisions within an airport organization are affected by, or influ-
ence, parking operations. Included are airport operations, finance, properties and concessions,
facility maintenance, planning and engineering, information technology (IT), environmental,
construction, accounting/audit, public relations, and security/police. These relationships should
be considered when identifying and evaluating parking strategies to assure that they support the
overall goals and objectives of airport management.
It is recommended that representatives from all departments that are affected by, or influence,
the parking program be involved in the development and prioritization of goals and objectives. By
considering the range of needs and constraints, tradeoffs that achieve the best possible outcome
can be developed.
Parking strategies reviewed in this research project were grouped according to the three goals
important to airport operators. Many of the strategies will add value in achieving one or more air-
port operator goals to (1) improve customer service, (2) reduce operating costs, and (3) enhance
parking revenue.
If the operator has not already defined and documented its goals and objectives for the parking
program, these three goals can serve as a starting point for the development of potential goals and
objectives. Providing customers with a safe and secure environment is another overarching goal
that, although addressed separately, influences parking operations and customer service. Strategies
selected in support of the goals and objectives will depend on the relative level of importance placed
on each goal identified by the airport operator, as well as any constraints.
Figure 2.2. Parking-related goals.