Part 3 – Manage Your Revenue
Parking Reservation Software (PRS) is the world’s most comprehensive parking software solution. Offering so much more than online reservations, this system also has revenue management tools!
Did you know your online parking reservation solution has tools to maximize your parking revenue? The ability to book and prepay an online parking reservation is an absolute must in today’s ever-evolving digital landscape, but a reservation system can also help manage your rates to sell the right product for the right price to the right parker at the right time! This parking management strategy is known as Revenue Management (also known as Yield Management) and it has been used by airlines, hotels, and car rental for decades. Now Uber, the parking industry, and other travel sectors are seeing the benefits of Revenue Management.
The Data Collected
Online reservation systems collect valuable customer data that is critical to Revenue Management. Historical customer data is the foundation for making strategic decisions and is one of the major benefits of having a parking reservation system.
The Revenue Management process begins with collecting customer data then using that data to track, study, and predict customer buying behavior.
It’s important to note that some third parties do not share this data with the parking operator and it should be clear who owns the data collected when making a parking reservation system decision.
The Revenue Management strategy is a three-legged stool, each leg interdependent upon the others. Here are the three legs and how they work:
- Reservation systems equipped with dynamic pricing tools allow the operator to set price tiers based upon historical trends, seasonality, day of week, time of day, consumer demand and available inventory, all of which can be determined using historical data.
- Within the reservation system, these price tiers can be set up and tracked separately on unique channels, further honing the science of dynamic pricing.
- A solid parking reservation system will be equipped with robust reporting that will support an operator’s ability to forecast demand. It’s important to know exactly what reporting is available when making a parking reservation system choice.
Revenue Management is a proven strategy that when done properly will increase revenue. Careful selection of a parking reservation system equipped with these tools will give you everything you need to boost your parking revenue.