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The economic and social disruption caused by the pandemic has put businesses of all sectors to the test, and this includes parking. Many organizations have been required to modify their business models and adapt their strategies to ensure success through these rapidly-changing times.

The main impact COVID-19 has had on the parking industry is low parking occupancy rates. With work-from-home models becoming the new norm, and stay-at-home orders in effect, the number of people requiring parking services has declined significantly. Recurring revenue from monthly permit subscriptions in most cases has, if not eliminated; causing parking technology providers to develop flexible, alternative permit options that meet the current consumer demand of minimal commitment and sporadic use.  

Although flexible, low commitment permits are a feasible option to the consumer, when deployed right they offer property managers a reliable revenue stream and viable degree of financial certainty. Below are a few features flexible permits may entail:

• Prepaid models: requires customers to purchase a certain number of parking sessions in advance; for example 5, 10, 15, 30 or 100 days of parking. Sessions can be configured to your liking

• Pay-as-you-go models: a feasible option for the financially-conscious, allowing customer to only pay for the time used

• Immediate activation: from the moment of purchase, permits are activated, approved and ready for use

• Family options: multiple permits can share an account and be transferred to any vehicle, making it an ideal option for healthcare facilities, hotels and mixed-use developments with diverse visitor needs

• Multi-campus functionality: an efficient option for organizations with multiple locations, allowing staff and visitors to travel freely between locations without having to pay for parking each time

• Unlimited in-and-out privilege: allowing the customer to freely enter and exit the parking lot as many times as they need within a 24 hour period

• Reloadable: parking sessions or funds can be reloaded onto the permit from an online source or designated call center

• Loyalty programs: point incentive systems entice visitors to re-load and return to your parking facility

• No expiry: similar to a gift card, prepaid parking sessions or loaded funds do not expire

• No account: personal customer details such as their name, license plate, address or billing information are not associated with the permit. The downside to this however is that lost or damaged permits are not recoverable

• Mobile technology: offers a completely touchless entry and exit option requiring customers to only touch their personal device. Mobile permits may range from Bluetooth low energy technology, to QR access codes

Whether it is with one of the examples above, or a sophisticated combination of each, flexible permit options provide an opportunity for property managers to generate revenue. The customer-focussed solution is a powerful business model and prime example of how businesses have evolved their product offerings to last long after the pandemic is over.

References

Donatucci, A. (2021, January 26). Regain Revenue with Flexible Permit Options [Web log post]. Retrieved May 13, 2021, from

McKenty, C. (2020, July 24). A New, Common Form of Access [Web log post]. Retrieved May 13, 2021, from

Adamo Donatucci
Business Development and Strategy Officer, Precise ParkLink