Hotel Parking Tips

By HVS International -- HOTELS Magazine, 10/1/2005

1.   Invest in high quality parking technology.

There are two core components of a profitable parking operation:

access control and revenue control. The former restricts access

to or exit from the parking facility to select vehicles. The latter

ensures that those “select” vehicles are the ones

that have paid, and further that the revenue they provide makes

it to the parking facility’s coffers. Investing in high

quality equipment ensures that both components are handled

properly. Despite its potentially large price tag, this type of

equipment can pay for itself in less than a year, despite its

several years of useful life.

2.   Invest in high quality parking technology training.  If

you want to realize its full value, you’ve got to know how to use your

new parking access and revenue control system (“PARCS”) properly.

This includes taking advantage of detailed and intricate reporting functions,

as well as creative options such as pre-printed exit cards for hosted functions,

etc.

3.   Invest in a full service maintenance plan. This

means all costs, not just preventive maintenance. While this may seem expensive

at first, it will save you much money in the later years of your system

life, and better yet, will likely extend that that life, too.

4.   Investigate automation/pay

on foot options.  Even

in the hotel context, an automated self parking facility can work very

well. While a pay-on-foot system—in which drivers pay

for parking at what resembles a parking vending machine rather

than at a live cashier window or booth—may

smack of limited customer service, it is surprising to see the positive

feedback they generate. In fact, in this day and age of self checkout

at the grocery store, many drivers prefer them, especially with the added

benefit of shorter lines exiting the facility with no cashiering being

done at the gate. An by the way, that really is the biggest benefit:

no cashiers. This not only dramatically reduces labor costs, but also

dramatically reduces pilferage. With all transactions automated, payroll

reduced and fewer hours to schedule and staff, it makes the overall management

of the garage much easier.

5.   Invest in management.  With

labor being one of the largest lien items, most management companies

look to save money by limiting staffing.  However, having

appropriate levels of management that can oversee auditing and

revenue control functions is often the only way to ensure a parking

facility’s true revenue potential is realized. All too

often at many hotels, parking management is lumped under the Director

of Security, Front Desk Manager, or other management employee

whose core function and area of expertise is decidedly not parking.

In most cases the monthly salary of a parking manager is paid

for many times over each month through the capture of full revenue

and proper expense management. Ironically, “saving" money

by limiting staff can be counterproductive.

6.   Reevaluate your use of

space/traffic flow.  This

is really code for outside the box thinking. Is there a better way

to park vehicles on your property, in your lot, or in your

garage? How wide are the spaces? Would it make sense to introduce

valet parking so that tandem, or so-called “stack” parking

can be utilized? In most cases this allows a facility to accommodate

up to 20 to 50 percent more vehicles, saving overflow parking costs.

From a service perspective, is there a better way to direct traffic

on your property? Can you avoid having guests drive by potentially

unsightly loading docks? Would reversing traffic flow in your porte

cochere help? Finally, is there an opportunity to accommodate employee

parking off-site in order to free up on-site parking for hotel guests,

or otherwise for paying parking customers?

7.   Know your customers. Are

there trends in their arrival and departure times?  Can you

match your valet staffing levels to those schedules in order

to have sufficient staff during known high-volume periods while

avoid overstaffing during moderate volume periods? Can you

alter your customer behavior by offering incentives to encourage

drivers to park at non-peak times?

8.   Know your market.

Better yet, know your neighborhood. Are your parking rates

competitive? Could the parking demand withstand an rate increase?

Are there any companies or other demand drivers in your immediate

market area that is generating a parking demand that you could

potentially meet with your excess capacity?  Get out and

meet your neighbors. They could become your customers.

9.   Track your performance. As

with any business, it makes sense to monitor your performance

from both customer service and financial perspectives. Do you

utilize a customer feedback mechanism such as a survey or comment

card? Do you utilize available technology (perhaps the technology

you bought in tip #1 above) to track your revenue by market

segment, time, days of the week, etc. These types of analysis

will tell you where your opportunities are to improve your service

levels, tailor your staffing, or market your inventory.