Autopay enables revenue management for the masses
Updated: Oct 20, 2020
While airlines and hotels maximize their profits by utilizing dynamic pricing, the car park industry sticks to static rates, blaming poor data quality and lack of access. Autopay removes these barriers and has positioned itself as the industry’s dynamic pricing catalyst.
Revenue Management is about maximizing a car park’s long-term revenue potential. While the airline and hospitality industry have utilized revenue management since the early 1980's, the parking industry, who shares the same underlying drivers, is still moving forward with traditional pricing structures. While airline ticket rates fluctuates in line with booking pace and demand, parking pricing is static and with limited price discrimination. Parking industry characteristics correlates well with the revenue management fundamentals, having perishable inventory, time-variable demand and favorable cost structure. Parking demand is typically characterized as cyclic, peak load and seasonal. Despite this correlation, the parking industry has not yet embraced the concept of revenue management. The parking industry today suffers from negative externalities caused by environmental acts and online retail. Many parking facilities face suboptimal asset utilization and lost revenue, due to limited price discrimination. However, digital innovation opens up for new pricing opportunities as a result of improved data quality and new distribution channels. In fact, introducing demand-based pricing might be the undiscovered cure.
Revenue Management has significant revenue uplift potential when done properly. However, many organizations either lack internal expertise or do not have the time available for proper analysis. To support you in embracing the latest in pricing technology, Autopay now offers Revenue Management services for hire. The service combines pricing consultancy and advanced pricing technology to fully utilize your car park’s revenue potential. We offer a monthly service where an experienced Revenue Manager takes care of your car park revenue without you having to do anything. And of course, you are in charge of the business, you just let the revenue expert do the rest.
If you have any questions about our services or want to learn more about how we can optimize your car park revenue, book a demo here.