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What gets measured gets improved. Every manager needs those essential vital signs that illuminate their business and align their team toward achieving their goals. Most managers understand no single metric can explain their entire operation. So, what are the best measures of parking revenue management effectiveness? Revenue matters for your parking business.
Higher occupancy is always betterright? Well, perhaps not. Demand, and its resultant, occupancy, is a function of price.
If occupancy is high, are you leaving money on the table by pricing too low? When a parking business is measured on occupancy alone, the temptation is to keep prices low, or to run promotions that drive occupancy higher but short revenue.
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Average transaction value ATV divides the revenue over a given time period by the number of customers you served in that period. Many operations consider a rising ATV to be a win for the business.
If your pricing is flat over all lengths of stay, that might be an acceptable measure. Yes, a day customer will pay more than a two-day customer, but what if you could get 12 one-day customers, or two six-day customers, driving down ATV but capturing more revenue overall?
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At an airport, you might be trying to shift long-stay demand out of the crowded garage near the terminal while capturing that demand at a remote lot. ATV can come on too strong, ready to move in after the first date. You should probably keep playing the field.
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Average daily rate ADR divides the total revenue over a time period by the total number of occupied spaces and days in the period. It differs from ATV in that the amount of time a customer spends in the facility is considered.
The customer who spends two weeks in a lot where stays beyond seven days are deeply discounted drives this indicator down. Members can vote on this response! Forgot password? Join Now! Home Browse Member Login Hookup.
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