ACI-NA Operations & Technical Affairs Committee

Airport Parking: Addressing Operational and Management Challenges Jack Ricchiuto Calgary, Alberta September 8, 2012

Airport Parking Impacts  Airport Revenue  $7 Billion in Non-Aeronautical Revenue*  41.6% from Parking & Ground Transportation*  19.9% from Rental Cars*

 Operating Costs  Customer Experience  Efficient Movement of Passengers

*2010 - Source FAA, ASS-400: CATS: Report 127 as reported in the 2012 ACI/IPI Airport Parking Study by Leigh-Fisher

Discussion Topics  Maximizing Revenues  Rate Setting  Product Offerings

 Competing Against Off-Airport  Regulatory Challenges  Technology

Rate Setting  Rate Analysis  Weigh in-house vs. Comprehensive Third Party Analysis  Know the Competition

 Structuring to Meet Demand  Consider Capacity/Overnight Inventory  Consider Peaks/Utilize PARC Data

 Rate Elasticity  Optimization  Increments/Duration

Product Offerings Objectives:  Enhance the Customer Experience  Increase Revenues  Increase Market Share  Up-Sell Parkers – Added Services & Enhanced Products

Product Offerings How to Define & Differentiate Parking Products  Services  Convenience  Pricing

Product Offerings Premium Services  Valet Parking  Bailment – Garage Keepers Liability  Assess the True Revenue Opportunity

 Premium Parking  ‘Gold Lot’ Concept  Per Reservation

Product Offerings  Shuttle Services as a Product Differentiator  Headways – Wait Times  Fixed Route vs. Bumper-to-Bumper Analysis  Adjust Lots/Routes for Dips and Peaks  Active ‘Smart-Loading’ Techniques

Smart Loading Techniques

Competing Against Off-Airport Parking  Define & Differentiate Parking Products  Identity & Branding  Consider New/Enhanced Services

 Market Share Analysis  Dedicated Parking Website  Mobile Applications  Frequent Parker Program  Corporate Parking Program  Premier Parking  Advance Reservation System

Competing Product Analysis

COMPETITOR

RATES Open Air Parking: $5.95/day

DISCOUNT

FREQUENT PARKER PROGRAM?

5.36/day for open-air self parking or $7.16/day for valet parking. Does not include tax or airport accessSpot Club Card fee.

OTHER SERVICES Reservations

Open Air Valet: $7.95/day

Register it online with credit card and track 24/7 service points

Prices above do not include taxes & fees

Use it at entry and you don’t need to pull a ticket. Use it at exit with your credit card andFree Shuttle Bus every 5-7 minutes use our automated check-out lane.

SOCIAL MEDIA Facebook

The Parking Spot - Memphis Corporate Parking Program

2303 Democrat Road, Memphis, TN 38132 Phone: (901) 398-7400

(does not include taxes & fees) Daily: $7.00 Surface $11.50 Covered

3441 Airways Blvd., Memphis, TN 38116 (877) ParkIt-X

Internet Coupon: $6.50/day Surface or Perx Rewards Program $11.00/day Covered (does not include taxes or fees)

Car Wash (starting at) $20

Weekly: $42.00 Surface $77.00 Covered

Earn 1 point for each day of parking

Oil & Filter $40

Monthly: $125 Surface $205.00 Covered

5 points = 1 Day Free

Valet Service: Free

Prices above do not include taxes & fees

20 points = 1 Free Showroom Wash or 4 Days Dry Cleaning Free

FACEBOOK

40 points = 1 Free Executive Wash or 8 Days Estimates on dent, alloy wheel and Free windshield repair Reservations WiFi: Free Travel Agent Program Corporate Parking Program

Self Park FAST TRACK AIRPORT PARKING 2303 Democrat Road Memphis TN 38132

Valet RATES NOT AVAILABLE

N/A

Safe & Secure Luggage Asstance Open 24/7 Car Wash, Detail and Oil Change Services available Online Reservations

N/A

Market Share Analysis  Off-Airport Parking Revenue  As a Percentage of Gross Parking Revenue (On & Off-Airport)  As a Percentage of Overnight Gross Parking Revenue

 Off-Airport Parking Transactions  As a Percentage of Overnight Parking Transactions  Helps to Adjust for Diversity/Flexibility of Off-Airport Rates

 Fee Structure and Reporting Requirements

Parking Website Concept

Interactive Website Utilization  Online Sweepstakes Entry  Promotions & Discounts

 Frequent Parker Program  Social Networking

Website Promotions

Automated Frequent Parker Technology  Automated Entry / Exit  Bills to Credit Card On-file  Secure, PCI Compliant  Receipt via Email  Points Credited Electronically  Online Redemptions  Free Parking or Prizes

Frequent Parker Program

Automated Frequent Parker

Rewards Catalog

Membership Cards

Incremental Parking Revenue Premier Parking – Gold Lot Concept  Access to Most Convenient Parking Spaces  Annual Membership Fee  Regular Parking Fees Apply  Typically a Physically Nested Area  Does Not Guarantee a Space  Inventory Management Insures Space Availability  Frequently Includes an Automated Entry/Exit/Payment Function

Incremental Parking Revenue Premier Parking – By Reservation  Premium Paid on a Per Day Basis  Minimal Capital Costs  Standard Parking Fees Apply  Highly Flexible  Designate Premium Parking Spaces  Click and Park Reservation System  Pre-paid Parking Fee Option

Incremental Parking Revenue

Incremental Parking Revenue  Dashboard Permit Displayed  Point-to-Point Directions  Entry/Exit/Payment Via Existing Revenue Control System  Premium Fee Structure  Per Stay  Per Day  Enforcement Options

Maximizing Revenue - GT  Off-Airport Shuttles – Hotels, Charters, Off-Airport Parking  Taxis, Limos & Shard Ride Shuttles  Fee Structures  Flat Rate per Vehicle  Per Trip Charges  Percentage Fees  Reporting Requirements

 Technology Options  Automatic Vehicle Identification  Curbside Audits

Regulatory Challenges - Parking  PCI Compliance  Who is the Merchant of Record?  Firewalls  Data Security Standards  Cardholder Data • Storage and Access

 FACTA

Regulatory Challenges - Shuttle Services  Regulatory & DOT Compliance  Buses • Pre-trip and Post-trip Inspections

 Drivers • Work Hours • Health Certificates • Annual DMV Reports

 State Requirements - Inspections

 Technology Options  Zonar  DriveCam

Technology – Revenue Control  PARC System  Are You Fully Utilizing the System?  Match System Capabilities to Your Needs / Requirements  Fill the Gap with Audit, Polices & Procedures  Reporting Capabilities

 Audit  Clear, Consistent, Written Procedures  Comprehensive Audit – Revenue, Procedures, Operations  Unique Requirements for Public Agencies

Technology Options – Parking Guidance  Wireless Camera Technology vs. Individual Sensors  License Plate Read Capabilities

Technology Options – Parking Guidance Find Your Car / Watch Your Car App  Download Smart Phone App  Enter Parking Facility  Enter Space Number  System Transmits Real-Time Video of Selected Parking Space

Technology Options - DriveCam™