Dynamic pricing. It’s a hot and polarizing topic in the world of technology… and now parking.
By now it’s a term we’re all familiar with and most times, it’s not painted or received in a positive light. But what if it could improve parking operations for parking operators and the parking experience for customers across the globe?
Cities like Washington D.C. are adopting this smart parking philosophy to help balance the supply and demand of parking within the District. During popular events, weekend nights or other instances when demand is high, parking owners can raise their prices to help control the occupancy throughout their inventory. Similarly, they can decrease rates if parking demand is low, thus giving the customer a more affordable parking space than what’s offered on average.
For the parking operator:
Adjusts prices to account for supply and demand this increasing revenue and decreasing operational costs of manually adjusting rates.
Attracts customers when parking demand is low.
For the parking customer:
Alleviates the high volume of customers not willing to pay certain prices for customers, opening up new space for those that are.
Create opportunity for times of lower than average parking rate.
In fact, Los Angeles, prices for parking are lower with dynamic pricing in 60% of parking spaces and higher in only 27% of spaces.
“By using pricing as a level, we are trying to balance the supply and demand for parking,” said Soumya Dey, director of the DDOT’s research and technology transfer division. “From a customer perspective, I think this is about making the parking experience improve. So they know where the available spaces are, they know how much they need to pay and the parking search time, the amount of time you spend to find an open parking space, improves.”