Airport parking: A US$2bn+ pot of gold?

Abstract

This paper examines the parking revenue performance of leading US airports using published FAA data. It identifies a pattern of airports with under-performing parking revenues and by extension an opportunity for parking revenue growth. The research indicates a potential for annual growth in additional parking revenues of US$lbn to US$2bn. Experience suggests that many US airports are adopting a passive strategy while off-airport operators entice parking business from them. For these airports, this is a formula for disaster. The paper highlights key lessons for these airports based on the experience at Dublin Airport which has adopted a commercial business strategy to compete for parking business with the off-airport car park operators. The airport has turned declining market share from 70 per cent to +90 per cent through the rigorous application of its in-house revenue growth model. The key tactics employed by the Dublin Airport Authority include devoting resources to analysis of the particular situation at individual airports, undertaking customer behaviour and needs, research, segmenting the market, tailoring value products and services to meet these customer needs, and promoting and marketing these offerings to key target markets.