The Challenge
A prominent city hotel and convention center, featuring a 300-room establishment linked to a cutting-edge convention facility, possesses an extensive parking asset of over 1,000 spaces in a multi-level garage. Despite having such a considerable asset, the venue did not previously charge for parking for either overnight guests or event attendees.
When a new management company took over, they identified a significant opportunity to capitalize on the underutilized parking spaces. Towne Park introduced the concept of charging for parking to optimize this asset and generate a substantial new revenue stream, particularly from convention visitors. Towne Park emphasized that parking is a valuable asset and should be managed similarly to room revenue optimization. They introduced the concept of RevPAS (Revenue per Available Space), similar to how hotels measure room sales performance.
The Solution
The hotel chose to implement T-Park, Towne Park’s gateless, digital self-parking solution due to its easy installation, ease of use for guests and hotel staff, and no upfront cost.
The hotel saw significant and immediate revenue results once Towne Park’s solutions went live. Through partnership with Towne Park's Client Success team, which leverages their expertise in parking revenue management and performance data, the hotel further optimized parking rates. This strategy led to a 206% increase in revenue in the second year, without compromising the guest experience.
During the initial implementation period, Towne Park not only provided training on the use of the T-Park solution itself, but also best practices for how to implement it into the hotel’s daily activities, thereby optimizing revenue while also being efficient and easy to use. A unified effort to ensure the hotel’s line staff consistently executed on these practices led to a remarkable 96% revenue capture. The success was attributed to Towne Park's expertise, technology for managing paid parking, clear communication regarding parking procedures and costs, and proactive engagement by hotel staff to optimize revenue.
- Seamless Guest Experience: The T-Park Solution offers a convenient guest experience with a gateless, digital solution where guests register their vehicle using their mobile device. With PMS integration, payment is simple for guests and reconciliation is easy for the hotel.
- Strategic Pricing: With Towne Park's guidance, strategic rate increases were implemented, and a robust strategy was developed. The shift from free parking to understanding the value of unused parking spaces was pivotal.
- Ongoing Engagement: Monthly business reviews with Towne Park, leveraging real-time performance data, ensured that performance was continuously assessed, leading to data-driven decisions and higher levels of revenue capture.
- Training: Towne Park provided training and practical tips for hotel staff and management, including shared industry experience and knowledge that supported the strong revenue performance.
The Results
- Parking Revenue: $6.71 in RevPOR
- Impressive Revenue Capture: 96% parking compliance
"Before our collaboration, the venue primarily viewed their parking space as just another amenity. Together, we uncovered its latent potential to be a major revenue driver. Through introducing solutions like T-Park, and with our expertise and ongoing guidance, we've empowered them to capture a significant revenue opportunity."
Jeremy Hevener
Vice President, Revenue Optimization
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