Although automation has transformed parking operations, regular audits remain essential to catching hidden revenue leaks and operational inefficiencies.

By Joseph Dudek

We’ve all heard the saying, “Set it and forget it.” In the parking world, this mindset often translates to, “If it’s automated, it must be foolproof.” Many operators and property owners view automation as a fix-all, thinking that if no one is handling cash, revenue leakage and the need for audits disappear. 

However, after spending more than 30 years in parking and the last decade as a consultant, I can tell you that automation is not a cure-all. The human element, the keen eye for operational efficiency, and regular audits remain critical to keeping parking operations profitable and customer friendly.

The myth that automation eliminates the need for audits

Automated systems have undoubtedly revolutionized the industry. From license plate recognition (LPR) cameras to mobile payment apps and advanced revenue control technology, these tools streamline the parking experience, reduce labor costs, and minimize some types of theft. 

But with automation comes a dangerous misconception: “If there’s no cash, there’s nothing to steal.” In reality, a parking operation’s profitability hinges on system accuracy, proper setup, and continuous oversight.

AI and data analysis: great tools, but not the end of the story

Artificial intelligence (AI) has rapidly gained traction in the parking industry, promising insights from real-time analytics, occupancy patterns, and sophisticated pricing algorithms. Indeed, AI can optimize rates, forecast demand, and even suggest the best times for maintenance, potentially boosting both revenue and customer satisfaction. However, as advanced as AI has become, it still benefits from experienced human oversight.

“Management by walking around” remains vital because technology can’t always account for real-world nuances. For example, aggregator apps designed to bring in parkers during off-peak hours can quickly become a double-edged sword if not frequently updated. Prices might be set too high on quiet days, scaring away potential customers, or too low during peak periods, leaving money on the table. 

Although a robust AI-driven platform might flag these anomalies, someone still needs to make judgment calls, coordinate rate changes, and ensure that the digital tools align with the day-to-day reality of the facility. Although AI excels at crunching numbers, only experienced individuals on the ground can detect a broken sign, gauge customer frustration, or see how local events affect parking patterns in real time.

Technology isn’t flawless 

Rather than assuming advanced technology will take care of itself, parking owners and operators need to watch out for these common problems:

• System failures: Even the best payment kiosks and LPR cameras can malfunction. A glitch in a kiosk might block a payment or let a vehicle exit for free.

• Data errors: Automated reports might skip transactions or include misread plates or double-counts of vehicles. When you rely solely on these reports without verifying them, you open the door to hidden discrepancies.

• Software limitations:Many systems follow predefined programming; they don’t always adjust seamlessly to real-time changes. System updates might cause temporary outages, or complex rate structures could be incorrectly programmed.

The human element in parking audits 

Although technology can do a lot, it still benefits from the occasional human touch. An experienced auditor can assess the following critical issues:

• Beyond revenue: A well-conducted audit doesn’t just verify transactions. It looks at the whole operation: signage, accessibility, Americans with Disabilities Act compliance, and customer satisfaction.

• Customer experience matters: In parking, convenience translates directly to revenue. If the exit gate is slow or the pay-on-foot kiosk is too complicated, you risk losing customers.

• Physical realities: Digital systems may miss such problems as physical barriers, broken curbs, or signage placed too high for some drivers to see.

In one consulting engagement, I worked with an airport that operated a 450-space short-term parking garage. Despite fairly consistent occupancy, revenue remained flat for months. Airport management assumed everything was running smoothly — after all, they had automated pay stations, robust software, and no reported cash shortages. 

However, an audit revealed several missed opportunities, the biggest of which was an outdated rate structure. Although the airport was afraid to raise the daily maximum rate for fear of angering travelers, we noticed that more than half of transactions involved short stays. By simply adjusting the billing increment from 30 to 15 minutes — without changing the all-day rate — the airport saw an annual revenue increase of $800,000, with no customer complaints. Without an audit, this simple revenue-boosting opportunity would have gone unnoticed.

Catching a clever loophole: the airport valet scheme 

Audits aren’t just about checking reports and verifying numbers — they require physically walking the facility, observing customer behavior, and thinking outside the box. One of the best examples of the need for in-person visits occurred when we conducted a series of audits at seven locations across the country for an off-airport parking company. Each location had access to the findings from previous audits before we arrived, enabling them to prepare in advance. By the time we reached the last location, we knew it would be the toughest to find discrepancies, because management had already corrected many of the issues we had flagged at other locations. We welcomed the challenge.

Instead of focusing solely on transaction records, we decided to walk the facility and observe. That’s when I noticed a particular customer. He was wearing a jacket with the logo of an off-airport valet company, which immediately caught my attention. I also took note of the car he was driving. Five minutes later, I saw him again — only this time, he was in a completely different vehicle. I waited to see if he would hop on the shuttle to the airport, but instead, he exited the facility in yet another car. Something wasn’t adding up.

We reviewed the security footage and, sure enough, the same individual had exited the lot 17 times in one day, each time in a different vehicle. Digging deeper, we discovered the source of the issue: a 15-minute grace period that allowed vehicles to exit for free within that window. This policy had been in place for years, originally intended to accommodate customers who mistakenly pulled in or quickly changed their minds about parking. However, it was now being exploited on a large scale.

What we uncovered was a perfect example of how a small policy loophole can lead to massive revenue loss. An offsite airport valet company had figured out a way to game the system. They charged their customers $60 per day for the convenience of being dropped off at the airport in their own vehicle and picked up the same way. Once the customer was dropped off, the valet driver would return to the off-airport parking facility, pull a ticket, park the car, and then take another vehicle that had been stored there, exiting within the 15-minute grace period to avoid paying. This cycle repeated itself hundreds of times, each time with a vehicle leaving the facility without ever being charged.

As a result of our audit, we immediately recommended eliminating the grace period, closing the loophole, and strengthening security measures. The location had never considered the possibility of this type of loss, assuming that automation prevented any significant leakage. This was a textbook case of how audits go beyond reviewing numbers: They expose real-world behaviors and operational vulnerabilities that data alone won’t reveal.

Financial oversight and revenue protection 

Even in a cashless operation, audits are vital to confirm that actual revenues match anticipated revenues. An audit can do this in the following ways:

• Preventing revenue loss: Every transaction must match actual activity. Auditors compare system data to real-world figures, doing spot checks, reviewing daily logs, and ensuring the numbers line up.

• Detecting manual overrides and fraud: Just because there’s no cash doesn’t mean there’s no theft. Validations might be handed out incorrectly, or an employee could wave people through the gate. Without periodic checks, it’s hard to catch these subtle forms of leakage.

Automation, if incorrectly set up or monitored, can mask small discrepancies that add up over time. Think about it like a slow leak in your car’s tire: You might not notice a problem until you’re stuck with a flat at the worst possible time. Routine inspections and audits plug those leaks early.

Operational and asset management benefits 

Effective audits extend beyond the revenue line. They keep your equipment, contracts, and service levels in check in the following ways:

• Equipment performance: An audit may reveal that your fancy payment kiosk is frequently down on Mondays, or that your LPR camera fails to read certain license plates. Identifying these trends early helps maintain a consistent user experience.

• Service compliance: Many facility owners outsource day-to-day management. Audits confirm that operators are meeting staffing levels, response times, and maintenance commitments. By the time a single customer complains, the damage to your reputation might already be done.

Parking operations should be approached like any other business asset. If you wouldn’t let your HVAC system run unchecked year after year, why let your parking technology hum along without verifying it’s doing the job?

The cost of skipping audits 

Some owners or property managers consider parking an unwelcome necessity and so turn to automation to avoid thinking about it. This arrangement can work for a while, until something goes wrong. 

Here’s what can happen without regular audits:

• Lost revenue: Even a small discrepancy each day will compound over months.

• Operational blind spots: Inefficiencies, broken equipment, or user frustrations might remain undetected.

• Security risks: Fraud, unauthorized garage access, or tampering with equipment can slip through the cracks.

Take automated garages as a prime example. Because they’re often unattended and cashless, many owners think they’re running on autopilot. But that’s like assuming a self-driving car never needs maintenance or human oversight. You still need someone in the driver’s seat to handle unexpected hurdles.

Balancing automation with human insight 

Automation is amazing: It speeds up processing times, reduces staffing costs, and can improve the customer experience. But technology by itself is not a silver bullet. The “lost art” of parking audits is as relevant today as it ever was. A balanced approach, combining automation with knowledgeable human oversight, ensures you’re capturing all potential revenue, maintaining high service standards, and noting blind spots before they become full-blown problems.

The next time you’re tempted to skip an audit because you’re thinking, “It’s all automated anyway,” remember the short-term airport garage example. A small tweak uncovered by a human reviewer added up to hundreds of thousands of dollars in added revenue, with virtually no effect on customers. Whether it involves a busy airport garage or a simple surface lot, audits ensure your operation runs smoothly and provide oversight that goes a long way in protecting revenue.

JOSEPH DUDEK is a parking consultant and partner at JD Enterprises. He can be reached at [email protected].