By Steve Gorski
Parking guidance technology (PGT) is arguably the most important of the parking technologies that have been introduced in recent years. No other technology comes close when it comes to improving the parking experience, and it has the added benefit of providing invaluable utilization data that owners and operators can use to operate their parking facilities more efficiently, effectively, and profitably.
Still, owners and operators often view it as a luxury. Sure, it makes finding a parking space much easier, makes parking facilities much safer, promotes sustainability, and provides a host of operational benefits. However, many owners and operators have trouble justifying the expense to themselves — or perhaps to their financial backers.
But the fact is parking guidance technology can provide a significant return on investment (ROI). By increasing occupancy, boosting revenue, reducing operational costs, and enhancing the customer experience, PGT provides both immediate and long-term financial benefits.
What follows are some of the key ROI drivers and how PGT contributes to the bottom line.
Increased revenue
One of the most direct ways PGT enhances ROI is through increased revenue generation. By directing drivers to available spaces quickly, fewer spots remain vacant, leading to higher overall occupancy rates. Traditionally, garage owners have considered their facilities to be full when they reach 85% occupancy. Filling that remaining 15% can mean thousands of dollars a day in revenue for large and mid-sized facilities.
Facilities that integrate PGT can also offer premium parking options for customers willing to pay for convenience, such as spaces in high-demand areas. Finally, having access to real-time occupancy data enables owners and operators to implement market-based dynamic pricing, increasing rates during peak demand periods and optimizing revenue streams.
Operational cost savings
Automating parking lowers operational expenses significantly, and PGT is an important element of automated parking. PGT’s monitoring of space availability minimizes the need for on-site attendants, saving on personnel costs. Legal liability is also reduced when there aren’t staff in the garage or lot who can get injured.
Also, when integrated with smart lighting and ventilation systems, PGT can optimize energy usage by adjusting lighting and airflow based on occupancy levels, reducing electricity costs.
Improved customer experience: a competitive edge
Drivers who have a good experience in a facility are more likely to use that garage or lot in the future. No parking technology has a bigger effect on customer satisfaction than parking guidance technology. By guiding drivers to available spaces quickly and conveniently, PGT reduces congestion inside the garage and reduces driver frustration, improving the overall user experience and encouraging repeat visits.
Sustainability benefits
For owners and institutions that value sustainability, parking guidance technology can be an important resource. The technology minimizes the amount of time drivers spend searching for parking, helping to reduce fuel consumption and carbon emissions while contributing to cleaner air and reduced environmental impact.
Many municipalities and government programs offer tax incentives, grants, or certifications for implementing smart, eco-friendly parking solutions. In this way, PGT can even provide financial benefits by promoting sustainability.
Enhanced property values
Properties with optimized parking solutions attract more tenants, businesses, and customers, enhancing their market desirability, profitability, and tax revenue potential. Increased property values also benefit the cities in which they are located because higher property values and increased commercial activity mean more tax revenue.
The financial effects of parking guidance technology vary depending on the size, location, and utilization rate of the facility. However, industry data suggests the following:
- Revenue uplift: Facilities implementing PGT typically see a 5%–20% increase in revenue due to better space utilization and premium pricing strategies.
- Operational cost reduction: Automation and efficiency improvements lead to 10%–30% savings in labor and operational expenses. Although these aren’t exclusive to PGT, the technology does play an important role.
- Payback period: Depending on installation costs and usage, the investment in PGT generally pays for itself within one to four years.
Investing in PGT is a strategic decision that can yield substantial financial and operational benefits. By enhancing revenue, reducing costs, improving customer satisfaction, and contributing to sustainability, PGT ensures a strong return on investment and increased profitability.
Steve Gorski is vice president of Portier USA. He can be reached at steve.gorski@portierusa.com.
