Hotel car park management: a service and revenue win/win?
Income from parking is estimated to be worth over £50m to the UK hotel industry every year. With your car park’s potential to be your biggest source of ancillary revenue, managing and optimising its yield should be an obvious next step.
Can you maximise parking income without impacting service?
But hoteliers who put a premium on customer service need to think carefully about who they partner up with. The potential incomes from parking need to be balanced against the need to provide guests with the warmest welcome. Can you maximise the value of one of your biggest assets and deliver first-class service at the same time?
JustPark is revolutionising the way hotels make money from their car parks. Drivers have been crying out for a solution to their parking woes for years. At the same time the industry has remained firmly in the 20th century, with drivers still scrabbling around for change. But the technology has finally caught up – and hotels looks set to be one of the big winners.
Identifying a source of non-discretionary spend in an uncertain economy
If the hotel industry has been slow to capitalise on the profit potential of parking, that’s changing. Last year’s strong GDP growth in inbound markets, driven by the weak pound, isn’t set to hold this year – and domestically, pressure on UK household spending continues to impact revenue.
In this climate, hotels looking for a source of non-discretionary, UK-based spend have identified parking as a prime opportunity. This was demonstrated most recently with one of the capital’s biggest hotels, Hilton London Metropole, choosing to partner with JustPark to manage its 150+ parking spaces.
21st century technology that can double your revenue
Why opt for JustPark? Thanks to our technology and data-driven approach, we see our hotel clients’ parking revenue increase by an average of 20% with our full management service – even before we start marketing empty spaces. Understanding how your car park is being used, with well-presented live data, lets you make smarter decisions. An online portal means you can easily see your occupancy rates and revenue. A dynamic pricing system alters tariffs based on demand, so you price your parking smartly – just as you would your rooms.
In 2016 the Renaissance Manchester’s 85-space car park was running at 50% occupancy, and all payments were processed at the hotel front desk. JustPark took over the parking, filling the spare capacity and optimising pricing. This more than doubled monthly revenue, with the General Manager Cameron McNeillie stating the partnership with JustPark had been “key in driving additional revenues for the hotel.” At the same time, we removed parking administration for the hotel’s staff, leaving them to focus on guest experience. And we introduced 2,500 new customers to the hotel by filling the car park.
But just as importantly, the service at the Renaissance has been awarded an average customer rating of 4.7 stars. Because in a service industry, this can’t just be about revenue. Hotel managers, owners and operators who are keen to maximise car park profits must grapple with another issue: can you generate income from your car park without damaging your reputation?
Cautionary tales of angry guests being charged exorbitant fines by car park management firms might give any hotel manager pause for thought. It’s damaging to your hotel and your brand. And it’s a customer service nightmare for your staff.
Five star service that delights your guests
Which is why car park management needs to be viewed as not just an income stream but as a new opportunity to offer unbeatable service to your guests.
After all, a hotel stay starts the moment a guest drives through your gates. It ends the minute they jump back into their car. They don’t distinguish your car park from your hotel, so the experience outside must match the service inside.
Guests expect their space to be waiting for them, just as their room would be, and they want booking to be hassle-free. Investing in technology that makes reserving parking easy, and cashless systems that let drivers pay in under 30 seconds, is all part of making your guest experience seamless. And a flexible validations system that allows you to offer discounts or free parking to guests and conference attendees means you can monetise your spare capacity, whilst also tailoring the service you offer your visitors.
Customer service is also central to JustPark’s operation, as you can see by our 5-star ratings and 96% customer satisfaction score. We have a dedicated Customer Happiness team ready to take your guests’ call should there be an issue in the car park. Our service has won several awards in Parking, Innovation and Technology in 2018 alone, changing perceptions of an industry that is too often defined by negative experiences.
A partner you can trust
When it comes to customer service, one of the key benefits of full car park management is that the administration is handled too. Pricing, payments and service are all taken care of, freeing your staff to get on with managing the hotel and delivering a first-class experience to your guests.
Given that parking is an intrinsic part of this guest experience, working with a car park management company is really about finding a partner you can trust, and one that understands your business. JustPark works with over 300 hotels in the UK and across all its major cities. Our clients include hotels owned and managed by Marriott, Hilton, AccorInvest, Interstate, RBH and many more – and we scale our service to suit. From the biggest owners and operators to boutique hotels, we can have a dramatic impact on your parking revenue.
Of course, the service only works if it works for drivers. With an easy-to-use app and industry-leading marketing, JustPark is focused on delighting new and existing customers – in turn driving maximum traffic to your parking spaces. And with over 3 million people across the UK relying on us to find somewhere to park, we can do this better than anyone else.
That parking revenue is just waiting to hit your bottom line.
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