Case Study

MGM Resorts International

Enhancing Parking Revenue with JustPark’s Data-Driven Solutions

Who’s Involved

Charles Berry | Vice President of Corporate Transportation and Parking Strategy, MGM Michael Timko | Director of Parking Operations and Strategy, MGM

Customer Takeaways

We didn’t lose any parking transaction volume, while increasing our quarterly revenue by over $600,000. If it weren’t for [JustPark’s] Smarking Business Intelligence Platform, we couldn’t have gathered the same granular detail on transaction volume, and we would not have known if we were losing customers with this rate change.

Charles Berry, Vice President of Corporate Transportation and Parking Strategy at MGM

We monitored our parking transactions with [JustPark’s] Smarking Business Intelligence tool and decided to test a rate hike. We were glad we could raise revenue without taking a hit to parking volume.

Michael Timko, Director of Parking Operations and Strategy

Summary

MGM Resorts International sought to improve its parking management and increase revenue without affecting parking transaction volumes. MGM derives its primary income from hotels and gaming, but parking is an important consideration for the properties. In September 2019, MGM partnered with JustPark, a leading provider of business intelligence tools for parking management, to optimize parking operations across seven Las Vegas properties.

In January 2022, MGM turned to JustPark’s Smarking BI tool to identify opportunities to improve parking management and drive parking revenue growth at seven of MGM’s garages on the Las Vegas Strip. Using the comprehensive data analysis, MGM’s leadership team could identify that previous rate increases did not decrease parking volume.

The Challenge

Optimizing parking revenue without reducing parking transaction volume

Unifying parking rates across various properties

Analyzing the impact of parking rate adjustments in real-time

The Solution

JustPark’s Business Intelligence Tool

Empowered by immediate feedback on pricing and operational decisions, MGM confidently adjusted parking rates, resulting in increased revenue without a noticeable dip in transaction volume. MGM increased parking rates at seven resorts by $3 per hour. JustPark’s tool provided MGM with granular details on transaction volumes and the effects of rate changes.

The Results

Revenue Increase

MGM observed a significant $662,257 increase in quarterly revenue from the parking rate adjustments, contributing to an annualized revenue increase of $2.4 million and an $80 million appreciation in asset value.

Transaction Volume Stability

Despite the rate increase, MGM managed a modest 1.1% increase in parking transaction volume, demonstrating the effectiveness of the pricing strategy.

Occupancy Rate Maintenance

The total parking occupancy rate across the seven properties remained stable, underscoring the negligible impact of the rate hike on customer parking behavior.

In Conclusion

MGM Resorts International’s strategic partnership with JustPark exemplifies the power of data-driven decision-making in optimizing parking asset management. By leveraging JustPark’s Smarking BI tools, MGM successfully increased parking rates without compromising transaction volumes or occupancy rates. The results showcase a balance between revenue growth and customer retention in the competitive Las Vegas parking market.