VPNE Case Study
Case Study
VPNE Case Study
How VPNE Boosted Revenue, Cut Costs
Who’s Involved
Nick Litton | COO & Partner at VPNE
Customer Takeaways
[JustPark’s] Smarking BI represents the next step in digital-first parking management and gives our garage and regional managers the tools they need in order to run an efficient and more profitable business.
Nick Litton, COO & Partner at VPNE
Summary
VPNE is a parking operations firm that manages over 100 locations up and down the East Coast. Each location has a unique Parking Access Revenue Control System (PARCS), mix of monthly and transient parkers, online reservation platforms, and other variables. With JustPark’s Smarking BI solution, VPNE aggregated all transaction-level data across various systems into one single platform for data analysis. VPNE also instituted dynamic pricing to maximize revenue and manage inventory at its facilities.
The Challenge
Create an efficient method to track key performance metrics and identify trends in parking operations.
Optimize pricing to manage inventory allocation at garages.
Increase revenue and reduce costs.
The Solution
JustPark’s Data Analytics
VPNE used JustPark’s Smarking BI solution to integrate parking data from various PARCS across its facilities. The software removed the need for time-consuming report compiling and allowed for real-time occupancy, revenue, transaction volume, and revenue tracking with year-over-year comparisons. JustPark’s Smarking BI also provides metrics and trends that VPNE can share with commercial landlords and key stakeholders.
Optimized Parking Rates
Before JustPark’s solutions, VPNE would make annual or quarterly rate changes that required manual compiling of extensive reports. With real-time data and historical trends available with JustPark’s Smarking BI tool, VPNE now makes more frequent price adjustments.
Partnership with ParkWhiz
VPNE piloted JustPark’s Automated Yield Management (AYM) platform at two garages in the Fall-Winter of 2018 through an arrangement with ParkWhiz, a solution that helps customers find last-minute parking. Early success at these locations prompted the expansion to 11 additional garages in Spring 2019.
The Results
Increased Revenue
By July 2019, AYM had led to a 101% increase in online revenue on ParkWhiz, which represents $485,000/year revenue growth. At a 5% cap rate, AYM’s revenue contribution represents $9.7 million in parking asset value uplift for VPNE’s clients.
Success at High Demand Sites
Automated Yield Management is successful at garages in urban areas with a diverse mix of parking demand, excess parking inventory during off-peak hours, and high-quality historical data to power the algorithm. For example, a garage in Cambridge saw weekly online revenue increase from $241 before AYM to $1,318 after AYM. The fluctuation in daily peak occupancy decreased with AYM, adding volume at times when the garage had excess capacity.
Capitalize on Slow Periods
With dynamic pricing, VPNE can capitalize on historically slow weeks and capture incremental revenues. At Garage D during the week of July 4th, transient drive-up and contract parking demand was much lower than usual. AYM automatically adjusted the pricing to capture complementary demand, resulting in better use of the garage’s empty spaces and a peak level of revenue.
In Conclusion
VPNE’s adoption of JustPark’s Smarking BI and Automated Yield Management platforms led to a transformative shift in its parking management approach. By harnessing real-time data and dynamic pricing strategies, VPNE significantly increased revenue and operational efficiencies across its extensive network of facilities.
Learn More
With integrated payments, devices, and business intelligence, JustPark is paving the road to a brighter digital future. On that road, JustPark customers are driving away from cash, quickly and seamlessly.