How concerts drive parking demand up by 60%
How a cluster of concerts caused a 60% increase in parking demand for just one day
A demand surge is when there is a significant increase in people attending events within a specific location – which typically has a notable impact on demand for local businesses such as parking, hotels, transportation, and more.
One Monday in late April of 2019, there was a demand surge which caused a 60% increase in parking demand for one London-based parking operator:
In the graph above,
The blue line represents actual demand, which is the observed level of demand for a particular day.
The red line represents the baseline demand, or the usual level of demand the pizza shop would see under normal circumstances.
The green line represents the remainder, which is the demand outside what we expect from normal patterns and seasonality. This can be caused by events and other factors such as promotional campaigns.
The vertical orange band highlights the one day where demand jumped by 60%.
This graph is an output of an analysis we did through our product called Beam, which revealed a correlation between the increased parking demand and several dozen concerts and performing arts shows that happened to take place within three miles of the location that day, representing a combined attendance impact of over 30,000 people in the area.
When there are so many impactful events taking place in just one day and in close proximity to one another, this type of sudden increase in demand is chaotic for parking operators and event attendees alike, due to:
a shortage of available parking spaces
longer wait times for event attendees looking for a place to park
an increase in traffic as people circle the area looking for a parking spot
Armed with insight into how concerts and performing arts events have historically impacted their demand, this parking operator can use event data to find other impactful events coming up, and always be prepared for peak periods of demand. Let’s take a look at four ways parking operators can prepare for demand-driving events such as concerts, performing arts, and more in the future.
4 ways to get ahead of incoming surges in demand
Being able to predict demand before it hits is a major competitive advantage for parking operators as it powers their ability to fine tune dynamic pricing, parking inventory, staffing, and more:
1. Optimize your event-based pricing strategy
With insight into the major and lesser-known events bringing high numbers of attendees into town, you can be prepared to adjust your rates to reflect event parking for every opportunity. For example, if the London-based parking operator knew of the overlapping events in advance, they could have maximized their revenue for that day by charging higher prices.
Dynamic pricing for event parking is a delicate balancing act. You don’t want to miss out on opportunities to raise prices, but you also have to be careful not to price yourself out of the market. With a complete understanding of the different types of events taking place near your parking spaces, and by researching your competition, you can optimize your event pricing strategy to boost revenue while keeping customers coming in.
2. Streamline parking inventory for key dates
Companies that rely on parking partners use event data to better assess how much inventory they need in a given area that will be impacted by event-driven parking demand – allowing them to avoid under or over "stocking" parking spaces. Parking companies can also use insight into predicted attendance for events to determine how many parking spaces to reserve for online booking.
Knowing the specific times when events start and end allows operators to know exactly when to expect customers to be entering or leaving their parking lots, so they can get even more granular around their inventory strategy. The better understanding operators have of the type and scale of nearby events, the better they can prioritize inventory planning ahead of their competition.
3. Right-size staffing to keep things running smoothly
For busy periods such as demand surges, you need adequate staffing to manage the increased demand. Help get drivers in and out of your facilities quickly and safely by scheduling enough staff to monitor occupancy, direct traffic, manage payments, and help people who have questions or need assistance. Align your employee schedule with incoming event impact.
4. Leverage event-based marketing and promotions
By aligning your marketing with nearby events, you can position your business to be the first choice for event attendees looking for a place to park. Begin your campaign digitally by promoting your parking spaces on event ticket websites, Google Ads with related keywords, social media, and email marketing.
Extend the campaign into the physical world with signage en route to the event, or partner with event organizers to promote your parking garage at the event itself. This way, people can associate your brand with this and future events in the area, should they need a parking spot in the future.
Streamline your operations with intelligent event data, for free
Don’t miss out by being closed, short on spaces, or short-staffed during demand surges. Use intelligent event data to track impactful events within proximity to each of your parking garages and other locations of interest – so you can always be prepared to capitalize on periods of significantly higher parking demand.