New figures released by JustPark reveal car parking has become a lucrative additional revenue stream for hotels, with hoteliers having made over NZD$1,530,044 from renting out their spare parking spaces through the website.
An increasing number of hotels are opting to advertise their car parks on online parking platforms, making money from space that would otherwise be underused, and opening up their business to a much wider audience that was previously unavailable.
According to JustPark, over 275 hotels have now signed up to the service, which matches drivers looking for parking with available spaces, advertising a total of over 3000 bookable parking spaces to their network of one million drivers.
Hotels using the service range from the biggest players in the industry, with business partners including the likes of Hilton, Marriott and Holiday Inn, to hundreds of smaller, independent businesses across the UK and beyond.
The average hotel listed on the website charges NZD$19.70 per space per day, but this can climb to NZD$87.40 for locations in high demand. One hotel in central London has earned over NZD$218,607 of additional revenue, fully maximising the value of its underused car park. Hotels are able to set the rates that they wish to receive per space. Drivers book and pay for their space online and hotels receive the funds straight into their account.
“It’s very helpful for the hotel to have that additional revenue,” said Benedita Sousa, guest services manager at Novotel Waterloo.
“It would be quite difficult for us to maximise the car park spaces without JustPark.”
The website’s new dynamic pricing algorithm recommends prices based on historic occupancy and search data, the system sets low rates to encourage drivers to park during off-peak and increases rates when spaces are in short supply.
Application of this pricing model has seen average daily revenues increase by up to 100 per cent at hotel car parks using the service, with third party management and full automation meaning no extra work on the part of the hotel staff.
“Dynamic pricing adds to our ability as an operator to maximise income,” head concierge at ME London Ronan Gawronski said.
“In November 2015, we saw its introduction – with revenue increasing by 100 per cent the following month.”