For a lot of drivers, the end of the journey is not always unpleasant. The future of driving promises new technology and innovation that can solve the problem with car parking. And for all service providers, there is room for parking space business to improve and thrive.
Introduction to parking services
For a lot of drivers, parking the car is an unavoidable, stressful, high-friction and time-consuming experience. Whether it will involve circling the whole block, looking for the elusive curbside valet or rushing to vacate your space as an impatient driver appears in your rearview mirror.
It is the price of getting inside your vehicle, as modern technology has made a lot of people’s regular activities increasingly convenient and seamless, from paying the bills, shopping to travelling from one place to another. Thanks to online application-based ride-hailing apps, as well as real-time traffic information and updates – vehicle parking has resisted the changes stubbornly, remaining as one of the worst elements of car ownership.
But you should know that help is just around the corner. The valet experience is the next aspect of life that will be upgraded by modern technology and business models. And this industry goes far beyond the Internet of Things apps and more omnipresent connectivity, making it more painless and efficient by maximizing the visibility.
Long term trends, shared mobility, as well as the emergence of automated cars can be the starting point of real change, demand, as well as, the kind of locations of spaces needed to accommodate any forms of vehicles.
Some former businesses, as well as modern technology entrants, are starting to work to capitalize on the development by designing and making new, innovative and effective solutions to regulate the demand like computerized self parking kiosk, optimize the supply and meet the needs of consumers a lot better.
In a lot of cases, the shift in the industry will most likely require people to walk in a razor-thin line, as business owners all over the mobility industry are trying to meet the demand of today’s consumers and the current transportation world while preparing the future that will look very different as shared and autonomous cars become the norm of the landscape.
Today’s landscape
The United States parking industry is quite consolidated and stable, generating around $30 billion in revenue every year. A lot of business owners are involved fundamentally – operators that manage and plan facilities while imparting necessary technology and staff.
These facilities differ free types (membership and timed), location (off-street, on-street, corporate and university campus, or street multi-level) or real estate type (leased, owned and management contract). Most, if not all local governments in the country own most public spaces and facilities. Occasionally, they allow private operators to take control of the area or facility and usually manage the street-side parking.
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The respective stability of the industry and the market contradicts a lot of underlying and persistent challenges. The lack of clarity and transparency, as well as the respect to both pricing and availability, usually creates customer frustration and substantial economic and operational costs.
An average American spends more or less 17 hours every year looking for a space, and it cost $345 per driver in wasted fuel, emissions and time. The operational costs jump in most major cities or downtown areas. Drivers in a big metropolis like New York or Los Angeles spend at least 107 hours and roughly $2,300 every year in fees.
For local businesses, pricing rates and policies can negatively affect the customer traffic. That leaves a very delicate balancing task for a lot of cities, as they try to make sure that the space is enough for every residents’ and visitors’ needs and promote economic growth, while expertly avoiding unnecessarily tying up an important real estate and encourage a lot of traffic that the street can handle.
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A lot of municipalities also depend on the notable revenue from all the fees, raising the pledge even further. Most of the biggest metropolis in the United States (25 to be exact) collected more or less one and a half-billion dollars in total parking fees in 2016 alone. Lastly, parking operators predict a growing number of technological ways and solutions.
Still, high-profile ones are focused on helping all the drivers look and pay for a parking spot, with some holistically addressing most operators’ business needs. While rental car and airline industry has found an excellent way to use information and data to notify demand-planning algorithms that operators have not yet embraced standard solutions, operators face added challenges and their assets immobile, limiting their ability to properly redistribute capacity. Complicating the case is usually incompatibility between new solutions and legacy infrastructure.
Conclusion
To inexperienced people, the parking situation seems like a respectable industry that is immune to the exciting technology-driven changes that overwhelmed most corners of the country’s economy. But even in a world that’s, at its very core, all about actual space, digital and modern technologies present a lot of challenges and opportunities.
In today’s digital age, there are a lot of significant openings where you can apply advanced technology to design and create a user-friendly, valuable and efficient experience. Changes to valet options while realizing the gain, will not happen immediately, and changing to a smarter parking environment will take cooperation and coordination of different operators, payment and service providers, governments, as well as technology firms.
Visit https://www.ibisworld.com/united-states/market-research-reports/parking-lots-garages-industry for a more detailed research report on this industry.
For people who are willing to not only take a closer look at today’s parking service needs, but also anticipate the challenges that might happen in the near future, they may find that the industry is an essential and necessary enabler, rather than a helpless victim of the future of car or vehicle mobility and valet system. That is why if you want to be successful in this line of business, you need to make sure that you do your due diligence in researching the ins and outs of this industry.
