Hotel Car Parking A New Valuable Disruptive Revenue Stream

For many Hotels maximizing their revenue streams has become more challenging today.

Social Media and New Media impact consumer behaviors in new ways. And Hotels today is getting more open to looking at alternative revenue streams.

Prudent Hotel Managers are now seeking comprehensive solutions to best protect their revenue streams.

One alternative performance option is to get the most of out Hotel Car Parking and still add value to the customer experience.

Car Parking a new altenative

Car parking has become a lucrative additional revenue stream for Hotels, new figures released by JustPark can reveal – with hoteliers having now made over £700,000 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 such as JustPark – making money from space that would otherwise be underused, and opening up their business to a much wider audience than 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 3,000 bookable parking spaces to JustPark’s network of 1 million drivers.

  • Hotels have made over £700,000 renting out their spare parking spaces through online platform JustPark, new figures can reveal
  • Over 275 hotels have now signed up to the website, advertising a total of over 3,000 bookable spaces to its network of 1 million drivers
  • JustPark’s pioneering dynamic pricing model has helped increase revenue by up to 100% at hotel car parks using the service

And for the US Market JustPark network has;

  • over 2,600 spaces listed
  • over 15,000 registered drivers
  • over $220,000 worth of bookings completed
  • the biggest city for business: Boston, with over $100,000 worth of bookings

Hotels using the service range from the biggest players in the industry – with JustPark’s 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 £9 per space per day, but this can climb to £40 for locations in high demand. One hotel in central London has earned over £100,000 of additional revenue through JustPark, fully maximizing the value of its underused car park.

Advertising parking space on JustPark remains a free service, and hotels can 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, with JustPark dealing with all payments.

“It’s very helpful for the hotel to have that additional revenue,” says Benedita Sousa, Guest Services Manager at Novotel Waterloo. “It would be quite difficult for us to maximize the car park spaces without JustPark.”

The website’s new dynamic pricing algorithm has enabled hotels to increase and optimize car parking revenue even further. Recommending prices based on historical 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 – meaning more customers and, ultimately, more revenue.

The Pricing Model

Application of this pricing model has seen average daily revenues increase by up to 100% 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 maximize income” explains Head Concierge at ME London, Ronan Gawronski. “In November 2015, we saw its introduction – with revenue increasing by 100% the following month.”

Hotel Car Parking privileges can be used a part of a package deal for the Hotel, free parking with 2 nights or more, or free parking when the suite is booked. Hotels can also include parking in packages for groups where the group get free parking.

For more information on how Hotels can increase and optimize revenue generation at their car parks, managers can head to JustPark’s Hotels page – which explains in more detail how the website works, and how Hotels can start benefiting from the service right away.

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JustPark is Europe’s leading provider of bookable parking, connecting drivers with anyone who has a spare space. By helping take the stress out of parking for a million users worldwide, JustPark earns hotels, car park operators, businesses and property owners over £10m per year by renting out their parking spaces.

About the author

Are Morch is the founder and owner of Are Morch – Hotel Marketing Coach. Get more from Are on Facebook | Twitter | LinkedIn | Pinterest | Instagram| Podcast