So those of you who know me know that I describe myself as a "technology nerd who fell into the world of parking".
How nerdy? I got my first e-mail address in 1986 (yes, back when legwarmers were cool but being a nerd was not). In 1992 I had a pair of ISDN connections in my house for a bountiful-at-the-time 128Kbps bandwidth, and I registered my first domain name and website in 1995 when Netscape launched the web revolution.
Ahhhh, it was the Internet’s halcyon days… when “spam” was still a luncheon meat, a “virus” was something that infected only living beings, and a “banner ad” was flown behind an airplane.
The Internet has evolved at a frantic pace - and continues to do so. But nobody would quesiton that the hot Internet activity for much of the last decade has been the spectacular rise of social media – basically the generation of content created by the masses, distributed in a highly accessible and scalable way. Two of the most popular social media sites today are Facebook and Twitter, of course.
Is there a Facebook/Twitter angle to parking technology? Does social media even have a role in parking?
Well, at its core the business of Parking is really a business built on organizing the behavior of people. Contrary to popular belief, parking is not about vehicles or parking spaces. Parking services are all about people – specifically people who park.
Providing parkers with the right information at the right time is the key to encouraging the behaviors that you want them to demonstrate. That’s where Facebook and Twitter can help. Let’s start with Twitter. This is a free technology that anyone can use to push out short messages to subscribers, very quickly, who can receive these messages though the web or on their phone.
If you’re going to send out such nearly real-time messages to your parking audience – Twitter would call these “tweets” –what messages would you send?
There are most likely two kinds of messages that are invaluable to a parker. The first type of tweet is an emergency message: For example: “Blue Garage - West entrance blocked, use North entrance” or “Snow clearance on Main St 3pm, no parking.”
The second type of tweet that parkers find valuable is real-time information about parking at an event. In this case the parker would subscribe to a series of tweets (called a “feed”) that was broadcast every few minutes about, say, occupancy at a lot or a garage. Driving downtown to get to the big game? Subscribe to a twitter feed for 3 or 4 different parking lots and receive a message every 2 minutes about how many spaces remain available – when you’re a few blocks from downtown you’ll know which garages have spaces available. When you arrive, you unsubscribe from the feed. Good information, happy customer, less circling the block.
Facebook, on the other hand, is much more like a traditional website - though it's evolving too. Many parking operations already have websites, so having a Facebook page for parking might appear redundant. Facebook provides a mostly structured interface for you to post information, photos, or other media about the parking operation and control the message that you’re putting out.
But the social component comes from the people (parkers) who subscribe to the content of the page by becoming a “friend” of the parking office. The parking operation can choose which content, or levels of content that a “friend” can see, and can also limit the amount that a “friend” can post or comment to the page. This gives a great deal of control to the parking operation on how information is distributed, and also provides a convenient mechanism for customer feedback and comments.
Also an interesting tidbit: Facebook and Twitter can be connected so that Facebook can “push” updates to Twitter, which in turn pushes information to your customers. Slick!
Are Facebook and Twitter really free? Well, they’re free to sign up and use as much as you like. But there is a cost - once your parkers get used to receiving tweets or visiting your page you will have an obligation to provide regular updates. So there is a cost – not for the service, but for your operation to produce regular content for your subscribing audience.
Does social media play a role in parking? This probably depends on your specific parking audience – a technically sophisticated parking audience (such as students on campus or frequent airport travelers) will embrace these features. There are already groups of parkers taking matters into their own hands and using text messages to help each other when it comes to parking (NPA’s Between the Lines newsletter recently described this), so yes, there are signs that social media could be useful and appreciated by your parkers. A less-technical audience may not be as interested. But in any case, social media can enhance the parker’s experience, and usage is likely to grow.
On that note, be sure to follow T2 Systems on Twitter and "Like" us on Facebook! :-)
Selling Parking like an Airline
Selling parking spaces is kind of like airlines selling seats, or hotels selling room-nights. The supply of parking is pretty much a fixed quantity: it's not like new parking spaces are made available every day (or planes suddenly fly with more seats, or hotels suddenly have a new wing of rooms to sell).
Because the quantity is fixed you want to maximize the usage of the spaces (or seats or rooms) by filling those spaces every day. A day that a parking space remains empty generates no revenue - just like an empty seat on a plane that has taken off.
What's interesting about selling out the spaces - but not overselling them - is that it serves two purposes: (1) it maximizes revenue at the current price, and (2) it maximizes the number of satisfied customers. Oversell may generate more revenue but it dissatisfies some parkers who can't find space. Underselling generates less revenue and potentially fewer total satisfied customers.
In the case where your supply of parking spaces or airplane seats or hotel rooms is mostly constant you have to use pricing to try to manage the demand. Having a number of parking spaces is actually irrelevant, what you want to do is create a scarcity of available spaces. The key is to find the price at which all the spaces sell, but no more than all of them. Economically speaking, this matches the supply and the demand in a way that satisfies the most people at the highest price. Making the price higher will drive away customers, and making the price lower will result in a shortage of spaces.
Airlines realized this a long time ago, and have come up with many ways of trying to fine tune pricing so that the passenger load factor (the ratio of full seats to available seats on a given flight) is as close to 100% as possible. Pricing for a seat on a particular flight can be revised or altered several times a day by computer systems trying to sell out the plane.
In what ways to airlines use creative pricing? We're all familiar with these.
Probably the most common pricing differentiator is by using a "class" system - first class, business class and coach class are three differentiators. The parking equivalent could be the garage near the building versus the economy lot further away.
Additionally, seats within a class might be priced differently. In coach the airline passenger has the option of paying a premium for an exit-row seat, or for a seat with extra legroom. The parking equivalent here could be reserved spaces near a door, or perhaps parking in a nested area on a given floor of a facility.
Airlines also set their pricing based on the desirability of the flight. Morning and evening flights are more popular than afternoons, so these are priced higher. Wednesday is unpopular for flying so it's cheaper, while Friday and Sunday are the most traveled and subsequently higher priced. Parking does the same thing: early bird specials encourage parking before the rush hour; while special events might cause prices to spike on a weekend.
What is a little more unusual about the airline seat-pricing model is that the airline is aggressive at selling out the seats. The airline computer systems and predictive modeling will change the price of a seat multiple times, even in the same day. If the flight looks like it will sell-out then the remaining seats (the scarce ones) increase in value. Now imagine if parking operations did this - varied the price of the stall based on the number of remaining stalls!
There is a parking operation attempting to do this. The SF park project in San Francisco has received a lot of parking press lately on their goal of adjusting meter prices monthly so as to create a small amount of empty spaces on each block-face. The idea is that parking should be mostly full most of the time. The City plans to combine parking management software, space detection equipment, and a variety of metered parking devices to create gather sufficient data to price spaces monthly. Too much availability? Drop the price. Parking too scarce? Raise the price. It's the free market at work!
It's a simple concept but requires a complex implementation. Many eyes in our industry are watching to see how this works. In terms of the airline's sophisticated daily pricing adjustments, these monthly parking updates are as close as we'll get for a while. But rest assured that if this experiment is a success then you'll see more and more parking operations pricing like airlines.
Crazy Parking Predictions of 2011
As the Old Man of 2010 way to the New Year's Baby of 2011 the question is... what does the New Year hold? Given that some of the most famous prognosticators predict with only 39% accuracy you'll be equally forgiving with these Crazy Parking Predictions of 2011!
> In 2011 parking meters will experience a software glitch similar to Y2K. Twenty-four hours of free parking will be given to anyone who feeds a meter at 11:11am on November 11, 2011.
> 2011 will be the Year of the Parking App. If you have an iPhone, an Android-phone, megaphone, Blackberry, Blueberry or Halleberry then you'll be able to get an "app" that lets you find parking, reserve parking, pay for parking, or share parking with somebody you don't know.
> In 2011 the Internet will officially be renamed "The Cloud". Use of the word Internet will disappear overnight. Nobody will really be sure what the cloud really is, but there will be Parking in The Cloud. One enterprising American City will rename itself The Cloud.
> In 2011 sales of electric vehicles will exceed expectations. With these new vehicles we will see the creation of the electric license plate, which will subsequently befuddle all existing LPR systems.
> 2011 will see rent prices rise in London, England to such a high level that it will become cheaper to live in your car than in an apartment. Parking garage owners will offer cash-for-clunkers to fill empty stalls, and then lease them out as hotel rooms.
Best wishes for a great 2011!
Seven things that parking is like...
1. A parking space is like a lawsuit... once you get one you don't want to lose it.
2. Parking at the mall is like the waiting room of a psychiatrist... a collection of people seeking validation.
3. A parking ticket is like bird poop... someting undesirable that shows up unexpectedly on your windshield.
4. Being a parking manager is like a squirrel getting ready to hibernate... you've got to keep track of a zillion nuts.
5. Parking is like paint-by-numbers... results are best when you stay inside the lines.
6. A parking meter is like a pet dog... if you don't feed it then it could come back to bite you later.
7. A manual parking operation is like the BP oil spill... leakage everywhere, no accountability, and a mess that will take years to clean up!
Parking and the Rise of the Electric Car
So I’ve always been sort of intrigued by electric cars. Back in the late 1890’s and early 1900's many of the earliest car designs had electric motors… but ultimately gasoline proved to be more convenient than batteries for a hundred years or so.
Fast forward to today: GM popularized the EV1 electric car, and then killed it, and is now bringing it back – or at least something like it. Every major manufacturer has an electric car or a hybrid in the works. And disruptive technologies like this give birth to new companies with new products (like Tesla Motors, for instance).
So the electric car – or a gas-electric hybrid version – is here to stay. The big question for our industry is how this might affect parking. Should a parking space come with an electrical outlet? Could a parker purchase electricity on demand?
Interestingly, one only needs to look to the Northern States or Canada to find parking stalls with electrical outlets. These were never intended for recharging… instead these outlets are designed to keep the engine from freezing on a those minus 40 degree days. Power in these outlets may not be constant, but rather cycled on-and-off according to temperature - fine for block heaters, but not so good for vehicle charging.
Demand for electric-enabled parking stall will probably increase. But would customers be willing to pay more to park their electrical vehicle in the electric-enabled stall? Probably, since parkers would also reduce their "range anxiety" by gaining more charge (despite that 80% of American drivers commute less than 40 miles per day).
For on-street or surface parking there are vendors in our industry (1, 2, 3) already looking at providing the on-demand electricity for vehicle charging – I’m sure we’ll see some at the IPI conference this year. In addition, such vendors are looking at enabling the electricity only when the parker has paid for parking – so if you don’t feed money to the meter then the meter doesn’t feed the juice to your car.
Most parking managers already know that electrical costs are a big maintenance cost for a garage. Adding electrical outlets for parkers will increase costs further by draining even more power. Fortunately there are solutions – installing electron-sipping LED lights helps, and adding roof-based solar or wind power generation on buttresses can make more power available.
Potentially, however, the best innovation is yet to come: technologies suggest that tomorrow’s electric vehicle will be able to communicate with the electric grid itself. It will be smart enough to re-charge when costs are low, trickle-charge when costs are high, and even put surplus power from the batteries back into the grid when demand is really high (presumably generating a credit for the vehicle owner).
Parking has embraced technology and change over the years, and not shockingly the rise of the electric car is likely to have an impact in our industry over the next several years.
Canadian Parking - The Best of Both Worlds
As a Canadian working in Indianapolis at T2 I have discovered that in the office I represent "the Canadian perspective" whenever there's something International happening. This is the case for serious things (like a war in Afghanistan), for sporty things like the Olympics, and even funny things like comedians. Being a fish-out-of-water provides a different perspective, and it's the best of two worlds.
So I'm wondering - is the business of parking the same in Canada as it is in the USA? There are definitely local flavors - er, flavours.
When it comes to parking as an industry Canada straddles two worlds - America and Europe - and is able to pick the best of both.
Geographically speaking Canada is more like the USA: it's a collection of far-flung high-density areas (better known as "cities") separated by plenty of empty space. We are a car-dependent society and, for the most part, prefer not to take public transit. As such we share most of the same types of parking problems as American parking operations.
With respect to culture, we Candians are a little more European in nature - conservative, heavily taxed, officially multi-lingual, and even leaning just a little toward socialist. (Okay, maybe more than a little socialist, but it's socialism in a good way.) And we never quite severed those ties to Britain like the US did, so we still call back home from-time-to-time.
What advantage does this offer to the business of Canadian parking operations? It's the best of both worlds, eh? Canadians are good at importing parking technology from Europe - such as pay-by-cell, multi-space meters, and smart cards - and then applying these technologies in a distinctly North American way.
That's not to say that America doesn't do the same thing too - our neighbors (neighbours) to the South know very well how to be innovative and adapt also - especially when it comes to technology. And often they use Canada as their testing ground for such innovations before expanding into Europe. In that regard Canada really does get the best of both worlds!
Parking is like...
Welcome to 2010! Did you make any New Year's resolutions? Every year many folks set out with the best of intentions to start off the new year. And sometimes these stick... but mostly they don't.
In fact the same New Year's Resolutions seem to crop up every year with alarming popularity. You can find lots of them online. However in order to put a "parking spin" on them, here are my suggestions for the Top Eight New Year's Resolutions for a Parking Office.
Eight New Year's Resolutions for the Parking Office
1. Spend More Time with Family & Friends
2. Get Fit
Regular exercise is the key to being fit. What does a parking office do to get fit?
Lifting weights will help get fit. And not too many things weigh more than a car! So lifting cars is what we need - lifting them right over to the towing compound. That's the resolution: towing three reps of 10 cars each and every day.
Statistics show that people are overweight. Even obese. They need to lose some weight. But how does a parking office lose weight?
Most parking operations have filing cabinets full of paper records. I say "who needs 'em?" Filing cabinets are fat and heavy. Ditch the filing cabinets, shred the papers, and you'll feel much lighter. (Side benefit: paperless office).
4. Quit Smoking
If the parking office is smoking then it's probably on fire. Run!
5. Enjoy Life More
The parking office is a go-go-go operation. Stop and smell the flowers once and a while.
Close the office for a week, stop enforcing, and raise the gates. You'll feel better afterwards and your parkers will love you for it! (Or at least during the resuting parking free-for-all they'll get an appreciation for the services that you actually do provide.)
We all know that parking and booze go together like hot dogs and buns. Skip this resolution because you're just going to break it at the next parking conference.
7. Get Out of Debt
Most parking offices have lots of debt. If you have a garage, you have debt. Or a municipal bond. Or parking management software (from the other guys, of course - our stuff is very reasonably priced). Debt. Debt. Debt.
Bottom line: You couldn't sell enough permits and collect enough citations in a hundred years to get out your office out of debt. So suck it up and see resolution #6 as a coping mechanism.
Aha! A resolution we can actually do something about. But what to learn... hmmm.
Learning another langugage is cool and never goes out of style. Sometimes an accent even makes you sound more sophisticated.
Latin is always a popular choice. Many people have even heard of it. You can re-do all your parking materials and brochures in latin too. And you can even change your phone system greeting: "Pulsus 1 pro latin vel 2 pro english secuutus per talentum."
Follow these resolutions and you're well on your way to a better 2010. Happy New Year!