Economic Commentary

The term “Just when I thought it safe to go back into the water” was used more than once in the last few weeks by journalists trying to explain the about-face of investor and consumer confidence.

Many had grown to believe that the country’s economy had dodged a bullet and would not enter a recession. The economy and particularly the all-important job market metrics were holding up, maybe even inching further into positive territory. The Fed had slowed interest rate hikes and there seemed to be an end in sight to runaway inflation. Even the most cautious investors were once again venturing into the Equities Markets.

And then a shocking surprise. Bank failures and bailouts in two US banks. The US Government via the Fed/FDIC stepped in to help Silicon Valley Bank and a group of competitors stepped up to buy/bail out Republic Bank. Then the Swiss debacle. Credit Suisse, a stalwart of the worldwide financial order, had to be bailed out when it was bought at a ridiculously low price by its primary competitor, United Bank of Switzerland (UBS).

The press is full of questions pertaining to the stability of the Worldwide banking system. Just how fragile is it? That is the big question.

For those of us in the Parking Industry, we wonder what does this all mean? What impact will it have on my parking solution and on demand for retail shopping, events such as concerts and sports, business and leisure travel, and of course, out-of-home entertainment? That is what drives  a lot of parking. We were doing quite well as an industry before all of this got started. As we wait to find out if this pattern of disturbing news continues or it settles down as just one more event in the long saga of post-pandemic recovery.

Parking Trends and Predictions

Despite looming bank stability questions, there is a silver lining. Current Parking Industry projections from trusted sources are incredibly positive and encouraging. Now is a good time to fine-tune our business, study our analytics, and learn more about our parking solutions and how to best utilize them to drive revenue.

Here is a sampling of trends and predictions for 2023 from leading parking organizations.

National Parking Association offers a fresh report, Road To Recovery Index For Parking that predicts full recovery in 2023:

 “Newly released, the fourth and final Road to Recovery Index signals continued industry rebound with 50% of parking operators achieving pre-pandemic revenue levels.

The remainder expect full recovery by year-end, with 75% by August and 100% by December 2023.

Additionally in 2023, parking operators project up to 15% growth, with the highest market gain in Atlanta, Miami, and New York City.

Airport and events parking continue to generate the fastest revenue growth, exceeding pre-pandemic levels in 2022.

The Road to Recovery Index serves as an economic indicator for the parking industry signaling performance and optimism. Consecutive polls reflecting data from 2019-2022 report a pre-COVID baseline, COVID-19 impact, and post-COVID recovery for the parking industry.

The metrics from the polls serving as primary research, combined with critical analysis and secondary research, provide a view into the state of the industry and economic factors influencing industry performance and sentiment.”

 The Parking Network projects more rebound and growth:

 “With the rise of e-commerce, shopping centers have had to adapt to changing demands by offering additional services such as restaurants, entertainment, and events. More people require additional parking spaces, and this trend is expected to continue in 2023 as shopping centers continue to offer more amenities to their customers.

As medical technology advances and people’s healthcare needs become more complex, demand for healthcare services is expected to increase over the next few years, and with it, the need for parking.

Whilst working from home has remained a popular option for employees and employers, many companies are now returning to office or hybrid work. This new way of working presents different pain points for office parking which will lead facility managers to search for new solutions.

The aviation industry will continue to rebound following the pandemic and, with passenger numbers increasing, investments will be made in both the construction of new facilities and the improvement of existing garages and lots. As advancements continue to be made in parking technology, airport parking will continue on a similar growth curve as it keeps pace with the latest developments.

As the digital revolution gains pace and the parking and mobility industries continue to merge, municipal parking will undergo a huge transformation, and so we believe that this sector has the greatest potential for growth in 2023. As governments work to reduce emissions and create livable cities, inner-city mobility, and the role that parking has to play in it, will become more important than ever. As mobility hubs gain in popularity and EV charging infrastructure develops, investment and growth in municipal parking will be essential.”

Research and Markets offers these insights into Key Market Trends:

“On-street parking sites are those where the vehicles are parked on the sides of the street itself. On-street parking management is anticipated to reach goals using a variety of tools which includes the spaces where parking is allowed and prohibited by designing parking spaces and facilities and signs, limiting access to certain groups, setting a time limit, charging fees enforcing compliance with all the arrangements, and monitoring success.

The majority of the on-street parking sites are usually controlled by government agencies. Given its convenient and inexpensive nature, most commuters prefer on-street parking. Despite being an organized and safe parking alternative, off-street parking has lagged behind due to the exorbitant parking fees, resulting in low occupancy levels. ​

Nonetheless, authorities and parking owners are deploying smart parking solutions for efficient management of on-street parking, which is further driving the market for on-street parking management solutions.​ For instance, INRIX Inc., a provider of connected car services and transportation analytics, offers On-Street Parking service in the BMW 5 Series Sedan. INRIX delivers real-time on-street parking service in a connected vehicle, which further uses historical and up-to-the-minute parking data to predict the availability of different parking spaces.

Further, according to Accident Exchange, the number of crashes and scratches while on-road parking costs the UK insurers around GBP 1.4 billion per year. Parking-related incidents account for more than 30% of all the accidents in the UK. More than 675,000 parking collisions are now registered every year, according to the Accident Exchange. This factor increases the adoption of an on-street parking management system.

Furthermore, in the United States, on average, paid spaces cost USD 4.00 for the first hour and USD 6.75 for the second hour. While there is a positive correlation between the number of paid spaces, and the likelihood of finding a space, the extremely low likelihood of finding a parking space indicates that the prices are set too low.​

Although the inability to find a parking space itself is an inconvenience and more importantly, contributing to traffic congestion, lost time, and increased pollution, the presence of both paid and free spaces means drivers will likely forego available paid parking spaces instead of loitering to find an open free parking space. ​

While most of the parkers, save in terms of parking fees, the presence of cars on the road incurs costs. On average, Americans nearly lost 99 hours a year due to congestion, costing them nearly USD 88 billion in 2019, an average of USD 1,377 per year. From the year 2017 to 2019, the average time lost by American drivers increased by two hours as economic and urban growth continues nationally.

Further, on-street parking management can reduce on-street parking congestion, and this anticipated to propel in demand. On-site parking management helps local commerce, residents, bus service, bicycle users, people on foot, and vehicle users of all kinds. It further enables the efficient and fair use of street space and can ease local traffic problems at a low cost.”

With so many parking experts making positive predictions, we remain cautiously optimistic in this ever-changing, dynamic world in which we live.

Be sure to read up on the latest Space Genius parking solution Version 4 upgrade.

Reach out to us for parking solutions or on topics of mobility, volume on your local level, and any other parking needs:

David Sparks, Chief Marketing Officer | Email: dsparks@spacegenius.com | Phone: 312-933-7683

Genius Tips

Did you know that you can control cancellation refunds?

What’s more, you can determine how far out your customers can cancel a reservation and still get a refund. Using this simple tip can add revenue to your bottom line. Here’s how.

Advanced Cancellation Rule

All you need do is to implement an Advanced Cancellation Rule within the Space Genius parking management system to prevent refunds on a cancellation!  And it’s super easy. Just follow these steps:

• Log in to your Space Genius Admin account.
• Use the left navigation menu to select Locations under the Company
• Once the Locations grid loads, use the arrow to the left of the Location to expand the Channels
• Select a Channel and click the Edit button on the right of that Channel. This will load the Edit Channels page where you can…
• Select Credit Cards Accepted in the right navigation menu.
• On the Edit Credit Cards Accepted page you will see several options. Select Advanced Cancellation Rule.
• Simply fill in the number of Hour(s), Day(s) or Minute(s) Prior to Arrival Date that you will allow a refund to be given.
• Select the Save button on the right of the page either at the top or the bottom.

With this simple process you can gain control of your cancellation refunds, one of the many ways our parking software system helps to boost your parking revenue.

Learn about the latest Space Genius parking software Version 4 upgrade and how it will improve your results.

For assistance or more information, contact support@spacegenius.com.