Smart Parking and Demand-Based Pricing
Cities can increase revenue, decrease congestion and shift occupancy from parking-impacted areas to under-utilized areas using Demand-Based Pricing.
Demand-Based Pricing is the idea that there is an ideal parking occupancy rate for spaces, usually between 70-90% during peak hours. That percentage allows parking spaces to be efficiently used, but leaves some empty spaces for people with urgent needs. Often cities have parking occupancy of almost 100% at the heart of their downtown areas, but spaces only a few blocks over have much lower parking occupancy rates.
Cities can pick an optimal occupancy band, then uses smart parking technology like Streetline’s to monitor parking occupancy by block. They can then raise prices on street parking on blocks where occupancy is above the maximum level, and lower pricing on blocks where occupancy is below the minimum level. Occupancy will shift to blocks where parking is cheaper.
Los Angeles has already seen results from this program. After Streetline partnered with Conduent to provide smart parking technology to the city of Los Angeles with LA Express Park, within 6 months the city experienced a 10% decrease in congestion, parking space occupancy in under-utilized blocks increased 5%, average metered rates decreased 11% across the area of deployment, but parking revenue actually increased 2%, as more drivers parked in underutilized areas.
Other cities looking to increase their parking revenue, decrease downtown congestion, and increase parking turnover outside of high-demand shops and restaurants can use Streetline’s smart parking technology to implement demand-based pricing. For more on this subject, this study by CMU shows the benefits.