From cashless systems to customer-centric services, driverless cars to big data… a host of trends are transforming the parking industry. We checked in with Property Council members to find out more.
Whether we’re circling the city streets on the hunt for elusive space or rushing to top up our meter before the inspector arrives, parking is the price we pay for getting into our car.
According to statistics from NRMA, Sydney and Melbourne CBDs have some of the lowest car space-to-worker ratios in the world. Sydney’s 12.2 parks and Melbourne’s 14.2 illustrate the opportunities for technology and innovation.
“Parking is often seen as the operator’s problem, but it is an essential building service, like lifts, and can leave a bad taste when something goes wrong,” says Allison Yeoland, chief executive officer of Parking Asset Advisory.
Yeoland, who helps landlords minimise risk and maximise the value of parking assets, points to a host of parking trends – not all of them driven by technology – that are disrupting the status quo and promise to create better customer experiences.
“Parking is not a destination but a means to an end. Competition comes in all forms – congestion, ride sharing, new forms of mobility and more reliable, frequent public transport, as well as meeting technology that eliminates the need to travel altogether,” Yeoland says.
Technology – like cashless systems, Bluetooth apps and the Internet of Things – are already removing parking headaches, but Yeoland expects sensors and smart systems will create a “seamless” customer experience. Rolling it out at the right price “is still a few years away,” she says.
Enhancing the customer experience
Wilson, Australia’s largest private parking operator, has more than 400 car parks across the country, and is “constantly reviewing new developments in the technology space,” says chief executive officer Stephan Wuffli.
He points to the Wilson parking app, which has more than 300,000 users, 7,000-plus positive reviews and an “80 per cent conversion rate for those who start a booking in the app”.
There is a significant opportunity for business leaders in property and parking to “better tailor the experience to the evolving needs of the customer that will drive the long-term value proposition,” Wuffli adds.
The secret will be to “strike the right balance between greatest return on the investment for the owner and the flexibility that comes from investing in technology, innovation and customer experience.”
Lesley-Ann Horton, First Class Valet’s national director, thinks valet parking can be a “disruptor”, as it has been in other markets, including North America, Europe, and the United Arab Emirates.
“If you combine valet parking with the biggest disruptor in the industry – technology – the data produces valuable insights that most businesses have never tapped into. This give a better understanding of consumer habits in this space. The end result is the customer’s experience is already enhanced before they even get out of their car,” Horton says.
“The service alone can help increase any organisation’s Net Promoter Score, simply by the welcoming and farewell experiences of their customers.”
“Valet parking is one of the few service-based industries that can be commercialised. If coupled with innovating thinking and technology, this is a service that could positively affect your bottom line.”
Possibilities for parking
Yeoland points to other possibilities for property owners thinking about their parking assets.
Sales of EVs in Australia are still slower than most developed countries, but Infrastructure Australia says they will account for between 70 to 100 per cent of new vehicle sales by 2040, and at least 30 per cent of the national vehicle fleet.
“Parking stations are the ideal location to charge EVs, and buildings are now being upgraded to support this,” Yeoland explains.
“The big question on everyone lips is: How can owners make money from this service?”
Solar-panelled car parks are still “cost prohibitive” in many cases, but prices are coming down, Yeoland adds. Some cities are looking at dynamic pricing, much like Uber’s surge pricing, “but for this to be possible, you need to have control of a parking precinct – which is difficult in a city where ownership is spread”.
Autonomous vehicles are another disruptor on the horizon.
“Ultimately, a fleet of autonomous cars will take us from A to B on demand, like public transport except door to door. But when is anyone’s guess – so watch this space.”
But the biggest opportunity ahead will be found in big data, Yeoland says.
“Until recently casual parkers were faceless. They would drive up, pull out a ticket and exit. Now, with booking apps and systems, the faceless customer is known – and so too are their parking habits. This knowledge is powerful when operators want to target each customer – but even more powerful when they move customers between assets.
“Owner need to ensure they own this customer data as it is their asset. Otherwise operators may move all their customers at the end of the contract and leave them with an empty car park.”
Yeoland says the most important factor “is ensuring your operator is creating an awesome customer experience so your customers return. Without customers you don’t have a car park – you have an empty concrete building”.