Browsing by Subject "off-street parking"

This thesis discusses short-term parking pricing in the context of Finnish shopping centre parking halls. The focus is on one shopping centre located in Helsinki where parking fees are high and there is a constant need for raising the prices. Therefore, it is important to have a strategy that maximises parking hall income without compromising the customers' interest. If the prices are too high, customers will choose to park elsewhere or reduce their parking in private parking halls. There is a lot of competition with off-street parking competing against on-street parking and access parking, not to mention other parking halls. The main goal of this thesis is to raise problems with parking pricing and discuss how to find the most beneficial pricing method. To achieve this, this thesis project conducted an analysis on one Finnish shopping centre parking hall data. This data was analysed to discover the average behaviour of the parkers and how the raised parking fees affect both the parker numbers and the income of the parking hall. In addition, several pricing strategies from literature and real-life examples were discussed and evaluated, and later combined with the analysis results. The results showed that there are some similarities with results from literature but there were some surprising outcomes too. It seems that higher average hourly prices are correlated with longer stays, but still the parkers who tend to park longer have more inelastic parking habits than those who park for shorter durations. The calculated price elasticity of demand values show that compared to other parking halls, parking is on average more elastic in the analysed parking hall. This further emphasises the importance of milder price raises at least for the shorter parking durations. Moreover, there are noticeable but explainable characteristics in parker behaviour. Most of the parkers prefer to park for under one hour to take advantage of the first parking hour being free. This leads to profit losses in both the shopping centre and parking hall income. Therefore, a dynamic pricing strategy is suggested as one pricing option, since it adjusts the prices automatically based on occupancy rates. Although there are some challenges with this particular method, in the long run it could turn out to be the most beneficial for both the parking hall owners and the parkers. To conclude, choosing a suitable pricing strategy and model for a parking hall is crucial and the decisions should be based on findings from data.