The availability and quality of parking facilities are vital for all property owners. Whether the location is downtown, or shopping centers, the airport, sports venues, or universities, difficult to find parking can cause loss of valuable time and business.
But how do you know if your parking lot is successful? Lack of customer complaints is not a sufficient indicator of success. As a parking lot owner or manager in Huntersville, NC, you should know how to measure the success of your parking lot. Here are 6 KPIs (key performance indicators) to help you do just that!
1. Parkers Per Month
Most of your parking lot business should come from your monthly tenants. If monthly numbers are low compared to spaces available, you need to get feedback from your tenants to improve on whatever is lacking. The number of monthly parkers you maintain every month says a lot about your parking lot’s success.
Evaluating your occupancy numbers throughout the day will give you a good measure of the success of your parking lot. For example, an automated entrance and exit can provide you reports of the number of cars using your parking throughout the day to identify peak occupancy times. These reports will help you understand whether you need to adjust the parking rates or your operational hours, or staffing at specific times of the day to save on costs.
3. Parking Rates
You should work on achieving the “sweet” parking rate that brings your parking lot to 95% occupancy with room for drivers to come and go. However, you should also evaluate if the rate is competitive. If your parking lot is always full, your rate may be too low, and if usually empty, it may be too high.
4. Average Transaction Value
The Average Transaction Value (ATV) measures how much revenue you make from each customer. The ATV shows success for your parking lot when high and low, depending on the scenario. A higher ATV is good when you charge a flat rate for all lengths of occupancy. However, a lower ATV is good when you charge a varying rate, for example, more for shorter stays and less for longer durations to earn a larger revenue overall.
5. Average Daily Rate
The Average Daily Rate (ADR) measures how much revenue is earned in a day by the total number of occupied parking spaces over a period of time. ADR is different from ATV as it considers the amount of time a customer spends using the parking space. An increasing ADR may be a good sign, but you must be careful not to trade occupancy for a high ADR.
6. Revenue Per Available Space
Revenue Per Available Space (RevPAS) measures how much income is earned from each open space over a given period, not from each customer like ATV or ADR. An increase in the RevPAS means each unit of parking generates more revenue.