Car park yield management
K-Yield
Parking yield management
From business intelligence to dynamic pricing
These changes include the development of smart city concepts and the recognition of pricing policies as a component of a city eco-mobility policy. Similarly, new parking booking services have been implemented, and have led to the digitalization of inventories, for instance for hotel parking spots around an airport. All these transformations have created a completely new parking competition context, with an absolute necessity for traditional actors (airports, urban parking operators, etc.) to become price agile.
Kowee’s car park yield management solution is a true dynamic pricing engine: it goes beyond the application of parking managers’ expertise. Based on forecasts and unique machine learning algorithms, it finds the optimal price to set for a given booking request, considering the alternatives and their degree of certainty (other demand for the same inventory).
K-Yield
*To understand what a “true” car park dynamic pricing solution is, please have a look at this: Common ways to dilute car park revenues when attempting to apply classical revenue management practices
K-Yield is “a true”* car park Dynamic Pricing solution that helps you increase your revenues immediatly.
K-Yield exists in two versions:
- A classic pre-booking version: the K-yield engine generates the optimal price for each online booking request;
- A drive-up version: dynamic prices are generated and displayed on digital panels at the car park entrance for vehicles without reservations.
Benefits
K- Yield is a dynamic pricing (or yield management) software solution specifically designed for the parking sector.
- By defining on-line pricing tactics (also called “yield strategies“), the manager can have a direct impact on the on-line parking revenues
- A minimum of 5 to 10% additional revenues are usually observed after a 6-month transient period
K-Yield is a sophisticated dynamic pricing solution giving full control on the parking revenues. It is based on the most advanced revenue optimization techniques for drive-ups and pre-bookings at the same time.
Benefits
K- Yield is a dynamic pricing (or yield management) software solution specifically designed for the parking sector.
- By defining on-line pricing tactics (also called “yield strategies“), the manager can have a direct impact on the on-line parking revenues;
- A minimum of 5 to 10% additional revenues are usually observed after a 6-month transient period.
K-Yield is a sophisticated dynamic pricing solution giving full control over the parking revenues. It is based on the most advanced revenue optimization techniques for drive-ups and pre-bookings at the same time.
Needed data
The sources of data required for the implementation of our Parking Yield Management tool are equivalent to those used for the K-Analytics Business Intelligence and K-Pricing Revenue Optimization Softwares.
A minimum of 1 to 2 years of past invidual transactions (tickets) is necessary. This holds for the gate system data as well as, ideally, for the booking system, although K-yield may be implemented in a brand new pre-booking e-commerce platform.
The APIs to build with the third party systems are the following:
- A real-time connection with the gate system to make sure the latest information about the car parks are “known” by the system: any new entry or new exit may well have an impact on the price proposed for a later booking request;
- A real-time connection with the e-commerce platform (or “parking pre-booking system”), to ensure an instantaneous answer to any booking request.
Features
K-Yield has been designed with the most innovative algorithms to find the optimal trade-off to find between the various lengths of stay expected to enter the parking.
- K-Yield uses innovative machine learning methods combined with cutting-edge optimization algorithms to create superior demand predictions and inventory management.
- The comprehensive predictive models combine detailed historical demand with current booking and drive-up demands, thus forecasting both.
- K-Yield does not rely on occupancy forecasts to produce optimal prices (because this is not a driver of parking revenue optimization).
- The seasonal models are easily customizable to properly address special events, car park maintenance periods, holidays, etc.
- K-Yield is very user friendly: it offers an extremely simplified user interface making the control and fine-tuning of prices effortless and immediate.
- The applied Yield policies are therefore always 100% aligned with the sales and marketing strategy of the parking operator.
Implementation
The implementation of K-Yield follows a specific path to ensure 100% efficiency with distinct phases:
- An understanding phase: comprehension of the local parking demand drivers, market habits, marketing positioning of the various products, past pricing policies, occupancy constraints, etc. ; all this is made possible by a preliminary one-off extract of 2 years of past data (bookings and tickets);
- A forecast fine tuning phase: Kowee data scientists adjuts the Kowee machine learning models, together with managing of the calendar matching rules (past vs future) and Yield expert parameters;
- In parallel, the APIs are put in place between the various third party systems and Kowee’s;
- A phase dedicated to the Yield strategy definition, including customer segmentation, dynamic pricing simulation over a future demand period (and related gain estimates), etc.
All this is ran over a period of 10 to 12 weeks, where Kowee’s project team will propose recommendations while also ensuring knowldege transfer.