KOWEE

REVENUE MANAGEMENT

Parking Challenges

YOUR PARKING CHALLENGES ARE NUMEROUS, KOWEE HELPS YOU FIND THE REVENUE OPTIMIZATION LEVERAGES, JUST UNDERNEATH YOUR FEET

  • Price under constraints
  • Adapt your pricing policies to local demand changes
  • Anticipate your clients’ reaction to tariff changes
  • Reward your most loyal customers and/or propose ad hoc packages
  • Optimize your revenues without increasing your tariffs
  • Rely on booking services to boost your income

PRICING UNDER CONSTRAINTS


You are a car park operator managing a set of parks via a public service concession. Your concern is to maximize the parking revenues while fullfiling certain tariff constraints (like a ceiling price fixed by the authorities, etc.).
The car parks are regularly saturated. You wonder how to act on your pricing policy.


OUR SOLUTIONS

K-Pricing is a pricing simulation tools that precisely makes it possible to estimate the revenue impact by subtly adjusting the price levels according to any type of constraint.
Using K-Pricing, one can adjust the tariffs per customer segment (lengths of stay) and therefore raise some of them while keeping the overall price grid with the same average tariff level (or while keeping some specific price points at the same level).
The public service constraint is fullfiled and/or its cost is precisely measured (when attending new negotiation sessions with the authorities).

OUR SOLUTIONS

K-Pricing is a pricing simulation tools that precisely makes it possible to estimate the revenue impact by subtly adjusting the price levels according to any type of constraint.
Using K-Pricing, one can adjust the tariffs per customer segment (lengths of stay) and therefore raise some of them while keeping the overall price grid with the same average tariff level (or while keeping some specific price points at the same level).
The public service constraint is fullfiled and/or its cost is precisely measured (when attending new negotiation sessions with the authorities).

ADAPT YOUR PRICING POLICIES TO LOCAL DEMAND CHANGES


Managing a car park, you wish to adapt the structure of your pricing policy to the local demand: you may for example want to introduce new break points to optimize the car park revenues without affecting the customer perception, or simply respond to new competitors or even to a new demand driver.


OUR SOLUTIONS

Kowee offers a pricing tool which makes it possible to change the pricing structure of a parking with immediate visualization of the effects in terms of revenue, risk levels, etc.

The market perception is essential when designing a new tariff policy: a clear identification of the concerned volume and anticipation of the market reaction to price changes are essential. K-Pricing is a Kowee solution that precisely helps you to do so: identify where the revenue leverages are the highest and to which extent they may be activated with positive impact on the revenues.

Possible evolution of the demand can easily and accurately be simulated as well (for example, traffic evolution on saturdays around 7pm due to the opening of a cinema in a commercial center, new slots given to an airline, etc.).

OUR SOLUTIONS

Kowee offers a pricing tool which makes it possible to change the pricing structure of a parking with immediate visualization of the effects in terms of revenue, risk levels, etc.

The market perception is essential when designing a new tariff policy: a clear identification of the concerned volume and anticipation of the market reaction to price changes are essential. K-Pricing is a Kowee solution that precisely helps you to do so: identify where the revenue leverages are the highest and to which extent they may be activated with positive impact on the revenues.

Possible evolution of the demand can easily and accurately be simulated as well (for example, traffic evolution on saturdays around 7pm due to the opening of a cinema in a commercial center, new slots given to an airline, etc.).

ANTICIPATE YOUR CLIENTS’ REACTIONS TO TARIFF CHANGES


You do not know your clients’ reactions to pricing and would like to know more, per client segment (according to how long they stay in the park, when they enter, etc.).


OUR SOLUTIONS

Kowee executives have great expertise in conducting data crunch studies to estimate the price elasticity of a car park local market. The idea is to modelize a market price elasticity through the analysis of former data (tickets submitted to different pricing policies in the past). Key is the differentiation of the elasticity per market segment i.e per group of lengths of stay (short stay vehicles do not reason as long stay ones for an airport, for example, as far as tariff changes are concerned).

The later step being to use the estimated price elasticty parameters and input them in the pricing tool, K-Pricing, to better optimize the tariffs. Another possibility is to use the automated price elasticity calculation module, proposed within K-Pricing, helping you to design your tariffs in a way that takes into account the market reactions in the most realistic way.

OUR SOLUTIONS

Kowee executives have great expertise in conducting data crunch studies to estimate the price elasticity of a car park local market. The idea is to modelize a market price elasticity through the analysis of former data (tickets submitted to different pricing policies in the past). Key is the differentiation of the elasticity per market segment i.e per group of lengths of stay (short stay vehicles do not reason as long stay ones for an airport, for example, as far as tariff changes are concerned).

The later step being to use the estimated price elasticty parameters and input them in the pricing tool, K-Pricing, to better optimize the tariffs. Another possibility is to use the automated price elasticity calculation module, proposed within K-Pricing, helping you to design your tariffs in a way that takes into account the market reactions in the most realistic way.

REWARD YOUR MOST LOYAL CUSTOMERS AND/OR PROPOSE AD HOC PACKAGES


You do not know if the subscription that you propose drives more revenue than if the customers had paid regular tickets. You wonder if the extra volume it drives and the loyalty it creates is worth it, revenue wise.


OUR SOLUTIONS

Kowee executives have considerable experience in aligning “classical” marketing strategies with revenue optimization policies. Loyalty programs are classical revenue mangement topics where revenue on the long-term (thanks to loyalty enforcement) is to be balanced by lost revenues opportunities on the short-term.

Thanks to data crunching in depth works, Kowee enables you to properly set the prices of the various subscription offerings you may propose to your market, construct ad hoc offerings (like week-end packages for airport parkings, etc.: what should be their time window definition, price, validity period, etc. ?).

OUR SOLUTIONS

Kowee executives have considerable experience in aligning “classical” marketing strategies with revenue optimization policies. Loyalty programs are classical revenue mangement topics where revenue on the long-term (thanks to loyalty enforcement) is to be balanced by lost revenues opportunities on the short-term.

Thanks to data crunching in depth works, Kowee enables you to properly set the prices of the various subscription offerings you may propose to your market, construct ad hoc offerings (like week-end packages for airport parkings, etc.: what should be their time window definition, price, validity period, etc. ?).

BOOST YOUR REVENUES WITHOUT INCREASING THE TARIFFS


Just like in other sector, you would like to optimize your revenues via a dynamic pricing system but you do not know how to proceed with it and you do not want to inflate the tariffs.


OUR SOLUTIONS

Kowee offers a one-of-a-kind car park yield management tool, K-Yield which makes it possible to propose a dynamic tariff (usually a surcharge or discounts applied on the turn-up grid) for each reservation request. The uniqueness of K-Yield is that:

  • Its forecasting module is adapted to a car park inventory (essential is to forecast the number of entries per entry time and range of lengths of stay; to forecast an occupancy rate is not enough)
  • Its optimization module is able to instantly find the optimal combination in terms of car park occupancy, considering the various lengths of stay to be demanded (those present in the park as well as those forecasted); this is how revenues can be optimized while the tariffs remain constant or are even lowered

Thanks to its unique and sophisticated algorithms, K-Yield does not impose to higher the tariffs to achieve revenue optimization: the objective is reached thanks to the finding of an optimal mix between the various demand (whose unit price remain the same … but are different from one another): sometimes it will favor short-stay vehicles whose tariff per hour is high, while in other situations it will favor longer-stay vehicles with the highest global ticket amounts.

Contrarily to other the classical Yield routines (used in other sectors), K-Yield does not take the occupancy rate as a key information to adjust the prices (in most cases, to do so would even be revenue destructive).

OUR SOLUTIONS

Kowee offers a one-of-a-kind car park yield management tool, K-Yield which makes it possible to propose a dynamic tariff (usually a surcharge or discounts applied on the turn-up grid) for each reservation request. The uniqueness of K-Yield is that:

  • Its forecasting module is adapted to a car park inventory (essential is to forecast the number of entries per entry time and range of lengths of stay; to forecast an occupancy rate is not enough)
  • Its optimization module is able to instantly find the optimal combination in terms of car park occupancy, considering the various lengths of stay to be demanded (those present in the park as well as those forecasted); this is how revenues can be optimized while the tariffs remain constant or are even lowered

Thanks to its unique and sophisticated algorithms, K-Yield does not impose to higher the tariffs to achieve revenue optimization: the objective is reached thanks to the finding of an optimal mix between the various demand (whose unit price remain the same … but are different from one another): sometimes it will favor short-stay vehicles whose tariff per hour is high, while in other situations it will favor longer-stay vehicles with the highest global ticket amounts.

Contrarily to other the classical Yield routines (used in other sectors), K-Yield does not take the occupancy rate as a key information to adjust the prices (in most cases, to do so would even be revenue destructive).

RELY ON BOOKING SERVICES TO BOOST YOUR INCOME


You would like to offer a reservation service to your clients while at the same time leverage it to optimize your revenues.

You would also like to set up reservations for your parking lots without dedicating a specific parking for that: vehicles could be pre-booked or not but the overall economy of the park should be under control.


OUR SOLUTIONS

Kowee has designed a Yield Management solution, K-Yield, which is interfaced with the on-line pre-booking system and makes it possible to propose ad hoc discount or surchage levels to the received pre-booking requests. The price level is a function of whether the concerned demand will displace revenue (considering the concurrent forecasted demand that would occupy the park at the same time), but also of the number of days before the entry time, and a number of other parameters, consistent with the sales policy of the park manager.

Kowee has specifically designed car park forecasting models which constantly estimate the number of vehicles present anytime in the park considering the number of turn-ups present in the park as well as the forecasted new entries (pre-booked or not).

The optimization ran by K-Yield is therefore not limited to the pre-booking step but always consistent with the actual car park occupancy. The solution is fully consistent with parks that are opened but not necessarily dedicated to pre-bookings: a real time consistency check is permanently performed between the drive-ups and the pre-bookings (a dedicated alert generator has been designed to address the various possible car park occupancy situations).

OUR SOLUTIONS

Kowee has designed a Yield Management solution, K-Yield, which is interfaced with the on-line pre-booking system and makes it possible to propose ad hoc discount or surchage levels to the received pre-booking requests. The price level is a function of whether the concerned demand will displace revenue (considering the concurrent forecasted demand that would occupy the park at the same time), but also of the number of days before the entry time, and a number of other parameters, consistent with the sales policy of the park manager.

Kowee has specifically designed car park forecasting models which constantly estimate the number of vehicles present anytime in the park considering the number of turn-ups present in the park as well as the forecasted new entries (pre-booked or not).

The optimization ran by K-Yield is therefore not limited to the pre-booking step but always consistent with the actual car park occupancy. The solution is fully consistent with parks that are opened but not necessarily dedicated to pre-bookings: a real time consistency check is permanently performed between the drive-ups and the pre-bookings (a dedicated alert generator has been designed to address the various possible car park occupancy situations).

Client Feedback

“From the very first year, we saw approximately a 4% increase in revenue (excluding inflation) without provoking negative client reactions. Collaborating as partners with KOWEE, we worked closely with their teams in order to set up in May 2014 the K-Yield software solution that they developed. This software solution is specific to the world of parking lots, unlike typical yield management techniques used in the hospitality industry or air travel, which are not adapted to our needs as they don’t take into consideration the decisions we make for different lengths in parking time.”

Laurent Chevelard
Manager of the Parking and Access Monitoring Center
Lyon Airports