Loyalty programs, half-off sales as well as also even free coffee. These are some of the measures airport executives are considering to encourage travelers to park in their lots as well as also garages, as ride-hailing apps like Uber as well as also Lyft have surged in popularity.
Parking is usually an important source of revenue for airports, sometimes second only to the fees airports collect via airlines, such as for terminal rent as well as also landing fees. Airports are right now scrambling to protect This kind of key income stream as more travelers opt to leave their cars at home as well as also take an Uber or Lyft to the airport.
Software consultant Allen Mederos said on business trips longer than two nights, he’ll take an Uber via his Fort Worth home to the Dallas-Forth Worth International Airport, about 45 minutes away. The trip costs him $40, while the lot is usually $24 a day.
“I definitely use the idea more frequently,” said Mederos, of Uber. “the idea’s cost-benefit.”
Airports throughout the U.S. are taking a cue via airlines, launching or developing loyalty programs of their own. They include free parking after they use an airport lot for a certain number of days. Some airports are also trying to make airport parking more convenient, such as by allowing drivers to reserve a spot close to terminals.
John Ackerman, who heads global strategy as well as also development at Dallas Fort-Worth International Airport says he uses Uber as well as also Lyft “all over the globe” yet is usually trying to make the airport’s lots more attractive. Parking’s share of revenue at the American Airlines’ hometown hub slipped via 32.4 percent of its overall income from the 12 months ended last September via 34 percent a year earlier, the idea said.
In April, DFW started out allowing travelers to reserve a specific parking spot online as well as also pay ahead of time through the website or airport’s app. the idea also introduced a dynamic pricing style, which rises as well as also falls with demand.
Sometimes parking, which is usually $24 a day from the main lot, can be half-off when demand is usually low. The airport increased parking fees, however, in 2016, raising the full-day rate by $2.
“Just like an airline seat or hotel room [which goes unsold] the idea’s perishable,” said Ackerman, adding which the airport is usually even considering perks like a free Starbucks coffee for loyal travelers who opt to park at the airport.
Miami International Airport is usually considering a similar loyalty program the idea hopes to launch by the end of the year, a spokesman said.
Strong passenger growth is usually helping airports make up for the shift to ride-hailing apps, as a greater number of travelers fly. Close to 896 million passengers boarded planes from the U.S. from the 12 months ended in June, up more than 3.9 percent via the year-earlier period, according to the Department of Transportation.
“There are numerous things which could mask the underlying issue, such as traffic growth,” said Darren Perry, a managing director at firm L.E.K. Consulting, specializing in aviation as well as also infrastructure.
Some airports are already seeing an impact. Denver International Airport reported which parking revenue fell more than 1 percent to $1.76 billion in 2017, while ground transportation revenue, which includes fees collected via Uber, Lyft as well as also via ride-hailing apps, rose 29 percent to $12.4 million from the same period.
“One day parking revenues could actually dry up as well as also we could see an even greater focus on some other non-aeronautical” revenue, said Stephen Freibrun, a principal at consulting firm ICF. He said which include include more food as well as also beverage concessions.
some other airports are planning for continued growth of Uber, Lyft as well as also some other ride-hailing platforms. Pittsburgh International Airport is usually just starting a roughly $1 billion renovation of its facilities, a plan which originally included around 5,000 parking garage spots, in addition to the some 2,000 spaces the idea currently has. Executives later decided to reduce which to roughly 3,500, said Christina Cassotis, CEO of the Allegheny County Airport Authority, which runs the airport.
“We’re scaling back,” she said in an interview.
So far, the sheer increase in air travelers is usually keeping parking revenues aloft, according to Moody’s Investor Services, which rates airport’s credit worthiness.
yet ground transportation revenue, which includes both parking as well as also fees paid by Uber as well as also Lyft as well as also some other ride-hailing platforms, decreased to $8.65 per passenger in fiscal 2017 via $9.04 two years earlier, Moody’s said in a report in April.
which decline as well as also the rise of ride-sharing platforms aren’t enough to hurt airports’ borrowing costs, said Moody’s airport analyst Earl Heffintrayer. The issue, however, is usually more acute at smaller airports which don’t hold the passenger volume as their larger counterparts, yet the revenue via car rentals as well as also parking is usually “on a downward trend,” broadly he said