Unique Parking Asset Management Team Helps Hotels Increase Results

Parking operations is a subset of the hotel business that is often overlooked; an opportunity for managers to significantly boost their hotel’s financial performance. Towne Park’s National Accounts Team research and experience shows that hotels with five or more properties with full-service parking operations can achieve breakthrough financial improvements by applying Towne Park’s unique asset management approach to parking.

Parking data consolidation, analysis, and optimization are logical steps in the evolution of parking towards an asset management model. For hotels, the challenge is “how” to manage parking as an asset and “what” to manage – not “if.”

Our philosophy to drive operational improvements is simple – we call it “Analyze, Report, Repeat.” We start with a detailed analysis of parking operations on a portfolio basis, a process which can uncover a wide range of opportunities. Here are just some of the data points we collect:

• How many hotels currently charge for parking?
• Are parking rates in line with the market and with the hotel’s competitive set?
• Which properties offer valet parking and if it’s not offered, is there an opportunity to drive additional revenue by implementing valet?
• Is self-parking controlled with equipment or is it handled on the “honor system”?
• If there is parking equipment, is it up to date with all current PCI standards and regulations? This is an area that can create tremendous risk for owners and operators.

There may also be properties that do not charge for guest parking. Free parking may be a competitive advantage but it could also be a missed revenue opportunity. Since we operate multiple hotels in most cities, we have extensive data and market intelligence to help answer these questions.

Towne Park’s National Accounts Team brings to bear powerful tools, including:

• Massive, nationwide parking data that spans all regions and tiers of the hospitality market, giving the team unique insight and market intelligence.
• The ability to flex-up on demand, leveraging a highly-trained workforce of over 13,000 employees, creating a truly scalable solution.
• Expert analysis from a dedicated team of specialists.

Once a full portfolio analysis is complete, there are usually opportunities to adjust and improve at specific locations. Ultimately one of two things will be discovered, both of which are beneficial for an owner or manager. At each property, we will either 1) determine that the parking department and asset is being maximized; or 2) identify an opportunity for improvement.

Towne Park delivers additional value through consistent and detailed reporting provided to the appropriate stakeholders. Our National Accounts Team produces Management Operations Reports (MOR’s) for many hotel ownership groups and management companies covering a significant percentage of our current portfolio. These are high-level financial snapshots focused on performance to budget and year-over-year improvements.

• Do you know why the percentage of guests bringing a vehicle to the hotel is decreasing and how to combat it?
• Do you know why the percentage of guests choosing valet over self-parking is up, and what you can do to maintain that trend?
• We can help!

We also share the statistics and trends that are driving parking department performance. If the drive-in rate (the percentage of guests bringing a vehicle to the hotel) is decreasing, why is this happening and what are we doing to combat it? If the capture rate (the percentage of guests choosing valet over self-parking) is up, what can we do to maintain that trend? Reports are sent to asset managers and regional operations leaders the same time every month and they frequently lead to discussions about changes to rates, staffing levels, equipment and much more.