Parking Development Strategy

Pricing Strategies

The structure of parking fees for on-street parking should be determined by seeking an optimal balance of minimizing illegal parking while attracting parking demand, and maximizing profitability from fee revenue. For this purpose, “willingness to pay” for parking may have to be analyzed, and the introduction of a PPP scheme may have to be considered by examining a balance between public and private sector responsibilities. The revenue from on-street parking can cover the initial cost for new parking facilities, the operating cost, and potential funding sources for developing off-street parking facilities.

On-street parking tariffs can be structured to favor shorter time parking rather than longer time parking, which maximizes the usage of public space. Off-street parking, on the other hand, usually includes incentives for longer time parking, for example, lower prices for overnight parking, and discounts for long-term contracts. For multi-storey parking, some facilities apply different tariffs according to the floor level, for example, parking is cheaper on higher floors than lower floors.

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