Revenue management in Hengelo

More online purchases mean fewer visitors to city centres and that, in turn, means lower revenues on parking facilities. The Hengelo city authorities were looking for ways to improve parking revenues.

Photo: Spark

Over a number of years Hengelo had invested in its urban development and also in increasing parking capacity, with an over-capacity in parking spaces as result. Good news for visitors looking for a parking space, but higher operating costs and lower revenues cause a negative impact on the city budget.

Possible measures suggested by the city authorities varied from decreasing the parking capacity, through to higher parking rates for short stay parking and licence holders. Spark evaluated both the contents and the financial consequences of the proposed measures and carried out a quick scan regarding the effectiveness of the city’s parking management and operations.

After having drawn up a list of measures that could possibly improve parking revenues, Spark was asked to assess the actual to be expected effects of these measures and to, if necessary, provide new ideas to improve revenues.

In close collaboration with the responsible city departments, Spark drew up the required report within the set time frame. Spark concluded that the supply and demand level of parking spaces meant that there were only a very limited number of possibilities to increase revenues. Part of Spark’s advice was to limit the opening of new parking areas and to first fully use the existing facilities. Spark also concluded by means of a benchmark that the city’s parking organisation operates competitive.