Dynamic pricing of parking slots and revenue management

Abstract

The prime concern for establishments in cities today is parking. Real estate prices keep pace with thegrowth of a city and it is imperative that businesses manage their available parking spaces effectivelyand efficiently. The main problem with respect to parking spaces is the fluctuations in demand. Thedemand changes within a day based on peak hours like evenings in malls and early mornings ininternational airports. Similarly the demand for parking increases on weekends at malls and outpatientdays at hospitals. There is also seasonal variation in demand for parking like an increase in demandduring festivals (Diwali/New Year) at malls.This project focuses on parking spaces at malls. The major fluctuation in demand for parking at malls isbased on weekdays in weekends. Malls attract a much larger crowd during weekends than weekdaysand this trend is reflected in the data provided by the company. The weekend demand is almost twicethat of weekday demand in most malls across the country. The increased demand during weekends canbe taken advantage by using different pricing models for weekdays and weekends. There has to be amodel to help decide the parking mix in establishments and a corresponding revenue model tomaximize the revenue from parking based on fluctuations in demand.