Use this proven method to boost the effectiveness of your commuter parking management
Parking demand can cause major problems in the workplace, especially if your commuter base is heavily reliant on single-occupancy vehicles. However, by implementing a single strategy, you can massively improve your approach to commuter parking management. This winning strategy is known as parking cash-out.
Here’s how these highly successful programs work:
Parking cash-out is an ideal option for businesses that provide employees with subsidized or no-cost parking. The business begins by calculating its daily per-vehicle parking rate. Then, offer employees who drive to work a choice: take a cash payout, or use your parking spot. The payouts can be calculated and distributed on a weekly or monthly basis, or processed along with payroll.
For businesses that rent their parking facilities, figuring out the daily per-vehicle rate is easy: just divide your total parking costs by the number of spots you rent, then compute down to a daily figure. Companies that own their own parking facilities can estimate daily costs by adding up construction, operation, and maintenance costs associated with their parking lots, then dividing by the number of parking spots it holds. That figure can then be annualized, or broken down into quarters, months, weeks, or days.
Studies have shown that if you’re going to use only one commuter parking management strategy, this is the one to try. Parking cash-out programs can reduce parking demand by as much as 45 percent.
This strategy works because it gives commuters an immediate, tangible incentive not to drive to work. Most commuters that have access to free or low-cost parking don’t think much about what it costs the company. Offering them a cash payout in exchange for their parking spot will make the commuter feel as though he or she stands to lose something by continuing to solo-drive to work.
Companies can achieve long-term savings by sharply reducing the amount of parking they need to rent, or earn additional revenues by renting unused spots to other individuals or businesses. It’s a classic win-win situation that is well worth a try if you’re a facilities manager for a business struggling to figure out how to manage steep employee demand for costly parking.
RideAmigos is the perfect commuter management platform for implementing a parking cash-out program. Empower your employees to make smarter transportation choices like ridesharing, biking, and transit. Track commuting patterns. Incentivize preferred behaviors. All within one powerful system.
Get started with the commuter management pros at RideAmigos to learn how you can implement a parking cash out program.