Are supply and demand the main key drivers of airport parking prices? The quantitative study

Abstract

Parking pricing always poses a challenge to airport management due to their impact on revenue. According to previous studies, parking prices have not considered air transportation supply and demand simultaneously until now, which is why challenges have arisen. Also, no model identifies the factors affecting parking prices and expresses their relationship quantitatively. The contribution of the current paper is to develop numeric models for pricing airport parking using supply and demand data. In this regard, the multiple linear regression approach is used due to its simplicity and interoperability. Three time periods for airport parking pricing are considered as dependent variables: 1-h short-term, 24-h short-term, and 24-h long-term. Independent variables also include air transportation supply and demand characteristics along with socioeconomic variables based on previous research. Employing collected data from 60 airports on all continents, the final model for each parking type is selected. The results indicate that parking expense will be affected more by transportation supply than by transportation demand. As a measure of the airport's supply, short-term parking prices have been significantly affected by the average cost of amenities. By affecting passengers' access to the airport, public transportation ticket prices also impact the cost of 24-h long-term parking. These supply-related factors have a more noticeable effect on parking prices than demand variables, such as the number of airport passengers, and this can be taken into account by managers and planners in the future.