Charging parking by the minute: What to expect from this parking pricing policy?

Abstract

In the days when parking had to be charged by a person or a mechanical device, it made sense to charge by blocks of time. However, these days, computers are capable of charging by the minute (or second if an operator so chooses), so technically there is no need for block pricing and the pricing strategy can be a policy decision. Operators, in one hand, are unaware of the impact of this measure on parking turnover and may believe that daily income will be affected. Businesses, on the other hand, will want to know if the measure has an effect on whether or not trips motivated by non-social activities will be carried out, given that they are spontaneous and are directly related to a client's perception. Finally, practical implications in terms of client response have not been studied, since smaller charging blocks may be considered as a disincentive to make additions to stay duration; this has repercussions on turnover and consequently on wait time at the entrance. This paper covers the abovementioned topics based on a study carried out in Barcelona (Spain).