Using queuing models to set the right parking price

Abstract

This paper applies queuing models (M/G/N/N) to determine the right price for parking, given that the arrival rate and the staying time depend on the parking price. The models explore the payment per hour and the entrance fee models, with one or several customer types, and where each customer type faces different prices (price discrimination). The models are also applicable for cases where the objective function is to set the park occupancy rate at a desired level. The analysis of the numerical examples demonstrates the applicability of the models and provides some interesting insights about the setting of the correct parking price under the appropriate pricing scheme. The conclusion is that one of the most important tools for process management and benchmarking of a car park is the parking pricing.