Technology s evolving role in hotel parking

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1 Technology s evolving role in hotel parking Hotel parking has never been perceived as a high-technology leader. In simpler times it didn t need to be. There are spaces available for guests, passes to hand out, and someone to collect the money from people who park there without passes. It s always been that way, so why would it need to change? However, the fact is that it is changing, and proactive hotel and front desk managers should understand how and why. The parking industry has undergone a major transformation. It s being driven by the need to provide a greater level of convenience and service for customers, a need that is empowered by new technologies. This movement is reaching into the hotel industry with enhancements such as online passes, pay-by-phone, and pay by credit card. Frequent travelers are more than savvy with these advances and expect them in the hotels they lodge in. It s important to note that while these new technologies offer conveniences to guests, they also provide major benefits to hotel managers. This includes better revenue and control systems, safer facilities, and faster reporting. The result of these innovations, from an industry in transformation, is that it will function very differently in the near future indeed, in places it already is. The parking industry is deploying new applications and management tools that will need to be understood by those who work in it, or watch over it, if they wish to take full advantage of them. The future starts with credit card security The single most important and imminent change that the hotel industry is facing in the realm of parking is the adaptation to the Payment Card Industry s (PCI) Data Security Standards. In response to over $2 billion a year in credit card fraud, the PCI created a set of common tools and standards to prevent, detect, and react to credit card fraud. Any business that accepts payment by any of the major credit card brands must demonstrate that it complies with these standards. The six core standards that must be met in order to qualify for processing credit card transactions are: l Build and maintain a secure network l Protect cardholder data l Maintain a vulnerability management program

2 l Implement strong access control measures l Regularly monitor and test networks l Maintain an information security policy This means that, in order to allow guests to pay by credit card, parking revenue control equipment may need to be upgraded or replaced. It also means that the data centers and network infrastructures that process these transactions need to be upgraded too. Because credit card payment offers better revenue control and convenience to customers, leading-edge parking companies have already committed significant investments in this infrastructure. It s important to note that, if a parking facility operator is collecting revenue on behalf of a hotel chain, that chain cannot demonstrate PCI compliance without the operator achieving certification. Top parking companies are working with their clients to help them become PCI compliant, so that they can secure and sustain their revenue collection processes. PCI compliance is driving many of the current technology investments and upgrades across the parking industry. This is today s challenge, and any hotel manager with a parking facility (and that s almost all of them) needs to be addressing this issue with the manager of these facilities. Better reporting. Better controls. While improved credit card security is a major issue in the industry, it is not the only priority. Hotel and valet parking, just like most other aspects of the industry can be transformed and dramatically improved by effective IT systems. Parking companies that are investing in these systems can offer their hotel management clients transparent reporting. This can offer operators complete backup information to transactional files, while audits can be undertaken at any time. Industry leaders are in fact, now using sophisticated tools to analyze parking demand on any given day. Patterns of parking can be easily assessed, and auditors can see exactly what was sold, and when. This is a wonderful tool for checking against revenues reported, and, as with in-house ADR metrics, ensures that optimum rates are being charged. Furthermore, effective investments in technology will allow the facilities operator to supply their reports to hotel management in whatever format their client desires. Of course, as in many other industries, parking companies are struggling to get their IT right. But the ones that do automate well are offering some real financial benefits to their clients.

3 Please see our previous White Paper on Revenue, for detailed information on this subject. Hotel managers will also benefit from the efficiencies of scale that the shift towards centralized service and support offers. These moves are cost efficient and put new technologies to their best use. Customer service agents are available who have specific knowledge of a client s facility. Clients also know that their money is more secure due to a division of duties. Revenue tracking is separated from revenue handling no one who counts cash records it. Progressive IT systems, as supported by transaction automation, simplify reporting and speed up processes in many aspects of the hotel industry. Why should a hotel manager settle for less than the fastest, most accurate reporting in order to maximize profits and service performance at their property? Hotel lots work better with technology, too. This technological revolution of the parking industry is not just affecting the back end. Significant changes are already being found in better hotel parking facilities across North America. Allowing drivers to pay on foot before returning to their vehicles, switching to meter lots, and pay-in-lane machines also reduces processing costs and lineups. Of course, the most popular and convenient advance from the guest s point of view has been the introduction of online or wireless systems. This entails having attendants in the lot who are automatically updated when a guest checks in. This means that the guest does not need to return to the lot to put a pass in their car. It also removes the possibility of guests being ticketed or towed by accident if they are doing a late checkout. As soon as the front desk enters the late checkout into their computers, the parking attendant is wirelessly updated that the guests car is parked validly. Hotels can also adapt this service to assign preferred rates and privileges to their guest, as based on their length of stay, or lodging frequency. Without question, in any hotel where wireless parking system has been introduced, it has been an instant hit. Wireless parking systems are not just popular with guests and the front desk. These systems offer management more secure revenue with reduced slippage. Front desk staff will now be expected to apply standard parking levies, rather than simply parking people for free or be complacent in managing parking services.

4 These systems are also ideal for easing congestion and parking problems at hotel-related events such as conferences, banquets, and meetings. Instead of having lineups at parking meters and entrances, the hotel can contact participants in advance by . Guests can then prepay for their parking over the Web by credit card. They enter their license number, and their parking is all taken care of. No lineups, waiting, or confusion. And, with real time reporting, operators can assign additional staffing or place supplemental signage to support additional demands. Making valet service even better While wireless systems work best in hotels that do not have attendants, these technologies can also be adapted to improve valet service in larger or more upscale hotels. To be successful, the valet experience must be delivered with superior service that is time efficient and makes the customers feel that their car is in good hands. History has shown that parking, then locating and retrieving guests vehicles is often a bit of a problem. In addition, ongoing challenges were found in completing vehicle inspections and accurately determining service performance. As well, valets have the added responsibility of taking the time to carefully survey each car and personally note each ding, dent and scratch. Not only does this process add time needed to park each car, it also represents an inefficient use of labor and leads to highly inaccurate method of recording damage in case a customer filed a claim. Automated systems are now available for valets that allow them to locate vehicles easily. Simply by entering a license plate number into a hand-held device, the valet will immediately know where the vehicle is and the name of the person requesting it. Service is dramatically improved. Other more advanced systems involve guest issued ticket on greeting, then vehicle proceeding through check-in where both license plate and vehicle are digitally recorded. The valet, time, vehicle license plate, vehicle images from all angles are immediately uploaded into valet system. Upon departure, guest scans the valet ticket at the self-serve vehicle request kiosk. Valet attendants are prompted of the vehicle request, and immediately deliver the car at the exit. And should a damage claim be made, then recorded images will be used as a reference point for assessment purposes. The technological advances with the type of technology noted above has dramatically reduced claims, provides a means of revenue security to the operations and most importantly improves overall service performance with hotel guests and patrons.

5 Getting technology right The right technologies, properly installed and linked into existing systems can be a tremendous benefit in any hotel. The hard part remains getting it right and making sure the organization gets maximum value for its investment. This is of course most true with complex IT upgrades and the curse of legacy systems, but it is also true with more mundane equipment choices. There are many parking equipment suppliers out there offering equipment that is not backed up by sound warranties, does not give effective service, and may not integrate properly into existing facilities. Only a few vendors are truly proven and reliable. It takes an expert in the industry to know who they are, and to manage an upgrade smartly. Shrewd hotel managers are realizing that, if they want to maximize their revenues and minimize their costs, they need help. The parking industry has become just too complex. Leading parking companies are available to consult about equipment needs, or buy them, install them, and maintain them on a contract. This takes the risk out of the investment, while keeping focus on managing to defined profit and service metrics. Guests do not differentiate between the lot and the hotel they are staying at. In their minds, they hold the hotel responsible for the state of the parking facility. Since technology used correctly is meant to improve the lives of people and the profitability of businesses; it just makes good business sense for a hotel to use technology to get peak performance out of parking facilities, too. If you are interested in learning more about smart ways to use technology to improve your parking facilities and maximize their revenues in your lots, please contact: Arthur Klein Corporate Director, Business Development P: E: aklein@impark.com