The Future The Future forfor Parking Parking isis Pre-booking Pre-booking

Schiphol and ChauntrySchiphol and Chauntrylead lead thethe way way

In this workshop we’ll look at ...In this workshop we’ll look at ...

Why airports should pre-book parkingSchiphol’s challengesSchiphol/Chauntry case studyBenefits so farDiscussion

Airport Parking is:-Airport Parking is:-

Not sexy! 15% - 35% of non-aeronautical revenue

for most airportsLess understood for its commercial

potential than other retailA real opportunity to grow revenueA mature market in the UK ......

Off-airport parking in the UK – Off-airport parking in the UK – main characteristicsmain characteristics

Available low rent land close-byOwn reservations web-siteProminent internet position for Airport

parking searchCustomer focussed sales approachVIP Service perception

UK Pre-booking history:UK Pre-booking history:Industry perspectiveIndustry perspective

Developed during 1990’sCompetitive influences:

◦Off-airport suppliers◦Consolidators

Airports privatisationLow cost airlines

UK Pre-booking history:UK Pre-booking history:Consumer perspectiveConsumer perspective

Accessibility of the internetConfidence to purchase on-lineConvenience of advance purchaseSpace guaranteeAvailable choice = Lower prices

Does pre-booking at Schiphol Does pre-booking at Schiphol cannibalize roll-up?cannibalize roll-up?

Difficult to completely preventPre-booking volume more than

compensatesNeeds continual attention due to the

changing dynamics within the Airport business

Schiphol’s approach to minimising Schiphol’s approach to minimising cannibalizationcannibalization

Yielding = selling the right product to the right customer for the right price

Set pre-conditions – cancellation / amendment fees, restrictions on availability

Target new markets – e.g. off-peak / weekend promotions in short stay

UK Airports today …..UK Airports today …..Better positioned to competeDirectly communicate with travellersCustomers are the airport’s customersProvide a better service Offer flexible prices and different products to

improve yield & occupancyHave the potential to increase the value of

sales

•Products

Create interest with special offersCreate interest with special offers

About Schiphol ......About Schiphol ......

Pre-booking began in 2004Needed to address reducing volumes and

monopoly perceptionSpecific service introduced - Smart ParkingObjective to differentiate pricingBut still ....Off-airport competition proliferates .....

25 competitors at 31 25 competitors at 31 locationslocations

With brand strength ......With brand strength ......

...and even price comparison sites...and even price comparison sites

Schiphol - why a new system for pre-booking?Schiphol - why a new system for pre-booking?

Extended reservation possibilities - multiple product choice with varying capacities

Flexibility with CPMS connections – ability to interface with any CPMS

Extended payment options – B2B credit payment & iDEAL

Extended access options – Credit card, vehicle registration, PIN no, Privium member customer cards

Why a new system for pre-booking? (2)Why a new system for pre-booking? (2)

Extended changing options – customer amend and cancel plus secure login

Flexibility in configuring master data – control of all data and reporting flexibility

Extended promotion functionality – multiple simultaneous promotions by product

Schiphol chose Chauntry ParkspaceSchiphol chose Chauntry Parkspace™™

To yield “off-centre” parking and better compete with off-airport

To yield “centre” parking to optimise off-peak and maximise occupancy

As a service to Privium customersTo capture customers early, for loyalty and

develop sales of other servicesPre-payment encourages commitment

Promotion functionalityPromotion functionality

““Greyed-out” products can encourage customer Greyed-out” products can encourage customer join the Privium programme or book earlyjoin the Privium programme or book early

Product choice supported by an upgrade Product choice supported by an upgrade option, encourage higher spend ....option, encourage higher spend ....

Pre-payment and choice of car park accessPre-payment and choice of car park access

Progress since October 2009Progress since October 2009

Over all the number of reservations is growing.At the off-centre car parks: - 55% of transactions are pre-booked - Rises to 70% at holiday times

Number of pre-bookings per year Schiphol Parking

0

50000

100000

150000

200000

250000

300000

350000

400000

2004 2005 2006 2007 2008 2009 2010estimate 2011estimate

#intro product/price

differentiations like early bird and non/cancellable

+23%

+40%

+6%

+12%

ParkspaceParkspace™ has allowed Schiphol to ™ has allowed Schiphol to introduce:introduce:

Pricing based on lead time – Smart Early Bird (33% increase on 2009)

Pricing based on special conditions – Non-cancellable Smart Christmas promotion

Pricing based on lead time and parking duration – Park & travel differential rates 1- 7 days and 8-15 days

ParkspaceParkspace™ has also allowed Schiphol ™ has also allowed Schiphol to introduce:to introduce:

New products – Visitors and Excellence Parking; Privium parking will soon follow

Up-selling – Wider range of products encourages up-sell. Some upgrades are available – more will be introduced

Remark: in general the peaks are related to school holidays, Smart TV campaigns or direct mail. The lows are related to the Iceland ash cloud and extreme Dutch winter weather.

2010

213229316391439371389372341391519477447462435391454670463

#bookings a day Smart/Park&Travel (moving average)

0

200

400

600

800

1.000

1.200

1.400

j j j f f m m a a m m

j j j j j a a s s o o n n d d d

2007 2008 2009 2010

7 per. Zw. Gem. (2007) 7 per. Zw. Gem. (2008) 7 per. Zw. Gem. (2009) 7 per. Zw. Gem. (2010)

meivakantie

Smart campagne radio/tv 2007, 2008, 2010

Smart campagne 2008

Smart camp 2009

aanloop herfstvak en winteractie mailing 2009

zomervakantie periode

kerstvakantie

winterweer 2009: schiphol.nl paar dagen niet benaderbaar

aswolk ijsland 2010

Number of bookings by lead time for parking duration 8-15 days (period: fall break 2009)

0

50

100

150

200

250

300

350

400

450

1 4 7

10

13

16

19

22

25

28

31

34

37

40

43

46

49

52

55

58

61

64

67

70

lead time

# b

ooked

Park and Travel 3 Smart Parking

Price smoothing needed to fill the gap after Smart Parking is full or not bookable anymore within 1 week before departure

Number of bookings by lead time for parking duration 8-15 days (period: fall break 2010)

0

50

100

150

200

250

300

350

400

450

lead time

#b

oo

ke

d

Park and Travel 3 Smart Parking

9% increase in bookings within 1 week before departure, but lead < 4 days still needs smoothing

32% increase in Smart bookings with lead > 42 days=Early Bird Smart rate

New features coming soon!New features coming soon!

iDEAL payment / Diginumber / licence plate recognition for Privium members

Add-ons – cross-promoting and cross-selling other products /services

Html email confirmation – will provide an extra communication platform

Occupancy based rating and overbooking – further enhancements to yielding

Cross promotion – Shopping Cross promotion – Shopping Voucher (Dublin Airport)Voucher (Dublin Airport)

And more new features coming And more new features coming soon!soon!

Multiple Bookings – multiple bookings in one transaction – for frequent flyers or groups

Corporate Accounts – to pentrate new markets (large companies, affiliates etc)

Tied Commission – incentive to encourage affiliates etc to grow sales

Marketing questions – seek instant customer feedback to optimise products

How does Schiphol see the future How does Schiphol see the future for on-line bookingsfor on-line bookings

Better customer profiling from customer data

Pre-booked customer access by boarding card or mobile phone bar code

Building customer loyalty / targeted offers by profile

The focus is on customer convenience including ....

Mobility with Chauntry ParkspaceMobility with Chauntry Parkspace™™ mobile phone application mobile phone application

In conclusion:In conclusion: Pre-booking is fundamental to Schiphol’s objectives of

increasing revenue yield and market share Schiphol now has a pre-booking system with infinite

capability to meet the ever-changing and future demands of its airport parking business and its customers

In Chauntry, Schiphol has a specialist independent airport parking technology partner committed to ensuring its clients have the very latest pre-booking solutions

THANK YOU

QUESTIONS AND

DISCUSSION