Ideal Parking Rates for Full Occupancy and Higher Revenue

Setting the right parking rates is a key lever for maximising revenue and optimising the utilisation of your parking facilities. But how do you determine the right parking fees? And how can it be refined over time?

In this article, we'll walk you through how to find and fine-tune the ideal pricing model for your site. 

Table of Contents

Primary Goal: Maximising Revenue

Start Low - Optimise Step by Step

Factors That Influence Your Pricing Stategy

What Types of Rates Are There and When Do They Make Sense?

Special Rates & Discounts: Creating Smart Incentives

What Makes a Good Parking Rate?

Data-Driven Rate & Fee Optimisation

How to Build the Perfect Pricing Structure Step by Step

Conclusion

Primary Goal: Maximising Revenue 

If you want to operate your parking facility profitably, your focus should always remain clear - maxisming revenue while ensuring optimal occupancy. 

Put simply, parking revenue can be calculated as:

revenue = Ø revenue per parking transaction * number of transactions

From this, two key levers emerge that can help boost your revenue:

1. Higher prices, to increase the average revenue per parking transaction
2. Greater occupancy, to raise the total number of transactions

But be careful—these two levers are closely connected. If your prices are too high, your car park might stay empty. Set them too low, and while more cars may show up, you could be leaving money on the table and missing out on your site’s full revenue potential.

Here’s a simple example:

This simple calculation shows how a lower rate can actually generate significantly more revenue—as long as it draws in enough extra users to make up for the lower price per transaction.

Tip

A well-designed pricing model helps you attract more customers, reach your target occupancy, and keep spaces from sitting empty.

Start Low - Optimise Step by Step 

When opening a new car park or taking over its management, one of the first questions is often: “What should I charge for parking?”

Our advice: don’t get too caught up in finding the “perfect” rate right away. Start with a lower hourly price and adjust it gradually as you learn more about demand and user behaviour.

1. Attractive Starting Rate

Start with competitive pricing to fill your car park quickly. A lower introductory rate is a great incentive—especially at new locations—giving potential customers a reason to try your facility. This gives potential customers a chance to discover your site, and ideally, turn them into regular users. 

Tip

Start with a simple, low hourly rate to attract as many customers as possible. To find the right level, compare prices with other parking options in your area. 

 

2. Optimise Your Pricing Step by Step 

Once your parking facility is up and running, keep a close eye on occupancy over time. Then, gradually rause your rates until you find the sweet spot for optimal utilisation. 

Important

Don’t forget to account for spaces reserved for long-term parkers. If it’s unlikely that all long-term users will park at the same time, there’s no need to reserve one space per person. Instead, base your planning on a realistic average.

 

 

Example Calculation:

You’re managing a car park with 70 total spaces, 5 long-term parkers, and 5 vehicles with pattern-based access.

 

• Your occupancy data shows that no more than 7 of those spaces are used at the same time by long-term parkers. 
• By adding a small buffer of one extra space, you can set your target occupancy as: 70-8=62 available spaces for flexible use.

Factors That Influence Your Pricing Stategy

Customer price sensitivity is shaped by several key factors. Be sure to consider the following when setting your parking rates.

Tip

Align your pricing with the expectations and habits of your core user groups. This helps you maximise revenue without driving customers away.

The Arivo Parking System provides you with maximum flexibility when it comes to setting your rates - from simple hourly pricing to more tailored pricing based on time or user groups. Want to learn more? Get in touch with Arivo today

 

What Types of Rates Are There and When Do They Make Sense?

The right pricing structure depends on your location and how your users behave. Whether it’s flat, tiered, or time-based—each model has its own advantages.

1. Low Starting Rate

Simple hourly rates, such as € 2,00 per started hour, are ideal for parking facilities with high proportion of short-term parkers. 

Important

It’s not a complex pricing structure that drives revenue—it’s getting the base rate right!

Simple pricing—whether hourly or in 30-minute blocks—offers a solid foundation for future optimisation. It gives you the flexibility to gradually refine your model over time. Once that’s in place, you can easily experiment with additional options, like a 24-hour cap or different rates for day vs. night, or weekdays vs. weekends.

Tip

Keep your pricing structure simple, so your customers don't get confused!

 

Clear, easy-to-read pricing lets drivers understand the cost at a glance when entering the car park. Overly complex or detailed pricing displays, on the other hand, can lead to confusion, complaints, and unnecessary pressure on your customer service team.

Key Advantages at a Glance:

✅ Makes sense for varying demand throughout the day
✅ Enables fine-tuned occupancy control
✅ Strong foundation for ongoing pricing optimisation

2. Declining (Degressive) Rates

With degressive pricing, the cost per time unit decreases the longer a vehicle stays.
A low initial rate—say, €2,50 for the first hour—helps ensure you capture a base amount per visit and is generally well accepted by most users. After that, charging continues in smaller, attractive increments—for example, €0,50 for each additional 30 minutes.

Degressive pricing works especially well for high-turnover car parks. Here’s a quick example using a rate of €2,50 for the first hour, followed by €0,50 per additional half hour:

Key Advantages at a Glance:

✅ Guaranteed revenue per transaction thanks to a low base price (e.g. for the first hour)
✅ Ideal for high-turnover areas (e.g. hospital or city centre parking)
✅ Customer-friendly: affordable for short stays, perceived as “good value” for longer parking durations

3. Variable Day & Night Rates

Day and night rates split your pricing based on the time of day—for example, applying a day rate from 7:00 to 19:00, and a night rate from 19:00 to 7:00. This model is especially useful for car parks with fluctuating occupancy throughout the day, such as city-centre locations or hospitals in urban areas.

It lets you make the most of different revenue opportunities across a 24-hour cycle. During the day, when demand is high, you can charge more. In the evening or at night, lower rates offer an incentive to keep your spaces filled instead of sitting empty.

Tip

 

Clear signage at the entrance showing both day and night rates is essential—this prevents surprises and misunderstandings at the exit.

 

Key Advantages at a Glance:

✅ Effective when demand fluctuates throughout the day
✅ Enables precise occupancy control and maximises revenue potential
✅ Ideal for locations with day/night usage patterns (e.g. city centres, hospitals)

4.  Different Rates for Weekdays, Weekends & Public Holidays

Weekday and weekend/public holiday rates structure your pricing model based on the day of the week. This approach is particularly effective in areas where parking demand varies widely throughout the week—such as business districts or locations near leisure attractions.

Example – Car Park in a Business District

If your car park is primarily used by commuters during the week, you might consider a pricing model like this:

 

• Mon–Fri: Standard short-stay rate (e.g. €2,50/hour)
• Sat & Sun: Reduced short-stay rate (e.g. €1,00/hour)
• Additionally: Long-term parking offers valid on weekdays (e.g. €80/month or €30/week)

Example – Spa or Wellness Resort Parking

If your car park primarily serves spa guests or hotel visitors, with higher demand on weekends, this setup could be a good fit:

 

• Mon–Fri: Low short-stay rate (e.g. €0.50/hour, daily cap €7.00)
• Sat & Sun: Standard short-stay rate (e.g. €2.00/hour, daily cap €12.00)
• Additionally: Free or discounted parking for hotel guests

Want to manage your car park and pricing model easily and efficiently with Arivo’s smart Parking Software? Contact Arivo today 

Special Rates & Discounts: Creating Smart Incentives

Targeted discounts and special conditions are more than just price cuts. They’re strategic tools. They help you manage demand, retain valuable user groups, and maximise the efficiency of your parking facility.

Whether it’s for registered users, long-term parkers, or event attendees, personalised offers add value, ensure steady revenue, and boost your site’s long-term appeal.

Discounted Fees for Registered Users

Online short-stay parkers—such as those registered through the Arivo Customer Portal or using parking apps like EasyPark or Parkster—can be offered exclusive discounted rates. This helps boost customer loyalty and encourages repeat visits.

Advantages

Mobile parking via the Arivo Customer Portal or apps like EasyPark or Parkster turn anonymous one-time users into regular, registered customers. With the right system in place, it all happens without adding any extra work for operators.

 

Here’s how it works with Arivo:

• Sign-up and management of number plates, payment methods, etc., are handled directly by the customer.
• Billing, invoicing, and even debt collection (including licence plate blocking) run fully automatically in the background.

Interested in using the Arivo Customer Portal to boost customer loyalty? Contact Arivo now

Fixed-Rate For Long-Term Parking

Fixed weekly or monthly rates provide peace of mind for both sides. You get steady, reliable income—especially with contracts that include a minimum term—while users enjoy the convenience of hassle-free parking and predictable costs.

Tip

You don’t necessarily need to reduce short-stay fees to improve occupancy. Depending on the use case, targeted long-term offers can be just as effective.

 

Here are two examples:

• If your facility is typically empty at night and located near residential areas, offering special long-term rates for local residents can be a great incentive.

• If it's underutilised during the day and close to offices or businesses, custom long-term packages for employees could be a smart way to boost occupancy.

Event & Venue-Specific Pricing

Whether it’s a concert, exhibition or major event—event-day pricing lets you capitalise on higher demand and increase your revenue.

Alternatively, if your goal is to reserve spaces for event guests and minimise unauthorised parking, you can offer free or discounted parking exclusively for attendees.

With Arivo’s parking system, setting up special fees is quick and easy. Use Arivo’s Discount Management feature or adjust rates directly in the system settings. Interested in managing your site with Arivo? Contact Arivo today 

What Makes a Good Parking Rate?

A good pricing model is more than just setting a number. It drives customer satisfaction, boosts occupancy, and ultimately supports the success of your business.

The most effective pricing structures strike a balance between revenue optimisation, occupancy goals, and ease of use. Always keep these three principles in mind:

✅ Optimising Occupancy
Use your pricing strategically to manage demand. Cheaper rates in the evening, on weekends or during off-peak hours can reduce downtime and improve overall efficiency.

✅ Clear & Simple Rate Structures
Clear signage, easy-to-read pricing displays, and obvious indications of payment requirements—especially at the entrance—create transparency and prevent confusion or complaints.

✅ Customer-Friendliness & Transparency
A well-designed pricing is part of the user experience and helps build customer loyalty. Complicated pricing models can confuse and deter users. Only those who feel well-informed will park with confidence—and return.

Data-Driven Rate & Fee Optimisation

To truly optimise your pricing in a data-driven way, you need to analyse how your car park is being used. Occupancy and usage data are key to making informed decisions.

Ask yourself the following questions:

• How long do people typically park?
• When is demand (or occupancy) at its peak?
• How do pricing changes affect occupancy levels?

Tip

Test new pricing in small steps so you can observe and evaluate its effect on usage and adjust accordingly.

An efficient parking system provides you with a dashboard or occupancy report that gives you a clear overview of overall utilisation levels and peak times throughout the day and week—at a glance.

Arivo also provides a downloadable occupancy report via Arivo Reporting. In addition, all raw data can be exported for further analysis and custom evaluation.

Keep your occupancy analysis simple. Make decisions based on average utilisation over a longer time frame, rather than short-term fluctuations.

• Is your car park full or hitting your target occupancy? Then it’s time to raise your rates and maximise your revenue potential.

• Still not at full capacity? Try lowering your rates slightly to stimulate demand and improve utilisation.

Important

Monitor occupancy over an extended period—not just on isolated days.

 

This helps you avoid distortions caused by short-term fluctuations such as weather, holidays, or events. Only a sufficiently long observation period will provide reliable data for well-informed pricing decisions.

If your occupancy data reveals clear peak times, you may want to consider applying higher rates during these periods—for example, through differentiated pricing such as day vs. night or weekday vs. weekend rates.

Tip

Avoid changing or adjusting your pricing too often! Frequent adjustments in a short period can confuse—or even discourage—your customers.

 

Also keep in mind: every price change means updating signage, which takes time, effort, and adds extra costs.

How to Build the Perfect Pricing Structure Step by Step

Optimise your pricing step by step. Start with a low entry-level rate and adjust it gradually over time. Once you’ve built a solid foundation, you can begin introducing more refined pricing—like time-based rates or tailored offers for specific user groups.

1.  Start by Finding the Right Base Price

1.1.    Begin With a Low Introductory Rate
A competitive entry price per hour or per 30 minutes can quickly boost occupancy and raise awareness of your car park, especially when compared to nearby alternatives.

1.2.    Monitor Occupancy Over a Longer Period
Track usage over several weeks to identify consistent patterns. This helps you avoid making decisions based on short-term fluctuations.

1.3.    Analyse Parking Behaviour
Look at average stay durations, occupancy trends, and peak usage times. Arivo makes this easy with downloadable occupancy reports and access to raw data for deeper, custom analysis.

1.4.    Adjust your base rate
Gradually increase or decrease your prices every few weeks until your site reaches hits the ideal balance between occupancy and revenue.

2.  Introduce Differentiated Pricing (if needed)
If you notice consistent peaks or low usage during certain times, introducing time-based pricing can be a smart move. For example:

• Day vs. night rates
• Weekday vs. weekend rates
• Seasonal pricing – e.g. summer vs. winter

3.    Special Online Rates for Short-Stay Parkers (If Needed)

If you still have empty spaces despite offering fairly competitive rates—or you’re looking to turn occasional visitors into regulars—consider adding a discounted rate for online short-stay parkers.
For instance, you could set this rate 10–20% lower than your standard price.

You might also explore customised offers for long-term parkers to encourage commitment and boost utilisation.

Conclusion

Increasing revenue while maintaining optimal occupancy isn’t a matter of luck—it comes from a smart, well-executed pricing strategy. A low entry-level rate lowers the barrier for new customers and sets the stage for strategic optimisation down the line. The key is to adjust your rates gradually and base every change on real data—driven by occupancy levels and user behaviour.

Whether you opt for a simple hourly rate, time-based pricing (e.g. day vs. night), or tailored offers for specific customer groups, effective parking fee planning should always consider your location, the local competitive landscape, and the habits of your core user base. Just as important is clear, easy-to-understand pricing communication—at the entrance and across your facility.

A modern parking system gives you the flexibility to manage pricing dynamically and access real-time occupancy data. With these insights, you can make smarter decisions, fine-tune your pricing strategy, and drive long-term success.

Flexible Parking Rate Management and Optimisation With Arivo

With the Arivo Parking System, optimising your pricing strategy is simple and data-driven. A clear occupancy dashboard helps you monitor usage in real time, while the system’s flexible pricing tools let you tailor parking fees with ease.

• Hourly, per-minute or daily rates
• Minimum charges and maximum caps (e.g. daily or weekly limits)

• Variable pricing based on time of day, day of the week, or specific dates

• Custom pricing strategies for different user groups

• Custom rates for specific areas within your facility

Want to take control of your parking operations with Arivo? We’d be happy to explore your needs and find the right solution. Contact Arivo now