Dynamic Pricing and Parking Industry


With a rapidly progressing wave of smart city concept, Parking lots and its management is an inevitable step to implement the fully automated Urban City Management System. With Dynamic Pricing, one can automate parking space and pricing with intelligent systems that are rapidly updating based on run-time data.

Dynamic pricing or Real-time pricing is a concept of setting rate for a product or a service that is highly flexible. It enables the parking operators to adjust rates of parking services on the fly, in response to the market demands. Dynamic pricing can be contradicted with Fixed pricing, a concept of setting rate for a product or service that does not fluctuated and is fixed however the conditions.

With the real-time information gathered by the intelligent online information systems developed to work on big data, changes in rates can be controlled by pricing tools based on the processed information about the frequency of use and availability of space. Rates altered on run-time based on real information can benefit both provider and customer of parking lots.


The concept of implementing Dynamic pricing to parking lots is called a Smart Parking that balances the demand and supply of parking. During peak times like game night, holidays, important events or weekend nights when demand is high, parking owners can raise the rates to help control the occupancy. In similar fashion, providers can decrease rates when the demand is not high. Offering consumers better than what’s offered on average.

In favor of parking providers, dynamic pricing technique gives a push to the revenue and similarly decreases the operational costs for manually monitoring and adjusting rates occasionally. For those customers who usually park in low utilization parking lots would not have to pay for more than they should, as prices go down during low demand hours. However, customers would appreciate the fact that they what they are paying for a parking space is the actual value of that space and is not some arbitrary value.

Despite all the pros and cons of dynamic price implementation for both consumers and providers, it is an emerging idea that is growing tremendously to help automatize urban management. As they say, Smart Parking is the new parking. It is a step unavoidable, to be taken in fully implementing Smart City Framework.


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