Hotel parking: the best new source of revenue?

HOTEL PARKING

Although the pandemic has impacted all industries substantially, there is no doubt that hospitality has been hit among the hardest. With flights cancelled and borders closed, hotels have been struggling to survive as fewer people travel. But with a little help from assets they already have, hotels can reinvent their streams of revenue. This can help them come out of the pandemic stronger than ever.

Most urban hotels have almost as many parking spaces as hotel rooms – and both are currently sitting empty. That’s why we’re suggesting that hotels revisit these empty parking spots for their additional revenue source. It may seem unnatural but parking spots can be rented out in a similar way to hotel rooms, except for longer periods of time. This means that they can secure revenue streams for an even longer period of time than they would if they just stuck to renting rooms. But how does this all work? Essentially, there are two options for renting out parking spaces.

Fleet Cars

As fewer people are travelling, rental car companies have been stuck with a backlog of vehicles and no where to put them all. Up until now, they’ve been taking up space in unused stadiums, mall parking lots or in airport parking lots but as more places open for business, these spots will need to be used by patrons of these locations. Hotels can use their empty parking spots to help out.

By renting out to feets of cars, hotels have the benefit of securing revenue for many spots at a time. Offering discounts for bulk rentals can also help to persuade companies to choose your lots. This option can be especially appealing to hotels located in tourist spots, such as near airports, train stations or attractions.

Monthly Rentals

For commuters coming into busy cities to work, finding parking options can be stressful and expensive. Typically, street parking is impossible to find and parkades are very inflexible with their leases. This can help hotel parking rentals thrive especially in areas where commuters who previously took public transit opt to drive themselves and represent new demand on parking

As employees slowly stop their remote work and re-enter office buildings, they may not be going back to the office full time. By offering flexible monthly leases for parking spaces—where each space can be rented out to multiple people for set days of the week—hotels can help employees who are back in offices on a part time basis. This option can be especially beneficial for hotels that are located in busy downtown cores.

Although there is no definitive answer to help hotels emerge from this period, using existing assets can be extremely beneficial. Parking can take up a lot of space on the hotel property, and when it sits unused, it can be a huge waste of money. Until hotels are operating at a normal capacity again, unused parking spaces can help hotels stay afloat.