titlepage/contents pg 1-16 - British Parking Association

98 Chapter 7Tariff setting and reviewIn setting parking charge levelsfactors that should be taken intoaccount include:● Price elasticity of parkingdemand;● Competition between areas;and● Incentives for the use of offstreetparking.The price of parking can be set toinfluence parking activity in orderto serve policy objectives. Thelevel and structure of prices caninfluence:● The level of usage, andhence the traffic generated;● The type of user, and● The length of stay.The pricing of parking facilities isone way of directly affecting thecost of car journeys relative toother modes. Ideally the price ofpublic and private transportmodes should be coordinated inorder to achieve mode splitobjectives, but this is difficultthough not impossible wherepublic transport is deregulatedand privatised.Pricing levels also can be set inorder to:● Secure sufficient income tocover the cost of operating,maintaining and enforcingcar parking facilities;● Raise general income,though this practice is notgenerally supported inGovernment guidance;● Raise income for theimprovement of parking andother transport facilities; or● Maximise revenue, as isoften the case with privatelyowned public car parkswhere there is no localauthority control. (See alsoChapter 10.)These pricing objectives mayconflict with one another andwith other local transportplanning objectives. However, insetting tariffs at public car parks,it is good practice to set them ata level such that 10 - 15% of thespace is free at peak times. Thismeans that drivers will alwayshave a high expectation thatparking space will be available.Some local authorities may betempted to resist higher chargesfor fear of losing customers, butthis should be avoided. Bothsupply and demand issues mustbe resolved. The price of parkingshould support the policy, notconstitute the policy.Matching demand to supplythrough price is good practicefrom an operational as well as apolicy standpoint. It means that:●●The car park aisles do notbecome congested with carsseeking spaces;Queues building up on thehighway due to shortage ofspace are avoided; and● Revenue is maximised withinthe established parametersfor tariff setting (eg, a policydecision to favour short stayup to four hours). If chargesare lower, then revenue isforegone as some customerscannot park, or have to waitfor long periods.Of course, demand can belowered further still by chargingmore than needed to achieve 10- 15% vacant spaces at peaktimes. In this case the car parkwill not be fully used, which maybe useful as a tactic prior to areduction of parking supply, forexample by keeping off-streetspaces in reserve for when anon-street control scheme isintroduced.Peak-time pricing can lead tounintended under-use at othertimes. Some tariffs can beflexible to encourage off-peakuse and hence balance demandthrough the day and week.Special consideration may berequired for evening parkingcharges when the customers arerestaurant or theatre visitors.Parking capacity at these timesmay be abundant and hence acheaper rate to encourage theiruse makes good businesssense. Providing cheapovernight parking also makesgood business sense whilst alsosupporting the move towards amore urban lifestyle. Residents’parking should be available 24