The impact of user sensitivity on parking price sustainability

Abstract

Parking charges are considered to be a powerful tool for managing transport demand, as parking price is one of the most important factors impacting the travel decision-making process. This paper examines and quantifies the parking price impact on parking demand due to an increase in initial parking price as well as due to the real price decrease (inflation-adjusted) over time. Revealed preference data were collected for a parking garage located in central Belgrade at three different times: before the price increase, after the price increase and after a certain period of time had passed since the price was increased. The results confirm that parking price impacts demand. However, initial price changes have become less effective in managing demand over time. Although such a pattern is typical and expected, its quantification could be of great importance when defining parking prices and predicting impacts of new prices, as well as in determining the periodicity of price changes in order to maintain desired parking occupancy levels.