"Oakland airport looks at lower parking rates"

Wednesday, November 29, 2006

Oakland airport looks at lower parking rates
By Paul T. Rosynsky
The San Jose (CA) Mercury News


OAKLAND - Officials at Oakland International Airport have tried numerous
ways to convince air travelers to use airport parking lots.

They've erected new signs, placed ads on the radio and even considered a
partnership with the private sector in hopes of winning back the lucrative
parking business lost to a cadre of off-airport parking complexes.

But after four years of failed campaigns, the airport has finally figured
out what has made their lots less attractive.

"It's the rates, stupid."

Next week, Port Commissioners will vote on a proposal to lower the rates at
the airport's long-term and economy lots.

"We have to get competitive," said Aviation Director Steve Grossman. "We had
to do something, so this is what you do."

If approved, the airport will reduce rates at the economy lot to $15 a day
from $19. It will also cut rates at its long-term parking lot to $19 a day
from $22. However, by comparison, some off-airport lots charge less than $10
a day and provide free shuttle rides.

Along with the lower rates, the airport will increase the frequency of
parking lot shuttles and spend about $115,000 advertising the parking lots
to the public.

While the new rates do not drop to the lows offered by off-airport parking
lots, port officials hope the new fees combined with an advertising blitz
will convince travelers that parking at the airport is more convenient than
parking off it.

The ongoing battle to lure travelers to on-airport parking began several
years ago when off-airport parking lots began to sprout up along Hegenberger
Road.

With their low rates and various amenities, the off-airport business slowly
eroded the airport's market share of travelers who drive to the airport.

In 1996, more than 40 percent of the people using the airport parked in
airport lots, only 23 percent did last year.

The importance of having passengers use airport parking lots can be seen in
the port's annual budget.

In 2004-05, the airport generated $42.4 million from parking fees and
charges it places on ground transportation companies -- taxis and shuttles,
among others -- for access to the airport.

Port officials have been reluctant to lower parking rates for fear of losing
revenue. But the time has come, Grossman said. The agency must lower the
rates or lose more business.

Grossman predicted the airport would break even with the lower rates by
attracting more customers. Though, he said, the airport will never be able
to match the $8.95 to $12 a day charges offered by the off-airport lots.

At least two port commissioners agreed with the plan to lower rates and said
the issue is no longer one of revenue.

Its more about customer service, they said.

"It is not just to try to generate more revenue, it also is to serve the
public," said Commissioner Frank Kiang. "Right now, we have too many vacant
spots every day at the airport and that just doesn't make sense. Parking
on-airport is more convenient, it's closer."

Commissioner Darlene Ayers-Johnson said the airport's parking lots should be
viewed as a service provided to customers rather than a profit center.

"It is part of a whole, which is service," she said. "We have to be
competitive and we have to be service orientated."

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