Uber, a lack of parking and other potential revenue disasters

As Uber continues to expand and offer a more convenient route for travelers, unexpected ripple effects are being felt in the hotel industry. No longer is it easier to rent a car and park, instead customers are saving money byy Ubering to and from their hotels. Strange as it may seem, the culmination of such actions has lead to a dip in profits for hotels. Without cars to park, the parking lots are becoming essentially useless. According to George Jordan from Hotel News Now, “New hotels are reducing the amount of parking stalls or eliminating parking altogether.” This loss in profit is unexpected and difficult to counter as convenience and saving money is a forefront on most customer’s minds.

Ironically, many restaurants in city centers are experiencing the opposite problem, as a lack of parking spaces puts them in a position to lose out on profit. Having to scour the surrounding area for parking spaces is a sure-fire way to encourage potential customers to find a different place to eat. While Buzztime reports that this lack of space may have less of an effect on 20-year olds, due to the previously discussed increase in the use of ride sharing, the effect is largely felt on the larger demographic of families and large groups. These groups are also more likely to give up while in search of a spot and have less patience for potential parking tickets or being towed.

Though these issues drastically differ in their cause, their effects both include loss of profit. Ironically, they both could potentially be resolved by one thing: Valet. Hotels need incentives for people to use their parking lots and valet is a solution that includes convenience and pampering. George provides an example of this with “cleaning the windshield, offering a bottle of water on a hot summer day, combining door/bell services with valet” and he concludes, as mentioned above, that these “are a means to improve the guest experience and the bottom line.” The issue of a lack of parking can also be solved by valet as it takes away the stress and time consumption of searching for an open spot. Buzztime concludes similarly to George that “It’s an investment, but the promise of carefree parking can lure many a wary customer.” Therefore, before giving up on a hope of making profit from a parking lot, or searching for a new location that has more potential for parking spaces, consider investing in a valet company!

Thanks for reading our blog today and if you have any questions reach out directly to us on our website.

The Vark Team