Parking tech can help cities generate revenue amid economic uncertainty
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Efficient parking management can also help attract more people to downtown areas that are still recovering from the COVID-19 pandemic’s impacts, experts say.
Cities across the nation are exploring how tech can help draw more people into their communities for business as part of a yearslong push to revitalize downtowns. And with the summer season around the corner, experts say innovative parking and curb management can help attract visitors to downtown districts.
“Parking anxiety can be a deterrent to downtown visitation, so parking technology that allows visitors to plan in advance benefits cities’ community engagement and tourism,” said Chris Donus, CEO of parking technology platform Flash, in an email to Route Fifty.
In Colorado, for instance, the city of Colorado Springs is looking to spruce up its parking and curb management approaches to spur the flow of vehicle and foot traffic. As part of its 2025 parking plan, adopted this month, officials aim to deploy smart loading zones, license plate reader technology, mobile payment systems and other solutions, in a bid to “recognize the need for active curbside management to meet an ever-expanding demand and need from customers.”
Philadelphia is moving forward with an initiative to develop a digital twin of the city’s rights-of-way — such as streets, curbs and sidewalks — to help inform officials’ changes to ROW rules to improve safety for drivers, cyclists and pedestrians. The city, in partnership with transportation analytics provider INRIX, is leveraging grant funding under the federal Strengthening Mobility and Revolutionizing program to do so.
As cities grapple with shrinking budgets, leveraging parking solutions can help them tap into “potential revenue opportunities” for jurisdictions while “maximizing the services you provide your constituents,” said Sam Warnecke, vice president of sales at parking technology provider Passport.
Cities have been increasingly experimenting with and adopting parking technology over the last decade, he said, but the COVID-19 pandemic highlighted the need to develop a more flexible parking and curb management style to respond to fluctuations in the marketplace, such as a decline in commuting and an increase in curbside dining.
“The overarching goal of a transformative, efficient parking management program is to derive a tangible benefit for the public we all serve,” said Alejandra Argudin, chair of the International Parking and Mobility Institute’s Board of Directors, in an email to Route Fifty. “For instance, a digitally monitored curbside improves safety and engagement, allowing people to walk, bike, scooter and commute in a safer mode, fostering a sense of place and community.”
One way officials can further ease the parking experience is to ensure that municipal parking lots and garages are easy to find on navigation platforms like Google Maps and Waze, Donus said.
“Drivers are defaulting to setting their destinations in-vehicle when they depart or en route,” he explained. “Cities that don’t make their parking facilities visible to drivers across multiple platforms … lose revenue to facilities that do.”
Plus, cities should consider forgoing implementing apps and account creation requirements for such parking spots, he said, as the cumbersome task of downloading a new application and entering one’s vehicle and financial information can be another deterrent for downtown dwellers.
That’s where tex-to-pay systems, for instance, can play a crucial role in streamlining the parking experience for users and cities who have to monitor and enforce compliance with parking and curb management rules, said Argudin.
Argudin pointed to Pittsburgh, Pennsylvania, as an example, where officials made permanent a smart loading zone program late last year. Under the program, LPR tech at certain curbsides uses a camera to monitor how long a commercial vehicle is parked there, and, based on the vehicle’s license plate information, an automated bill is sent to them. Users can register for the program through a QR code on parking signs or online.
From January 2022 to December 2024, officials reported a 70% turnover increase in commercial vehicles using the spots, meaning vehicles were able to flow through the parking zones. Data also showed a 60% decrease in parking time, helping the efficiency of surrounding businesses and delivery drivers.
Ultimately, “Improved parking operations contribute to enhanced economic development and social vitality in dense urban environments,” Argudin said.
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