Operating a car park might seem like a straightforward business, but behind the scenes, there are numerous challenges that parking facility managers face daily. From technology glitches to customer satisfaction, the complexities of managing a car park go beyond simply collecting fees. Robert Horton, Managing Director of First Class Valet, shares valuable insights gained from more than ten years in the valet parking industry. 

First Class Valet works across multiple industries, including many shopping centre sites. Today, the company provides services to more than ten shopping centres operating valet parking services, including at Castle Towers, Eastland, Rouse Hill Town Centre, Canberra Centre, and Highpoint Shopping Centre. We have discovered that problem-solving requires an understanding of the issues.

In this article, we explore the top five challenges we’ve encountered through our experience in running car parks and the solutions we’ve implemented.

1. Staff training

Unskilled staff results in poor customer experience. The overall customer experience is a pivotal factor in the success of any business, and car parks are no exception. While we hire staff who love people and customer service – which is a great starting point – we find they almost always need training.

If safety, clear communication, friendly staff, and responsive customer service are achieved, it greatly improves the overall customer experience. When customers pay for valet parking, they expect an exceptional service experience.

A few years ago, we launched the First Class Valet Academy, which provides valet training for our team; however, some of our clients also use the academy to outsource their valet training needs. We’ve also worked with clients to create bespoke training modules that are tailored to individual sites and car parks.

When the service provided is exceptionally good, customers come back as return customers and tell others about the excellent service.

When customers pay for valet parking, they expect an exceptional service experience

2. Resourcing

Resourcing the operations of car parks or car park services can be a complex task. Our advice is to look at long-term outcomes and your goals to then match them to your strategy. Many organisations forget to quantify the additional costs of employing direct compared to an outsourcing model. When quantifying, also consider the ripple effect it has on the productivity of your existing team (getting on with their job), morale, customer service, and brand and image. You may find the margins are minimal and benefits are long-term.

Outsourcing isn’t for everyone, but it is certainly worth exploring. Over many years of operating, we’ve found every client has different needs. Some elements, such as technology, are outsourced, and in other cases, the team, management, and mid-management are outsourced to us, which allows our clients to focus on their core business and not have to worry about the day-to-day, nitty-gritty operations of a car park or car park services. We also work with clients on commercialising their car parks to achieve the best financial outcomes.

Car parks rely heavily on technology for tasks such as ticketing, payment processing, and security

3. Claims, risk and technology

The technology a car park uses is usually put in place for a better experience, but more importantly, to reduce claims and risk. One of the biggest pain points for car park management is managing claims and false claims.

In today’s digital age, car parks rely heavily on technology for tasks such as ticketing, payment processing, and security. Implementing and maintaining these systems can be a significant challenge.

Frequent technological issues, such as malfunctioning ticket machines or payment processing errors, can lead to frustrated customers and huge operational disruptions if contingency plans are not in place and ready for immediate deployment if needed.

Our valet technology using mobile-based systems is an example of significantly reducing the number of claims our clients experience. Once implemented, the tech also produces reports so you can measure reductions and cost savings, as well as identify areas of risk. Regular maintenance and staying abreast of technological advancements are crucial to ensure a smooth parking experience for your customers.

First Class Valet technology is the only one available in Australia that is paperless and seamless

4. Security

Security is a paramount concern for both car park operators and users. Instances of theft, vandalism, or even personal safety issues can deter customers from using a particular car park. Installing and maintaining effective surveillance systems, providing valet parking, adequate lighting, and security teams are essential components of managing security concerns. Additionally, implementing technology such as license plate recognition systems can enhance security measures.

Many of our clients have implemented valet parking services to provide an enhanced customer experience and address security concerns, especially in environments where any security concerns can lead to reduced patronage.

5. Low Net Promoter Scores (NPS)

Car parks and the associated service industry don’t have the best reputation. Ineffective operations, unclear signage, poor cleanliness and inadequate customer service can lead to frustration and dissatisfaction among users. Implementing mobile apps for parking information, real-time availability updates, and convenient payment options can significantly improve customer satisfaction. Pre-arrival information on websites should be easy to use and informative.

Our First Class Valet technology is the only one available in Australia that is paperless and seamless. The mobile technology resonates with customers, as all is controlled from their mobile phones. Our clients measure Net Promoter Scores consistently, especially in the hospitality, hotel, dealership, and retail industries. Car park operators should consider offering auxiliary services such as concierge services. For example, a laundromat drop off and pick up, car washing, valet services, and even managing catering and Uber orders. For shopping centres, they can also offer supplementary income.

Running a car park involves more than just providing a space for vehicles; for shopping centres, it has a significant impact on the customer experience.

Navigating the challenges of technology integration, security, risk, and customer experience requires a proactive and strategic approach. By addressing these challenges head-on, car park operators can create a seamless and efficient parking experience for users while staying ahead in an ever-evolving industry.

For a free operational review of your shopping centre, contact the First Class Valet team.