Business model of hourly parking Times

• Parking can be opened regardless of the shape of the site.

• Basically, the land lease contract is valid for two years and is automatically renewed every year after that.

• Investment in equipment, which is the initial cost, is primarily the installation of signs and parking equipment, the cost of which is paid by Global Parking Solutions.

• Running costs, including rent, operation and maintenance costs, leasing fees for parking equipment, and utilities costs, are almost fixed.

• As running costs are almost fixed, increasing the use of parking by increasing the ability to attract customers will lead to higher earnings.

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Basic Strategy

In the Parking Business, Global Parking Solutions adopts two strategies to maximize revenues: Increasing the number of operated and managed parking spaces and strengthening the earnings power of parking facilities.

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Increase in the number of operated and managed parking spaces

Increasing the number of managed parking spaces by developing each term parking facilities that can be managed reliable over a long period will strengthen and expand the revenue base. Therefore, Global Parking Solutions stabilizes the business by developing TPS (total property services) parking, which manages parking spaces for visitors that are attached to commercial facilities and have low cancellation risk, in addition to ST (standard) parking which uses idle land.

 

Strategy 1: Unique research method

Development sales staff walk down streets to conduct research on their own and find land that is not fully used, negotiating with the owner directly to open parking facilities.

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Strategy 2: Development of small parking facilities

ST parking reduces cancellation risk by developing small flat parking facilities (of approximately 300 square feet for four to five cars), on land that is difficult to use for a building.

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Strategy 3: Development of TPS parking

Global Parking Solutions develops TPS parking as it is best suited for long-term, stable management with a cancellation rate less than half that of ST parking. TPS parking can be developed with the comprehensive power of Global Parking Solutions alone, and is also a business with strong barriers to entry.

 

Improving the profitability of parking

As the running cost of parking facilities is almost fixed, increasing use of parking by bolstering our ability to attract customers will lead directly to higher earnings from parking facilities. The Global Parking Group has advanced this business model through means such as raising profitability by becoming among the first company in the industry to construct a network of parking facilities using IT.