Parking in inner city areas
Traditionally the parking sector focuses on inner city areas, particularly because of the many shops. However, the shopping public is sensitive to the economic cycle: if consumers have less disposable income, they spend less time shopping and therefore park for a shorter time. Q-Park does not want to be dependent on a single activity. We focus on multifunctional inner cities with a broader activity pattern and greater activity outside office hours and shop opening times. Because these locations have a lower risk profile, Q-Park can invest in their quality. Visitors' appreciation strengthens our brand and the parking tariffs guarantee a good return on investment. Car parks in multifunctional inner city areas therefore form the core of our portfolio. These constitute 89% of the revenue and result. Furthermore, this segment still offers many opportunities for growth.
Parking at train stations
Locations near train stations provide a smaller proportion of our revenue but still generate a good return. Q-Park invests mainly in parking facilities at the larger public transport interchanges. These are used by people travelling by train, and by those visiting the offices, shops or other amenities in the immediate vicinity. We do not expect substantial growth in this segment: in many places the current capacity of the railway network is limited, particularly during the rush hour. Modifications to infrastructure have a long lead time and do not usually result in a spectacular increase in network utilisation.
Parking at hospitals
Demand for care has been increasing for many years, and this is partly due to the ageing population. In addition, medical care is combined in ever larger centres putting a corresponding pressure on parking. Regulated parking is becoming an increasingly important precondition for a hospital to function properly. This helps patients and visitors to arrive on time so that processes run smoothly and efficiently.
Parking at hospitals currently ranks third in terms of revenue, providing a moderate and stable contribution to profit. Increasingly large scale operations in the health sector are expected to lead to increases in fees and improvement in terms of the profit contribution.
Integral parking targets
Parking at airports and on-street parking do not belong to our core activities but may fit into the integral concept of the larger conurbations, in order to protect the existing portfolio or to take advantage of economies of scale. The market conditions at airports are still unfavourable for us to focus on this segment separately. Parking in the street necessitates enforcement services and we must tread carefully here to preserve the service-oriented nature of our organisation.
New parking targets
Since 2011, Q-Park has been experimenting with central parking management software which no longer processes cash, the Payment Card Site Systems. The costs of this are considerably lower, which offers us the opportunity to enter new market segments, such as parking at offices, apartment complexes and hotels.