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Understanding the basics of parking management shouldn’t feel complicated, but technology companies and consultants tend to use industry terms that are overly-technical and hard to grasp. While “Revenue per space,” “CapEx,” and “LPR” aren’t necessarily complex in practice, you do need to understand what they mean and how they apply specifically to parking facilities.
We’ve written a quick-reference guide to break down some of the most important terms and metrics for parking lots, garages, and other facilities. Our guide explains it all in clear, practical language - starting with key metrics, then covering other terms you’ll often hear in the parking industry.
If you’re looking for specific information, use the linked table of contents below to jump to the section that’s most relevant to you. Or, if you want more in-depth guidance on how to apply these concepts, check out our full parking management guide, now updated for 2025 and 2026.
What it is: The total amount your parking facility earns from parking payments before subtracting operating expenses, but after platform or processing fees.
Why it matters: Gross revenue shows how much income your property actually keeps from all parking activity. It’s a key measure for tracking financial performance across facilities. While Gross Marketplace Volume (GMV) measures all parking bookings, gross revenue reflects the portion that goes to you as the property owner.
What it is: The total value of all parking payments made through your facility or platform before any fees or expenses.
Why it matters: GMV shows the full scale of customer demand and total amount of payments made by customers. GMV is a top‑line measure of activity, while Net Operating Income is what’s left after costs.
What it is: How much money your parking facility makes after paying operating expenses.
Why it matters: This shows how much revenue your parking property has after expenses are paid. It’s the number owners use to see if a lot or garage is profitable.
What it is: The regular, ongoing costs needed to run your parking business every day. This includes wages, utilities, cleaning, maintenance, and management fees.
Why it matters: Knowing your OpEx helps you find ways to save money and run more efficiently. Even small improvements in lighting, staffing, or systems can add up.
What it is: The big, one‑time projects that keep your parking asset in good condition. Depending on your property, this could include things like resurfacing, installing EV chargers, or structural repairs.
Why it matters: These upgrades cost more upfront but can raise long‑term income and property value by making your facility safe, comfortable, and more reliable.
What it is: The portion of your gross revenue that goes to a parking operator or management company to handle operations.
Why it matters: Fees and incentive structures change your bottom line, upside (how much you can make), and downside (whether you’re exposed to fees even when revenue goes down).
What it is: How much money each space brings in over a set time (i.e., day, month, or year).
Why it matters: Helps you set expectations for future performance and understand your growth potential if you fill more spaces.
What it is: The average revenue earned from each unique customer or license plate.
Why it matters: This shows customer value and helps you evaluate loyalty or repeat‑use programs.
What it is: A breakdown of your earnings between short‑term parkers (daily/hourly) and long‑term or monthly parkers.
Why it matters: A healthy revenue mix keeps cash flow steady year‑round. During slow months, monthly contracts can cover for fewer daily visitors.
What it is: Changing rates based on demand to charge more at busy times and less when spaces are open.
Why it matters: Helps maximize profit when higher numbers of drivers need parking, and it keeps spaces in use during slow hours.
How to apply it: See our AirGarage dynamic pricing handbook to learn more about our approach in real parking facilities.
What it is: The total income from drivers whose parking sessions begin automatically when they enter a facility, usually through license plate recognition or saved payment info.
Why it matters: Auto‑start makes paying seamless and helps capture revenue that might otherwise be lost if drivers forget to start a session manually. It also improves accuracy and convenience for repeat customers.
What it is: ”Uplift” is what we call revenue gained from improvements in pricing, marketing, and enforcement. Uplift captures the total growth you see after fine‑tuning rates with dynamic pricing, driving more visibility through online marketing, and reducing lost payments with better enforcement.
Why it matters: Tracking uplift helps you understand what’s actually moving the needle. It connects multiple improvements into one measure of revenue growth instead of focusing on pricing alone.
What it is: Lost income from violations, system errors, or cash payments that are diverted by employees.
Why it matters: Revenue leakage silently reduces profits, especially in older or cash-heavy systems. Technology like LPR and cashless payments helps reduce this risk.
What it is: The system used to make sure everyone who parks in your lot or garage follows the rules and pays correctly. It includes checking vehicles, identifying violators, and sending reminders or fees when someone does not pay.
Why it matters: Good enforcement keeps your parking fair for everyone and helps prevent lost revenue. It also ensures that spaces stay open for paying customers and that drivers understand the rules are taken seriously.
What it is: The percentage of vehicles that leave your facility without paying.
Why it matters: High rates may show that signs are confusing or that enforcement isn’t strong enough.
What it is: Money recovered from unpaid stays or missed/failed payments through better enforcement or payment systems.
Why it matters: Even a small number of unpaid parkers can add up to big losses. Tracking recovery shows how effective your enforcement system is.
What it is: A physical way to stop repeat violators from leaving your facility until they pay - usually done with a tire boot or similar device.
Why it matters: Immobilization stops drivers from leaving, but it’s usually best to use as a last resort. At AirGarage, we use Progressive enforcement steps that focus on ease of violation payment to avoid customer frustration and improve revenue recovery.
What it is: A regular, in‑person review of your lot or garage where staff check for violators and make sure the property is in good condition. At AirGarage, these inspections are done by trained personnel who handle more than enforcement. They also complete on‑site tasks like litter pickup, taking photos, and flagging maintenance issues while also keeping an eye on vehicle compliance.
Why it matters: Walk‑throughs help owners keep both operations and presentation at a high standard. They ensure your facility stays clean, safe, and well‑maintained while protecting revenue through consistent enforcement.
What is is: On-site staff who check vehicles, issue violations, and make sure drivers follow payment rules.
Why it matters: Traditional enforcement can be costly, with full‑time staff on site even when they’re not needed. AirGarage uses a more flexible, cost-effective model that sends trained personnel and supplements with a network of gig workers that we call “Space Force.” This keeps coverage consistent while lowering costs and improving efficiency.
What it is: We like to call this “Sentiment,” and it describes a metric that shows customer satisfaction based on public review data.
Why it matters: Your parking facility’s public reputation has a direct impact on occupancy and repeat visits. Using external reviews gives a more accurate, real-world picture of how people feel about your property.
What it is: The ratio of filled to unfilled parking spaces during a certain period.
Why it matters: Occupancy rate tells you how many of your spaces will be full within any period of time. This metric will help you understand if you’re pricing correctly. Consistently high occupancy could mean prices have room to increase, while low occupancy usually shows your pricing is off or your visibility is low.
What it is: The busiest time (most usage) in a day or week.
Why it matters: Helps you more accurately set pricing for busy windows.
What it is: On average, how long vehicles are parked during one stay.
Why it matters: Shorter stays support more turnover and more paying customers per day.
What it is: The average time drivers spend inside your facility searching for an open space.
Why it matters: Longer circulation times frustrate customers and signal inefficiency, which is often due to unclear signage or constant full occupancy.
What it is: The number of distinct license plates captured by your LPR system during a set period. Each plate is counted once, even if it appears multiple times.
Why it matters: Unique plate scans help measure how many individual drivers use your facility and support metrics like turnover, revenue per driver, and occupancy accuracy.
What it is: How easy it is for customers to find your parking facility on digital platforms and from the road. Marketing and signage drive your visibility.
Why it matters: Regularly checking your map listings, signs, and app visibility ensures strong occupancy.
What it is: The set of strategies and tactics used to boost the visibility, desirability, and usage of the lot by potential drivers. Marketing can include online listing optimization, advertising across platforms, and integration with booking channels like ParkWhiz, SpotHero, and more.
Why it matters: Smart marketing keeps your lot visible and competitive, which directly translates into higher occupancy and more consistent revenue for property owners.
What it is: How many vehicles use each space in a given day.
Why it matters: Turnover helps you understand usage efficiency, which is especially important for retail and event lots.
What it is: The average amount you spend to keep each parking space in good shape.
Why it matters: Helps track and control long‑term costs.
What it is: How often payment kiosks, cameras, gates, sensors or other key pieces of equipment are out of order.
Why it matters: Every hour of downtime can mean lost revenue and unhappy customers.
How to track it: Log equipment issues and measure total downtime each month. You can learn more about how quickly these hidden costs add up in our article on the downsides of parking gates.
What it is: Camera systems that read license plates to manage entry, exit, and payments automatically.
Why it matters: Reduces labor, speeds up parking, and helps you track who enters and exits. Our article on how to compare LPR systems for parking facilities helps explain which aspects of these systems matter most.
What it is: The software or dashboard that connects all your parking data, including revenue, occupancy, technology (e.g., cameras), and enforcement.
Why it matters: Gives you clear insight into what’s happening across multiple lots or garages. A good parking management system also offers dashboards and reporting to make sense of the data.
We regularly publish articles to help make parking management best practices more actionable and understandable. Check out the content below to learn more about applying key concepts in your daily management and operations:
