Unregulated monopoly markets where as a buyer you have no alternatives and the price charged can be as high as the seller wants it to be. Airport parking falls into this nasty situation. It has come to knowledge recently throughout the media that airport parking is making a massive amount of money.
Sydney airport made $360 million, Melbourne earned $182 million and Brisbane $136 million dollars in a year! source.
At Sydney airport it costs $16.90 for 30 to 60 minutes of parking. 2 days is $102 which in any other situation you’d go to a competitor, but there is none in this market. These returning’s on car parking at the airport is astonishing. For just a stubby concrete tower to pull in that much when the only outlier in this business is buying the land and building the car park at the beginning is unheard of.
In most other business’s operations you have to pay upkeep, wages, utility bills and inventory. But not car parking, maybe some upkeep and a small amount of wages. These car parks would have been paid of within the year.
The carparks work well from my experience, low car queues, plenty of spaces and close walking to the airport terminals. Should they be just under $17 to park for 30 minutes?? No absolutely not. Consumers are paying out of the pocket big time for an unregulated monopoly.
Consumers are paying out of the pocket big time for an unregulated monopoly
To save money you have to use an independent car park away from the airport which costs time by using shuttle services. It’s not convenient which matters a lot for travel.
The ACCC have hinted at getting a cap put on the parking prices. This is a positive move and cannot be supported more highly. Getting regulations on the maximum amounts that can be charged at airport parking is an excellent result.