Determinants of Airport Parking Revenues in the United States: An Econometric Analysis

Airport parking revenues become essential in maintaining daily aeronautical and non-aeronautical operations and financing capital expenditures. There exist significant variations between different airports in terms of their parking revenues, and such variations will not be eliminated when airport parking revenue is standardized by passenger volume. Given the limited empirical research on airport parking revenues, this study examines the variation of airport parking revenue per locally originating passenger using random-effects regression on a five-year panel dataset. Our regression results reveal a significant positive relationship between airport economy parking price and airport parking revenue per locally originating passenger. Additionally, we find a significant positive relationship between household vehicle ownership and airport parking revenue per locally originating passenger. However, the number of offsite parking service providers can lead to a significant negative effect on airport parking revenue per locally originating passenger. Based on these findings, airport operators can implement strategic management initiatives tailored to local market conditions, with the goal of optimizing airport parking revenues and improving passenger welfare.