Passengers guilty of high parking ticket prices



[ad_1]

Despite the large number of complaints from the public, the Productivity Commission has defended the cost of parking at Australian airports, which often exceeds the cost of a plane ticket.

A preliminary report released today states that consumers attach great importance to "convenience" and cost is justified.

"Many consumers resent the price of parking at a major airport because a few hours

Short-term parking next to the terminal may cost more than one air ticket, "the report says.

"(Airports) are the only provider and there are no substitutes for people who want the convenience of parking just a short walk from the terminal.

"People value the convenience of parking near the terminal buildings. O

premium that users are willing to pay for a limited space near the terminals generates locational rentals. "

The high cost of parking at airports affects many Australians; We are the nation with the largest number of domestic seats per capita in the world.

Airport operators have a monopoly on the stations near the terminals, but the report notes that they are likely to face greater competitive constraints in the distance parking market, as long as independent parking operators have access to airport terminals for their buses "

The report explains that the price of parking was used to "reduce congestion" at the most sought-after parking places. The company said operating costs, including surveillance cameras and "covered parking", "more expensive to build and operate than the open pit parking", have raised the price.

The report rejects the idea of ​​airports exerting market power, saying that the lack of market diversity is due to the fact that land is "scarce" since it is used for other purposes, including car rental companies.

"Many consumers resent the cost of parking at monitored airports," the report continues.

"Parking fees are not due to airports that exercise their market power – the price of terminal parking can be explained by the amount that passengers deposit at convenience, the limited amount of land near the terminal and the need to manage congestion ".

The report said that the cost can be compared to consumer spending on parking lots in hospitals, sports venues and entertainment venues.

The report suggested that consumers could use web-based applications to compare options for access to airports, including Uber and taxis, before deciding to park on the spot to avoid being hit by "an unpleasant surprise."

The Productivity Commission will deliver its final report to the Federal Government in June.

[ad_2]

Source link