Dynamic pricing is being introduced to car parks in what the Daily Telegraph are rather sensationally calling a “war on motorists.”
Drivers face paying more for spaces than other customers under “dynamic tariffs” that can rise and fall in line with demand, such as at peak times or on event days. It means a motorist can park without knowing what they will be charged, as there is not always a fixed fee displayed.
Now in place in a number of sites across the country, the pricing practice has previously caused uproar in the music industry – notably forcing up the cost of tickets for Oasis’ Reunion tour by more than 100%.
Real-time “surge charging”, popularised by airlines and tech companies such as Uber, has proved divisive, with then-Prime Minister Sir Keir Starmer forcing through new regulations to protect consumers from unfair practices. For parking, it has previously been reserved for pre-booked private driveway spaces available on mobile apps, as well as at airport car parks.
But The Telegraph also found companies are increasingly using dynamic pricing as a way to boost profits, with experts warning consumers risk being caught out by the fluctuation in prices.
Q-Park, one of the biggest providers in Europe with more than 5,000 car parks in Britain and the Continent, now uses dynamic pricing when customers pre-book. A disclaimer on its website warns customers that “rates can change based on demand and availability”.
Prices for a space between 8am and 12pm were £44.20 on a Friday, when limited space was available. For the same slot on Saturday, the price was £47.52, while on Sunday it dropped to £43.20. Prices also diverged on the same day, with a four-hour slot between 2pm and 6pm quoted at £49.52 on Thursday, dropping to £48.52 between 3pm and 7pm.
This newspaper was also quoted £44.28 to park in central Manchester for 24 hours on the first Saturday in August. The quote for the same time slot the week after was £38.50 – a difference of more than £5.
Another provider, JustPark, also operates an “automatic pricing system” for its clients that “adjusts rates continuously” based on demand, availability in the wider area and “seasonal trends”.
One of the car parks it works with in east London, operated by Ocean Parking, now warns motorists with signs – erected in March – saying a “dynamic tariff system” is in place.
The tariffs are not displayed, but motorists are told prices are available on the JustPark app.
Jack Cousens, of the AA, warned that moving towards such systems in Britain risked unfairly catching motorists out.
“This makes me nervous that someone approaches on the assumption it is £1 per hour, parks up and discovers it’s £5 per hour so drives away. Given the nature of some private parking companies, I fear some may chance their arm and issue parking charge notices on the basis that someone entered and left without paying,” he said.
(Picture: Roger Utting)
