What drives the dynamics of airport parking revenues? A panel study of U.S. airports

Airport parking revenue serves as a vital financial resource for supporting airport operations, strategic planning, and infrastructure development. This study examines the influence of internal and external determinants on parking revenue using panel data from 62 hub airports in the United States from 2017 to 2023. The analysis applies three econometric models to systematically identify key drivers of airport parking revenue. The findings reveal that economy parking price, the percentage of locally originating passengers, the percentage of domestic passengers, the share of passengers flying with ultra-low-cost carriers (ULCCs) and low-cost carriers (LCCs), and competition from adjacent commercial service hub airports serving the same metropolitan statistical area are significant factors influencing airport parking revenue. These findings highlight the importance of accounting for traveler characteristics and market structure in airport parking strategy design. This research contributes to the existing literature on non-aeronautical airport revenues by offering actionable insights to inform adaptive, passenger-responsive parking revenue management.