airport parking price hikes effective 2/1/24

[terracore]

https://bigislandnow.com/2023/12/29/new-...ig-island/

Daily rate going from $15 to $24.

Hourly rates going up too.

[kalakoa]

They gotta pay for the new minimum wage somehow...

[HiloJulie]

They gotta pay for the new minimum wage somehow...

Damn straight!

The new minimum hourly wage is going to kill the Airport Parking business!

Never mind that Scott Salmirs, CEO of ABM Industries that owns ABM Parking who runs the Hilo Airport Parking lot along with all the other airport parking lots at all Hawaii Airports along with most airport parking lots across the country made in 2022 a base salary of 1.0 million, non equity incentive income of 1.8 million as well as stock awards valued at 5.5 million and a measly 12 thousand in other income for a total of 8.3 million. 

Granted that was his 2022 income as 2023 numbers have not been released. 

ABM Industries has a 2.8 billion market capitalization value, with total revenues north of 8 billion, but I’m sure the half dozen Hilo Airport parking employees who may be entitled to the new minimum wage of $14.00 per hour is the sole cause of this price increase.

[terracore]

They gotta pay for the new minimum wage somehow...

Damn straight!

The new minimum hourly wage is going to kill the Airport Parking business!

Never mind that Scott Salmirs, CEO of ABM Industries that owns ABM Parking who runs the Hilo Airport Parking lot along with all the other airport parking lots at all Hawaii Airports along with most airport parking lots across the country made in 2022 a base salary of 1.0 million, non equity incentive income of 1.8 million as well as stock awards valued at 5.5 million and a measly 12 thousand in other income for a total of 8.3 million. 

Granted that was his 2022 income as 2023 numbers have not been released. 

ABM Industries has a 2.8 billion market capitalization value, with total revenues north of 8 billion, but I’m sure the half dozen Hilo Airport parking employees who may be entitled to the new minimum wage of $14.00 per hour is the sole cause of this price increase.

These type of corporations exist to maximize profits for the shareholders.  Hiring a CEO willing to work for minimum wage would certainly help to maximize profits.  I'm shocked more corporations don't pay their CEOs minimum wage because I can't think of a single reason why that might not work out for them.  As far as their $8 billion revenue, reportedly most of what they collect from airports get paid to the airports for things like paying living wages to airport employees for doing things like.... running an airport.  Most airports are expected to be financially self sufficient, some are even expected to operate at a profit so unrelated bureaucracies can help to waste money.

I used to drive to Kona to fly to the madland but at $24/day it will be cheaper for me to get dropped off at Hilo and fly to Honolulu with all the wasted carbon that entails.  So instead of getting $15/day from me they won't be getting anything.  From the comments I read a lot of the airport parking spaces are being taken by Turo participants, so there are plenty of other people willing to pay.

But the article didn't mention "living wages" as a reason for the price increases:

The projected revenue from the parking rate increases at the neighbor island facilities will be used for future improvements including:

• Consideration for a new employee parking lot for Kahului Airport.
  
  
• Estimated $10 million parking lot expansion for Kona International Airport.
  
  
• Estimated $6 million parking lot expansion for Hilo International Airport.
  
  
• Estimated $5 million parking lot expansion for Lῑhuʻe Airport.
  
  
• New parking equipment and stall counters at Kona International Airport. The parking concessionaire has committed to a $600,000 investment in new parking equipment, exit and entry lane overhead canopies, signage, and stall counters.
  
  
• Improvements to parking equipment at Hilo International Airport. The parking concessionaire has committed to investing between $200,000 and $300,000 to install parking revenue control system equipment.
  
  
• Improvements to parking equipment at Lῑhuʻe Airport. The parking concessionaire has committed to a minimum investment of $700,000 to add stall counters and the ancillary equipment and software needed to display available stalls online.
  

[kalakoa]

a lot of the airport parking spaces are being taken by Turo participants

Do they have the necessary permits from the State to conduct business at the airport, or are they still relying on the "loophole" implied because the transaction doesn't technically happen "at the airport"?

[HiloJulie]

@terracore

My response about the CEO and ABM's wages/values/revenues was a 'tongue and cheek" response to kalakoa's response about the price increase being attributed to the "They gotta pay for the new minimum wage somehow..." comment.

"I used to drive to Kona to fly to the madland but at $24/day it will be cheaper for me to get dropped off at Hilo and fly to Honolulu with all the wasted carbon that entails.  So instead of getting $15/day from me they won't be getting anything.  From the comments I read a lot of the airport parking spaces are being taken by Turo participants, so there are plenty of other people willing to pay."

Have you looked at the monthly parking pass?

The old rates were $160.00 a month, which at $15.00 per day gave you a breakeven point of just under 10 days. At the new rate of $189.00 per month, the breakeven becomes just about 8 days at the new daily rate of $24.00. So, if your travels exceed 8 days a month - the monthly pass is the way to go. Plus, if you're gone for the whole month - $189.00 over 30 days equals $6.30 per day. 

Plus, with the monthly pass, you get automated access/exit without having to wait in line. And you can come and go as you please.

I do, however, question the news release's bullet point of: "The parking concessionaire has committed to investing between $200,000 and $300,000 to install parking revenue control system equipment."

Could that imply that there seems to be an issue where parking is occurring without proper payment?

[kalakoa]

parking revenue control system equipment

This is almost certainly code for "automation".

[terracore]

In Hilo the "overflow" lots are just muddy lawns. They aren't surrounded by fences, gates, or high curbs to prevent people from leaving. I've often wondered what type of system they use to try and make them pay.

The last time I flew out of Kona there weren't any parking spaces immediately available. Everyone was driving around waiting for a spot to open up like a 1990's shopping mall lot at Christmas. So many people were parking in illegal spaces (probably drove around in circles so long they were going to risk missing a flight) they had a huge lit highway type sign with the number to call if your car had been towed for not parking within the lines. When a spot finally opened up it was about as far away from the checkpoint one could get. I'm guestimating it was about a mile away, and of course THIS is when the handle on my roller bag broke, so I had to carry it. A shuttle or something would have been nice. At least there were no clouds in the sky so the punishing Kona sun could blast me the entire way.

[HereOnThePrimalEdge]

ABM Industries that owns ABM Parking who runs the Hilo Airport Parking lot along with all the other airport parking lots at all Hawaii Airports

My first thought was, how hard is it to run a parking lot?  With one or two employees in a booth?  But then realized the County would have to have several police directing drivers to the booth, workers putting up orange cones at peak hours, taking them down during slow periods, people at the entrance (still automated) but the workers would stand there moving a hand up and down, indicating we should slow down for the gate.

Etc.

[HiloJulie]

Don’t forget the job position of “License Plate Recorder”

When you park at most airports, your license plate is recorded. Be it by camera, or as its done in Hilo, by hand, on paper with pen while riding in a golf cart.