Sydney Airport now earns $8,395 on every car parking space
By David Flynn, March 6 2017
Sydney Airport has once again claimed the crown for Australia's largest car parking profiteer, according to the latest report from the Australian Competition and Consumer Commission.
The ACCC's annual report on our four major airports found that Sydney Airport outstripped Melbourne, Brisbane and Perth with a 73.1% profit margin on car parking spots – in other words, the airport pocketed 73.1 cents out of every dollar of revenue earned from parking.
Total car parking revenue shot up to $134 million, just a measly million shy of Melbourne's $135 million revenue bankrolled by bitumen.
And with Sydney recording a 3.2% revenue increase against Melbourne's 1.2% revenue drop, Sydney is on track to roar into first place next year.
Another take-out from the ACCC's slice-and-dice of the numbers: Sydney Airport earns an average of $8,395 per parking space, also a lift of 6.9% over the previous year.
By comparison, Melbourne, Brisbane and Perth all saw a drop in per-space revenue (with Brisbane now at $6,042, Melbourne at $5,226 and Perth at $2,792).
Despite the rise in revenue and profits, ACCC chairman Rod Sims says there is clear evidence that travellers are increasingly taking advantage of discounts for online bookings, especially on long-term parking.
"In comparison, those who do not pre-book must pay drive-up prices which can be double that of online prices," Sims said.
Sydney Airport reported that almost 40 per cent of its carpark revenue came from those cut-rate online bookings.
David Flynn is the Editor-in-Chief of Executive Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.
QFF
12 Apr 2013
Total posts 1560
It is truly disgusting. Now talk to me about "free market" and advantage of having unregulated everything.
20 May 2015
Total posts 579
If you really think that we are actually IN an unregulated free market then frankly I question your knowledge of economics. In addition, profit =/= exploitation.
11 Mar 2012
Total posts 315
Seems like the privatising of airports hasn't benefitted the public all that much.
QFF
12 Apr 2013
Total posts 1560
And you really expect that it will?
20 May 2015
Total posts 579
The existence of a profit =/= a reduction in public benefit. In addition, there's a difference between mere privatization and the benefits one would expect from actually having a functioning competitive market. Sydney has one major airport; this is not a competitive market because it is basically a monopoly.
QFF
12 Apr 2013
Total posts 1560
I am sorry, my friend, but as for me your speech about "hidden public benefits by reducing taxes" or "reinvesting money in airport infrastructure with aim for public benefits" is either CEO speech to justify price increase or simple nonsense.
19 Aug 2011
Total posts 55
Having a monopoly should not be a licence to print money. A 15% return would seem a sensible number compared to other businesses. The argument that the money is used to improve the other services in the airport needs to be demonstrated as does the returns to shareholders.
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