A revenue share is an arrangement in which parking revenue is split between two parties by an agreed formula, typically between a facility owner and its operator, a technology vendor, a reservation platform or a concessionaire.
Revenue shares align incentives: when the operator or vendor earns more by growing revenue, it has reason to price well, market the facility and keep equipment working. They also shift risk, since a share of a smaller pie pays less in a downturn.
Common structures
- Percentage lease. The operator pays the owner a share of gross revenue, often above a minimum rent. See owner-operator agreement.
- Management with incentive. A base fee plus a share of revenue above a target.
- Concession. A long-term share paid to a public owner. See parking concession.
- Technology and booking fees. Vendors and aggregators taking a percentage of each transaction.
What to define and audit
- What counts as gross revenue: taxes, refunds, validations, convenience fees and credit card costs.
- Reporting frequency, access to transaction data and audit rights.
- Minimum guarantees and how they adjust.
The Parkonomics view
A revenue share is only as good as its definition of revenue. Write that definition carefully, then make sure the data to check it belongs to the owner.
Related terms: Owner-Operator Agreement, Parking Concession, Parking Aggregator, Net Operating Income