Q-Park annual report 2017 |
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Risk management |
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Risk description | Risk management measures |
Regulatory changes to inner-city parking | |
National or local governments could implement measures which are potentially unfavourable to the parking sector; for instance, as a result of pressure from public opinion, pressure groups, or election results. For example, the debate on banning traffic within city boundaries could adversely affect inner-city parking, resulting in lower revenue, and diminished profitability. | • Cooperate with governments, NGOs, and businesses.• Ensure geographic diversification of Q-Park's portfolio over ten countries and a further spread across multiple indirect markets.• Invest extensively in online platforms and value-added services to become a proactive business partner for local authorities. |
Economic environment | |
Factors that potentially influence parking prices include pressure from the general public and retailers, political changes, or a long-term fall in GDP. Lower parking prices would significantly impact Q-Park’s profitability and cash flows. | • Cooperate with governments, NGOs, and businesses.• Highlight the relevance of regulated and paid parking to society.• Use calculation models to set different parking tariff steps, start tariff, and whole-day tariffs. Simulate the effects of changing these parameters to align prices with the local circumstances and market situation.• Strengthen the commercial, customer, and market intelligence organisation. |
Competitive environment and economic conditions | |
The parking market is characterised by intense competition between existing players. Competition from new technologies is also disrupting the current parking market, resulting in an increased focus on ICT developments. | • Invest extensively in online platforms and PMSs to prepare the organisation for modern access and payment solutions.• Closely monitor developments in payment services and initiatives taken by parking service providers.• Enter into joint ventures where collaboration offers opportunities for both parties.• Ensure geographic diversification of Q-Park's portfolio and a further spread across multiple indirect markets. |
Dependency on other businesses and local developments | |
A car parking service is an indirect service which depends on external factors (e.g. offices, shopping centres, leisure amenities). New consumer behaviour (e.g. online shopping, working from home) or changes in the popularity of certain stores or locations pose a risk of a significant decrease in parking demand and, hence, a decrease in Q-Park’s business and revenue. | • Ensure geographic diversification of Q-Park's portfolio and a further spread across multiple indirect markets.• Manage portfolio with focus on large multifunctional inner-city locations. |
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