Public Sector Value Analysis of Boston-Logan International's Terminal B Parking Garage
Abstract
The parking system at Boston-Logan International Airport may seem unglamorous to the average traveler, but for The Massachusetts Port Authority, its importance cannot be understated. Not only does the system provide a necessary service to great numbers of travelers every year, but also it generates income for MassPort that subsidizes many of its other activities. Using Accenture's Public Sector Value Model, we analyzed the public value creation of Logan's Terminal B Parking Garage. We created three outcomes consisting of three metrics each in order to conduct our analysis. Then, we used those outcome scores as the Y-axis and cost effectiveness as the X-axis in order to plot the results on a 2 X 2 matrix depicting public value creation. The garage services about one million customers per year and generates roughly 20 million dollars annually. However, four of the last five years have not produced the type of value creation necessary for the garage. While the events of 9)11 clearly had a negative effect, as they did on all airports, the biggest concern for this garage is its reaching of full operational capacity. Our analysis showed that the garage has overextended its operational capacity. Because it has reached capacity, the garage's management can no longer realistically hope to significantly increase outcomes, and as costs inherently rise over time, lower and lower PSV scores will result. Each week brings more and longer closures, a larger parking gap, more revenue lost to damages, and lower customer satisfaction, while exits do not increase. Management will be unable to compensate for the higher costs because they will have few options by which to increase revenue. Since exits cannot increase, the only way to increase revenue is through an increase in rates, which is neither easy to implement or satisfactory to customers.
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 10, 2005
- Accession Number
- ADA436629
Entities
People
- Karla B. Elenes
- William B. Blew Iv
Organizations
- John F. Kennedy School of Government