Public Sector Value Analysis of Boston-Logan International's Terminal B Parking Garage

The parking system at Boston-Logan International Airport may seem unglamorous to the average traveler, but to 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 (PSV) Model, the study analyzed the public value creation of Logan's Terminal B Parking Garage.Three outcomes consisting of three metrics each were created in order to conduct the analysis. Then, those outcome scores were used as the Y-axis and cost effectiveness as the X-axis in order to plot the results on a 2 x2 matrix depicting public value creation. This study's 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 can not increase, the only way to increase revenue is through an increase in rates, which is neither easy to implement nor satisfactory to customers.

• Corporate Authors:

  Harvard University

  Kennedy School of Government, 79 JF Kennedy Street
  Cambridge, MA  United States  02138
• Authors:
  • Blew, W B
  • Elenes, K B
• Publication Date: 2005-8-10

Language

• English

Media Info

• Media Type: Print
• Pagination: 53p

Subject/Index Terms

• TRT Terms: Airports; Capacity restraint; Cost recovery; Customer satisfaction; Governments; Income; Parking garages; Value capture
• Identifier Terms: Logan International Airport; Massachusetts Port Authority; Public Sector Value
• Uncontrolled Terms: Cost increase; Operational capacity; Revenue losses
• Subject Areas: Aviation; Terminals and Facilities;

Filing Info

• Accession Number: 01010765
• Record Type: Publication
• Files: TRIS
• Created Date: Nov 28 2005 9:12AM