Blog

Jan 11, 2024

SEA Airport Parking Rate Increase Supports Garage Improvements

Change is coming to the Seattle-Tacoma International Airport (SEA) parking

Change is coming to the Seattle-Tacoma International Airport (SEA) parking garage. The new automated parking guidance system, already installed on the first two floors, offers a major customer experience upgrade. To fund projects like this, and in response to increases in inflation and local taxes, parking garage rates will increase on April 1.

The new $21.8 million automated parking guidance system, recently debuted on the first two floors of the eight-floor garage, is one of the largest-scale installations in the country at over 12,000 stalls. With LED lighting and smart camera sensors to indicate stall availability and help customers locate ADA-accessible and electric vehicle parking stalls, the guidance system will cut search time in half and lays the groundwork for future tech-focused customer service integrations. In addition, each sensor has camera-based license plate recognition technology to help locate your vehicle, improve parking policy enforcement, and improve vehicle monitoring and security in the garage with motion-activated video surveillance.

The rate increase will support the Airport's operating and capital budgets and an ambitious capital investment program supporting projects like the new International Arrivals Facility, C Concourse Expansion Building Expansion, SEA Gateway Project and South Satellite Renovation Program. It will also allow the Airport to cover rising costs associated with operating a commercial parking business (ex. payroll, maintenance, supplies, etc.) and support projects designed to improve overall customer experience for our parking customers, including the development of an online booking system/e-commerce website whereby parking and other Airport services may be pre-booked in advance of arrival.

The installation of the parking guidance system will continue through this year and cover every floor by early 2023. The project will also nearly double the number of electric vehicles charging stations, with the capability to increase the charging capacity for further expansion.

Since 2019, the regional Consumer Price Index (CPI) increased 9%, including 6.3% in the past year. The local City of SeaTac tax increased from $3.28 to $3.49 per parking transaction, providing $4 million in commercial parking tax to the City in the last year with an estimated $6 million in 2022 as traveler numbers continue to rebound at the airport.

A 7% airport garage rate increase reflects competitively with a 7.6% increase of daily rates by offsite parking operators. General and Terminal Direct hourly rates will increase by $1, with daily rates rising $2-$3. See more details in the chart below.

Although nearly all U.S. airports are owned by state or local governments, airports are required by the federal government to be as self-sustaining as possible and receive little or no taxpayer support. This means that airports must operate like businesses – funding their operations from their revenue and thoughtfully and diligently planning funding for major improvement projects – which can often be very expensive. Airports are supported by the users of the airport and the fees, rents, or leases in place with airlines, tenants, and travelers. Revenue that is generated at the airport stays at the airport and any revenue over operating costs is reinvested back into the airport to fund current facility upgrades or new projects.

Perry Cooper | SEA Airport Media Officer(206) 787-4923 | [email protected]