Question

Suppose you are planning on picking up a friend or family member at the airport. You want to park and walk in to meet them in the terminal. The Orlando International Airport has two options listed on their website:

Option 1: Park at either the North or South Park Place Economy Lot

Grace period (free) for the first 10 minutes
$5 for 11 minutes to 3 hours, then
$10 per 24-hour period
Free shuttle to the terminal
Option 2: Park at any of the parking garages

Grace period (free) for the first 20 minutes
$2 for 21 to 30 minutes, then
$1 for each additional 15 minutes (or any part thereof from the time of entry) up to a maximum of $17, then $17 per 24-hour period
How should someone make a decision about where to park to pick up their friend/family member? When is each option the most cost-effective?

Answer 1

A) To make a decision on where to park depends on

• Time to spent on parking
• cost of parking within the time to be spent on parking
• Incentives

B) Option 1 is most cost effective when the parking time is ≥ 3hours

while Option 2 is most cost effective when the parking time is ≤ 30 minute

Explanation:

A) To make a decision on where to park depends on

• Time to spent on parking
• cost of parking within the time to be spent on parking
• Incentives

B)

lets assume you will be parked for 30 minutes before picking up your friend

For option 1

You will spend $5 and also get a free shuttle to the terminal

For option 2

You will spend $2

Therefore Option 2 is better

Lets assume you will be parked for 3 hours before pick up

For option 1

You will spend $5 and also get a free shuttle

For option 2

You will spend ; $2 for the first 30 minutes + $10 for the remaining 2hours 30 minutes

Therefore Option 1 is better.

Option 1 is most cost effective when the parking time is ≥ 3hours

while Option 2 is most cost effective when the parking time is ≤ 30 minutes