What’s It Worth?

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There was a time, not all that long ago it seems, when a ticket for a cross-country flight included a meal, checked baggage, and headphones so you hear the film you were watching. Then the airlines were deregulated, competitive pressures drove ticket artificially low, fuel prices started bouncing around, and now – finally – the real cost of flying is starting to come into focus.

Airline customers used to freebies now feel nickeled and dimed, even if having to pay for everything but the peanuts means underwriting the real costs of seats priced well below their real cost.

We’ve been spoiled and the bill is starting to come due.

It’s true downtown, too, where a quarter used to buy 15 minutes at a parking meter. The truth is the value of that space far exceeds $1 an hour (ask any lot operator). A few years ago, the city got smart and automated its meters to adjust prices to meet demand (no, Uber did not invent surge pricing). Greater demand means higher prices: basic economics, sound business, and awfully frustrating for motorists used to government-subsidized, artificially low metered parking. Private lot operators have clued in, too, as prices downtown hit $35 a day.

So all’s good, right? The market works; downtown is booming and the rising tide of cars lifts the coffers of the city and private lot operators alike. Except businesses that had helped foot the bill for their employees’ parking are facing ever-increasing bills. They can either take a hit to the bottom line or pass some or all of the higher costs to employees.

What’s interesting is that, as we report in our story on Page 1, it’s not only economics driving up the cost of parking. It’s policy, too. Putting the squeeze on parking in dense areas such as downtown puts pressure on businesses to encourage staff to make greater use of mass transit, and that’s exactly what planners want.

And the best thing about taking the train downtown is that it costs peanuts compared with parking.

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