If you’ve ever parked in a city garage and wondered why prices seem to change from one day to the next — or even by the hour — you’re not alone. Dynamic pricing, sometimes called demand-based pricing, has become increasingly common in urban parking garages, but it’s not always obvious how it works. Understanding these pricing patterns can help you save money and make smarter choices about where and when you park.

At its core, dynamic pricing adjusts rates based on supply and demand. When demand is high, prices rise. When demand drops, rates come down to attract more parkers. Think of it like booking a flight or hotel — parking operators use similar algorithms to maximize revenue while balancing lot availability.

For example, a downtown garage near office buildings might offer lower rates in the evenings or on weekends when commuter demand decreases. Conversely, the same garage could charge premium rates during weekday business hours when space is in high demand. Recognizing these patterns is one of the simplest ways to save.

Event timing has a major influence as well. If your parking spot is near a stadium, theater, or convention center, expect prices to spike during events. Many garages and lots will raise rates a few hours before an event begins and keep them elevated until the crowds disperse. Planning to park earlier in the day, well before the rush, can often secure you a lower rate and ensure availability.

Technology is another driving force behind dynamic pricing. Many parking garages are now connected to real-time pricing systems that adjust rates automatically based on current occupancy. These systems monitor how full a garage is and change prices accordingly, sometimes multiple times a day. Apps like ParkWhiz and SpotHero often reflect these real-time rates, helping you compare prices before you commit.

It’s also worth noting that dynamic pricing isn’t limited to private garages. Some cities have implemented dynamic pricing for curbside parking meters. San Francisco’s SFpark program is a leading example. The system uses sensors to measure parking availability and adjusts meter rates to balance demand. The goal is to reduce circling traffic and improve turnover, making it easier for drivers to find open spots.

To navigate dynamic pricing effectively, flexibility is key. If you can adjust your schedule slightly — arriving earlier or later — you’ll often avoid the highest rates. Planning your trips during off-peak times, like mid-morning or early afternoon, increases your chances of finding lower-cost options.

Checking rates ahead of time is another smart move. Most parking apps and garage operators post daily rate schedules online. Platforms like BestParking let you view and compare rates across multiple garages in real time, helping you find the best deal for your destination.

Keep in mind that while dynamic pricing can sometimes feel frustrating, it isn’t always bad news. During low-demand periods, these systems work in your favor by offering discounted rates you wouldn’t find with flat pricing models. For weekend explorers or evening outings, this means parking in prime locations at a fraction of the weekday cost.

Understanding how dynamic pricing works empowers you to make better choices and avoid surprises at checkout. By paying attention to timing, using reliable apps to compare prices, and staying flexible with your plans, you can stay ahead of the curve — and keep your parking expenses in check.