Domain parking refers to the registration of a domain name without hosting the domain or have any services such as a website or eMail etc.
This may have been done with a view to reserving the domain name for future development, or to protect the good name of a similar sounding domain against the possibility of cybersquatting, ie : someone may try to register www.Google.me/ and attempt to pass themselves off as www.Google.com/ or having aquired a similar name, may attempt to intimidate by threatening to sell the name to a competitor.
One may also have a number of similar sounding domains, ie :
www.avrolancastercrewmemorial.co.uk/ and www.avrolancastercrewmemorial.uk/ and have them all permanently redirected to the main site that is a .com/ ie : www.avrolancastercrewmemorial.com/
Image by : DP Dack-Owens. Courtesy of : A W Dack.
Domain parking may be done to reserve a good domain name for use at some other time, you can register a name to prevent anyone else claiming the good domain name.
Many web site developers simply register domain names similar to their main website domain name, simply to prevent others creating a similar site and cashing in by taking internet browser search traffic intended for the developers website.
AvroLancasterCrewMemorial.com/ is a good example, if this .com/ name had not taken the .co.uk/ and the .uk/ URLs it would be posible for any one else to do so, and by so doing could just sit back and see if the .com/ became successful enough to ether cash in on the hard work of the .com/ version, or put them up for sale and create a mini bidding war over the names.
Also by parking a good domain name means you can have the domain point to an advertising website page, to earn some cash and at the same time tell visitors the domain may be for sale, this will provide a very good temporary page that can easily pay for the up keep of the name while you decide what to do next.
The field of domain name parking is extensive, please find this link: Parking/Domain it is a very informative site.
More on this topic to follow soon.