The Galway City Council is continuing discussions with the Galway Racecourse about operating a park and ride facility at Christmas.
A number of councillors expressed concerns regarding a potential failure to implement a service this year.
Brendan McGrath, Galway City Council chief executive, confirmed negotiations were ongoing with the Racecourse during a special meeting on Monday.
"Discussions with the Racecourse are continuing," he said. "We would be anxious to have a park and ride service in Galway city. I believe it is important to show that Galway is open for business."
Cllr Niall McNelis said that a Christmas park and ride 'has to happen, it is needed', while Cllr Alan Cheevers stated that 'it is very important for businesses in the city, we should not give up too quickly'.
Other locations would become more attractive for visitors according to Cllr Clodagh Higgins: "A park and ride needs to be put in place, it is a lifeline for businesses. My fear is people will choose other locations such as Athlone and Limerick. If we cannot find a site is there an option that we can look at smaller hubs on the outskirts of the city."
Cllr Mike Cubbard added: "Galway City Council stood up for the hospitality sector with outdoor dining, it needs to do the same for the retail sector."