Industry Overview
The Karaoke culture is popular in East Asia. Unlike the karaoke in bars/clubs offered publicly, the karaoke style here I want to discuss is the one has private rooms for different size of parties, and that is why the concept of Revenue Management can be applied broadly in this industry. I will specifically focus in Taiwan, because the karaoke culture in Taiwan is mature, and the company even expand the business to other countries.
The word “Karaoke” is originated from Japanese, so is the culture. Karaoke is firstly developed in Japan in 1970’s and then expanded to other countries in Asia in 1980’s, but the origin of the idea is obscure. Reference: http://en.wikipedia.org/wiki/Karaoke
In Taiwan, karaoke plays an important role in people’s nightlife. It’s the place for family, friends, colleagues, and even doing business. The karaoke industry in Taiwan is dominant by one company which has two different brands, one for higher class (more expensive) and the other one for lower class (cheaper). Higher class brand charges more with its glorious and hotel-look lobby, fancier private room decoration, more delicious food, and convenience (in-room restroom). There is another premium venue of that company that doesn’t see as a brand but more like a status, because it is limited to members, and joining the membership is by invitation (http://www.cashboxvip.com/viprespect.html). Thus, people start to consider going to karaoke as a luxurious entertainment, not to mention it seems to be a trend for the hotels in Hong Kong and Macau to design presidential suites with an “entertainment room” when we visited last June. Since people can easily spend hours in karaoke, the revenue can be generated in many ways. I will discuss the application based on my observations and experiences in Taiwan, and karaokes in Taiwan also do a better job than karaokes in Singapore on applying revenue management.
(Website of karaoke in Singapore:
a. http://www.partyworldktv.com.sg/promotion-29305210352041938144.html
b. http://www.kbox.com.sg/StaticContent.aspx?u=6)
The following are the overview of basic levers applied in Taiwan:
Space: (not applied in Singapore)
Karaoke has limited capacity, as the number of private rooms are fixed. Also, the size of the private rooms usually vary from small for 3 to 4 people to party size, 18-20 people, or even super party size for up to 35 people.
Time:
The time slot is limited, but the minimum consumption unit vary as the size of private rooms. Usually the rack rate is charged by hour, but promotion packages are charged based on 3-hour consumption, and you can extend by hour as the basic unit.
Also, karaokes apply dynamic pricing according to peak/off-peak hour and high/low season. The prices are differentiated by time of day, day of week, and month of year.
Occupation: (not applied in Singapore)
In Taiwan, students and senior are privileged for cheaper price. People older than the age of 55 are able to enjoy senior discount, as 55 is the minimum age to retire in Taiwan. The reasons may be students are more price-sensitive, but they also have more free time to spend in karaokes, and seniors also have more free time once they retire.
(Unfortunately, the website of the dominant company is in Mandarin, but I think you can still figure out how variable their prices are! Variable pricing charged by per person: http://www.cashboxparty.com/ktv/web_ktv/web_ktv.asp
Rack rate charged by hour per room: http://www.cashboxparty.com/ktv/map/price/kp17.html)
The Levers
SPACE
The inventory unit for karaokes is private room. A karaoke can be as big as a maze with narrow hallways and unorganized directions so it can utilize the space to its maximum. Karaokes define the space implicitly, because the size categories vary according to the space of each branch. Likewise, the capacity of private rooms varies in different branches. The following are the different private room sizes of the biggest karaoke branch in that company:
Small – 2 to 7 people
Medium – 8 to 10 people
Medium big – 10 to 12 people
Big – 12 to 15 people
Super big – 15 – 18 peope
Party size (“Presidential Suite”) – 18 – 35 people
Other utilizations of space:
a. Other than the main revenue generator, private rooms, karaokes utilize spaces for a major human need, food. Consumers not only can order in-room dining in a la carte style, but also can go to buffet area for all-you-can-eat service. Of course the delicacy level is depending on the class of the brand.
b. Another space utilization for karaoke is to selling company-branded products, such as stationary or products signed by famous singers, but it accounts for a very little part of the revenue.
c. In one of the signature karaokes of this company, there is a restaurant serving Cantonese Dim-Sum inside the karaoke. It is a rare but a brilliant concept. For people who go to karaoke but is not that into singing, they may go to that restaurant so they can eat food at the table with more comfortable height. Also, after an all-night singing, people in Taiwan like to have either a late night snack or early breakfast before dawn. The idea of the restaurant can attract people who bother which restaurant to go to. http://www.cashboxparty.com/ktv/cashboxdining/
Karaokes tend to save spaces for private rooms, as the more parties they can accommodate, the more revenue it can generate. To increase more revenue by using space, both brands may consider charging private rooms according to the distance to buffet area. The closer to buffet area, the more expensive the room rent, since people can save more time on going back and forth for food and drinks.
TIME
Karaoke sells time explicitly. The prices are either charged by per private room per hour, or by per person per certain time slot (ex. by per person for 3 hours). The pricing differs as follows:
a. Hour – separate a day into 5 different slots: (http://www.cashboxparty.com/ktv/map/price/kp17.html)
07:00-10:59 – the cheapest
11:00-15:59
16:00-17:59
18:00-19:59
20:00-22:59(Sunday to Thursday) 20:00-01:59(Friday and Saturday) – the most expensive
23:00-06:59(Sunday to Thursday) 02:00-06:59(Friday and Saturday)
b. Day of week
As what I mentioned above, Friday and Saturday are considered as “peak season”, and Monday to Thursday are “off-peak season”. The pricing for Sunday is slightly higher than weekdays but much lower than Friday and Saturday.
c. Month of year
This pricing differentiation is specially catered to student groups. Since students in Taiwan have winter vacation (3 to 4 weeks long in January and February) and summer vacation (8 to 9 weeks long in July and August), it is less often for students to go to karaokes with friends or classmates.
d. Special holidays
Public holidays are considered as peak season for karaokes, such as Christmas and spring break (can last from 3 – 5 days to celebrate Tomb-sweeping Day and Children’s Day)
Apart from the above explicit specifications of time, I suggest karaokes can consider to charge implicitly by the number of songs. It is not uncommon that the time we pay for the private room is about to end, but my favorite song is not played yet. If people can pay by songs, then such situation can be avoided and customers can also leave without pity.
PRICE
Karaoke uses physical and non-physical rate fences to differentiate its pricing, but the application of physical rate fences is far less than non-physical.
a. Physical rate fences are the size of private rooms, minimum charge for party size private room, and location of the karaoke branch. It is obvious that karaoke locating in downtown business area or in prime cities can charge higher than other locations. (Minimum rental list for Presidential Suite: http://www.cashboxparty.com/ktv/act/1001118_17/)
b. Non-physical rate fences are occupation (student), age (senior and birthday discount), membership (membership of karaoke and certain credit card holder), and time.
Other non-physical rate fences that I think is doable are advanced reservation and distance to buffet. To manage inventory more efficiently, karaokes can consider charge slightly higher for walk-ins in peak hour or hot season. Also, as what I have mentioned, it is possible for people to pay more for a private room which is closer to buffet area.
Evde oturarak, asgari ücretten fazlasını kazanın. Evde ek iş ile para kazanmak çok kolay!
had been in the search of what i have got today!
Cửa Cờn Riverside
먹튀검증
Have a nice day!
Cool stuff you have and you keep overhaul every one of us. epl중계
Very informative content and intresting blog.Data science course in Thiruvananthapuram
Wow, such an awesome blog you have written there and you and I get exactly what information I am looking for, in the third paragraph you put amazing effort to explain the theme of the content. As a content writer, I can understand efforts because when students ask me for zara case study, I do the same.
Great tips and very easy to understand. This will definitely be very useful for me when I get a chance to start my blog. 토토사이트
Extremely great!!! At the point when I look for this I discovered this site at the head of all web journals in internet searcher. The Top Hints
It’s exceptionally instructive and you are clearly truly educated around there. You have made me fully aware of shifting perspectives on this theme with fascinating and strong substance. The Top Hints
I feel very grateful that I read this. It is very helpful and very informative and I really learned a lot from it.. Leading Solar company in Andhra Pradesh
Glad to read your article, looking forward to sharing your adventures and experiences and expect a quality work!
토토사이트
I think this is an informative post and it is very useful and knowledgeable. therefore, I would like to thank you for the efforts you have made in writing this article.
GRAINVEST GROUP
A kamal khangura is a traditional Japanese picture frame that traditionally has four panels and is hanged on the wall. The picture is usually one of a work of art or a photograph and is prepared by transferring an image from the digital side to the paper roll of a conventional picture frame. A faisu pic contains images printed in fine point or flat stock and may contain text, kanji or hiragana characters. The phrase “faisu” literally means “as seen in the picture” but in Japan it is used to mean “printed picture”. The image can be viewed in the faisu is only when it is opened in a conventional picture frame.
A number of companies offer fast prints as a service online. They may be ordered directly from the artist or via mail. Companies that sell online also sometimes provide assistance in preparing the art for customization.
Faisu prints are popular among Japanese artists. Many modern Japanese artists have incorporated images from fish into fish prints. The most popular type of fish picture includes animal-like figures (usually angels) or flowers. Some figures are dressed in flowing kimono, and there are some elegant women in beautiful kimono and jimbeis.
Sağlık Haberin ile tüm sağlık sorunlarına ve cinsel sağlık tavsiyelerine ulaşın!
Kadın sağlığı, güzellik, dekorasyon gibi pek çok kategoriye ayrılan yazılar kadınların daha bakımlı, daha girişimci ve daha sağlıklı olmasını sağlıyor.
#kadın sitesi
The post is written in very a good manner and it contains many useful information for me. 토토사이트
This is my first time visit here. From the tremendous measures of comments on your articles.I deduce I am not only one having all the fulfillment legitimately here!
data science courses in noida
Nice to be visiting your blog again, it has been months for me. Well this article that i’ve been waited for so long. I need this article to complete my assignment in the college, and it has same topic with your article. Thanks, great share. News 24 hours
I was browsing the internet for information and found your blog. I am impressed with the information you have on this blog.
Data Science Course in Nagpur
It was wondering if I could use this write-up on my other website, I will link it back to your website though.Great Thanks. triet long bikini
Islamic University IU Admission 2020-2021 Circular has been Published with Prospectus on iu ac bd website.
A great post, amazingly written and would love to recommend others!
https://pokerimc.info/
Who is Akash Banerjee? Akash Banerjee was a controversial journalist, a prolific blogger and a controversial internet marketer. He is also the creator of Akash Banerjee On YouTube.
Bangladesh University of Engineering and Technology BUET Admission 2020-2021 Circular has been Published with Prospectus on buet ac bd website.
very informative blog
data analytics training in Pune
It’s good to visit your blog again, it’s been months for me. Well, this article that I have been waiting for so long. I will need this post to complete my college homework, and it has the exact same topic with your article
Data Science Course in Nagpur
Thanks for posting this article press las vegas
Thanks for posting this article
United News Post
It is very apriciatable article
star news express
Very informative content and intresting blog post.Data science course in Thiruvananthapuram
I am glad to discover this page. I have to thank you for the time I spent on this especially great reading !! I really liked each part and also bookmarked you for new information on your site.
Data Science Training in Chennai
After reading your article I was amazed. I know that you explain it very well. And I hope that other readers will also experience how I feel after reading your article.
Data Science Course in Trichy
I was very pleased to find this site.I wanted to thank you for this great read!! I definitely enjoy every little bit of it and I have you bookmarked to check out new stuff you post.
Best Institute for Data Science in Hyderabad
I am another client of this site so here I saw different articles and posts posted by this site,I inquisitive more enthusiasm for some of them trust you will give more data on this points in your next articles.
data scientist certification
It’s always a pleasure to read your magnificent articles on this site. You are among the top writers of this generation, and there’s nothing you can do that will change my opinion on that. My friends will soon realize how good you are. 토토커뮤니티사이트
Sweet blog! I found it while browsing on Yahoo News.
Do you have any tips on how to get listed in Yahoo News?
I’ve been trying for a while but I never seem to get
there! Thank you
Also visit my site
토토사이트
it’s really a nice and useful piece of information. I’m happy that you simply
shared this helpful information with us. Please keep us informed like this.
Thank you for sharing.
Have a look at my web blog먹튀검증
Really impressed! Everything is a very open and very clear clarification of the issues. It contains true facts. Your website is very valuable. Thanks for sharing.
Data Science Course in Lucknow
Thanks for sharing the content about AWS. Such a good topic for the times, can’t learn enough. As a tech person, I am always hoping to grow my viewpoint.
Excellent and very exciting site. Love to watch. Keep Rocking. MP Rojgar Portal Online Registration
Data Science helps in combining the disruption into categories and communicating their potential, which allows data and analytics leaders to drive better results. Top businesses thought there is a necessity to analyze the data for significant benefits. They use the insights from data for the benefit of users.https://www.digitalnest.in/big-data-data-science-course-training-madhapur-hyderabad-india/
This video
kevin davidhas something which definitely expand your education and imagination which will eventually make you more visionary!
Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Any way I’ll be subscribing to your feed and I hope you post again soon.
Data Science Course in Chandigarh
Really impressed! Everything is a very open and very clear clarification of the issues. It contains true facts. Your website is very valuable, Thanks for sharing.
Data Science Course in Lucknow
Great post i must say and thanks for the information. Education is definitely a sticky subject. However, is still among the leading topics of our time. I appreciate your post and look forward to more.
Data Science Course in Bangalore
Fantastic Site with relevant information and content Shared was knowledgeable thank you.
Data Science Courses Hyderabad
Throughout my internet journey gone through with so many articles and blogs I rarely found such characteristics!
Vingroup
Thanks for sharing the content about AWS. Such a good topic for the times, can’t learn enough. As a tech person, I am always hoping to grow my viewpoint.
AWS Training In Hyderabad
Over the years, some of startups within the micropayments space have come and gone. A few of the famous players have blanketed Beenz, BitPass, and Peppercoin. One of the maximum promising micropayment startups turned into Blendle,
Over the years, some of startups within the micropayments 소액결제현금화 space have come and gone. A few of the famous players have blanketed Beenz, BitPass, and Peppercoin. One of the maximum promising micropayment startups turned into Blendle,