by

Meeting space rental industry in Korea

Industry Overview

In Korea, the meeting space rental industy near Colleges and office districts has been growing fast. Students want to gather and study together while office workers want to develop themselves through seminars and lectures after works. However, there weren’t enough informal meeting spaces near universities and office areas. Unlike US, in Korea 3-4 colleges are clustered near one subway station, and office buildings are located near subway stations as well. Due to the geographical factor, there has been growing demands for meeting spaces. Some cafes in Korea have meeting space in separate rooms, but it can only accommodate one or two group. The biggest success factor of meeting space rental business is in private space for various party sizes.

I chose a successful meeting space rental company named ‘TOZ’ (http://www.toz.co.kr/index.asp)which has been in this industry for about ten years. In 2010, 3 million people used TOZ and the number of users is growing by 30%. I tried to find any article or webpage in English, but unfortunately, I couldn’t find any one. The following video clip will give you a glance of how the business model works even though it has a lot of Korean subtitles.

http://www.youtube.com/watch?v=8330CSX6gLs

The company defines ‘space’ by rentable rooms and ‘time’ by hours. If a room type is small to mid size, the rental fees are charged by person hour. If a room falls into a large category, the rental fees are fixed for two hours. But basically, the fixed fees are deriving from the occupancy.

Space

Division of Space

The meeting space is divided by the number of people the room can accommodate. The smallest room can only accommdate one person whereas the largest one can accommodate up to 60 people. The size of rooms are not explicitly shown, so the space is implicitly defined. However, since the number of people each room can accommodate heavily depends on the size of the room, the configuration of space should be planned ahead in the development period. Considering the redesign of floor plan is costly, the initial assessment of demand will hugely impact the utilization of space.

Single occupancy room

A room for eight

 

A room for sixty

Ancillary revenues

TOZ rent out laptops and projectors to meeting organizers. They charge $1.5/hr for a laptop and $2.5/hr for a projector. Customers can have free drinks for sodas and teas, but they have to pay for snacks and fruit juices. TOZ also charges for Copy machine and Fax machine. TOZ created a online community for people who want to share information about certain topics such as arts, books, computers, games, and cookings. When there is a enough demand to have a offline meetings, they organize meetings making them rent their meeting rooms. With organizing offline meeting from online demands, TOZ has been able to generate more revenue.

Different ways to split up

Since the current design of rooms can hold up to a certain capacity, it is really difficult to maximize the occupancy per SQFT. The following picture is the example of a floorplan:

Floorplan

Sometimes TOZ maximizes the utilization of space with table mix. Some rooms are designed like a interview room.

Interview room

And some rooms are designed for students who want to study alone.

self-study room

More flexible configuration – If TOZ can use sound-proof sliding wall and move walls between rooms to accommodate as many as they can at a certain time, they can generate more revenue. For example, TOZ could have more larger rooms in the morning for office workers, and have more smaller rooms after dinner for group study rooms.

Sound proof wall

 

 

Time

TOZ has explicit pricing for the hourly rate. Basically TOZ is charging flat rate for hour or 30 minutes. For example, on a weekday, the price for each person is $5 for the first two hours, and $1.25 for extra 30 minutes. Basically, TOZ charges flat rate of $1.25 per 30 minutes per person for weekdays and $1 per 30 minutes per person for weekends and students.

There should be more sophisticated pricing structure depending on arrival. Since the reservation works in ‘First come, fist served’ way, there is not much room for Revenue Management. But if the company charges different rates for different time of the day, they can capture more surplus from people with high willingness to pay. For example, if 7-9pm is the most crowded time of the day, TOZ should charge more for the period to generate more revenues as well as move price sensitive customers to less crowded time.

Price

There are two kinds of pricing structures: variable pricing and fixed pricing. In small room categories, TOZ charges $1 to $1.25 per 30 minutes per person whereas in the large room categoreis, it charges fixed rate per 2hrs per room. However, per person rate for large room categories($2.083/hr) is almost the same as the one with small room category if the room is fully occupied.

The company provides rate simulator to help meeting organizers estimate their budget. If a meeting organizer input date, time, number of people, and needs for device rental, and student ID, the total fees and per person rate will be automatically calculated. Following picture is the rate simulator:

Rate simulator

The followings are the types of rate fences:

(Physical rate fences)

  • Student discounts rate(20%)
  • Minimum number of people for large room categories

(Non-physical rate fences)

  • Membership points
  • Complimentary snacks for 9+ hours usage
CREATIVE RATE FENCES
Charging higher rates walk-in customers – From the revenue management’s point of view, forecasting demand plays an important role, and reservations is the most efficient tool for minimizing uncertainties. TOZ should encourage members to make reservations in advance. And walk-in customers are people willing to pay more than regular prices. Instead of giving away inventories for the same rate, TOZ should charge more for walk-in groups.
Meeting over breakfast/lunch packages – Nowadays busy office workers are reluctant to allow separate time for meetings since it is a big commitment for busy people. So, providing a cozy meeting spaces with simple food (Toast, Cereal, Sandwiches) in lunch or dinner time will bring office workers who want to save their time during office hours. Not only the company can utilize the idle time, but they can also generate F&B revenue without any incremental facilities.
Jeehoon Kim

3,637 thoughts on “Meeting space rental industry in Korea”

  1. Pragmatic play is one of the most well-known Slot Gacor Hari ini and is the best slot game both in Indonesia and internationally.
    Pragmatic Play is the best recommendation for you and won the most complete best of online slots award of all time.

  2. Kudabet is The Most Trusted Agen Slot Tergacor Di Indonesia
    which is a type of provider that is easy to play.
    It can be said that the Trusted Slot Agent in Indonesia is one of the best gacor slot sites.
    Usually beginners will start their first bet by playing their favorite game. Why is that?
    Because several slotters have concluded that on our site KUDABET has an RTP value for gacor slots which is quite profitable for novice players.

  3. Successfully well prepared details. It should be monetarily fulfilling to any individual who makes use of it, counting me. Sustain The great do The work. For sure I’ll Consider out far more posts working day in and time out. betflik

  4. sagame66 SAGAME นั้นเป็นเว็บตรงขนาดใหญ่ที่มีชื่อเสียงในหมู่ผู้เล่นทั่วโลกว่าทำเงินได้จริง เปิดให้บริการมานานนับ 10 ปีด้วยความมั่นคง โปร่งใส ไม่เคยมีประวัติการโกงสมาชิกเลยแม้แต่ครั้งเดียว ระบบการเล่นมีเสถียรภาพสูง เปิดเล่นเกมต่าง ๆ มากกว่า 1,000 เกม คืนยอดเสีย 10% ทุกวันจันทร์

  5. UFA CASINO แทงบอลออนไลน์ ต้อง สมัครแทงบอลออนไลน์ ที่นี้เดียวเท่านั้น ทางเข้าเว็บแทงบอล เว็บไซต์พนันบอลออนไลน์ ที่ดีที่สุด มั่นคงที่สุด ทางเว็บไซต์แทงบอลออนไลน์ เล็งเห็นที่ความต้องการของสมาชิก ที่ต้องการ เว็บพนันบอล ที่มั่นคง บริการดีเยี่ยม คืนยอดเสีย 10% ทุกวันจันทร์

  6. Bonanza138 is the most complete adult entertainment platform. We are ready to provide many promotions and bonuses for all members. Immediately register yourself so you can become a true winner.

  7. Thanks for sharing, Students who are studying for exams can benefit greatly from online exam help. It offers a variety of services that might assist students increase their chances of passing exams. online exam help can help students prepare for exams more effectively and efficiently by delivering practise questions, sample tests, and even individualized counsel and coaching. Additionally, it provides tools like exam advice, study guides, and online tutoring that might help students do better on test day. Students can be confident that they are well prepared for their upcoming exams by using Online Exam Help.

  8. JK Tractor Tyre price rate start from 3100 to 59000. JK tractor tyre price rate resonable from other brands and tyre quality was also good. jk tractor tyre company found in 1977.jk tractor tyres best company for buying tractor tyre at resonable price rates.

    JK Tractor Tyre price

  12. “SpaceJam Coworking is a popular coworking space that provides small office space on rent Mohali to freelancers, startups, and small businesses. Located in the heart of the city, SpaceJam Coworking offers a vibrant and creative environment where professionals can work, collaborate, and grow.
    The coworking space offers fully furnished private cabins and workstations equipped with high-speed internet, air conditioning, printing facilities, and other essential amenities. The small office spaces on rent at SpaceJam Coworking are ideal for those who are looking for a professional and affordable workspace that offers all the necessary facilities.”

  13. SpaceJam Coworking is a popular coworking space that provides small office space on rent Mohali to freelancers, startups, and small businesses. Located in the heart of the city, SpaceJam Coworking offers a vibrant and creative environment where professionals can work, collaborate, and grow.
    The coworking space offers fully furnished private cabins and workstations equipped with high-speed internet, air conditioning, printing facilities, and other essential amenities. The small office spaces on rent at SpaceJam Coworking are ideal for those who are looking for a professional and affordable workspace that offers all the necessary facilities.

  14. Nutro Life Science is a third-party manufacturer based in India that specializes in producing high-quality dietary supplements and health products. With a focus on providing customers with the best possible products, Nutro Life Science has become a leading manufacturer of nutritional supplements, including Whey protien powder manufacturer in india.

    Whey protein powder is a popular dietary supplement that is widely used by athletes, bodybuilders, and fitness enthusiasts to support muscle growth and recovery. As a manufacturer of whey protein powder in India, Nutro Life Science is committed to producing products that are safe, effective, and of the highest quality.

    Nutro Life Science’s whey protein powders are made using high-quality ingredients and state-of-the-art manufacturing processes to ensure that each product is of the highest quality. The company’s production facilities are equipped with the latest technology and are staffed by highly trained professionals who are dedicated to delivering the best possible products to their customers.

  15. Nutro Life Science is a third-party manufacturer based in India that specializes in producing high-quality dietary supplements and health products. With a focus on providing customers with the best possible products, Nutro Life Science has become a leading manufacturer of nutritional supplements, including Whey protien powder manufacturer in india.

    Whey protein powder is a popular dietary supplement that is widely used by athletes, bodybuilders, and fitness enthusiasts to support muscle growth and recovery. As a manufacturer of whey protein powder in India, Nutro Life Science is committed to producing products that are safe, effective, and of the highest quality.

    Nutro Life Science’s whey protein powders are made using high-quality ingredients and state-of-the-art manufacturing processes to ensure that each product is of the highest quality. The company’s production facilities are equipped with the latest technology and are staffed by highly trained professionals who are dedicated to delivering the best possible products to their customers.

  16. Millennium India is a leading manufacturer of high-quality inverters and UPS battery for home use. With years of experience in the industry, they have established a strong reputation for providing reliable, durable and cost-effective power backup solutions to customers across India.
    The company offers a wide range of inverters and UPS battery for home use, catering to various power requirements and budgets. Their products are designed to deliver high performance, efficiency, and safety, ensuring uninterrupted power supply to homes and businesses.
    One of the key features of Millennium India’s inverters and UPS battery for home use is their advanced technology. They use the latest digital signal processing (DSP) technology, which ensures fast response time, high accuracy and superior reliability. Moreover, their products are equipped with features such as overload protection, short-circuit protection, battery deep discharge protection, and over-temperature protection, which provide complete safety to the appliances connected to the inverter.

  17. JK Tractor Tyre price rate start from 3100 to 59000. JK tractor tyre price rate resonable from other brands and tyre quality was also good.jk tractor tyres best company for buying tractor tyre at resonable price rates in india.jk tyre is the best tyre company in india.

    Jk tyre

  18. rear tractor tyre is an eassential part of tractor. rear tractor tyre disigned to provide traction and stability.the rear tractor tyre provides grip in farming and evey terrain.

    rear tyre

  20. One World Presentation Management Ltd. is ideally suited to provide global mission critical services to organizations demanding the immense and continuous bandwidth and security essential to their success. Our systems run on Linux Operating Systems, Apache Web servers, and MySQL Database in the PHP environment. Automatic backup and failsafe switchover protocols are well established and monitored 24/7. We have never experienced a breach of security. The actual database files are stored deep in the server and not accessible through public, unsecured browsing. Our servers our housed in state-of-the-art facilities with uninterrupted power supply and emergency diesel generator power, redundant air-conditioning, air flow management and fire suppression systems, and anti-static flooring.

  24. Next, you will need to select the Satta Matka game you want to play. Indiansatta.net offers a variety of games, including Kalyan, Milan, Rajdhani, and more. After selecting a game, you will need to choose the betting option you want to play. The website offers different betting options, such as single, jodi, and panna.

  25. TARUNABOLA adalah salah satu pilihan yang tepat untuk dilakukan. Pasalnya anda akan bisa mendapatkan jaminan permainan yang 100% aman dan fair play, akses permainan nya bisa dilakukan dengan menggunakan Handphone dan PC, Disini kami juga menyediakan BOCORAN SLOT dengan RTP TerUpdate Setiap harinya, Selain itu kami juga menyediakan transaksi deposit tidak hanya menggunakan rekening bank saja, tapi juga bisa menggunakan pulsa, dan juga e_wallet. Disamping itu kami tawarkan juga berbagi sumber penghasilan seperti jackpot dan SLOT GACOR HARI INI serta promosi promosi lainnya setiap hari dan setiap minggunya.

  35. Wow, What a Excellent post. I really found this to much informatics. It is what i was searching for.I would like to suggest you that please keep sharing such type of info.Thanks TechQuice

  37. Indian satta is a leading online game platform that provides dependable and fee-effective Satta Matka online improvement services. The enterprise has capable and experienced in-house builders who incorporate the today’s technology in the game application to offer an interactive gaming enjoy. We provide white-label and customized app improvement solutions Fix Fix Fix Satta Nambar
    . Our developers try to supply fine merchandise through taking your requirements into account with a brief turnaround time. We at Indian satta provide-

  39. ufabetstar365 UFABET เว็บพนันออนไลน์ สมัครUFABET บริการตลอด 24 ชั่วโมง ฝาก-ถอน ภายใน 3 นาที ทางเว็บไซต์เปิดรับเดิมพันต่างๆ UFABET แทงบอลออนไลน์ แทงบอลUFABETเว็บตรง

  48. The assignment submission period was over and I was nervous, majorsite and I am very happy to see your post just in time and it was a great help. Thank you ! Leave your blog address below. Please visit me anytime.

Leave a Reply

Your email address will not be published. Required fields are marked *