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

3,705 thoughts on “Meeting space rental industry in Korea”

  5. Our Indirapuram Escort Service are created to make you happy and satisfied. Feel confident that you will obtain 100% satisfaction in every experience. That is just how our beautiful ladies are obtaining even more appeal in the home entertainment sector.

  6. Daftarkan diri kalian sekarang di slot gacor situs Perdana138 Slot online indonesia terpercaya yang mampu memberikan anda profit besar hanya dalam beberapa kali putaran permainan saja. Anda bisa langsung membuktikannya sendiri hanya dengan memainkan satu user ID saja di situs gacor Perdana138 sekarang.

  7. With our economical SMM panel, your online presence won’t take a hit to your wallet. We understand the importance of efficient social media marketing, no matter the scale, and are providing you with the most cost-effective option.
    Our most affordable SMM panel offers an expansive range of services designed to amp up your social media presence. Increase followers, improve engagement, direct website traffic, or boost brand visibility—all of this and more can be attained with our discounted packages, which cover Facebook, Instagram, Twitter, YouTube, and more.
    Rather than spend lavishly on pricey marketing schemes, our SMM panel works hard to give you the best results at the lowest price. Benefit from real, organic followers, likes, comments, and shares that come from genuine users, giving your brand legitimacy and reliability.
    Let budget limitations not hold you back from success on social media. We provide excellent service at competitive prices and provide round-the-clock support to meet any needs or worries.
    Small business owners, up-and-coming influencers, and individuals all have something to gain with our Cheapest SMM Panel. Enjoy economical social media marketing and see what your online potential is today!

  8. Tingkat keakuratan dan keberhasilan taruhan di QQMEGA368 sangat tinggi, membuatnya menjadi salah satu platform dengan tingkat gacor yang mengesankan.

  9. Bentley Bentayga Mansory 2023: Unleash Unrivaled Luxury Unleash unrivaled luxury with the Bentley Bentayga Mansory 2023 edition. The Bentley Bentayga Mansory 2023 is a customized version of the iconic SUV, featuring exclusive design elements, enhanced performance, and opulent interiors. At GTR, we provide Bentley Bentayga Mansory rentals, allowing you to experience the pinnacle of automotive extravagance. Whether you’re attending a red carpet event or simply want to make a statement, renting the Bentley Bentayga Mansory 2023 guarantees a memorable and extraordinary journey. Discover the extraordinary Bentley Bentayga Mansory 2023. Learn more here: Bentley Bentayga Mansory 2023

  10. Kunjungi halaman Slot di Perdana138 Terbaru dan cek promonya, disana banyak sekali promo yang mampu kamu dapatkan. Bukan hanya pendaftaran akun GRATIS saja, di sini kamu mampu klaim banyak sekali bonus yang mampu kamu dapatkan, cobalah saja jika tidak percaya.

  11. Game Slot Gacor Resmi dan terpercaya yang sangat sering memberikan kemenangan jackpot maxwin yang gampang sekali untuk para pemain menangkan. Julukan Gacor pun merupakan gabungan kata dari Gampang dan Bocor yang melambangkan suatu permainan slot itu gampang menang.

  12. Situs Slot Gacor Perdana138 salah satu situs judi online yang hadir di Indonesia. Ini adalah situs slot terbaik dan terpercaya yang paling rekomonded untuk digunakan bermain slot online.

  14. Korea offers a wide range of meeting spaces to cater to different needs and budgets stumble guys. These include hotels, convention centers, dedicated meeting facilities, co-working spaces, business centers, and even unique venues like cultural centers or art galleries that can be rented for events.

  19. Professional Handyman Services San Antonio | Home Remodeling Contractors Tx – Hammer Time
    Hammer Time brings excellence to home design and construction with professional remodeling services that turn your vision into reality Create a brighter, more vibrant, open space with our expert services

  20. Professional Handyman Services San Antonio | Home Remodeling Contractors Tx – Hammer Time
    Hammer Time brings excellence to home design and construction with professional remodeling services that turn your vision into reality Create a brighter, more vibrant, open space with our expert services
    https://hammertimerepairs.com/

  23. Took me time to read all the comments, but I really enjoyed the article. It proved to be Very helpful to me and I am sure to all the commenters here! It’s always nice when you can not only be informed, but also entertained! ketamine crystal

  25. I found your this post while searching for some related information on blog search…Its a good post..keep posting and update the information . This is a great article and great read for me. 안전놀이터 It’s my first visit to your blog, and I have found it so useful and informative especially this . I read your blog post and this is nice blog post.. thanks for taking the time to share with us. have a nice day . The web site is lovingly serviced and saved as much as date. So it should be, thanks for sharing this with us

  29. To provide a First-time, My group is eternally visiting web based designed for articles and reviews which is in be an aid to all of us. Thanks for your time. ole777

  31. According to reports, this year, a sizable number of boys and girls have applied for and participated in the state’s class eighth grade annual final public examination in government and private schools throughout the state. More than 12 lakh students,both boys and girls, from all rural and urban area rajasthan8thresult2019.in schools, took part. Based on previous years’ Ajmer board result SMS registration.

  32. Situs gacor Gojek Game slot Agen Resmi dan terpercaya yang sangat sering memberikan kemenangan jackpot maxwin yang gampang sekali untuk para pemain menangkan. Julukan Gacor pun merupakan gabungan kata dari Gampang dan Bocor yang melambangkan suatu permainan slot itu gampang menang.

  33. Daftarkan diri kalian sekarang di slot gacor situs Perdana138 Slot online indonesia terpercaya yang mampu memberikan anda profit besar hanya dalam beberapa kali putaran permainan saja. Anda bisa langsung membuktikannya sendiri hanya dengan memainkan satu user ID saja di situs gacor Perdana138 sekarang.

  35. 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. Big thanks for the useful info. Rockwall Dentist

  37. Situs gacor Gojek Game slot Agen Resmi dan terpercaya yang sangat sering memberikan kemenangan jackpot maxwin yang gampang sekali untuk para pemain menangkan. Julukan Gacor pun merupakan gabungan kata dari Gampang dan Bocor yang melambangkan suatu permainan slot itu gampang menang.

  40. Education & Recruitment Update for all age groups and provide inside coverage to show the real picture of current occurrences. As we want to provide news divided into General, Political, Crime, Sports, Entertainment, Education, and World News, our goal is to meet the needs sample-paper.in of people of all age groups.Professional writers have gathered for specialised news coverage of the most recent events in the nation

  46. Dedicated news coverage of the most recent events in the nation is provided by a group of experienced writers. Our team is made up of professional writers and citizen journalists with a wide range of journalism interests who are enthusiastic about disseminating the education updates transparently model-papers.com and in the benefit of the general public.For all age groups, our reporting team plans to publish the Education & Recruitment Update and provide inside coverage to show the real picture of current occurrences.

  50. I was surfing the Internet for information and came across your blog. I am impressed by the information you have on this blog. It shows how well you understand this subject. SULINEX

Leave a Reply

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