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

8,511 thoughts on “Meeting space rental industry in Korea”

  1. We would also like to convey that most individuals that find themselves without the need of health insurance can be students, self-employed and people who are out of work. More than half in the uninsured are under the age of Thirty five. They do not experience they are wanting health insurance as they are young in addition to healthy. Their particular income is generally spent on housing, food, and entertainment. Many people that do go to work either entire or in their free time are not given insurance via their work so they proceed without because of the rising tariff of health insurance in america. Thanks for the concepts you reveal through this site.
    스포츠토토

  2. 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. 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 안전놀이터

  8. Potenzmittel kaufen im Potenzmittel Shop. Online Potenzmittel kaufen und rezeptfrei bestellen aus Deutschland. Kamagra Tabletten, Viagra und Tadalafil. Potenzmittel

  10. 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. 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
    스포츠토토

  11. EVERYONE in the family Priority number one. We’re small-scale, in-home breeders. We’re not a facility or a kennel; we’re a group of Pug enthusiasts who are utterly smitten with our adorable kids. Perfect House of Pugs is just breathtaking! Our Pugs have the best temperaments and personalities. They are created specifically for families looking for a high-quality Pug puppy.

    With over 18+ years, we have fought for only the finest standards, with our Pugs’ health as our primary emphasis, which is why we put EVERYTHING into it, never cutting corners, always changing, and always improving. Our children are our greatest source of pride and delight. Our mission is to build connections (rather than merely sell puppies) and to bring pleasure and joy into your household. We are raising a Pug family and are certain that these puppies will become an integral part of your life.

    PLEASE VISIT OUR WEBSITE LINK BELLOW FOR MORE INFORMATION ABOUT PUG PUPPIES.

    PUG PUPPIES FOR SALE UNDER 500 NEAR ME

  12. Windows 7 es uno de los sistemas operativos más populares entre los usuarios de PC. Microsoft lo puso a disposición inicialmente en 2009. Microsoft creó el concepto mejorado con varias actualizaciones y una mejor interfaz de usuario debido a varios problemas en XP. Descargar el archivo ISO de Windows 7 Ultimate es sencillo si tiene una clave de licencia válida.No te preocupes si no descargar windows 7 32 bits sabes cómo obtener la ISO de Windows 7, esta sencilla guía te ayudará. Simplemente puede descubrir las mejores formas de obtener archivos ISO de Windows 7 para las ediciones disponibles de Microsoft.

  15. Great goods from you, man. I have understand your stuff previous to and you are just too great. I really like what you have acquired here, certainly like what you’re saying and the way in which you say it. You make it enjoyable and you still take care of to keep it sensible. I can’t wait to read far more from you. This is actually a terrific website.i would love to sip a cup of green tea each morning because it contains L-theanine which calms the mind . I surely did not understand that. Learnt a thing new nowadays! Thanks for that. thank u for sharing, i love it 먹튀검증

  16. Assam 8th Question Paper All the Online PDF format Question Papers for Arabic, Assamese, Bengali, Hindi, Sanskrit, Social Science, English, Manipuri etc. Provided by Directorate of State Council of Educational Research and Training Assam, Guwahati, Students can Refer the Assam Blueprint 2024 Download Prepare for Students. Model Test Paper is well Structured These Assam Assam 8th Question Paper 2024 Prepared as per the updated Board of Education in the Assam State Syllabus to help Students in their exam Preparations.

  20. I’m amazed, I must say. Rarely do I encounter a blog that’s equally educative and engaging, and let me tell you, you’ve hit the nail on the head. The problem is something that not enough folks are speaking intelligently about. Now i’m very happy I came across this in my hunt for something concerning this.
    토토사이트

  21. I’m amazed, I must say. Rarely do I encounter a blog that’s equally educative and engaging, and let me tell you, you’ve hit the nail on the head. The problem is something that not enough folks are speaking intelligently about. Now i’m very happy I came across this in my hunt for something concerning this.
    https://alsooouq.com

  23. Hmm is anyone else experiencing problems with the pictures on this blog loading? I’m trying to find out if its a problem on my end or if it’s the blog. Any feed-back would be greatly appreciated. Love your blog..Thanks for sharing.Such an amazing and informative post. Love the way You write..keep going the good work.Lovr your site . Do you mind generally if I mention one or two of your current blogs as long as I deliver you acknowledgement coupled with sources returning to your web site? My blog site is within the corresponding topic as your own and my web site visitors would certainly make use of some of the help and advice that you provide on this site.
    메이저사이트

  25. 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. Dallas Roofers

  26. Dewa merupakan situs online paling sportif di indonesia terbukti pelayanan tercepat di dewa serta dapat deposit rendah Rp.10.000 mainkan dewa sekarang juga hanya di sini. dewapoker

  27. Elevate your spanish english language correspondence higher than ever with the English to Spanish translator Genius portable application. Flawlessly overcoming any barrier between two dynamic societies and dialects, this english to spanish interpreter free application.

  28. รับทำเว็บไซต์ e-commerce สร้างเว็บไซต์ขายของ ออกแบบเว็บไซต์ขายของ รับทำเว็บไซต์ E-Commerce สร้างเว็บขายของออนไลน์ ด้วย WordPress WooCommerce วิธีสร้างเว็บไซต์ขายของ ใช้เวลาไม่นาน ดูแลง่าย ก็สามารถมีร้านค้าออนไลน์ของตัวเอง อีกทั้งเรายังแนะนำ วิธีทำเว็บไซต์ขายของ ให้ท่านไปปรับเปลี่ยนได้ด้วยตัวเอง

  31. Great post, you have pointed out some fantastic points , I likewise think this s a very wonderful website. I can set up my new idea from this post. It gives in depth information. Thanks for this valuable information for all,.. This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free. If you don”t mind proceed with this extraordinary work and I anticipate a greater amount of your magnificent blog entries.안전놀이터

  34. Pasti Gacor pasti bawa kesenangan, kenyamanan, hingga kenyamanan dalam bermain games online terbaik di Indonesia. Cari kesempatan merubah nasib dalam bermain hiburan online berkualitas.

  36. BIE Telangana Going to Condected Inter 1st Year Anuval Final Exam Start Wednesday, 15 March 2024 to Monday, 3 April 2024 and Inter 2nd Year Exam Start Thursday, 16 March 2024 to Tuesday, 4 April 2024, TS Inter 2nd Year Model Paper 2024 The Practical Exam for both General and Vocational Courses will be Conducted from Wednesday, 15 February 2024 and go on till March 2 2024 Thursday, 2 March 2024, including Sundays in two sessions i.e., morning session from 9 am- 12noon and 2-5 pm. The main exams would be for three hours between 9 am and 12 noon.

  38. Great post, you made some really good points, and I also believe this is a really great website. I can use this post to implement my new concept. It provides in-depth details. This is one of the best posts ever, so thank you for sharing this useful knowledge with everyone. You can go here to learn more about who we are and what we do.MCA Leads.

  40. This article is extremely pleasant and useful. I believe the article’s information will be beneficial to readers. It was so enjoyable, thank you for sharing. In run 3, you can also play novel games.

  42. In the online communities that I have discovered, the play snake provides users with helpful suggestions for how they might amuse themselves and discover new and exciting things.

  43. Arunachal Pradesh 6th Question Paper 2024 All the Online PDF format Question Papers Provided by Board of Secondary Education Arunachal Pradesh,Arunachal Pradesh Model Question Paper 2024 are Arunachal Pradesh 6th Model Paper 2024 Prepared as per the updated Board of Education in the Arunachal Pradesh State Syllabus to help Students in their exam Preparations, which Aims to build both the Practical knowledge as well as analytical Skills for Arunachal Pradesh Every Student,Arunachal Pradesh Question Paper 2024 are Prepared as per the updated Arunachal Pradesh Syllabus & Exam Pattern to help Students in their Exam Preparations.Arunachal Pradesh Previous Question Paper 2024 will help a lot to the Students.

  44. I am writing to let you understand what a extraordinary discovery my cousin’s daughter had going through your web page. She realized a lot of details, including how it is like to have a wonderful helping style to have certain people without problems gain knowledge of a number of grueling matters. You really surpassed her expected results. Many thanks for giving the helpful, healthy, revealing as well as cool tips about that topic to Evelyn.

    먹튀검증

  49. Directorate of State Council of Educational Research and Training, (SCERT) Mizoram has Going to Conducted High School Public Exam 2024, Exam Every Year laks of Students Attended, SCERT Mizoram 10th Date Sheet Pdf Format Available at official Website.Students Studying for Public Exam 2024 can be Challenging, and Requires a lot of Effort and Practice, Students will have to Master Mizoram 10th Class Question Paper 2024 the Subjects For this Purpose, After Learning the Subject Completely with the help of Manipur Question Paper.

Leave a Reply

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