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.
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:
Sometimes TOZ maximizes the utilization of space with table mix. Some rooms are designed like a interview room.
And some rooms are designed for students who want to study alone.
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.
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:
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
Explore the hidden treasures within our dead lots collection. We Sell Dead Lots presents an exclusive assortment of dead lots, each holding untapped potential. Our expertly curated lots encompass a variety of products, allowing you to discover unique items and turn them into profitable ventures. Experience the thrill of uncovering hidden gems with our dead lots offerings.
I’d have to check with you here. Which is not something I usually do! I enjoy reading a post that will make people think. Also, thanks for allowing me to comment! https://bjm.web.id
I think you did an awesome job explaining it. Sure beats having to research it on my own. Thanks China Model & Talent Agency
I don’t make it a habit to make comments on many articles, but this one deserves attention. I agree with the data you have written so eloquently here. Thank you. Botox courses Malaysia
Thanks for this post, I am a big fan of this web site would like to proceed updated. ข้าวสารใน 7-11
Loving the information on this web site , you have done great job on the posts . dewagg
It laborious to seek out knowledgeable folks on this matter, but you sound like you already know what you are talking about! Thanks ดอกไม้ ประ จํา วัน เกิด วัน พฤหัสบดี
Merely wanna state that this is very beneficial , Thanks for taking your time to write this. Get Work Permit
Merely wanna state that this is very beneficial , Thanks for taking your time to write this. Get Work Permit
Thanks, I have been searching for info about this subject matter for ages and yours is the best I have found so far. 888starz bonus bez depozytu
Useful information. Fortunate me I discovered your web site by chance, and I’m surprised why this twist of fate didn’t happened earlier! I bookmarked it. مجله دکوراسیون داخلی
Hi there! Do you use Twitter? I’d like to follow you if that would be ok. I’m undoubtedly enjoying your blog and look forward to new posts. halloween mysteries
I adore your wordpress web template, wherever would you download it from? magic amanita mushroom gummy review
Awesome article , I’m going to spend more time researching this subject ai marketing automation
Hey there! Wonderful stuff, please do tell us when you post again something similar! Mango Cannabis
Thanks for this grand post, I am glad I observed this website on yahoo. https://ausdirectmeds.com/product/buy-oxycodone-oxycontin-australia/
I like this web site very much, Its a really nice billet to read and obtain info . 賃貸マンション
Your home is valueble for me. Thanks!? This web page is really a walk-via for all of the information you needed about this and didn know who to ask. Glimpse right here, and you l definitely uncover it. タワーマンション
you might have a fantastic weblog here! would you wish to make some invite posts on my weblog? マンション給水ポンプうるさい
hello i discovered your post and thought it was very informational likewise i suggest this site about repairing lap tops Click Here https://forwardtips.com
Discover a treasure trove of stock lots in UAE with We Sell Dead Lots. Our platform connects buyers and sellers, offering a wide range of surplus items for various industries. With our commitment to quality and fair pricing, we’ve become the go-to choice for those looking to make the most of their surplus materials.
That being said by use it all, planet is really restored a little more. This situation in addition will this particular Skin tightening and starting to be moved and into the mood of these producing activities. daily deal livingsocial discount baltimore washington อนิเมะสืบวน/ อนิเมะนักสืบ
I don’t know whether it’s just me or if perhaps everyone else encountering problems with your website. It appears like some of the written text in your posts are running off the screen. Can someone else please provide feedback and let me know if this is happening to them too? This might be a issue with my browser because I’ve had this happen previously. Thank you อนิเมะสืบวน
Hey, just looking around some blogs, seems a pretty nice platform you are using. I’m currently using WordPress for a few of my sites but looking to change one particular of them over to a platform similar to yours as a trial run. Anything in particular you would recommend about it? forex
You have noted terribly attention-grabbing points ! ps good net site here. سيارات كيا للبيع
Thank you of this blog. That’s all I’m able to say. You definitely have made this web site into an item thats attention opening in addition to important. You definitely know a great deal of about the niche, youve covered a multitude of bases. Great stuff from this the main internet. All over again, thank you for the blog. videos corporativos san sebastián
The urge to gamble is so universal and its practice so pleasurable, that I assume it must be evil. – Heywood Broun Scissors for hairdressers
This is very interesting, I love how you express yourself in form of writing. You’re a very skilled blogger. I have joined your feed and look forward to seeking more of your wonderful post
메이저놀이터
Wow Da weiss man, wo es hingehen muss Viele Grüsse Mirta RMN Bucuresti
Thank you pertaining to sharing that excellent written content on your website. I ran into it on google. I am going to check back again once you publish much more aricles. DAFTAR KRISTAL777
Do you mind if I quote a couple of your articles as long as I provide credit and sources back to your blog? My website is in the very same area of interest as yours and my users would really benefit from a lot of the information you present here. Please let me know if this okay with you. Regards! SEO course
I was recommended this blog by my cousin. I am not sure whether this post is written by him as nobody else know such detailed about my problem. You’re incredible! Thanks! Authentic travel adventures
The electronic cigarette uses a battery and a small heating component the vaporize the e-liquid. This vapor can then be inhaled and exhaled Authentic travel adventures
An impressive share, I just given this onto a colleague who was doing a little evaluation on this. And he in reality bought me breakfast as a result of I found it for him.. smile. So let me reword that: Thnx for the treat! But yeah Thnkx for spending the time to discuss this, I really feel strongly about it and love studying extra on this topic. If potential, as you develop into expertise, would you mind updating your weblog with extra particulars? It’s extremely useful for me. Huge thumb up for this weblog submit! อาหารง่ายๆ
Thanks for this grand post, I am glad I observed this website on yahoo. อาหารง่ายๆ
Maximize your by how a large amount of gear are employed internationally and will often impart numerous memory using that your is also fighting that is a result from our team rrnside the twenty first centuries. daily deal livingsocial discount baltimore washington flat white coffee
Chaga mushroom tea appears to be shown a great deal of mankind through Ruskies artice writer Alexandr Solzhenitsyn using your partner’s new ‘Cancer Ward’ the spot predominant reputation has been curable of pisces with the help of the help of this relaxer. Chaga กาแฟเซเว่น all cafe
PERDANA138 adalah permainan games online slot hiburan terbaru dengan variasi ID VIP Pro Akun Resmi Link Login Daftar Terbaru PERDANA138 Slot Indonesia tanpa pamrih dapatkan sekarang juga akun jago main anda.
Its a great pleasure reading your post.Its full of information I am looking for and I love to post a comment that “The content of your post is awesome” Great work. Buy weed online USA
I read the above article and got some knowledge from your article. It’s actually great and useful data for us. Thanks
Jinko solar distributor
Resources this kind of as the one you mentioned here will be incredibly helpful to myself! I will publish a hyperlink to this page on my particular blog. I am sure my site visitors will discover that very beneficial. a course in miracles online
PERDANA138 merupakan situs slot gacor 2023 menyediakan permainan judi online 24jam terpercaya
PERDANA138 merupakan link daftar situs online Slot gacor mudah menang di Indonesia yang memberikan game judi slot gacor 2023 untuk membernya.
PERDANA138 memberikan Slot maxwin jackpot tergacor sesuai dengan tipe permainan. Semua games yang tersedia dalam 1 user ID ini memiliki promo bonus yang bisa anda pilih dan klaim.
Games Slot dana tanpa potongan 2023 adalah jenis game slot minimal deposit 25 Rb via dana yang di peruntukan bagi kamu yang ingin bermain judi slot online tanpa rekening.
Black Ops Zombies Cheats and Strategy… […]You can read all about it here.[…]… sublimation png
Good post. I be taught one thing more challenging on completely different blogs everyday. It is going to always be stimulating to read content material from other writers and apply a little something from their store. I’d want to use some with the content on my blog whether or not you don’t mind. Natually I’ll offer you a link in your web blog. Thanks for sharing. turkcentre
Previously you must have highly effective web business strategies get you started of getting into topics suitable for their web-based organization. educational turkcentre
Chaga mushroom coffee been recently brought to plenty of everything about simply because of the Ukrainian article author Alexandr Solzhenitsyn by it’s new ‘Cancer Ward’ in which traditional qualities is generally cured of a tumors on the help consume. Siberian Chaga thé matcha vertu
Thanks For sharing this Superb article.I use this Article to show my assignment in college.it is useful For me Great Work. skincare skin