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
Regards for this post, I am a big big fan of this site would like to go on updated. Login bds367
The website is looking bit flashy and it catches the visitors eyes. Design is pretty simple and a good user friendly interface. lose weight
hello, your website is really good. We do appreciate your give good results berkahslot
detiktoto has many games and lots of benefits, play now so you can feel the excitement and the benefits.
When visiting blogs, i usually discover a very good content like yours Hulk 330mg pillola di MDMA
Some really superb info , Sword lily I found this. bathroom remodel in Westchester
Are you looking to buy Eco-Friendly Zero Waste laundry detergent sheets? You can get these eco laundry sheets at the Glosclean website, the detergent sheets come highly rated and are 100% environmentally friendly. For laundry detergent that leaves no marks on clothes or skin go to the listed website. detergent sheets
Youre so cool! I dont suppose Ive learn something like this before. So good to find somebody with some unique ideas on this subject. realy thank you for beginning this up. this website is something that is needed on the net, somebody with somewhat originality. helpful job for bringing something new to the internet! post a job for free
My spouse and I stumbled over here by a different web address and thought I might check things out. I like what I see so i am just following you. Look forward to checking out your web page again. DESALINATION THROUGH MULTI EFFECT DISTILLATION (MED) PLANT MANUFACTURER
How much of an exciting piece of writing, continue creating companion Dumps Track1 Track2
Excellent publish from specialist also it will probably be a fantastic know how to me and thanks very much for posting this useful data with us all. เชียงใหม่
I recently realized your website the other day and that i happen to be following it’s routinely. You’ve got great deal of tips proper here so i delight in your lifestyle of online site likewise. Preserve acknowledge that there are succeed! รถกระบะอีซูซุ 4 ประตู
I’ve been exploring for a little bit for any high-quality articles or blog posts in this kind of house . Exploring in Yahoo I ultimately stumbled upon this website. Reading this info So i am glad to show that I have an incredibly good uncanny feeling I found out just what I needed. I such a lot indubitably will make certain to do not disregard this website and give it a look on a constant. ปอม อายุขัย
I really treasure your piece of work, Great post. หนังAVญี่ปุ่น
There is noticeably a bundle to know about this. I assume you made certain nice points in features also. ตัวละครหญิงในวันพีช
Great post, I’m looking forward to hear more from you!! แกงระแวง คือ
Excellent blog right here! Also your site a lot up very fast! What web host are you the use of? Can I am getting your associate link to your host? I want my site loaded up as quickly as yours lol ChamberofCommerce.Tech
hi!,I like your writing so much! share we keep up a correspondence extra approximately your post on AOL? I require a specialist on this space to solve my problem. May be that is you! Looking ahead to peer you. افضل محامي في الرياض
Cheap Replica Handbags You guide me by sharing this toolbox i face problem whenever i exploit this promotion reading your blog i am able to easily use. F1 Casino Polska
We are also noticing that traditional medical doctors are also recognizing the increased interest in holistic healing and are finally starting to incorporate these healing methods into their practice to keep up with the current trends. There are many ways to obtain a construction job interview, but some are more effective than others. aston138
Discover the top mind mapping software tools designed for effective brainstorming, project planning, and real-time collaboration. Elevate your creative workflow and productivity with feature-rich platforms suitable for both teams and individuals. Collaborative Mind Mapping
replica watches are amazing reproduction of original authentic swiss luxury time pieces. MeSwiss Solutions
Wow, incredible blog format! How lengthy have you been blogging for? you make running a blog glance easy. The full glance of your site is fantastic, as smartly the content material! หนังออนไลน์
Howdy! Would you mind if I share your blog with my twitter group? There’s a lot of people that I think would really enjoy your content. Please let me know. Thanks chat gpt
Selamat datang di Casaslot kami situs pelopor gaming online di Indonesia terbaik. Memberikan layanan 24 jam Terpecaya dan Aman. Jaminan kemenangan kepada member berapapun pasti dibayar. rtp casaslot
Cheap Handbags Wholesale You should think about doing growing this web site to a major authority in this particular market. You clearly contain a grasp handle in the topics so many people are looking for on this website anyways therefore you could indisputably even create a dollar or two off of some advertising. I’d explore following recent topics and raising how many write ups putting up and i guarantee you???d begin seeing some awesome web traffic in the near future. Simply a thought, all the best in whatever you do! rtp casaslot
Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with extra information? It is extremely helpful for me. الدراسة في تركيا
Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with extra information الدراسة في تركيا
very nice post, i definitely enjoy this fabulous website, persist with it เว็บสล็อตแตกง่าย 2022 ล่าสุด
NBA basketball lie-up game schedule
game results new update ☞ nba basketball data
I LIKE THIS WEBSITE, IT’S A MASTERPIECE, IM GLAD THAT I’VE FOUND IT. THANKS…
슬롯머신
YOU ARE AN A SKILLED BLOGGER. THIS POST IS VERY NICE AND UNIQUE, THANK YOU VERY MUCH!
온라인경마
I LIKE THIS BLOG VERY MUCH, IT SO MUCH NICE TO READ AND TO GET A VERY GREAT INFORMATION! THANKS
I ABSOLUTELY LOVE YOUR BLOG BECAUSE THIS IS GREAT!
바카라
GREAT BLOG, I HAVE UNDERSTAND REALLY MUCH BECAUSE YOU JUST WRITTEN EXTREMELY FANTASTIC BLOG.
온라인경마
House Cleaning services San Antonio – Residential & Commercial Cleaners Services San Antonio,TX Our comprehensive services deliver the most trusted and professional results in residential, commercial, and industrial cleaning in San Antonio
Have you ever searched for a laundry service pickup and delivery? Your search for the best wash-and-fold dry cleaners is over. We Wash 24 strives to provide a comprehensive laundry service at great value with outstanding customer service. We make sure our wash and fold laundromat service is consistent so our customers enjoy predictable results.
Hello, your website is really good. We do appreciate your give good results.
essay help uk is your one stop solution for all assignment, homework, essay, dissertation related issues. Get the best assistance with subjects like psychology assignment help, case studies like, database management assignment, science assignment help and business law assignment help with the help of expert essay writers online.
When a blind man bears the standard pity those who follow…. Where ignorance is bliss ‘tis folly to be wise…. Cvv Shop
You made some respectable points there. I looked on the internet for the issue and found most people will go along with with your website. install mysql debian 12
Wow! This could be one particular of the most helpful blogs We’ve ever arrive across on this subject. Basically Excellent. I’m also an expert in this topic therefore I can understand your effort. دیوار سبز مصنوعی
Hello! I’ve been following your blog for a while now and finally got the courage to go ahead and give you a shout out from Kingwood Texas! Just wanted to mention keep up the good work! best male chastity
Nice post. I learn something totally new and challenging on sites I stumbleupon on a daily basis. It will always be exciting to read articles from other writers and use a little something from their sites.
https://dropshix.com
https://selebx.com
5 Cara Membersihkan Lantai Semen Berkeramik dengan mudah ! cek selengkapnya !
This is my first time visit to your blog and I am very interested in the articles that you serve. Provide enough knowledge for me. Thank you for sharing useful and don’t forget, keep sharing useful info: wallet paper bitcoin
My brother recommended I might like this web site. He was entirely right. This post truly made my day. You cann’t imagine simply how much time I had spent for this info! Thanks! 메이저사이트
I’m not against the agree with the things you suggested. نگهداری از کودک
Cool article it’s really. Friend on mine has long been awaiting just for this content. How to Unlock iCloud Locked iPhone
I love what you guys are up too. Such clever work and exposure! Keep up the very good works guys I’ve incorporated you guys to my own blogroll. best applicant tracking system for small businesses in Africa