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
Hello, I enjoy reading through your post. I wanted to write a little comment to support you.
바카라사이트
https://betflixjokerbet.info/king777-gaming/
Say, you got a nice blog.Really looking forward to read more.
바카라사이트
I just stumbled upon your blog and wanted to say that I really enjoy browsing your blog posts.
바카라사이트
its actually awesome paragraph, I have got much clear idea concerning from this piece of writing.
파워볼사이트 추천
Your posts are always well-timed and relevant.
토토사이트 추천
Very efficiently written information.
온라인카지노
You have great knowledge and expertise in writing such blogs. Keep up the great work!
메이저사이트
I love the way you write and share your niche! Very interesting and different! Keep it coming!
바카라사이트 추천
This is the masterpiece I have ever read. Your presentation and writing style both are admirable.
토토사이트 추천
Hi there, I check your blog like every week. Your story-telling style is awesome, keep it up!
안전놀이터
https://betflixjokerbet.info/agg777-gaming/
Your writing style is very interesting and makes me want to keep reading. I can’t wait to read your next article! Especially if you discuss Cast in Avengers Secret Wars. I’m sure it will be very exciting!
Jika kalian mencari bandar situs togel online dengan pasaran terbesar dan paling lengkap kalian sudah berada di situs togel online 4d terbaik dengan minimal deposit 10rb di saritoto. saritoto
Selera303 adalah situs slot online yang dengan server thailand terbaru gampang menang maxwin menyediakan live rtp slot tertinggi memudahkan kemenangan para pemain slot online setiap harinya dengan modal 10k saja. selera303
Dewaraja merupakan salah satu pilihan paling tepat untuk anda yang ingin bermain di situs slot gacor server thailand terbaru mudah menang menyediakan provider slot terlengkap dengan minimal deposit 10k bisa menang jutaan rupiah. dewaraja login
TESLATOTO kui diarani bandar gokil terpercaya sing sering tembusna jutaan duit iso milih akeh nomer pasaran lan ambi provider slot liyane sing terbaik teslatoto
Wonderful article, thanks for putting this together! This is obviously one great post. Thanks for the valuable information and insights you have so provided here. 英文寫作班推薦
Al Ahly Fans’ Website is a dedicated platform that serves as a hub for all passionate supporters of Al Ahly sporting club. It offers a diverse range of content, including match updates, player profiles, historical insights, and fan interactions. The موقع جماهير الاهلى a vital role in connecting fans from all over the world, allowing them to stay informed and engaged with the latest news and developments related to their favorite team. With its user-friendly interface and comprehensive coverage, Al Ahly Fans’ Website has become an essential resource for all followers of the club.
Discover a wide range of slot products offered by Hoki1881,a leading online platform in Indonesia. Explore the exciting world of slots and enjoy a thrilling … hoki1881
MCW game stands out in the Games & Software category, showcasing excellence through its extensive game library that caters to a diverse range of gaming preferences. The platform offers high-quality options, including classic slot machines, immersive video slots, table games, and live dealer experiences, providing a comprehensive selection for players with varying tastes. MCW Casino
MarvelBet’s customer support is exemplary, available 24/7 through live chat. The responsive and professional representatives offer assistance promptly, ensuring a smooth gaming journey for players on the MarvelBet platform Marvelbet
TESLATOTO, daftar TESLATOTO, link alternatif TESLATOTO, login TESLATOTO, link TESLATOTO, TESLATOTO online, agen TESLATOTO, situs TESLATOTO teslatoto
i love cougars that is why i love to watch Desperate Housewives and also Cougar Town** https://reliableelectricmotorsolutions.com
VISABET88 adalah Situs Taruhan Online resmi aman & terpercaya, Visabet88 interaktif melayani permasalahan seputar akses permainan. Visabet88
Very interesting content bro! Always update so that our insight can increase!
สมัคร หวยบี
Very useful info. Hope to see more posts soon!. MS Teams
툰코는 웹툰의 허브로써 각종 미리보기를 제공합니다. 툰코의 공식 홈페이지를 즐겨찾기 해주시면 가장 빠르게 업데이트되는 주소가 제공됩니다. 툰코 시즌2와 더불어 무료 웹툰을 빠르게 감상해보세요. 툰코
뉴토끼는 다양한 웹툰을 무료로 제공하는 사이트입니다. 뉴토끼의 가장 빠른 주소를 안내해드립니다. no1 무료웹툰 뉴토끼 바로 이용해주세요 뉴토끼
뉴토끼는 다양한 장르에 이르는 웹툰을 무료로 업로드합니다. 공식 홈페이지에서 뉴토끼의 업데이트 소식과 함께 접속 가능한 최신 주소를 받아보세요. 무료 웹툰은 뉴토끼와 함께하면 365일 행복합니다. 뉴토끼
I thoroughly enjoyed reading your insightful blog post! Your expertise shines through in your well-researched content, providing valuable insights that truly resonate with your audience. I look forward to reading more from you in the future!
(CLAIM FREE BONUS NOW).
Rise through the ranks and prove your worth. Hawkplay
internet money is always good if you know how to earn them. earning it is another story though** https://ibox4db.com/
Hello, I read this nice article. I think You put a best effort to write this perfect article. I appreciate your work. thank you so much.
Fool Me Once Leather Jacket
Your blog is so informative … keep up the good work!!!! online casino http://www.edennie.com
The Q&A section in this post addresses common doubts and concerns related to [specific topic]. Your willingness to engage with your audience sets your blog apart. Thanks for clarifying.
ZHPCleaner Torrent
This blog is really great. The information here will surely be of some help to me. Thanks!. Home
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! valmeadmotors
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. use generic anchors
Going to graduate school was a positive decision for me. I enjoyed the coursework, the presentations, the fellow students, and the professors. And since my company reimbursed 100% of the tuition, the only cost that I had to pay on my own was for books and supplies. Otherwise, I received a free master’s degree. All that I had to invest was my time. usaupnews
Great info! I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have 初中中文補習
Fantastic blog. I enjoyed reading your writings. This was a novel that I truly enjoyed. I’ve bookmarked it and am excited to read more from it. Continue your fantastic efforts! run 3
I’ve also been thinking the very same thing myself recently. Happy to see a person on the same wavelength! Nice article. Travel Agent eastern suburbs sydney
奇迹包网为您提供全面一站式包网服务,涵盖综合包网、体育包网、博彩包网以及东南亚包网。我们拥有顶级后台系统支持,多年搭建经验,是亚洲最优秀的包网平台。 包网
Het laatste tech nieuws lezen, dagelijks op de hoogte van de meest recente ontwikkelingen en trends in de techwereld met Technieuws nl Tech
Discover today’s latest news. Always stay informed of the latest Breda news and regional reports in your area with NieuwsVandaag. Tech
How do I check SASSA grant application status? Due to the downtime of the official SASSA website, applicants have to wait for many hours to verify their SASSA grant status online. To tackle this issue, we have developed this SASSA website to show the SASSA SRD status online.The South African Social Security Agency (SASSA) has introduced an online approach to view and verify SASSA application status. We have integrated SASSA application status tracking tool on this website for your ease. Now you do not need to worry about server down for several hours of the official SASSA website when you are checking your status live. https://checksassa.co.za/
We have sell some products of different custom boxes.it is very useful and very low price please visits this site thanks and please share this post with your friends. Hairless kittens for sale
What a useful information provided by this blog! It’s remarkable. ติดต่อ พนันคลิปโต Thanks for helping me out.
I wanted to thank you for this great read!! I definitely enjoying every little bit of it I have you bookmarked to check out new stuff you post. The Moving Company