Industry Overview
The Karaoke culture is popular in East Asia. Unlike the karaoke in bars/clubs offered publicly, the karaoke style here I want to discuss is the one has private rooms for different size of parties, and that is why the concept of Revenue Management can be applied broadly in this industry. I will specifically focus in Taiwan, because the karaoke culture in Taiwan is mature, and the company even expand the business to other countries.
The word “Karaoke” is originated from Japanese, so is the culture. Karaoke is firstly developed in Japan in 1970’s and then expanded to other countries in Asia in 1980’s, but the origin of the idea is obscure. Reference: http://en.wikipedia.org/wiki/Karaoke
In Taiwan, karaoke plays an important role in people’s nightlife. It’s the place for family, friends, colleagues, and even doing business. The karaoke industry in Taiwan is dominant by one company which has two different brands, one for higher class (more expensive) and the other one for lower class (cheaper). Higher class brand charges more with its glorious and hotel-look lobby, fancier private room decoration, more delicious food, and convenience (in-room restroom). There is another premium venue of that company that doesn’t see as a brand but more like a status, because it is limited to members, and joining the membership is by invitation (http://www.cashboxvip.com/viprespect.html). Thus, people start to consider going to karaoke as a luxurious entertainment, not to mention it seems to be a trend for the hotels in Hong Kong and Macau to design presidential suites with an “entertainment room” when we visited last June. Since people can easily spend hours in karaoke, the revenue can be generated in many ways. I will discuss the application based on my observations and experiences in Taiwan, and karaokes in Taiwan also do a better job than karaokes in Singapore on applying revenue management.
(Website of karaoke in Singapore:
a. http://www.partyworldktv.com.sg/promotion-29305210352041938144.html
b. http://www.kbox.com.sg/StaticContent.aspx?u=6)
The following are the overview of basic levers applied in Taiwan:
Space: (not applied in Singapore)
Karaoke has limited capacity, as the number of private rooms are fixed. Also, the size of the private rooms usually vary from small for 3 to 4 people to party size, 18-20 people, or even super party size for up to 35 people.
Time:
The time slot is limited, but the minimum consumption unit vary as the size of private rooms. Usually the rack rate is charged by hour, but promotion packages are charged based on 3-hour consumption, and you can extend by hour as the basic unit.
Also, karaokes apply dynamic pricing according to peak/off-peak hour and high/low season. The prices are differentiated by time of day, day of week, and month of year.
Occupation: (not applied in Singapore)
In Taiwan, students and senior are privileged for cheaper price. People older than the age of 55 are able to enjoy senior discount, as 55 is the minimum age to retire in Taiwan. The reasons may be students are more price-sensitive, but they also have more free time to spend in karaokes, and seniors also have more free time once they retire.
(Unfortunately, the website of the dominant company is in Mandarin, but I think you can still figure out how variable their prices are! Variable pricing charged by per person: http://www.cashboxparty.com/ktv/web_ktv/web_ktv.asp
Rack rate charged by hour per room: http://www.cashboxparty.com/ktv/map/price/kp17.html)
The Levers
SPACE
The inventory unit for karaokes is private room. A karaoke can be as big as a maze with narrow hallways and unorganized directions so it can utilize the space to its maximum. Karaokes define the space implicitly, because the size categories vary according to the space of each branch. Likewise, the capacity of private rooms varies in different branches. The following are the different private room sizes of the biggest karaoke branch in that company:
Small – 2 to 7 people
Medium – 8 to 10 people
Medium big – 10 to 12 people
Big – 12 to 15 people
Super big – 15 – 18 peope
Party size (“Presidential Suite”) – 18 – 35 people
Other utilizations of space:
a. Other than the main revenue generator, private rooms, karaokes utilize spaces for a major human need, food. Consumers not only can order in-room dining in a la carte style, but also can go to buffet area for all-you-can-eat service. Of course the delicacy level is depending on the class of the brand.
b. Another space utilization for karaoke is to selling company-branded products, such as stationary or products signed by famous singers, but it accounts for a very little part of the revenue.
c. In one of the signature karaokes of this company, there is a restaurant serving Cantonese Dim-Sum inside the karaoke. It is a rare but a brilliant concept. For people who go to karaoke but is not that into singing, they may go to that restaurant so they can eat food at the table with more comfortable height. Also, after an all-night singing, people in Taiwan like to have either a late night snack or early breakfast before dawn. The idea of the restaurant can attract people who bother which restaurant to go to. http://www.cashboxparty.com/ktv/cashboxdining/
Karaokes tend to save spaces for private rooms, as the more parties they can accommodate, the more revenue it can generate. To increase more revenue by using space, both brands may consider charging private rooms according to the distance to buffet area. The closer to buffet area, the more expensive the room rent, since people can save more time on going back and forth for food and drinks.
TIME
Karaoke sells time explicitly. The prices are either charged by per private room per hour, or by per person per certain time slot (ex. by per person for 3 hours). The pricing differs as follows:
a. Hour – separate a day into 5 different slots: (http://www.cashboxparty.com/ktv/map/price/kp17.html)
07:00-10:59 – the cheapest
11:00-15:59
16:00-17:59
18:00-19:59
20:00-22:59(Sunday to Thursday) 20:00-01:59(Friday and Saturday) – the most expensive
23:00-06:59(Sunday to Thursday) 02:00-06:59(Friday and Saturday)
b. Day of week
As what I mentioned above, Friday and Saturday are considered as “peak season”, and Monday to Thursday are “off-peak season”. The pricing for Sunday is slightly higher than weekdays but much lower than Friday and Saturday.
c. Month of year
This pricing differentiation is specially catered to student groups. Since students in Taiwan have winter vacation (3 to 4 weeks long in January and February) and summer vacation (8 to 9 weeks long in July and August), it is less often for students to go to karaokes with friends or classmates.
d. Special holidays
Public holidays are considered as peak season for karaokes, such as Christmas and spring break (can last from 3 – 5 days to celebrate Tomb-sweeping Day and Children’s Day)
Apart from the above explicit specifications of time, I suggest karaokes can consider to charge implicitly by the number of songs. It is not uncommon that the time we pay for the private room is about to end, but my favorite song is not played yet. If people can pay by songs, then such situation can be avoided and customers can also leave without pity.
PRICE
Karaoke uses physical and non-physical rate fences to differentiate its pricing, but the application of physical rate fences is far less than non-physical.
a. Physical rate fences are the size of private rooms, minimum charge for party size private room, and location of the karaoke branch. It is obvious that karaoke locating in downtown business area or in prime cities can charge higher than other locations. (Minimum rental list for Presidential Suite: http://www.cashboxparty.com/ktv/act/1001118_17/)
b. Non-physical rate fences are occupation (student), age (senior and birthday discount), membership (membership of karaoke and certain credit card holder), and time.
Other non-physical rate fences that I think is doable are advanced reservation and distance to buffet. To manage inventory more efficiently, karaokes can consider charge slightly higher for walk-ins in peak hour or hot season. Also, as what I have mentioned, it is possible for people to pay more for a private room which is closer to buffet area.
Want to become an IBM certified data scientist and want to get placed in a reputed data science company?
Join today: Best data science Training in Bangalore
Business Analytics Certification Course Overview
The Professional Certification in Business Analytics is a foundation course for students and professionals who want to develop niche data skills for their chosen industry domain or function area. Become a Business Intelligence and Data Visualisation expert and surge ahead in your career. The nine-day Business Analytics certification course covers all the essential Analytical and Statistical techniques for effective business decision making. This programme introduces the student to the basic concepts of Python language.
business analytics course
PLAB Question Bankoffer most comprehensive high yield question derived from PLAB Past papers.
Gypsum designer providing innovative building solutions to meet the demands of customers for sustainable performance solutions. Gypsum designer Inc. is a key resource for architects, contractors, and design professionals.Sonia Randhawa
I was very pleased to find this site.I wanted to thank you for this great read!! I definitely enjoying every little bit of it and I have you bookmarked to check out new stuff you post.
digital marketing malaysia
It is perfect time to make some plans for the future and it is time to be happy. I’ve read this post and if I could I desire to suggest you some interesting things or suggestions. Perhaps you could write next articles referring to this article. I want to read more things about it! ExcelR Courses in Business Analytics
My spouse and i got very satisfied Michael could conclude his studies while using the ideas he made out of the web pages. It is now and again perplexing.soniarandhawa
digital marketing courses in hyderabad by 360DigiTMG is the best one with quality training, best support and more than 9,000 Students Enrolled
digital marketing courses in hyderabad
One stop solution for getting dedicated and transparent Digital Marketing services and We take care of your brands entire digital presence.
The digital marketing services we provide includes SEO, SEM, SMM, online reputation management, local SEO, content marketing, e-mail marketing, conversion rate optimization, website development, pay per click etc. We will definitely promote your brand, product and services at highest position with consistency in order to generate more revenue for your business.Digital Marketing Services
Cool stuff you have and you keep overhaul every one of us
Pmp Certification Pune
You might comment on the order system of the blog. You should chat it’s splendid. Your blog audit would swell up your visitors. I was very pleased to find this site.I wanted to thank you for this great read!!
Pune Digital Marketing Course
This was really one of my favorite website. Machine Learning Courses In Pune Please keep on posting.
I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Pune Digital Marketing Course Any way I’ll be subscribing to your feed and I hope you post again soon. Big thanks for the useful info.
I think that you could do with some pics to drive the message home a bit, but other than that, this is great blog.soniarandhawa
Realty infra originating from Visakhapatnam has committed its energies to furnish affordable and luxurious homes for the masses and customer satisfaction. We have always tried to inculcate new thoughts and concepts into the architecture and surroundings so that everyone can enhance the pleasurable elements of existence. With the same ideals in mind we have ventured to Andhra Pradesh. http://realestate-plots-flats-vizag.in/realty-infra-group/
Ronald, what a beautiful testament to the power of a pet. And we think your life is a very special one, and feel blessed to have you as part of our Pets for Patriots family.soniarandhawa
I finally found great post here.I just added your blog to my bookmark sites. thanks.Quality posts is the crucial to invite the visitors to visit the web page, that’s what this web page is providing.
machine learning course in pune
Frux Infotech Proves to be the best solutions for you. We offer the web services,webDesigning,Webhosting,Webdevelopment,Software Development,SearchEngineoptimization[SEO], Web promotions,link building,Digital marketing. So make Your Business Strong & growth With us.Web Designing Companies in Vizag
If you are planning to travel a first time sevarel work you done before start you travel.Fist of all plan ahead.Traveling on a train or a bus or a airplane its not always the most comfortable.In such case the travel agencies and travel agent help in such case.soniarandhawa
The best Maui wedding photographers since 2004. Voted number one in wedding photography on Maui by magazines around the world. Our award-winning Maui wedding photography team have hundreds of five-star reviews and the most affordable wedding photography packages on Maui.bitcoin era review
I like viewing web sites which comprehend the price of delivering the excellent useful resource free of charge. Thank you!
machine learning course in pune
This is a well-written article and thanks for giving us an update about the Queensland budget. jasa pembuatan patung jogja
I have to search sites with relevant information on given topic and provide them to teacher our opinion and the article.
data science courses in pune
cool stuff you have and you keep overhaul every one of us
Machine Learning and AI Solutions in Hyderabad
What a great story and it comes at a time of great success for Rollins…always important to be reminded of the foundation upon which we are built.sex in Tel Aviv
Hi, Its like you read my mind! You seem to know so much about this,like you wrote the book in it or something. I think that you could do with some pics to drive the message home a bit, but other than that, this is great blog.Sonia Randhawa
I don t have the time at the moment to fully read your site but I have bookmarked it and also add your RSS feeds. I will be back in a day or two. thanks for a great site.
best business analytics training institute
Attend The Machine Learning courses in Bangalore From ExcelR. Practical Machine Learning courses in Bangalore Sessions With Assured Placement Support From Experienced Faculty. ExcelR Offers The Machine Learning courses in Bangalore.
Machine Learning courses in Bangalore
Hi, Hi, You can only find high-quality Viagra Medications at health solution Pharmacy, all the way from FDA Approved Facilities. We have the fastest service, a good reputation to all our customers reliable Next Day Delivery from date of order placed within the United States and Canada as well as 3 to 4 days delivery lead time for the Rest of the World. So feel Safe and place Your order with us.우리카지노
its looks to be the best burgers like the burgers of jimmy-hula of Orlando. Great info. I would like more information about this, because it is very nice. Thanks for sharing.online business
I just stumbled upon your blog and wanted to say that ExcelR PMP Certification 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.
I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. ExcelR Digital Marketing Classes In Pune Any way I’ll be subscribing to your feed and I hope you post again soon. Big thanks for the useful info.
I like this blog, Open Scientist, and I like the blog and provide more information so thanks. Our Company Slcparamedical College also provides one of the best institutes, training college and good services provided.Immigration and Asylum Appeals ( In- Country and Out of Country Appeals) UK
I was just browsing through the internet looking for some information and came across your blog. I am impressed by the information that you have on this blog. It shows how well you understand this subject. Bookmarked this page, will come back for more.
best business analytics course in malaysia
Indeed, there are many mind map examples but none is as good as this one, called Mindomo
This is an awesome motivating article.I am practically satisfied with your great work.You put truly extremely supportive data. Keep it up. Continue blogging. Hoping to perusing your next post
Courses in Digital Marketing in Pune
This is my first visit to your web journal! We are a group of volunteers and new activities in the same specialty. Website gave us helpful data to work.movierulz
Obviously, there ought to be a uniform for the Teachers as well. the essential point of the best assignment help is that everybody should look parallel. there shouldn’t be any separation among the understudies and furthermore there shouldn’t be any segregation among the educators as well. no one I feel that he is unrivaled.Best UK Immigration Solicitor
Very nice job… Thanks for sharing this amazing ExcelR Machine Learning Course Pune and educative blog post!
Your web design enables you to create the theme that serves to be the foundation of your website.face masks
I must examine with you here. Which isn’t one thing I usually do! I get pleasure from studying a put up that will make people think. Also, thanks for permitting me to comment.dental day surgery
If you are planning to travel a first time sevarel work you done before start you travel.Fist of all plan ahead.Traveling on a train or a bus or a airplane its not always the most comfortable.In such case the travel agencies and travel agent help in such case.bitcoin evolution
I have express a few of the articles on your website now, and I really like your style of blogging. I added it to my favorite’s blog site list and will be checking back soon…
More Info of Machine Learning
Wow i can say that this is another great article as expected of this blog.Bookmarked this site.. THC Vape Pens, THC Vape Cartridges
It can be heard numer o times a weak tight player at the casino say “Oh, I never raise preflop. Pocket aces can still lose and I’d rather not put in the extra bet until I see a flop”. Then after they see the flop and it comes down 882, they justify checking, or just calling, by saying, “He could have easily had an 8! No sense in throwing my chips away”.
These players just cannot grasp the idea that risking their chips when they most likely have an advantage will lead to them winning more money in the long run. Yeah, there will be plenty of times they will lose a pot, or even have a losing session, but by playing mathematically correct and a tight aggressive game they will be winners long term. Daftar Joker123
Another way to think of it is with a baseball analogy. Babe Ruth often hit the most home runs in a season which lead him to be widely considered the best player in the game. What many people forget is that he also often lead the league in strike outs. While you might “strike out” often, by picking your spots and swinging for the fences at the right times (and often) you will hit a home run (or at least get to 2nd base!) more than your fair share.
Playing an aggressive, tight poker game will not only allow you to get full value for your hands but it will also gain you control over the hand. That’s what makes playing a weak tight game so dangerous. This weak style not only makes the player predictable and easy to read, but it opens the door for aggressive players to take control and push them around.
Excellent Blog! I would like to thank for the efforts you have made in writing this post. I am hoping the same best work from you in the future as well. I wanted to thank you for this websites! Thanks for sharing. Great websites!
https://bit.ly/3eN7L82
Excellent Article. Thank you for sharing this with us.
Online Course in Data Science
I’m not your typical bride: glittery-eyed, with dreams of a big, glamorous wedding. Parties aren’t my thing and ogling crowds freak me out. I have no qualms with traditional, dreamy weddings, but that isn’t in the cards for me. Vegas is more my style. And a Las Vegas wedding is what my husband and I had Customlasvegasweddings.com .
We’re not alone. Clark County, Nevada has issued over 100,000 marriage licenses annually since 1995, earning the city a reputation as the marriage capital of the world. Consequently, you can easily plan any size wedding in Las Vegas. Here is my list of tips to help make your version of a Vegas dream wedding happen:
The Ceremony.
Whatever your dream, chances are you can find it in Las Vegas. Options range from a bare-bones $50 civil ceremony at the courthouse to a $19,000+ posh ceremony at the Wynn (NOT including the reception,). If you want a themed wedding, Elvis, Captain Kirk, Liberace, James Bond, and others are eager to please. Always dreamed of a Gothic or Egyptian wedding? They have got it covered in Vegas.
Its like you read my mind! You seem to know so much about this,like you wrote the book in it or something. I think that you could do with some pics to drive the message home a bit, but other than that, this is great blog.X ray unit
I am genuinely thankful to the holder of this web page who has shared this wonderful paragraph at at this place
Courses in Digital Marketing in Pune