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.
Sosyal medya haberleri ve Sosyal Medya Gündemine dair her türlü gelişme burada.
This post is really magnificent. I really like this post. It is one of the best posts that I ve read in a long time. Thanks a lot for this really good post. I really appreciate it 스포츠토토사이트
Thanks for the blog filled with so many information. Stopping by your blog helped me to get what I was looking for. Now my task has become as easy as ABC. 메이저토토사이트
We conduct them through several anti-plagiarism checkers as well as spelling and grammar helpers online before the author submits them . Besides professional faculty essay authors, we’ve got a team of editors in place specifically for that function. By: 먹튀
I’m going to read this. I’ll be sure to come back. thanks for sharing. and also This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article 토토사이트
Awesome article! I want people to know just how good this information is in your article. It’s interesting, compelling content. Your views are much like my own concerning this subject 토토사이트
For an article to work สล็อต123 it has to be engaging enough.
instagram profil link ile tüm bağlantılarını bir araya topla, kolayca paylaş.
and things of that 123maxx
nice article keep update. Thanks for such a great post
“Abacus Trainer provides the Best Abacus Online Classes for kids. Best platform for Vedic Math Online Training classes from certified teachers for 5 years children.
To know more about AbacusTrainer
Visit: Visit online abacus classes!
This is such a great resource that you are providing and you give it away I love seeing
“””Dream Teach Provides Best Teaching and Learning resources of geography in UK. It provides info on a geographical environmental quiz, journals that are helpful for Primary & Secondary Schools Teachers and Students.””
To know more about DreamTeach
Visit: Visit geography learning resources!
Dünyanın dört bir tarafından farklı coğrafya ve kültürel değerlere sahip Türkiye’de üniversite okumak isteyen binlerce öğrenciyi hem bilimsel hem de ahlaki değerlerle hayata hazırlayan bir yolda buluşturuyoruz. YÖS nedir diye merak ediyorsan, web sitemizi ziyaret edebilirsin.
I’m going to read this. I’ll be sure to come back. thanks for sharing. and also This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article… ยูฟ่าสล็อต
I will truly value the essayist’s decision for picking this magnificent article fitting to my matter.Here is profound depiction about the article matter which helped me more.
DİJİTAL DÜNYADA SEN DE YERİNİ AL! Çorum web tasarım olarak fikirlerinizi dinleyip sizin için özgün olan özgün ve kreatif bakış açısıyla hayata geçiriyoruz.
Thank you for sharing a bunch of this quality contents, I have bookmarked your blog. Please also explore advice from my site. I will be back for more quality contents. เว็บตรง ออ โต้
Great tips and very easy to understand. This will definitely be very useful for me when I get a chance to start my blog.
cyber security training malaysia
It is very good, but look at the information at this address. 토토사이트
Unquestionably generally speaking very intriguing post. I was looking for such an information and totally savored the experience of examining this one. Keep on posting. A responsibility of appreciation is all together for sharing.data science course in bhubaneswar
Tiengruoilink – Cam kết mang đến cho người hâm mộ đường truyền xembongdatructiep ổn định với chất lượng Full HD. Link phụ: Tiengruoi
Best application for a web application made for people who want go to GAIN FAME BY INCREASE LIKES, FANS & VIEWS click here and checkout:free like tiktok
Really appreciate this wonderful post that you have provided for us.Great site and a great topic as well i really get amazed to read this. Its really good. e girls ,
Betting 2022 New Style Exotic Modern with best 24-hour serviceสล็อต ฝากวอเลทไม่มีขั้นต่ำ
welcome ..
Taruhan bola sbobet online kini banyak sekali dimainkan oleh para bettor yang ada di Indonesia dimana memiliki permainan yang sangat beragam dan seru untuk dimainkan. Selain itu agen sbobet 389Sports ini kalian bisa memulai proses pendafaran untuk bisa bermain di situs utama sbobet. Proses pendaftaran yang sangat mudah tanpa harus menunggu waktu lama kalian akan memiliki ID sbobet resmi.
Give students opportunities สล็อต123 to practice headline
Very awesome!!! When I seek for this I found this website at the top of all blogs in search engine. Data Scientist Course in Chennai
Really broken, easy to break, no cheating.แจกเครดิตฟรี
happy.
This is a great post. I like this topic.This site has lots of advantage.I found many interesting things from this site. It helps me in many ways.Thanks for posting this again. crictime live cricket streaming
Most useful article writing benefits experienced article authors are used to providing honest writing usefulness to investigators. When used correctly, these kindnesses can support experimenters express their reflections more sufficiently than they can accomplish on their own. I appreciate your career in writing this sort of range for us.
https://sites.google.com/site/bestessaywritingservicereview/
Teknoloji haberleri, Gündem Haberleri, Spor, Dizi, Film, Android, İos Kategorileri Üzerine Ekip Olarak İçerik Üreten Bir Blog Sitesiyiz.
Mobilya tamiri nasıl yapılır? Başakşehir ilçesinde en yakın mobilya tamiri yapan yerler neresi? diye soruyorsanız eğer, doğru yerdesiniz! Mobilya Tamir Atölyesi olarak, tüm koltuk takımı & ofis takımı & ahşap mobilyalar gibi aklınıza gelebilecek tüm mobilyalarınız için mobilya tamir servisi hizmeti veriyoruz.
Istanbul airport transfer
Are there still people who are being victimized by scams? Don’t take any more damage with the scam verification site. We are here to help.먹튀검증사이트
I feel very grateful that I read this. It is very helpful and very informative and I really learned a lot from it.
cyber security course
카지노알공급 Profit information game shares everything and provides everything.
I’ve been searching for data on this theme for some time. I’m glad this one is so extraordinary. Keep up the superb work mp3 PAW
I want to leave a little comment to support and wish you the best of luck. we wish you the best of luck in all your blogging enedevors
data science training in varanasi
You delivered such an impressive piece to read, giving every subject enlightenment for us to gain information. Thanks for sharing such information with us due to which my several concepts have been cleared. 먹튀검증업체
Yes i am completely concurred with this article and i simply need say this article is extremely decent and exceptionally useful article.I will make a point to be perusing your blog more. You made a decent point yet I can”t resist the urge to ponder, shouldn”t something be said about the other side? 메이저놀이터
Downsides As talked about, compared with additional material composing solutions, Scripted will feature a marginally higher cost. But, authors have the ability to place their own prices, supplying an aggressive market place. Bottom-line: Scripted is perfect for each enterprise — large and smaller. By: 먹튀검증사이트
kedi yatağı
vpn star
theraflu fiyat
maşukiye gezilecek yerler
Thank you for the auspicious writeup.แจกเครดิตฟรี สมาชิกใหม่
It in fact was a amusement account it.
ย่อลิงค์ shortenlink เราให้บริการย่อลิ้งค์ ฟรี ไม่มีค่าใช้จ่าย คุณสามารถทำ URL ให้สั้นลงได้ง่ายๆ มีสถิติและ QR Code ให้คุณได้ใช้งาน ไม่ต้องสมัครสมาชิกให้ยุ่งยาก ย่อลิ้งค์
Today, I was just browsing along and came upon your blog. Just wanted to say good blog and this article helped me a lot, due to which I have found exactly I was looking. ebet casino
Farhat’s Salon for women has built its reputation providing the best bridal services possible for our exclusive, trained from Toni & Guy, SABS and Natasha.
best bridal salon in hyderabad
Very beautiful blog.
thanks bro best drill holsters