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.
Data Analytics is an interesting domain with great career growth, start your career in a Data Analytics course with 360DigiTMG and bag a handsome paying job. data science institute in chennai
The word “Karaoke” is originated from Japanese, so is the culture. Karaoke is firstly developed in Japan in 1970’s Rumah dijual bandung and then expanded to other countries in Asia in 1980’s
This site really good
vegus168 ฝากเงิน
Website Slot Gacor Hanya di Laskar138
It was a very good post indeed. I thoroughly enjoyed reading it in my lunch time. Will surely come and visit this blog more often. Thanks for sharing. best safe UnitedFinances emergency cash immediately no credit check
This is very interesting, You are a very skilled blogger.
I have joined your feed and look forward to seeking more of your wonderful post.
Also, I’ve shared your web site in my social networks!
Also visit my web site …마마카지노
I propose merely very good along with reputable data, consequently visualize it: オンライン カジノ バカラ
This is also the case when you make changes to your system’s hardware software, firmware, or firmware that BitLocker finds an untrustworthy attempt or attack. For security that is 100% secure, the owner of the device may require the BitLocker keys for recovery. aka.ms/recoverykeyfaq
I appreciate you taking the time to write this topic; it’s quite educational, and the material adds to the post’s intrigue. sincerely grateful Puffer Jacket For Men
Has COVID-19 scare made you pause your career, join the best Data Science online course with 360DigiTMG and become a successful Data Scientist.
Data Science Training in Calicut
It is a great website.. The Design looks very good.. Keep working like that!. สล็อตออนไลน์
การเริ่มต้นมารู้จักกับหวยรัฐบาล ไม่ได้ยากอย่างที่คิดค้นสามารถสมัครเข้ามาเป็นสมาชิกได้เลยเนี่ยตอนนี้ใช้เวลาในการสมัครเพียงแค่ 1 นาทีเท่านั้น หยิบมือถือของคุณขึ้นมาแล้วพิมพ์ชื่อเว็บไซต์ว่า UFA1688
หวยรัฐบาล
สำหรับการสมัครเข้ามาเป็นสมาชิก เพื่อที่เขาเล่นเกมคาสิโน บิ๊ก เกมมิ่ง ให้เริ่มต้นด้วยการ ก็ไปสู่หน้าเว็บไซต์หลักเว็บไซต์ ระดับโลกที่มีชื่อว่า UFA1688 แล้วกดเลือกเมนูสมัครสมาชิก ที่นี่จะเป็นทางเข้าหลัก สามารถเข้าไปสู่เกมคาสิโน ของเราได้ทุกเกม
Big gaming
Those in attendance 123VEGA witnessed a more traditional
with regards to this kind of, simply because it is rather fantastic., Many thanks relating to uncovering bitmain antminer L7
Togel123 merupakan situs togel terpercaya dan adalah bandar totomacau dan hongkong terpercaya di Indonesia. Togel123 menyediakan berbagai jenis pasaran togel online wla yang bisa dimainkan oleh para pecinta permainan togel online
먹튀검증If you want information, please visit our site and look around.
Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts.compra casa venta for sale real estate hipoteca
nice post, keep up with this interesting work. It really is good to know that this topic is being covered also on this web site so cheers for taking time to discuss this! judiciary coaching
I exactly got what you mean, thanks for posting. And, I am too much happy to find this website on the world of Google. เว็บสล็อต ที่มีคนเล่นมากที่สุด
The website is looking bit flashy and it catches the visitors eyes. Design is pretty simple and a good user friendly interface. https://cuisinetreat.com/what-does-seal-taste-like/
What a thrilling post. It is extremely chock-full of useful information. Thanks for such a great info. catering na 30 urodziny
Excellent article. Very interesting to read. I really love to read such a nice article. Thanks! keep rocking. njmcdirect
Slot begun his coaching 123VEGA career in 2013, working as a youth
Hallwil is a business-oriented no code agency that makes the most of technology to launch and scale projects. We create an MVP of a product to see if it’s worth growing the business further. We work with SaaS and startups. Our main profile is website/design on Webflow, prototypes. We can build a remote team if the need arises for your business.
I have found some terrific blogs, and I believe that your blog writing is one of the best with so many information and easy to read.
Congratulation
เว็บไซต์เดิมพันรูปแบบแอพพลิเคชั่นรูปแบบใหม่ ที่ทันสมัยรองรับทั้งระบบ iOS และ Android ที่แรกในประเทศไทย ที่จะให้คุณได้สัมผัสและเปิดประสบการณ์ใหม่ในการเดิมพัน กีฬา คาสิโน สล็อต ที่มีพนักงานคอยให้บริการ 24 ชม.พร้อมระบบแนะนำเพื่อน ที่สามารถสร้างรายได้ให้กับ คุณง่ายๆเพียงแชร์ลิงค์ต่อสัมผัสรูปแบบการเดิมพันได้ที่นี่ที่เดียว UFA1688
1688.com
แทงบอลออนไลน์กับเรานั้น คุณสามารถเข้าเล่นผ่านโทรศัพท์มือถือได้ทุกรุ่นทุกระบบ คุณสามารถติดตั้งแอพพลิเคชั่นของทางเว็บไซต์ แทงบอลออนไลน์
PG SLOT สุดยอดเกมออนไลน์ สล็อตบนมือถือ แบบใหม่ล่าสุด ของโลก สมัครเล่น SLOT วันนี้รับโบนัส แรกเข้า 100% ทันที โบนัส 50% ฟรี STRATO™ SLOT เกมออนไลน์ที่ดีที่สุด สล็อตมือถือ ใหม่ล่าสุดของมือสมัครเล่นโลก SLOT วันนี้ รับโบนัสทันที 100% โบนัสทันที 50% ฟรี STRATO™ SLOT เกมออนไลน์ที่ดีที่สุด สล็อตมือถือใหม่ล่าสุดของโลก สล็อตมือสมัครเล่นวันนี้ เกมออนไลน์ที่ดีที่สุด Mobile Slots ใหม่ล่าสุดของโลก ดูเพิ่มเติม
Hi there, Could I grab this post photo and implement that on my own webpage? yanpalace
Simpleplay ที่นี่คือหีบสมบัติ ที่ทุกคนต้องรีบเข้ามาศึกษา และรีบเข้ามาเปิดเพื่อที่จะได้พบกับ สิ่งที่ตัวเองนั้นค้นหามาโดยตลอด เชื่อว่าทุกคนกำลังค้นหาเส้นทางความสนุก บนโลกออนไลน์
Simpleplay
I simply wanted to post a quick word so as to appreciate you for all of the great facts you are showing on this site. My time consuming internet research has at the end been rewarded with reputable details to exchange with my classmates and friends. I would repeat that most of us readers are unequivocally blessed to be in a remarkable network with many perfect people with very helpful metite at a minimum thrice in one week to read through the fresh guidance you will have. And lastly, I’m also at all times pleased with the stunning tactics you serve. Certain two ideas in this posting are definitely the finest we have had. 007카지노
When I initially commented I appear to have clicked on the -Notify me when new comments are added- checkbox and now every time a comment is added I receive four emails with the same comment. There has to be an easy method you can remove me from that service? Thanks! What i don’t understood is actually how you’re now not really much more well-favored than you may be now. You’re very intelligent. You realize therefore considerably when it comes to this subject, produced me for my part imagine it from so many various angles. Its like men and women are not involved unless it is one thing to do with Girl gaga! Your individual stuffs great. Always handle it up! 먹튀사이트
I wish to show my gratitude for your kind tdeclare that we visitors are really fortunate to live in a fine network with many lovely individuals with great guidelines. I feel very much blessed to have discovered your web page and look forward to really more cool minutes reading here. Thanks a lot once again for all the details. 더킹카지노
That is a really good tip especially to those new to the blogosphere. Brief but very accurate info… Many thanks for sharing this one. A must read article! I really like and appreciate your blog article.Much thanks again. Keep writing. Good day! I just would like to give you a huge thumbs up for your great information you have here on this post. I will be coming back to your web site for more soon. Hey there, Youu have done an excellent job. I’ll certainly digg it and personally suggest to my friends. I don’t even know how I stopped up right here, however I thought this publish was once great. I don’t recognize who you’re but definitely you’re going to a well-known blogger if you happen to are not already . Thanks a lot for sharing! 먹튀폴리스주소
Learn the fundamentals of Data Science and master the skills to handle epic amounts of data collected by organizations today. Gain expertise in organizing, analyzing, and transforming data to uncover its hidden power. Drive your career forward with a Data Science course in hyderabad and learn to uncover insights to present critical findings using visualization tools. Not only this, avail the best-in-class content delivered by stellar faculty who use a blended approach of theory as well as practical knowledge to ensure all the concepts are crystal clear.data analytics courses in hyderabad
When I originally commented I appear to have clicked on the -Notify me when new comments are added- checkbox and now every time a comment is added I get four emails with the exact same comment. Is there a means you are able to remove me from that service? Thank you! When I look at your blog site in Opera, it looks fine but when opening in Internet Explorer, it has some overlapping. What’s up to all, because I am truly eager of reading this web site’s post to be updated daily. It consists of pleasant information. 사설토토
because I am truly eager of reading this web site’s post to be updated daily. It consists of pleasant information. 사설토토
Thanks for taking the time to discuss this, I feel strongly that love and read more on this topic. If possible, such as gain knowledge, would you mind updating your blog with additional information? It is very useful for me. Satta king 786
What i do not realize is if truth be told how you’re no longer actually a lot more smartly-liked than you may be right now. You are very intelligent. You realize therefore considerably relating to this matter, made me for my part believe it from so many various angles. Its like men and women aren’t fascinated until it is something to do with Girl gaga! Your personal stuffs outstanding. Always maintain it up! Well I truly liked studying it. This subject provided by you is very practical for correct planning. What’s up, I read your blog daily. Your writing style is 안전놀이터모음
Good day I am so delighted I found your weblog, I really found you by accident, while I was researching on Digg for something else, Nonetheless I am here now and would just like to say many thanks for a remarkable post and a all round interesting blog (I also love the theme/design), I donít have time to read through it all at the minute but I have bookmarked it and also added your RSS feeds, so when I have time I will be back to read a great deal more, Please do keep up the fantastic job. Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my blog that automatically tweet my newest twitter updates. I’ve been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something like this. Please let me know if you run into anything. I truly enjoy reading your blog and I look forward to your new updates.| This is a great blog. 놀이터토토
Oh my goodness! Impressive article dude! Thank you, However I am having problems with your RSS. I don’t understand why I can’t join it. Is there anybody having identical RSS issues? Anybody who knows the solution can you kindly respond? Thanks!! Good post. I learn something new and challenging on websites I stumbleupon every day. It will always be helpful to read articles from other writers and practice something from their web sites. Greetings! Very useful advice in this particular post! It is the little changes which will make the biggest changes. Many thanks for sharing! Howdy, I believe your blog may be having browser compatibility issues. Whenever I look at your blog in Safari, it looks fine but when opening in IE, it has some overlapping issues. I simply wanted to give you a quick heads up! Besides that, excellent blog! 안전놀이터모음
“Hello! I could have sworn I’ve visited this web site before but after browsing through many of the articles I realized it’s new to me. Nonetheless, I’m certainly happy I found it and I’ll be book-marking it and checking back often!
Thanks for every other informative site. The place else may just I get that kind of information written in such an ideal means? I have a venture that I’m just now operating on, and I have been on the look out for such information.
I admire this article for the well-researched content and excellent wording. I got so involved in this material that I couldn’t stop reading. I am impressed with your work and skill. Thank you so much .wow, great, I was wondering how to cure acne naturally.” 메이저공원
I wish more authors of this type of content would take the time you did to research and write so well. I am very impressed with your vision and insight. I have added and shared your site to my social media accounts to send people back to your site because I am sure they will find it extremely helpful too. This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free. 사설토토
An outstanding share! I have just forwarded this onto a colleague who has been doing a little homework on this. And he actually bought me lunch due to the fact that I stumbled upon it for him… lol. So let me reword this…. Thanks for the meal!! But yeah, thanks for spending time to discuss this matter here on your blog. An interesting discussion is worth comment. I think that you ought to write more about this subject, it might not be a taboo matter but typically folks don’t discuss such topics. To the next! Many thanks!! I blog often and I really appreciate your content. This article has truly peaked my interest. I’m going to bookmark your blog and keep checking for new details about once per week. I subscribed to your Feed as well. It is one of the favorite pastimes for individuals. These buddies can be from all parts of the globe. When can I come by to consider a appear at the house? The betting procedures also differ among various poker video games. 안전놀이터모음
Hi, I do think your site could possibly be having browser compatibility issues. Whenever I take a look at your blog in Safari, it looks fine however, if opening in Internet Explorer, it has some overlapping issues. I merely wanted to give you a quick heads up! Other than that, excellent site! Woah! I’m really digging the template/theme of this website. It’s simple, yet effective. A lot of times it’s challenging to get that “perfect balance” between superb usability and appearance. I must say you’ve done a fantastic job with this. Also, the blog loads extremely quick for me on Safari. Excellent Blog!| I blog often and I genuinely appreciate your information. Your article has truly peaked my interest. I will book mark your blog and keep checking for new details about once a week. I subscribed to your Feed as well. 먹튀검증
Thanks for an interesting blog. What else may I get that sort of info written in such a perfect approach? I have an undertaking that I am just now operating on, and I have been on the lookout for such info. Fabulous post, you have denoted out some fantastic points, I likewise think this s a very wonderful website. I will visit again for more quality contents and also, recommend this site to all. Thanks. Very good points you wrote here..Great stuff…I think you’ve made some truly interesting points.Keep up the good work. It is my first visit to your blog, and I am very impressed with the articles that you serve. Give adequate knowledge for me. Thank you for sharing useful material. I will be back for the more great post. 메이저놀이터
Right here is the perfect blog for everyone who wishes to understand this topic. You know so much its almost tough to argue with you (not that I actually will need to…HaHa). You definitely put a fresh spin on a subject which has been discussed for a long time. Wonderful stuff, just wonderful! Howdy! This post couldn’t be written any better! Reading through this post reminds me of my previous roommate! He constantly kept talking about this. I most certainly will send this information to him. Pretty sure he’ll have a good read. Thank you for sharing! Howdy! Do you use Twitter? I’d like to follow you if that would be okay. I’m absolutely enjoying your blog and look forward to new updates.| Good post. I learn something totally new and challenging on blogs I stumbleupon every day. It’s always interesting to read content from other writers and practice a little something from other websites. 메이저사이트 코드
Hi, I do think your website could possibly be having browser compatibility problems. Whenever I take a look at your website in Safari, it looks fine however, when opening in Internet Explorer, it’s got some overlapping issues. I simply wanted to give you a quick heads up! Apart from that, fantastic blog! You’re so interesting! I do not think I’ve truly read something like that before. So wonderful to discover another person with a few unique thoughts on this topic. Seriously.. thank you for starting this up. This web site is one thing that is needed on the web, someone with a bit of originality! 퍼스트카지노주소
Thank you so much for sharing this great blog.Very inspiring and helpful too.Hope you continue to share more of your ideas.I will definitely love to read. trzydzieskta w klubie