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.
Nice blog and absolutely outstanding. You can do something much better but i still say this perfect.Keep trying for the best. Students Tips
This content is written very well. Your use of formatting when making your points makes your observations very clear and easy to understand. Thank you. https://bitcoinprivatekeyfinders.com/how-to-use-the-fake-usdt-application-to-transfer-fake-cryptocurrency-successfully/
I {don’t|do not} even know how I ended up here, but I thought this post was {good|great}. I {don’t|do not} know who you are but {definitely|certainly} {you are|you’re} going to a famous blogger if you {are not|aren’t} already Cheers!… Heya i’m for the first time here. I found this board and I find It really useful & it helped me out much. I hope to give something back and aid others like you helped me…. Fox News Live
This article was written by a real thinking writer without a doubt. I agree many of the with the solid points made by the writer.Picuki
我们为数万华人留学生提供各类课程的网课代上,网课代考, Assignment代写、Essay代写作业代写、论文代写、各类Exam代考远程协助;金融级SSL隐私保护、精湛的质量贴心的服务成就不一样的你!企业级专席客服7*24在线咨询微信/QQ5757940. 网课托管
I admire what you have done here. I like the part where you say you are doing this to give back but I would assume by all the comments that this is working for you as well. bestellen
Super-Duper site! I am Loving it!! Will come back again, Im taking your feed also, Thanks. Bestseller
This is the type of information I’ve long been trying to find. While reading a recent blog post, I came across this article and started to investigate, hoping to uncover some secret tips. I found exactly what I was looking for! These tips are actionable and have great results. Visit this link lautindo right now to discover these hidden gems.
This content is written very well. Your use of formatting when making your points makes your observations very clear and easy to understand. Thank you. shop of flower petals
I find that angel numbers can be sent by your angels, but they can also be sent by your guides, by Source, by higher dimensional levels of your soul, by past or future versions of yourself, and even by the energy in the Universe. Angel number 555
Excellent article. Very interesting to read. I really love to read such a nice article. Thanks! keep rocking. Clínica de Reabilitação em Campina Grande
These meanings come from the specific frequency of the number. That’s why it’s easy for our guides, angels, or higher self to send messages via numbers: the frequency already matches the number. Angel number 555
These are some great tools that i definitely use for SEO work. This is a great list to use in the future..
after 2tbclark theverg
It was wondering if I could use this write-up on my other website, I will link it back to your website though.Great Thanks. ทดลองเล่นสล็อต pp
Excellent and very exciting site. Love to watch. Keep Rocking. pp slot
it’s really nice and meanful. it’s really cool blog. Linking is very useful thing.you have really helped lots of people who visit blog and provide them usefull information.Home Depot Health Check
Hmm it seems like your site ate my first comment (it was extremely long) so I guess I’ll just sum it up what I submitted and say, I’m thoroughly enjoying your blog. I too am an aspiring blog writer but I’m still new to everything. Do you have any tips for rookie blog writers? I’d certainly appreciate it. توكيل محامي سعودي
This particular papers fabulous, and My spouse and i enjoy each of the perform that you have placed into this. I’m sure that you will be making a really useful place. I has been additionally pleased. Good perform! 안전놀이터
me like Simlish from Faktor yang Mempengaruhi Consumer Behavior time to time.
Now all I need to do is secure 7P Marketing Mix citizenship.
nothing Indikator Kesuksesan Bisnis and the simple mundanities of daily living.
I’m glad to see the great detail here!. نصليح طباخات
Yes i am completely concurred with this article and i simply need say this article is extremely decent and exceptionally useful article.
카지노사이트
Positive site, where did u come up with the information on this posting? I have read a few of the articles on your website now, and I really like your style. 카지노사이트
I’m still getting my fair share Tagline Brand of adventures.
This content is written very well. Your use of formatting when making your points makes your observations very clear and easy to understand. Thank you. lunch fine dining
We are interested in your posts. https://victoriaramada.com/
Positive site, where did u come up with the information on this posting?I have read a few of the articles on your website now, and I really like your style. Thanks a million and please keep up the effective work. kolkataescortsxx.info
I came to this site with the introduction of a friend around me and I was very impressed when I found your writing. I’ll come back often after bookmarking! OKBet
Thanks for the blog loaded with so many information. Stopping by your blog helped me to get what I was looking for. ทดลองเล่นสล็อต
Não perca prazos, fique atento a localização de sua encomenda, utilize o serviço de rastreamento correios e fique informado de onde está seu produto, lembrando que este serviço pode ser utilizado por quem envia e por quem recebe, assim ambos ficam informados e alinhados! correios rastreamento fácil
You’ve completed in excellent work. t suggest to my frtends ind personilly wtll certitnly dtgtt. t’m conftdent they’ll be gitned from thts webstte. How can you make your firm eco-friendly
This article was written by a real thinking writer without a doubt. I agree many of the with the solid points made by the writer.
Home Depot Health Check App
Great to become visiting your weblog once more, it has been a very long time for me.
Pleasantly this article i’ve been sat tight for such a long time. I will require this post to add up to my task in the school,
and it has identical subject along with your review. Much appreciated, great offer.
data analytics courses malaysia
That is really nice to hear. thank you for the update and good luck. ufabet เว็บตรงทางเข้า
Thanks for sharing us. สมัคร ufabet เว็บตรง
Writing assignments or essays is a difficult and tedious task for learners since they need to have strong writing and researching skills. Students wouldn’t be able to produce high-quality writing due to a shortage of research period. Students seeking a pharmacy degree frequently struggle to finish their assignments on time since they need to understand the material in order to get good grades. You don’t have to waste any time composing assignments if you need aid with your pharmacy assignments because you are too busy with other school assignments. When it comes to providing assistance with pharmacy Someone to do my assignment for me are the best available on the market. They have a team of skilled and knowledgeable experts who would adhere to your directions and make masterpiece for you so that you can get the desired marks in your examination.
구글 상위 노출There are various sites, but I’m confident that our site is the best.
It has also proved its worth in fraud detection. In this article, you will read the importance of machine learning for a data scientist.data science training in jalandhar
also became friends with Strategi Giveaway the girl behind us
I am really loving the theme/design of your website. Do you ever run into any web browser compatibility problems? A few of my blog readers have complained about my blog not working correctly in Explorer but looks great in Opera. Do you have any solutions to help fix this issue? entertainment
This plot doesn’t reveal itself; it has to be explained. Digital Global Times
Are You Looking for Buy Vcc online in usa ,uk? Shop for the vccexpress from our collection of exclusive, like Google Ads Accounts, Stripe Accounts, Bing Ads Accounts, PayPal Accounts, Buy Paxful Account, Instant Delivery After Payment
Are You Looking for Buy Vcc online in usa ,uk? Shop for the vccexpress from our collection of exclusive, like Google Ads Accounts, Stripe Accounts, Bing Ads Accounts, PayPal Accounts, Buy Paxful Account, Instant Delivery After Payment
Servere Second Hand. Orice server de pe planeta – CIT Grup
Vindem orice servere second hand de pe planeta. Buyback pentru serverele tale. Livrare imediata servere oriunde in Romania si Europa.
https://www.citgrup.ro/servere/second-hand-2
Excellent and very exciting site. Love to watch. Keep Rocking. un curso de milagros
baccarat online click!!
สล็อต ฝาก ถอน true wallet ไม่มีขั้นต่ำ
Wow! Such an amazing and helpful post this is. I really really love it. It’s so good and so awesome. I am just amazed. I hope that you continue to do your work like this in the future also tech companies in nyc
karaoke plays an Cara Kerja CMS important role in people’s nightlife. It’s the place for family
Two full thumbs up for this magneficent article of yours. I’ve really enjoyed reading this article today and I think this might be one of the best article that I’ve read yet. Please, keep this work going on in the same quality. FAKE NEW SOUTH WALES DRIVERS LICENCE