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.
Your ideas inspired me very much. It’s amazing. 토토사이트 I want to learn your writing skills. In fact, I also have a website. If you are okay, please visit once and leave your opinion. Thank you.
Hello! Nice to meet you, I say . The name of the community I run is , 안전놀이터 and the community I run contains articles similar to your blog. If you have time, I would be very grateful if you visit my site .
Hey what a brilliant post I have come across and believe me I have been searching out for this similar kind of post for past a week and hardly came across this. Thank you very much and will look for more postings from you. punaises de lit 94
Hey what a brilliant post I have come across and believe me I have been searching out for this similar kind of post for past a week and hardly came across this. Thank you very much and will look for more postings from you. punaises de lit 94
Hey what a brilliant post I have come across and believe me I have been searching out for this similar kind of post for past a week and hardly came across this. Thank you very much and will look for more postings from you. punaises de lit 94
I Am Shaina.Jodean Bottom.After going over a few of the articles on your site,
I really like your way of blogging. I added it to my bookmark webpage list and will be checking back in the near future.
Please check out my website as well and tell me how you feel. This is a really amazing blog that provides quality information. I Daily Visit To Read This Blog Posts. This Website Is All About The Facts Of Great And Valuable Information. Thanks So Much For Sharing Such And Amazing Information With Us.
nice blog
cyber security training in bangalore
I am hoping that you will continue writing this kind of blog. Thanks for sharing this information.
sadar bazar nearest metro station
Hey How Are You Admin.Dominick Wright. I Am From Singapore and I Really Like To Read Your Blog Post And I Daily Visit For This Such An Amazing And Valuable Information. This Blog Is Full Of Valuable And Amazing Content. This Blog Is All About The Facts Of Excellent Information Which You Provide. I Thankful To You For Sharing Amazing And Unique Content On Your Web Blog.
Thanks for the news. We’re excited to have the information we’ve been waiting for. I want to have a more in-depth conversation with you. Would you like to visit my blog? 안전놀이터
In the real world, this is an issue that many people are interested in right now. I was very admired for your insights and their based fine print. 토토사이트
The information you provide is objective and correct. I have gained a lot of knowledge from your blog and I am spending a lot of time. Browsing your blog is very enjoyable. 안전놀이터
It is very well written, and your points are well-expressed. I request you warmly, please, don’t ever stop writing.
카지노사이트
This is really helpful post and very informative there is no doubt about it.
바카라사이트
Thanks for sharing with us this important Content. I feel strongly about it and really enjoyed learning more about this topic.
토토사이트
We are really grateful for your blog post for giving a lot of information
온라인카지노
I’ve been looking for photos and articles on this topic over the past few days due to a school assignment, and I’m really happy to find a post with the material I was looking for! I bookmark and will come often! Thanks 😀 토토사이트
Your website offered us with valuable info to work on.온라인바둑이
Hello There,I found your blog.I will make sure to bookmark it .바둑이게임
The website style is great, the articles is really excellent 바둑이사이트
Well done information.thanks for the excellent article.온라인카지노
I am contemplating this topic. I think you can solve my problems. My site is at “카지노사이트“. I hope you can help me.
I was very pleased to find this site.I wanted to thank you for this great read!! I definitely enjoy every little bit of it and I have you bookmarked to check out new stuff you post.
digital marketing courses in hyderabad with placement
You appear to know a lot about this. It’s like you read my thoughts!, Thanks for writing this.
https://www.fiverr.com/users/kaleem_seo1
Snake Plant. The Sill.
Monstera Deliciosa. TropicalplantsFL etsy.com.
Pothos. The Sill.
Dracaena. Hirt’s Gardens.
ZZ Plant. The Sill thesill.com.
Spider Plant. Hirt’s Gardens.
Rubber Tree. The Sill.
Bird’s Nest Fern.
Now you can buy almost any plant online across Pakistan in major cities including Lahore, Islamabad, Rawalpindi, Karachi, and many more. Delivery Service Areas.https://etree.pk/product-category/cactus
A fruit tree is a tree that bears fruit that’s consumed or used by humans and some animals — all trees which are flowering plants produce fruit, that would be the ripened ovaries of flowers containing a couple of seeds. In horticultural use, the word”fruit tree” is limited to individuals who offer fruit for food.https://etree.pk/product-category/pots
https://etree.pk/Plant/stevia-rebaudiana/
Great job for publishing such a beneficial web site. Your ??web log isn’t only useful but it is additionally really creative too. There tend to be not many people who can certainly write not so simple posts that artisticall Casino
I think I have never seen such blogs before that have completed things with all the details which I want. So kindly update this ever for us.
best data science institute in hyderabad
Thanks for sharing this information with us.Here I am sharing some informaton about driving lesson.
https://www.justpass.uk/automatic-driving-lessons-coventry/
This is such a great post, and was thinking much the same myself. Be sure to keep writing more great articles like this one.
고스톱 족보
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.
배트맨토토 모바일
I know this is extremely boring and you are skipping to succeeding comment, however I just needed to throw you a big thanks you cleared up some things for me!
고스톱 전략
배트맨토토구매가능게임
Can I simply say what relief to get somebody that in fact knows what they’re dealing with on-line. You actually know how to bring a concern to light to make it essential. Workout . should ought to see this and can see this side of your story. I cant think you’re less well-known simply because you definitely hold the gift.
A very awesome blog post. We are really grateful for your blog post. combat, law enforcement You will find a lot of approaches after visiting your post. I was exactly searching for. Thanks for such post and please keep it up. Great work.
사설토토
A very awesome blog post. We are really grateful for your blog post. You will find a lot of approaches after visiting your post.
한국야동
SEO audit training birmingham
SEO audit course birmingham
SEO penalty removal training birmingham
smm company birmingham
smm firm in birmingham
birmingham based smm firm
ppc training in birmingham
ppc course in birmingham
ppc training institute birmingham
I’m not sure exactly why but this weblog is loading incredibly slow for me. Is anyone else having this problem or is it a problem on my end? I’ll check back later on and see if the problem still exists. 안전놀이터
Awesome article. I enjoyed reading your articles. this can be really a good scan for me. wanting forward to reading new articles. maintain the nice work!
Data Science Courses in Bangalore
Hello, I’ve been working with the target db for over 5 years with the work team. 디비
I’ve been searching for hours on this topic and finally found your post. 먹튀검증, I have read your post and I am very impressed. We prefer your opinion and will visit this site frequently to refer to your opinion. When would you like to visit my site?
Really wonderful blog completely enjoyed reading and learning to gain the vast knowledge. Eventually, this blog helps in developing certain skills which in turn helpful in implementing those skills. Thanking the blogger for delivering such a beautiful content and keep posting the contents in upcoming days.
data science certification in bangalore
Thanks for posting the best information and the blog is very helpful.digital marketing institute in hyderabad
안전놀이터 샤오미
안전놀이터 샤오미에서는 가입 첫 충전 30%의 이벤트와 페이백 이벤트를 진행하고 있습니다. 첫 환전까지 최대 20%의 페이백을 제공합니다. 토토사이트
this is one of the best article on this block keep doing the good job
beställa smärtstillande medel online
Excellent Blog! I would like to thank you for the efforts you have made in writing this post. Gained lots of knowledge.
Data Analytics Course
Very shortly this website will be famous amid all blogging and site-building users, due to it’s pleasant articles
data scientist course in hyderabad
Really nice and interesting post. I was looking for this kind of information and enjoyed reading this one.
한게임설치하기