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.
Great article! The information provided was really insightful and well-explained.To keep your home in good condition visit my link Visit Revviet homedecor
i love reading this article so beautiful!!great job! crackstreams.su
We provide best services to all class of clients.คาสิโนออนไลน์
Good post but I was wondering if you could write a litte more on this subject? I’d be very thankful if you could elaborate a little bit further. Appreciate it! 먹튀폴리스
Terima kasih atas wawasan yang berharga. sworn translator jakarta
it is very helpful i am studying and interested in this mattertrue to loveมีกี่ตอน
whataburgersurvey– Welcome to the Food Lion Customer Survey 2023! We at Food Lion are dedicated to providing our customers with the freshest and highest … whataburgersurvey
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. metatrader
매우 유쾌한 기사, 나는 귀하의 게시물, 예외적으로 괜찮은 공유를 숙독 해 주셔서 감사합니다. 나는 이것을 지지자들에게 트위트해야합니다. 매우 감사! 먹튀검증
Nice to be visiting your blog again, it has been months for me. Well this article that i’ve been waited for so long. I need this article to complete my assignment in the college, and it has same topic with your article. Thanks, great share. mt4 ea
Website recommending methods for losing weight by eating keto. หลุดคีโต
That is really nice to hear. thank you for the update and good luck. กลุ่มลับ
Hi! Great post! Please do tell us when I will see a follow up! cayenne pepper benefits
Great survey, I’m sure you’re getting a great response. ทางเข้า ufabet ภาษาไทย
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. พักยก24
This is a great inspiring article.I am pretty much pleased with your good work.You put really very helpful information. Keep it up. Keep blogging. Looking to reading your next post. แทงบอลสเต็ป3
I am definitely enjoying your website. You definitely have some great insight and great stories. เว็บแทงบอล
Thank you because you have been willing to share information with us. we will always appreciate all you have done here because I know you are very concerned with our. คาสิโนออนไลน์ได้เงินจริงมือถือ
Your articles are awesome. I will apply it in the future.don’t starve วิธีสร้างบ้าน
It was an exciting experience. I never knew it had this. การ์ตูน มา ร์ เว ล
After research a couple of of the weblog posts in your website now, and I really like your method of blogging. I bookmarked it to my bookmark website record and will probably be checking back soon. Pls check out my site as effectively and let me know what you think. Computers & Accessories 나르샤토토
Yes, I am entirely agreed with this article, and I just want say that this article is very helpful and enlightening. I also have some precious piece of concerned info !!!!!!Thanks. พักยก34
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. มวยพักยก
Wow, What an Outstanding post. I found this too much informatics. It is what I was seeking for. I would like to recommend you that please keep sharing such type of info.If possible, Thanks. แทงมวยพักยก
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. I’ll be back day in and day for further new updates. พักยก
Thank you for such a great article momobet
Thank you so much as you have been willing to share information with us. We will forever admire all you have done here because you have made my work as easy as ABC. พักยก
I am thankful to you for sharing this plethora of useful information. I found this resource utmost beneficial for me. Thanks a lot for hard work. มวยพักยก42
When it comes to what’s happening in your neighborhood, rely on valley news dispatch local news. We’re your neighborhood’s voice, sharing stories that impact your daily life. Join us in staying connected with your community.
I just found this blog and have high hopes for it to continue. Keep up the great work, its hard to find good ones. I have added to my favorites 놈놈놈사이트
Youwin namı değer Hepsibahis firmasına giriş yaparak şans oyunları kategorisinde en iyi bahis ve casino sitesinde yerinizi alın ! Youwin
This is my first time pay a quick visit at heree and i am trully pleassant to read everthing at single place.
เล่นคาสิโนออนไลน์
Way cool! Some very valid points! I appreciate you writing this post and also the rest of the site is very good.
เล่นคาสิโนเว็บตรง
Your insightful posts consistently provide a wealth of knowledge and inspiration for readers . I invite you to explore my home decor website to discover even more inspiration for creating your dream living space
Visit Trendzhunt
Learning has never been this easy! Thanks to 11520 education, you can unlock your full potential. This method is designed to make learning a breeze. It helps you remember information 11520 times better, making studying a joy. 11520 education is perfect for all ages and subjects. Say farewell to endless hours of cramming and hello to effortless learning with 11520 education.
Informasi yang relevan dan praktis. jasa penterjemah termurah
Bagus sekali! Saya akan merujuk kembali ke sini. jasa penerjemah termurah
Artikel yang informatif dan mendalam. penerjemah yogyakarta
Saya ingin tahu lebih banyak tentang topik ini. penerjemah bahasa
สล็อตเว็บตรงนักพนันที่ต้องการเล่นเกมพนัน สล็อตออนไลน์ นั้น นอกจากจะเน้นในเกมสล็อตที่ชื่นชอบแล้วนั้น ต้องเลือก เล่นสล็อตเว็บตรงที่ดีที่สุด ซึ่ง เว็บพนันของเรา เป็น เว็บไซต์สล็อตเว็บตรง ซึ่งเล่นตรง จากเว็บพนันที่ใหญ่ที่สุด UFABET เราเป็น เว็บสล็อตเว็บตรง ที่เปิดให้บริการมาแล้วอย่างยาวนาน UFA222 เว็บที่ไม่มี นักพนันคนไหนไม่รู้จัก
slot
HOKI178 adalah situs slot88 online dan judi slot online gacor terpercaya gampang menang jackpot maxwin cukup daftar hari ini, rasakan kemenangan tertinggi paling sempurna.
Your articles are awesome. I will apply it in the future.สาย พันธุ์ มะพร้าว
slot gacor
HOKI178 adalah situs slot88 online dan judi slot online gacor terpercaya gampang menang jackpot maxwin cukup daftar hari ini, rasakan kemenangan tertinggi paling sempurna.
alexistogel
Link ALEXISTOGEL Resmi yang menyediakan berbagai permainan dalam 1 akun bisa Anda akses dengan mudah dan aman.
alexistogel
Link ALEXISTOGEL Resmi yang menyediakan berbagai permainan dalam 1 akun bisa Anda akses dengan mudah dan aman.
situs slot gacor
HOKI178 adalah situs slot88 online dan judi slot online gacor terpercaya gampang menang jackpot maxwin cukup daftar hari ini, rasakan kemenangan tertinggi paling sempurna.
alexistogel loginl
Link ALEXISTOGEL Resmi yang menyediakan berbagai permainan dalam 1 akun bisa Anda akses dengan mudah dan aman.
alexistogel login
Link ALEXISTOGEL Resmi yang menyediakan berbagai permainan dalam 1 akun bisa Anda akses dengan mudah dan aman.
link alexistogel
Link ALEXISTOGEL Resmi yang menyediakan berbagai permainan dalam 1 akun bisa Anda akses dengan mudah dan aman.
I’ve had my fair share of experiences with fraudulent betting sites, and it’s so frustrating. Your post does an excellent job of highlighting the need for safe platforms when engaging in Toto. It’s not just about the money; it’s about the peace of mind and enjoyment that comes with it. 토토법사