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.
Thank you for some other informative blog. Where else could I get that type of information written in such an ideal means? I have a mission that I’m just now working on, and I have been at the look out for such information. สล็อตbeo555 เครดิตฟรี
Thank you very much for writing such an interesting article on this topic. This has really made me think and I hope to read more. ทางเข้า hotgraph88 pantip
Thanks so much for this information. I have to let you know I concur on several of the points you make here and others may require some further review, but I can see your viewpoint. UFABET
Your content is nothing short of brilliant in many ways. I think this is engaging and eye-opening material. Thank you so much for caring about your content and your readers. UFABET
Your work is very good and I appreciate you and hopping for some more informative posts. Thank you for sharing great information to us. แทงบอลออนไลน์ 911
This is a brilliant blog! I’m very happy with the comments!.. แทงบอล sbobet888
This is a good post. This post gives truly quality information. I’m definitely going to look into it. Really very useful แทงบอลสเตป
I gotta favorite this website it seems very helpful . แทงบอล77
Cool stuff you have got and you keep update all of us. เว็บแทงบอลมือถือ
hi was just seeing if you minded a comment. i like your website and the thme you picked is super. I will be back. ทางเข้าแทงบอล168
I have recently started a blog, the info you provide on this site has helped me greatly. Thanks for all of your time & work. สมัครแทงบอล168
means? I have a venture that I’m just now operating on, and I have been on the look out for such information. สมัครแทงบอล123
Your work is very good and I appreciate you and hopping for some more informative posts. Thank you for sharing great information to us. Viking axes
adalah situs tergacor dan terpopuler di Indonesia dengan tingkat RTP tetrtinggi. Okeplay777 Platform situs slot online yang menyediakan macam-macam game gacor dan dapat melipat gandakan uang anda. Hanya dengan modal dikit anda dapat menghasilkan cuan berbukit. Ayo segera daftarkan akunmu dan kunjungi informasi menarik dan seru lainnya.
Kaufen Sie einen PerfectMoney-Gutschein
Buy perfectmoney voucher on Perfectvoucher.com with your PayPal or Card. You can pay, and deposit Perfectmoney vouchers on websites that accept Perfectmoney same Online stores, Brockers, Casionos.
Anda memiliki gaya penulisan yang menarik. jasa basmi rayap jakarta utara
Kaufen Sie einen PerfectMoney-Gutschein
Buy perfectmoney voucher on Perfectvoucher.com with your PayPal or Card You can pay, and deposit Perfectmoney vouchers on websites that accept Perfectmoney same Online stores, Brockers, Casionos.
exchange student Ekspedisi Jakarta Bali organization that I am part of.
Tulisan Anda selalu penuh dengan wawasan. jasa basmi rayap jakarta timur
Informasi yang relevan dan praktis. cuci mobil premium terdekat
I like all of the points you’ve made.
123vip เข้าเล่น
Hello I am so delighted I located your blog, I really located you by mistake, while I was watching on google for something else, Anyways I am here now and could just like to say thank for a tremendous post and a all round entertaining website. Please do keep up the great work. non dual teachers
Artikel yang sangat menambah pengetahuan. jasa basmi rayap jakarta selatan
It’s rare to find writing with such a real feel as yours. It’s a sincere expression of your ideas, not just knowledge. We appreciate you giving us a glimpse into your thoughts. Tranquility
Higher class brand charges more Membuat Website Kampus with its glorious and hotel-lobby, fancier private room decoration
It’s rare to find writing with such a real feel as yours. It’s a sincere expression of your ideas, not just knowledge. We appreciate you giving us a glimpse into your thoughts. Purva Tranquility
Anda selalu memberikan pandangan yang berbeda. Jasa Basmi Rayap Jakarta Pusat
Autism
We provide compassionate and effective online psychiatry services for children and adolescents aged 3-17. Our team of expert nurse practitioners, psychology specialists, psychiatric nurses, and therapists is dedicated to helping your child achieve mental wellness and peace of mind. We specialize in treating ASD, ADHD, Oppositional and Defiant Behavior, Early Onset Bipolar and Schizophrenia Disorders, Depression, Anxiety, Trauma Related Disorders, and more. We understand the unique challenges that come with caring for a child with mental health needs, and we are here to help you every step of the way.
One of them was an Cargo Jakarta Bali officer and two of
Great Information sharing .. I am very happy to read this article .. thanks for giving us go through info.Fantastic nice. I appreciate this post. Asaa88
unitedshop
Vclubshop also known as unitedshop is No. one cc Shop. Vclub tel login to get invite code, Registration Open.
Pois0n cc
Welcome to Pois0n cc shop.Pois0n cc shop offer quality cards with %95 on all cards at poisoncc ru. Pois0n cc also known as pois0n su, pois0n ru and pois0ncc ru. Registration open already user can login at Pois0n at.
Pois0n cc
Welcome to Pois0n cc shop.Pois0n cc shop offer quality cards with %95 on all cards at poisoncc ru. Pois0n cc also known as pois0n su, pois0n ru and pois0ncc ru.
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. sweet777
Terima kasih sudah membagikan wawasan Anda. jasa basmi rayap tangerang
unitedshop.su
Vclubshop also known as unitedshop is No. one cc Shop. Vclub tel login to get invite code, Registration Open.
Bagus sekali! Saya akan merujuk kembali ke sini. cuci jok mobil terdekat
Pois0n cc
Welcome to Pois0n cc shop.Pois0n cc shop offer quality cards with %95 on all cards at poisoncc ru. Pois0n cc also known as pois0n su, pois0n ru and pois0ncc ru. Registration open already user can login at Pois0n at.
them were my teammates on Jasa Pengiriman Barang Jakarta Bali our soccer team.
Pois0n cc
Welcome to Pois0n cc shop.Pois0n cc shop offer quality cards with %95 on all cards at poisoncc ru. Pois0n cc also known as pois0n su, pois0n ru
unitedshop.su
Vclubshop also known as unitedshop is No. one cc Shop. Vclub tel login to get invite code, Registration Open.
Anda menjelaskan dengan sangat baik. Jasa Basmi Rayap Tangerang Selatan
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. warungnobar.live
“Ease your GED journey with our expert test-takers! If the GED exam feels like a hurdle, we’ve got your back. Hire a qualified professional to take your GED exam for you, ensuring a smooth and stress-free experience. Our reliable service connects you with experienced individuals ready to excel in your GED subjects, guaranteeing the results you desire. Say goodbye to study stress and hello to success. Explore our services now to take the first step towards your educational goals without the hassle of exam preparation. Your future is important, and we’re here to help you achieve it effortlessly!”
Hire Someone To Take My GED Exam
A place where studying blockchain, crypto, and real estate investments becomes a tool for capital growth. real estate education
“Streamline your path to GED success with our professional exam-taking service! If the challenges of GED preparation are causing stress, we have the perfect solution. Hire a qualified expert to take your GED exam on your behalf, ensuring a seamless and successful outcome. Our trusted service connects you with skilled professionals committed to helping you achieve your academic goals. Say goodbye to study stress and hello to the confidence of knowing your GED aspirations are in capable hands. Explore our services now and let us pave the way for your academic success, making the GED exam process a breeze for you.”
Hire Someone To Take My GED Exam
Cyber Security for Construction
We’re Lyon Tech – a technology services company solving the most complex security and technology challenges of creative sector businesses in the UK.
Artikel informatif dan mendalam harga hidrolik cuci mobil
real estate education
Great post, you have pointed out some excellent points, I as well believe this is a very superb website. KW : Peaceful