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.
Good day! I just wish to give you a huge thumbs up for the great information you have right.
ยูฟ่าเบท
Tomorrow’s Affairs is a platform where writers, experts in their fields, are obliged not only to describe reality through argument, but also to predict future events and processes based on their findings.
Tomorrow’s Affairs
Moreover, London’s Web Wizards provides exceptional customer service, guiding clients through every step of the design process and offering ongoing support even after the website is launched. For those seeking a reliable and innovative WordPress web designer, London’s Web Wizards is the ideal choice.
Your website is really cool and this is a great inspiring article. Thank you so much. tubidy mp3
Most of the time I don’t make comments on websites, but I’d like to say that this article really forced me to do so. Really nice post! tubidy free download
I was overwhelmed by Ekspedisi Jakarta Balikpapan the courage of the human
Ide yang menarik! Saya ingin mencobanya. jasa penerjemah bahasa mandarin premium terbaik
Pete’s Cycle Co. is a leading motorcycle dealer in Baltimore, Severna Park and Bel Air, offering new and used motorcycles, ATVs, 3-wheel Vehicles, and more. Contact Us: +1 (410) 647-5880 petes cycle belair rd
revenue can be restoran di changi airport in many ways. I will discuss the application
Saya akan mencoba ini segera, terima kasih atas informasinya. Genset Genpac Open Silent Cummins 30 kVA GC30
Most wins on the site
online slots with the best RTP leaks for the latest online slots will definitely create lots of conditions for winning. In this way, online slot game players will become members of the most popular online games who are ready to reap big profits. In this famous online slot game, you can get the conveniences that are provided so easily. For clearer information, you can visit our website https://statoninstitute.com/
Saya setuju, informasi ini sangat berguna. penerjemah ijazah profesional dan terpercaya
Great article! I found it incredibly informative and helpful.
“VISIT SITE: Best Online Abacus Classes in India || Abacus Trainer
Abacus Trainer provides Best Online Abacus Classes in India. Best platform for Abacus and Vedic Maths Training from certified teachers for Students & Tutors.
To know more about Abacus Trainer, Click the link below.
“”Link: Vedic Maths Online Classes“
Saya akan segera mencoba ini di rumah saya. Genset Genpac Open Silent Cummins 40 kVA GC40
I was overwhelmed Jasa Ekspedisi Jakarta Balikpapan by the courage of the human
revenue can be generated in changi airport coffe shop the application
Terima kasih, ini akan sangat membantu bagi saya. penerjemah jakarta pusat paling profesional
Thank you for visiting this page, for further information you can all visit our website link as follows https://netticasinopelit.org/
Ide yang bagus! Saya akan mempertimbangkannya. Genset Genpac Open Silent Cummins 27 kVA GC27
one of the best sites with unquestionable security and comfort services. It has become a controversial topic in the world of online lottery. The online lottery game or often called “Dark Toto” is a form of slot game https://perisainews.id/
The biggest wins on online slot sites with the latest leaks of the best RTP for online slots will definitely create lots of conditions for winning. In this way, online slot game players will become members of the most popular online games who are ready to reap big profits. In this famous online slot game, you can get the conveniences that are provided so easily. For clearer information, you can visit our website https://resepnusantara.id/
I admire your ability to tackle such complex topics with precision and grace.ใลน์หวยบี
For other exciting information, you can all visit our website link as follows https://mymxhealth.com/
I must say, I thought this was a pretty interesting read when it comes to this topic. Liked the material. 카지노사이트
the largest hidden wiki
Discover the vast and hidden corners of the internet with The Hidden Wiki, your gateway to the Tor network’s diverse websites and services.
You have a captivating writing style; I enjoy reading every article here. deposit slot qris
Sangat informatif, saya akan menggunakannya untuk proyek saya. jasa penerjemah dokumen jakarta utara
Quality articles is the crucial to attract the visitors to go to see the site, that’s what this web site is providing.
แทงบอลสดufabet
Saya suka cara Anda menyajikan informasi ini. Genset Genpac Open / Silent Cummins 180 kVA GC180
the uncensored hidden wiki
Discover the vast and hidden corners of the internet with The Hidden Wiki, your gateway to the Tor network’s diverse websites and services.
I conceive you have nnoted some very interesting points, regards for the posting. writing, grammar, formatting or proofreading, แทงบอลUFABET
I visited various websites but the audio feature for audio songs current at this web page is genuinely wonderful.
แทงบอลสดufabet
I conceive you have noted some very interesting pointts, regards for the posting. writing, grammar, formatting or proofreading, แทงบอลUFABET
I conceive you have noted some very interesting points, regards for the posting. writing, grammar, formattingg or proofreading, แทงบอลUFABET
I dugg some of you post as I cogitated they were very beneficial very helpful.
แทงบอลสดufabet
spend hours in restoran di bandara changi in many ways. I will discuss
Terima kasih atas ide-idenya, saya akan mencoba menerapkannya. penerjemah
Flutter training with Brolly Academy covers all aspects of Flutter development, including widgets, layout and navigation, animation and graphics, network programming, and state management.
Flutter Training in Hyderabad
이 기사는 실제로이 레지스트리 관련 문제에 대한 최고의 주제입니다. 나는 귀하의 결론에 부합하며 다음 업데이트를 간절히 기대합니다. 토토사이트
Keep your van in top condition with our MOT My Van services in Aldershot. Our certified technicians understand the specific needs of vans and ensure they meet all legal requirements. MOT MY VAN Aldershot
Saya setuju, informasi ini sangat penting. Genset Genpac Open / Silent Cummins 150 kVA GC150
Can I just say what a aid to seek out somebody who really knows what theyre talking about on the internet. You undoubtedly know how to bring an issue to light and make it important. Extra individuals need to read this and perceive this facet of the story. I cant consider youre not more in style since you positively have the gift. 書法課程
Ide yang menarik, saya akan mencoba ini di rumah saya. penterjemah
business. The sejarah singapura
Those of you who want to play online slot games that are full of fun and excitement. Because this slot game has very large and tempting prizes, namely in the form of cash. If you want to play this slot game from us, you can visit our website https://casinogambling888.com/
Thanks a ton for hooking me up แทงบอลออนไลน์ufabet with the details!
Everyone an extremely breathtaking chance to read from this blog.
Visit Site: Real Estate Company in India – Commercial & Residential property for sale, Buy & Rent. Best Villas in hyderabad, houses for sale near me A99 Real Estate. Link: A99 real estate
Thank you for sharing this great article. it has impacted a lot in me.
“Visit Site: “”Welcome to Maithri Systems, your one-stop destination for top-notch laptops and desktops coupled with exceptional sales and services. At Maithri Systems, we take pride in offering a wide array of high-quality laptops and desktops, catering to various needs and preferences.
“” Link: Best Computer Sales and Services“
volantini a Roma
Costi e Ritorni: Un’Analisi Economica
Analizzando i costi, ad esempio il prezzo medio per la distribuzione di 10.000 volantini a Roma oscilla tra i 300 e i 600 euro, variando in funzione della complessità della campagna e dell’area geografica di interesse. Tuttavia, le aziende hanno rilevato che il ritorno sull’investimento si mantiene elevato, grazie a un tasso di conversione che, in alcuni casi, supera il 3%. Questo significa che, per ogni 1000 volantini distribuiti, si generano in media 30 interazioni dirette, che si traducono in visite in negozio o acquisti online. Questa efficienza si riflette anche sul fronte della visibilità del brand, con un incremento medio del 15% della riconoscibilità del marchio nelle aree interessate dalle campagne. Inoltre, l’inclusione di coupon e offerte speciali ha spinto ulteriormente l’engagement, con oltre il 40% dei destinatari che hanno utilizzato promozioni ricevute tramite volantino per effettuare acquisti o richiedere informazioni, dimostrando l’efficacia di questa strategia nel stimolare comportamenti di consumo attivo.
Prolutiongroup.com
Strategie di Successo e Futuro del Volantinaggio
La persistenza del volantinaggio come strumento marketing efficace è attribuibile non solo alla sua capacità di generare visibilità immediata, ma anche alla sua integrazione in strategie pubblicitarie multicanale. Le aziende di maggior successo sono quelle che hanno saputo combinare la distribuzione fisica con campagne digitali mirate, creando un ecosistema pubblicitario coerente e sinergico. Ad esempio, negli ultimi anni l’inserimento del QR Code ha permesso a molte aziende di unire fisco e digitale incrementando il tasso di conversione e le interazioni dei clienti. Questa convergenza tra online e offline ha permesso di massimizzare l’impatto comunicativo, raggiungendo il pubblico su più fronti e incrementando la probabilità di conversione. Guardando al futuro, il volantinaggio si prospetta come una leva marketing dalla doppia faccia: da un lato tradizionale e tangibile, dall’altro innovativo e integrato nel digitale, capace di evolversi in base alle esigenze del mercato e alle abitudini dei consumatori. La sfida per le aziende sarà quella di continuare a sperimentare con formati e messaggi, sfruttando le potenzialità del dato analitico per ottimizzare le campagne e garantire un ritorno sull’investimento sempre più significativo.