Revenue Management Application on Karaoke Industry in Taiwan

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.

46,090 thoughts on “Revenue Management Application on Karaoke Industry in Taiwan

  1. SSSTikTok is a user-friendly web app tool. Download TikTok videos for free without watermarks. With ssstiktok, you can download TikTok videos in MP4 format and extract audio in MP3, sssTikTok gives people the freedom to be creative and express themselves without limits. People can remix, reuse, and download TikTok movies without watermarks and turn them into MP3s. This lets them do new things with material. SssTikTok gives users the tools they need to be creative and work together, whether they’re making personalized montages, remixing music tracks, or adding their twist to popular tasks.

  2. With iGram, you can easily download photos, Reels, stories, and albums from Instagram. This is a latest web tool for video downloading that provides you with a free, unlimited video downloading service, which is not available in any other tool. You don’t need any experience to use it because it is very easy to use and downloads content for you within seconds. To download videos from Instagram using i Gram, you no longer need to install any software or extensions.

  3. One of the best leading digital marketing agencies excelling in digital marketing. Mighty 8th provide services like digital marketing, online marketing, ux design and also brand advertising which helps you to grow and expand your business .They Boost online visibility by implementing customized digital tactics. Their skilled staff uses PPC, SEO, and social media strategies to optimize while fostering customer interaction and business expansion.

    website: https://www.m8th.com/

  4. Managing the porn urge can be challenging, but it’s essential for maintaining mental and emotional well-being. The urge to watch pornography often stems from underlying issues like stress, loneliness, or boredom. Addressing these root causes through healthy habits such as exercise, socializing, and pursuing hobbies can be effective. Mindfulness and self-control techniques, like meditation and setting personal boundaries, are also vital tools. Seeking support from trusted friends or professional counselors can provide additional guidance and accountability. By understanding and managing the porn urge, individuals can lead more balanced and fulfilling lives, free from the grip of addictive behaviors.

  5. Managing the Pron Urge can be challenging, but it’s essential for maintaining mental and emotional well-being. The urge to watch pornography often stems from underlying issues like stress, loneliness, or boredom. Addressing these root causes through healthy habits such as exercise, socializing, and pursuing hobbies can be effective. Mindfulness and self-control techniques, like meditation and setting personal boundaries, are also vital tools. Seeking support from trusted friends or professional counselors can provide additional guidance and accountability. By understanding and managing the porn urge, individuals can lead more balanced and fulfilling lives, free from the grip of addictive behaviors.

  6. DigitalOcean is an Infrastructure as a Service (IaaS) provider that offers cloud hosting solutions for businesses of all sizes. With DigitalOcean, you can quickly and easily create virtual machines (VMs) in the cloud with just a few clicks. DigitalOcean also provides a wide range of services such as storage, networking, and more. In this article, we’ll discuss the benefits of buy DigitalOcean account and how to go about doing so.

    https://digitalacc.net/buy-digitalocean-account/

  7. Founded in 1997, Hetzner is a stalwart in the German web hosting arena, carving out a notable reputation as one of the web’s top 200 hosting providers. With the insight and leadership of Martin Hetzner, after whom the company is named, it has grown to offer a comprehensive range of services. Clients can choose from shared web hosting, VPS, managed domains, SSL certificates, storage boxes, and innovative cloud solutions.

    https://habaricloud.com/

  8. Welcome to Porn Urge, your ultimate destination for the finest collection of porn pics. At Porn Urge, we curate an extensive library of high-quality images that cater to every desire and preference. Explore our diverse categories and indulge in the ultimate visual pleasure with Porn Urge. Whether you’re seeking amateur allure or professional perfection, our collection ensures there’s something to satisfy every urge. Dive into Porn Urge today and discover a world of tantalizing images that will fulfill your wildest fantasies. Immerse yourself in the artistry and allure of adult photography with Porn Urge – your gateway to pure satisfaction.

  9. Welcome to PornUrge, your ultimate destination for the ultimate porn pics collection. At Porn Urge, we curate a vast array of high-quality images to satisfy your every urge. Explore our extensive galleries and indulge in the finest selection of erotic visuals designed to captivate and excite. Whether you crave solo shots or passionate encounters, Porn Urge ensures a diverse and thrilling experience. Discover new favorites and revisit timeless classics with ease. For the best in adult entertainment, dive into Porn Urge and unleash your desires today. Satisfaction guaranteed with every click at Porn Urge!

  10. Discover the ultimate hub for content creators across platforms with Fanscout.com , the premier search engine for OnlyFans Search
    , Patreon, Twitch, and more. Explore diverse profiles effortlessly using advanced filters for gender, age, and location.

  11. bokep adalah cara untuk melatih dan memahami pikiran, perasaan, dan sensasi fisik sehingga kita bisa memahaminya lebih baik. Meditasi bukanlah ritual agama ataupun ibadah, bisa dilakukan dimana saja dan kapan saja. Meditasi melatih untuk fokus kepada satu titik, di sana kita akan mendapatkan petunjuk atau jawaban-jawaban dari apa yang kita pertanyakan, selain itu kita akan mendapat energi positif yang dapat membantu kontrol emosi.

  12. Tujuan dari bokep adalah menghubungkan pikiran sadar dan pikiran alam bawah sadar, meningkatkan kesadaran, mengendalikan pernapasan, mengakibatkan terjadinya relaksasi yang menenangkan, membebaskan pikiran sambil memfokuskan kesadaran pada sesuatu yang sedang dilakukan, melepas semua beban atau pikiran negatif, dan paling utama adalah menjadi rileks.

  13. Saat keadaan menjadi bokep pasti pikiran menjadi terganggu, meskipun bukan karena hal yang besar. Saat pikiran terganggu dan tidak segera diatasi, tidak menutup kemungkinan kamu akan stres karena terus-menerus memikirkannya tanpa menghadapinya. Kemudian jika sudah stress, tanpa kamu sadari maka aktivitas lainnya akan terganggu.

  14. Wonderful website. Plenty of useful info here. I’m sending it to some buddies ans also sharing in delicious. And obviously, thanks in your sweat!
    ufabet

  15. 여기에 좋은 지적이 있습니다! 나는 당신이 말한 것에 전적으로 동의합니다! 의견을 공유해 주셔서 감사합니다. 더 많은 사람들이이 기사를 읽길 바랍니다. 미라클벳

  16. Couples looking for women can benefit from various advantages that couplelookingforfemale.com offers. Couples can successfully navigate this unique relationship dynamic by following tips, strategies, and considerations not discussed in this article. couple looking for threesome

  17. Wow! This could be one particular of the most helpful blogs We’ve ever arrive across on this subject. Basically Excellent. I’m also an expert in this topic therefore I can understand your effort. click

  18. Shame on you for creating another terrific post! Awesome stuff, keep up the good work. I see a lot of potential! I wonder if you are an active user with any social networking sites like Digg or Stumble Upon? mlb중계

  19. Many couples are drawn to adding another woman to their relationship for various reasons. Platforms such as the unicorn site play pivotal roles in facilitating threesome relationships, offering safe and supportive environments for individuals and couples to meet, connect, and flourish. blogs for unicorn dating

  20. Step into the world of youthful vitality at our rejuvenation clinics, where we offer cutting-edge Treatments to Reduce Wrinkles and unveil smoother, more radiant skin. Our expert team utilizes advanced techniques and technologies tailored to your unique needs, whether you’re seeking to soften fine lines or address deeper creases.

  21. Many couples are drawn to adding another woman to their relationship for various reasons. Platforms such as the unicorn site play pivotal roles in facilitating threesome relationships, offering safe and supportive environments for individuals and couples to meet, connect, and flourish. find local unicorns

  22. 와, 이건 정말 흥미로운 독서입니다. 나는 이것을 발견하고 그것을 읽게되어 기쁘다. 이 콘텐츠에 대해 잘하셨습니다. 나는 그것을 좋아한다. 라바카지노 주소

  23. پذیرش و چاپ مقاله یکی از خدمات تخصصی ما است. موسسه تدبیرساز مراحل چاپ مقاله علمی را در مجلات معتبر، قابل استعلام و در کمترین زمان برای شما طی می‌کند.
    (علمی پژوهشی | ISI | Scopus | PubMed | ISC)
    https://tadbirsaz.org

  24. Hey there! Someone in my Facebook group shared this website with us so I came to check it out. I’m definitely enjoying the information. I’m book-marking and will be tweeting this to my followers! Superb blog and wonderful design. 총판노하우

  25. 나는 이것을 읽을 것입니다. 꼭 돌아 올게요. 공유해 주셔서 감사합니다. 그리고이 기사는 우리가 현실을 관찰 할 수있는 빛을 제공합니다. 이것은 매우 좋은 것이며 심층적 인 정보를 제공합니다. 이 멋진 기사에 감사드립니다 … 라바카지노 도메인 주소

  26. whoah this blog is magnificent i love reading your articles. Keep up the great work! You know, a lot of people are hunting around for this info, you could help them greatly. 총판노하우

  27. 나는 훌륭한 유용한 리소스를 무료로 제공하는 비용을 이해하는 웹 사이트를 보는 것을 좋아합니다. 나는 당신의 게시물을 읽는 것을 정말 좋아했습니다. 감사합니다! 오피뷰

  28. 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. 오피야

  29. An interesting dialogue is price comment. I feel that it is best to write more on this matter, it may not be a taboo topic however usually individuals are not enough to talk on such topics. To the next. Cheers. 카지노 사이트

  30. extraordinary records sharing .. i’m very glad to read this newsletter .. thanks for giving us undergo info.excellent excellent. I respect this submit. 犀利士療效

  31. What a fantabulous post this has been. Never seen this kind of useful post. I am grateful to you and expect more number of posts like these. Thank you very much. 오피야

  32. 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! Removals Bury

  33. 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! 오피야

  34. Nice post. I learn some thing tougher on different blogs everyday. Most commonly it is stimulating to read content off their writers and practice something at their store. I’d opt to use some with all the content in my weblog whether or not you do not mind. Natually I’ll provide a link with your internet weblog. Thank you for sharing 메이저 사이트 추천

Leave a Reply

Your email address will not be published. Required fields are marked *