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 work is very good and I appreciate you and hopping for some more informative posts. Thank you for sharing great information to us. 다낭 밤문화
Your work is very good and I appreciate you and hopping for some more informative posts. Thank you for sharing great information to us. lmia lawyers
Your work is very good and I appreciate you and hopping for some more informative posts. Thank you for sharing great information to us. accident lawyer surrey
طراحی داخلی آپارتمان لاکچری
قیمت طراحی داخلی آپارتمان مشاوره رایگان طراحی داخلی منزل مسکونی مدرن و لاکچری بهمراه طراحی نمای داخلی ساختمان مسکونی
Your work is very good and I appreciate you and hopping for some more informative posts. Thank you for sharing great information to us. immigration attorney surrey bc
Your work is very good and I appreciate you and hopping for some more informative posts. Thank you for sharing great information to us. lawyer in surrey
Very useful info. Hope to see more posts soon!. criminal lawyer surrey bc
جامع ترین دوره آموزش حسابداری در تبریز از مقدماتی تا پیشرفته در عرض 3 ماه ویژه بازارکار به همراه کارآموزی و مدرک معتبر. مشاوره رایگان:
https://apadasco.com/accounting-training-class/
I’d incessantly want to be update on new articles on this internet site , saved to bookmarks ! . 美容儀器代理商
After study a few of the blog posts for your web site now, and i also genuinely as if your method of blogging. I bookmarked it to my bookmark site list and will also be checking back soon. Pls check out my web page also and tell me what you consider. 링크모음
طراحی داخلی مدرن آپارتمان
قیمت طراحی داخلی آپارتمان مشاوره رایگان طراحی داخلی منزل مسکونی مدرن و لاکچری بهمراه طراحی نمای داخلی ساختمان مسکونی
Children’s eyeglasses have come a long way in terms of style and durability. montature occhiali da vista sottili
You made such an interesting piece to read, giving every subject enlightenment for us to gain knowledge. Thanks for sharing the such information with us to read this. 사설 토토사이트 추천
قیمت برج خنک کننده
خرید برج خنک کننده فایبرگلاس و معمولی قیمت در صنایع دلتا کولینگ در انواع مدل های متنوع
Thank you for your site post. Velupe and I happen to be saving for just a new book on this subject and your article has made us all to save money. Your opinions really responded all our issues. In fact, above what we had thought of ahead of the time we came across your great blog. I no longer nurture doubts including a troubled mind because you totally attended to each of our needs here. Thanks transfer porto seguro santo andré
A lot of people were enthusiastic players or enjoyed music and dancing. It’s possible you’ll remember that you were most joyful on the performing track. Nevertheless, with increasing accountabilities maybe you have found almost no time to have pleasure in any of an interests. Are you affected by depression and would like to get free from its abysmal depths without lifelong antidepresants? You could try and feel free to overcome depression the natural way. EDITOTO
I haven’t any phrase to realize this publish…..truly i am inspired from this put up….the person that create this publish it was a terrific human..thank you for shared this with us. code promo pour 1xbet
speaking coaches
Why Our Coaching Works What To Expect What Real Leaders Are Saying Coaching, Courses, and Services High Profile Clients Our Proven…
Advantageously, your post is really the highest within this laudable subject matter. I agree utilizing your final thoughts but will thirstily watch for up coming posts. Solely expressing cheers won’t just be satisfactory, to your great clarity on your crafting. Let me immediately get hold of ones own rss feed to last abreast of virtually any messages. Excellent operate and far being successful in your enterprise business! Login Togel
Buying YouTube views can significantly boost your channel’s credibility and visibility. Here are a few reasons why purchasing 1 million YouTube views from BuyFansMedia.com is a smart investment: buy 1 million youtube views cheap
This form of message constantly inspiring and that i prefer to read quality content material, so happy to discover accurate area to many here inside the publish, the writing is just first rate, thanks for the publish. Code promo 1xbet pour aujourd’hui
link alternatif pakar77 merupakan salah satu aspek yang dinilai dalam tes kemahiran bahasa Inggris seperti pada TOEFL atau pun IELTS. Nah, kalau berbicara tentang reading pasti tak lepas dari yang namanya kalimat dan teks bahasa Inggris.
Recommended blog… Thank you.. feel free to visit my blog SLOT GACOR for many information about financial.
Pada umumnya link daftar pakar77 macam-macam teks yang akan kamu pelajari di artikel ini nggak jauh berbeda dengan jenis teks dalam bahasa Indonesia. Masing-masing teks tersebut memiliki tujuan/fungsi sosial masing-masing. Jadi, yuk kita cari tahu definisi, fungsi, struktur, dan contoh paragraf dari setiap teks-nya!
LOOKAH’s dab rigs are a beacon of artistic innovation, presenting a collection of glass designs that gracefully transition from the petite to the grand.
With artistic innovation driving its vision, LOOKAH’s dab rigs offer a spectrum of glass art, spanning the intricately small to the boldly large.
Pada umumnya link pakar77 gacor sebuah tulisan yang disusun dengan kalimat yang memiliki konteks. Kalau dalam teori sastra, teks adalah segala benda yang dapat “dibaca”, baik benda tersebut berupa karya sastra, tanda jalan, atau gaya pakaian.
Saya sangat setuju dengan poin-poin yang Anda sampaikan. DURALINK Roller Chains British 16B-1
LOOKAH’s commitment to artistic innovation is evident in its dab rigs collection, featuring a range of glass designs that include both the delicately crafted and the dramatically scaled.
Enter the realm of LOOKAH’s innovative glass bongs and start your personalized exploration to find a piece that resonates with your style. Our bongs’ unique appeal is redefining industry standards.
Step into the exclusive world of LOOKAH’s glass bongs, where a personalized journey awaits you. Discover the unique appeal of our bongs that are carving out a new direction in the market.
Muster up the Jasa Website Murah Bandung strength to go for at least one hour
Immerse yourself in the innovative universe of LOOKAH’s glass bongs and embark on a quest to find your perfect match. Our bongs’ distinctiveness is setting trends and revolutionizing the industry.
LOOKAH’s water pipes collection is a celebration of originality, offering a vast array of glass art that ranges from refined intricacies to grand elaborations.
With originality at its core, LOOKAH’s water pipes present a wide selection of glass pieces, capturing everything from the subtle nuances to the boldest expressions in glass art.
Saya senang melihat pandangan yang beragam dalam artikel ini. Genset Genpac Open / Silent Perkins 1365 kVA GP1365
LOOKAH’s commitment to originality is reflected in its water pipes, showcasing a broad spectrum of glass art that spans from the delicately intricate to the majestically elaborate.
you attend one Pelatihan Bekerja di Ketinggian event per week and talk
LOOKAH’s water bongs are a fusion of artistic innovation, where the delicately crafted coexists with the majestically envisioned, creating a collection that is both intricate and grand.
In LOOKAH’s water bongs, the brand’s commitment to artistic innovation is evident, presenting a collection that harmoniously merges the delicate with the majestic.
LOOKAH’s water bongs epitomize artistic innovation, showcasing a range that unites the finesse of detailed craftsmanship with the grandeur of bold design.
Thank you for sharing your passion and knowledge with the world. Đánh bạc trực tuyến
Informasi yang sangat berguna, terima kasih atas pengetahuannya! DURALINK Roller Chains British 06B-1
Set off on an exciting quest to uncover the perfect weed bongs from LOOKAH’s collection, renowned for innovative designs and superior craftsmanship that embody artistic excellence.
Begin your search for the ideal weed bongs within LOOKAH’s array, celebrated for its commitment to innovative design and craftsmanship that stands as a testament to artistic brilliance.
Start your exploration to find the perfect weed bongs among LOOKAH’s offerings, recognized for pushing the boundaries of design and quality, reflecting a dedication to artistic mastery.
Why don’t we Cargo Jakarta Batam meet up for lunch on Thursday?” – SURE!
Saya akan mencari tahu lebih lanjut setelah membaca artikel ini. Genset Genpac Open / Silent Perkins 1650 kVA GP1650
your new connection Jasa pengiriman Barang Jakarta Batam informs you about an internship
Artikel yang sangat inspiratif, terima kasih telah berbagi! DURALINK Roller Chains British 08B-1