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.
Kundan Kishore has a created a phenomenal course on Stock Market. It’s called A Complete Course on the Indian Share Market. This is a course curated for investors, traders, career seekers and students of India.
Visit: Kundan Kishore Stock Market
I want to leave a little comment to support and wish you the best of luck .we wish you the best of luck in all your blogging enedevors.
iot course in bangalore
I’m going to read this. I’ll be sure to come back. thanks for sharing. and also This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article… convert bitcoin to usd
Especialistas en Reformas Integrales para empresas y particulares en Valencia. Servicios: Electricidad, Obra, Fontanería, Pintura, Pladur. presupuesto reforma valencia
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. convert btc to usd
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. convert btc to usd
I am a new user of this site, so here I saw several articles and posts published on this site, I am more interested in some of them, will provide more information on these topics in future articles.
data science course in london
When sea otters are lost from an ecosystem, sea urchin numbers spike. The herbivorous urchins then basically clear cut the kelp, chewing through the holdfasts at their base and sending the rest of the giant algae to wash away. Along with it goes the habitat for numerous species, including fish, invertebrates and other mammals.
อ่านเพิ่มเติม โรงเรียนวัดหาดสูง
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… btc to usd converter
In the past year, methane-hunting satellites have made a number of concerning discoveries. Among them: Despite the pandemic, methane emissions from oil and gas operations in Russia rose 32% in 2020. Satellites also observed sizeable releases from gas pipelines in Turkmenistan, a landfill in Bangladesh, a natural gas field in Canada, and coal mines in the US Appalachian Basin.
อ่านเพิ่มเติม โรงเรียนชุมชนวัดรางบัว
Much of the current approach to dialling back methane is dependent on voluntary actions by the oil and gas industry. Satellites can help with that, UN report lead author Shindell and others say, by identifying leaks that, if stopped, will save or make those companies money. “If you capture the methane instead of letting it escape to the atmosphere, you have something quite useful,” Shindell says. “So there’s a nice financial incentive not to waste it.” But if gas prices aren’t high enough, operators can feel it’s not worth the expense and effort to find, stem, and utilise runaway emissions. “Having stronger regulations is really key,” Shindell says.
อ่านเพิ่มเติม โรงเรียนบ้านหนองปากชัฎ
Sue Young at The Wildlife Trusts says that smaller mitigations such as bird and bat boxes must be supported by nearby landscaping that provides food for insects, birds and other species.
อ่านเพิ่มเติม โรงเรียนบ้านปากน้ำ
Every family here has a long history in fishing, and each house has its own boat moored outside. Bicja’s father and grandfather were both fishermen, and he describes going out on the lake every morning as an almost spiritual experience: “When I’m on the boat, it’s like [my father is] still there with me.”
อ่านเพิ่มเติม โรงเรียนบ้านทอนวังปราง
I am impressed. I don’t think Ive met anyone who knows as much about this subject as you do. You are truly well informed and very intelligent. You wrote something that people could understand and made the subject intriguing for everyone. Really, great blog you have got here. 0.01 btc to usd
This is actually the kind of information I have been trying to find. Thank you for writing this information. Ways to Improve Work Performance
When your website or blog goes live for the first time, it is exciting. That is until you realize no one but you and your. bitcoin cash to paypal
Very nice article, I enjoyed reading your post, very nice share, I want to twit this to my followers. Thanks!. https://voyance-telephone-gaia.com
This blog is really great. The information here will surely be of some help to me. Thanks!. buy online votes
Thanks for sharing the info. keep up the good work going…. I really enjoyed exploring your site. good resource…
This is super interesting to read, thank you. If anyone wishes to part ways with their property and sell house for cash fast, know that we can help.
sell house for cash
live resin carts
We offer swift and reliable services to recover stolen crypto and wallets from fraudulent individuals, organisations and investment scams. Recover stolen crypto and wallets
I looked at most of your posts, This article is probably where I got the most useful information for my research. Thanks for posting, we can find out more about this. Do you know of any other websites on this topic?
Artificial Intelligence Course in Delhi
QQSUPER99 mempunyai daftar situs judi online terpercaya yang menerima deposit pulsa & e-wallet serta pasti akan membayar kemenangan semua member terhebat di Indonesia. |Slot Online
เว็บพนันบอล สำหรับใครที่ต้องการแทงบอลออนไลน์ให้มีความสำเร็จในการเดิมพันมากที่สุดและมีความมั่นคงทุกการใช้งานจำเป็นต้องรู้วิธีของการเดิมพันเพื่อให้ปลอดภัยสูงสุด คือ
การเลือกเว็บพนันที่มีมาตรฐานและมีความมั่นคงมากที่สุดเพื่อให้การเล่นพนันแต่ละครั้งมีความปลอดภัย การเลือกเว็บพนันถือว่าเป็นสิ่งสำคัญมากที่สุดเพื่อเลี่ยงความเสี่ยง
ความพร้อมทางด้านเงินทุนถือว่าเป็นสิ่งที่มีความสำคัญอย่างมาก หากต้องการความสำเร็จในการเดิมพันทุกครั้งเรื่องการเงินต้องมีที่มาอย่างเหมาะสม ไม่ใช้เงินร้อนหรือเงินอนาคตมาเดิมพันเพื่อเลี่ยงความกดดันจากการเดิมพัน
Buddy Loan brings the best of technology to make your loan experience convenient. Whether you are looking for personal or business loans, the process is simple and hassle-free. Apply Loan Online on our easy-to-use platform – get approved instantly and get money in your bank account within 24 hours.
Impact of online games on children Smartphones are becoming increasingly more popular every day and so is cell gaming! Nearly greater than forty% of kids international either very own a cellphone or have get right of entry to to 1 of their home.
No doubt educational games are useful for every baby’s mastering and may assist them take in new matters but a variety of online video games gift in the meanwhile are very violent (i.E., Fortnite, Grand Theft Auto, The Walking Dead and many others.) and feature sexual content present in them so your baby can get addicted to it and play them all day lengthy.
Hi there, after reading this remarkable paragraph i am
too happy to share my experience here with colleagues.
토토사이트
เปิด ให้บริการ คัดบอล ทีเด็ด ฟันธงบอล ทรรศนะเซียน ทีเด็ดบอลวันนี้ วิเคราะห์บอล สูตรบอลสูง ครึ่งแรก OVER HT มี% การชนะมากกว่า 60% รายเดือนราคาพิเศษ ทีเด็ดบอลสูง
Many businesses are turning to Managed Security Service Providers (MSSP) to protect their networks cost-effectively and reliably. Our team is committed to helping companies like yours improve their security posture.
Website:- https://eecomputing.com/managed-security-services/
live resin cartridge
This lion went out to capture a young woman in the city and put it in a cave. to lure people to help the girl but no one can help They were also killed and turned into food for lions instead.
อ่านเพิ่มเติม โรงเรียนบ้านโป่งเจ็ด
This lion went out to capture a young woman in the city and put it in a cave. to lure people to help the girl but no one can help They were also killed and turned into food for lions instead.
อ่านเพิ่มเติม โรงเรียนบ้านโป่งเจ็ด
In August there is an interesting meteor shower. Perseids Meteor Shower or Mother’s Day Meteor Shower Because it is most often on Mother’s Day, August 12. For this year, it is 20:00-23:00, there are 110 meteors per hour.
อ่านเพิ่มเติม โรงเรียนวัดหนองพันจันทร์
As for the highlight of this exterior, it was a gigantic stone with enormous weight. But everyone can push it back and forth with their fingertips. That was because the bottom of it was supported by nets and wells. Use science in terms of buoyancy to help there.
อ่านเพิ่มเติม โรงเรียนบ้านโกรกสิงขร
through the matter of environment and energy We must not forget life on our planet as well. In the Exploring Life Sciences zone is a technology about living things. Let us study DNA or genetic material at a deep level, practice on base pairs through media that we can press play. And listen to the explanation in the screen that is part of the table.
อ่านเพิ่มเติม โรงเรียนบ้านควนลำภู
This training activity will be accompanied by a superintendent on-board the station handing commands to the three crew members going into space. When the team receives the command, it must answer copy and when it is done successfully say complete or if it is a question that needs to know the answer, eg light flashing blue or not. If it’s blue, I’ll say ‘confirm’. We’ve completed the mission happily. From this activity, we can talk with friends. All countries ever
อ่านเพิ่มเติม โรงเรียนบ้านห้วยชัน
I went to this website, and I believe that you have a plenty of excellent information, I have saved your site to my bookmarks. mi portal fone sev
The auto delovi maintenance, repair, parts, accessories, chemicals and fluids for vehicles after their original sale. This term very often refers only to the car care market for cars and light trucks.
Thanks, that was a really cool read! สูตร เซ็กซี่บาคาร่า
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 สูตร เซ็กซี่บาคาร่า
Great info! I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have. custom bearing manufacturer
Great info! I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have. smm panel
Vivek Bindra is one of the finest leadership coaches in India. He is the founder and CEO of Bada Business.com. He is also a leadership consultant, motivational speaker, and business coach.
More Detail: Success Story of Vivek Bindra
Vivek Bindra is one of the finest leadership coaches in India. He is the founder and CEO of Bada Business.com. He is also a leadership consultant, motivational speaker, and business coach.
More Detail: Success Story of Vivek Bindra
I want to leave a little comment to support and wish you the best of luck.we wish you the best of luck in all your blogging enedevors.
business analytics courses
Superb blog post, I have bookmarked this internet site so ideally, I’ll see much more on this subject in the foreseeable future! Website Development
Buy weed online safe. BuyGoodGreens offer top shelf grade A++ marijuana. Weed online in many categories, edibles CBD oils, flowers, Cartridges, Hash, wax…
Buy weed online safe. BuyGoodGreens offer top shelf grade A++ marijuana. Weed online in many categories, edibles CBD oils, flowers, Cartridges, Hash, wax…
BUY WEED ONLINE WITH CREDIT CARD AND PAYPAL
Você quer aprender como funciona os Leilões? Quer conseguir arrematar seu imóvel com até 70%. Possibilidade de Parcelamento. Casas,Terrenos… leilao de imoveis