Sunday, March 8, 2009
Monday, March 31, 2008
Marriott Team's HW 2
Group Name: Winny Daud, Andrew Bonito, Allen Chang
Explicit Time-Explicit Space
Office Space
According to CB Richard Ellis (CBRE) press release in late February 2008, the overall demand for office space in Asia remains robust (click here for full report). The demand for premium office space remains strong while the vacancy for such office space is hovering around 4% is most metropolitan Asian cities. This condition causes the increased in prime office rents, for example the rental growth quarter-on-quarter (q-o-q) in Singapore and New Delhi is over 15%.
In Singapore, the office leasing market remains strong even though some MNC companies exercised caution when it comes to renewing their leases, this is due to the uncertainty in the global financial market. As per the report released by CBRE, Singapore prime office rent in central business district (CBD) is averaging at S$15 per square foot, increasing 19% q-o-q and 92.3% year-on-year(y-o-y). The main demand source for prime office spaces are MNCs and financial institutions. The growth in office rental is not limited to prime offices but office space in general.
Office space has a fixed capacity, high fixed cost, perishable inventory when not utilized and different customer segments. It seems like office space is a perfect candidate for non-traditional revenue management application!
Here are some examples:
1. CapitaLand Commercial Limited (CCL).
CCL is one of the largest office landlords in Singapore. It owns and/or manages 17 buildings ranging from Grade A (prime) offices, industrial properties with high-tech infrastructure, warehouses and car parks.
a. Time: Defined as period of tenancy. Normally, customer controls the period of tenancy but in order for CCL to gain some control over the period of tenancy, CCL imposes minimum occupancy period. This minimum occupancy period depends on the market condition, location of office space and availability, for example for an office in CBD area in a high demand market, CCL might impose a 2 year minimum occupancy period. This is similar to the LOS restriction in hotel context.
b. Space: Defined in square footage. CCL has many different sizes of office space and customers have to find the office size that best fit the company’s needs. In order to manipulate the space size and make more money, fixed office space is sometimes partitioned into several smaller spaces and rented to different tenants. From my experience, CCL also sometimes rent the lobby area as bazaar space; this is normally done in prime areas. As for industrial properties, CCL enhances the space by adding the latest technology on broadband connectivity and communications.
c. Price: CCL practices differential pricing. Rental depends on the market, location and length of tenancy. Rental price in CBD area is much higher than in industrial complexes, office space located in high floor is more expensive than low floor.
2. Regus
Regus is a company that provides an alternative to the traditional office lease; it gives flexibility to its customer. It offers furnished office spaces with IT and telecommunication infrastructure, services such as staffed reception desk, call answering, mailing and also flexible tenancy period. On top of that, Regus offers meeting room rental, videoconferencing and virtual office.
a. Time: Defined as occupancy period and controlled by customers. Unlike traditional office leases, Regus is flexible in the minimum occupancy period requirement. The minimum occupancy for traditional lease is one year while Regus only require 3 months.
b. Space
Space is defined as office functions/rooms. Regus has 7 office room options; they are fulltime office, brand office, project office, startup office, team room, hot desking, touchdown workspaces. Regus has re-defined the traditional way of using square footage to selling space as a solution to companies needs. In order to make more money, Regus provided value added services such as fully furnished office rooms, office equipment, reception area, IT support, security and cleaning service. Companies only need to identify the room that best suit their needs and they are good to go.
c. Price
Regus charges differential pricing depending on the type of office. It also applies rate fences such as length of occupancy, extra value added service, and location
3. Housing Development Board (HDB)
HDB is one of the government bodies that regulate properties in Singapore, it specializes in housing but also regulate the office and commercial site.
a. Time: Defined as tenancy period. The tenancy period is controlled by HDB and it is 3 years.
b. Space: Defined in square meters. The space is fixed and it is determined by HDB, there is no flexibility in space usage.
c. Price: Interestingly, the price is determined by a bidding system (click here to view the bidding panel). HDB provides the minimum bid price for the space and interested customer can bid up and try to outbid each other, hence the rental price is very much determined by supply-demand and also location of the space. Even though HDB does not offer much flexibility in terms of time or space, many Singaporean who own a small enterprise prefers to rent their office from HDB as it is located in a good area (not CBD but near city center) and the rental price is relatively cheaper compared to private office spaces.
JTC is another government body that regulates industrial commercial spaces and office space.
a. Time: Defined as tenancy period. The tenancy period if controlled by JTC and the minimum is 3 years.
b. Space: Defined in square meters. The space is fixed and it is determined by JTC but in some location the space is defined by the number of workstation that can fit into the office space. In order to make more money, JTC also offers car park space to the tenants and the car park rental is an addition to the office space rental.
c. Price: JTC offers differential pricing by using location, height and facing as rate fences.
Retail Space
The retail industry is growing steadily in Asia especially in cities like, Singapore, Hong Kong, Macau, Shanghai, Ginza and Shibuya. The y-o-y growth is around 3.9% to 39% and many retailers are growing its market share by going into these cities, especially luxury and top brand retailers. Click here for a complete report on retail industry outlook by Cushman & Wakefield.
In Singapore, the retail industry is going strong especially with government initiative of making Singapore the best destination for shopping. Government also keep driving tourist arrival, developing new retail spaces and renovating old retail spaces. In 2008, the total retail space in Singapore will reach 2.5 million sqft and it would bring a whole new level of shopping experience. Click here for a complete review on Singapore retail industry.
Retail space has a fixed capacity, high fixed cost, perishable inventory when not utilized and different customer segments. It seems like office space is a perfect candidate for non-traditional revenue management application!
Here are some examples:
FCM owns and manages 7 malls, one mall located at Orchard road (main shopping area) and 6 malls at the suburban areas.
a. Time: defined as length of tenancy. Most tenant need to sign an agreement of no less than 2 years. This is controlled by FCM
b. Space: defined in square meters. FCM malls have different mix of retail space and to maximize revenue, FCM rents out walkway spaces to push carts (a temporary shop using movable carts). On top of that FCM malls also have basement car park levels that generate car park revenue from visitors and tenants. In order to attract more visitors, especially mothers, FCM ensures that the malls are equipped with children rooms and play rooms. FCM mall that is located in orchard road also participate in a “Saturday Late Night Shopping” event that is driven by the Singapore government. The shops on Saturdays open till 11 pm.
c. Price: offer differential pricing based on location.
RC is part of the CapitaLand group. The building is a mixed use building where you have retail space, office space and two hotels.
a. Time: defined as length of tenancy. RC offers a short term leasing plan which enables a start up retailers to test and grow the business. The term is controlled by RC.
b. Space: defined in square meters and it also have different mix of space size. Recently RC went through renovation where it expanded the retail area to the basement parking level. RC also reduced the atrium size and built more retail space. RC has a huge parking space to cater to the office tenant, mall visitors and hotel guests. RC maximizes it space by accepting specialty cart leases on the mall walkway and conducts midnight shopping event. The top floor of RC is also available for event rental such as art exhibitions, fashion shows and other exhibitions.
c. Price: offer differential pricing based on location, length of lease.
3. Housing Development Board (HDB)
HDB is one of the government bodies that regulate properties in Singapore, it specializes in housing but also regulate the office and commercial site.
a. Time: Defined as tenancy period. The tenancy period is controlled by HDB and it is 3 years.
b. Space: Defined in square meters. The space is fixed and it is determined by HDB, there is no flexibility in space usage.
c. Price: Interestingly, the price is determined by a bidding system (click here to view the bidding panel). HDB provides the minimum bid price for the space and interested customer can bid up and try to outbid each other, hence the rental price is very much determined by supply-demand and also location of the space.
SMRT is a company that operates the rapid train in Singapore and manages the train stations. Since the train stations are normally pretty large is size, SMRT begins to rent out the spaces inside the train stations as retail spaces.
a. Time: defined as tenancy period and it is controlled by SMRT.
b. Space: defined in square meters. SMRT has different mix of retail space and it also offers spaces for push carts and in large train stations, it even offer space for events
c. Price: offers differential pricing based on location and length of tenancy
Explicit Time-Implicit Space
SPA
Spa industry has explicit time component because the consumers have to decide what the types and the length of the services first before they make reservation. Its space factor is implicit because it needs to fulfill its customers’ space requirements, and the prices for its treatment rooms don’t really base on the sizes of the spaces. In other words, its spaces have to be designed in a way that its customers feel comfortable.
http://nymag.com/beauty/features/41280/
- Canyon Ranch at Tucson, Arizona
- Overall: This canyon ranch spa operates not only as a destination resort but also as a medical spa that offers health consultations and check-ups. It only offers all-inclusive packages to its guests with 3 types of accommodations and 3 different lengths of stay. The accommodation consists of Deluxe, Executive and 1-Bedroom Suite.
- Space: Since this is a spa destination hotel, its space is a combination of hotel room and treatment room
- Time: The length of stay consists of 4 nights, 7 nights and 10 nights.
- Price: It has two seasonal rates. For this year, the peak rate period started from September 23, 2007 to June 7, 2008 and the non-peak rate will start from June 8, 2008 to September 18 ,2008.
- Six Senses Hideaway Hua Hin, Thailand
- Overall: This spa company is known for its sustainable approach. It either builds its own spa destination hotel or partners with another hotel and manages the hotel’s spa.
- Space: Its space is the treatment rooms it has.
- Time: It offers many kinds of services with different lengths of treatment times
- Price: It offers a good selection of different services, but the prices for these services stay the same throughout the year.
- Spring City Hot Spring Spa at Taipei, Taiwan
- Overall: This resort is mainly for people to come and enjoy the hot springs. It has two kinds of spa treatments. The first kind consists of typical massage and therapy services. The second kind consists of different kinds of spa rooms with hot spring tubs.
- Space: Space is defined by number of private treatment and hot spring rooms the resort has.
- Time, Price:
| Spa Type | Royal Spa | Horoscope Private Hot Spring Spa (24 hrs) |
| Charge unit | Charged by room | Charged by person |
| Timing Unit | Every 1.5 hour | Every 1 hour |
| Price / unit | $80 - $130 | $20 per adult |
| Incremental Price | $30-$50 every 0.5 hour | 5 minutes extra counted as 1 hour |
| People count / unit | 2 | N/A |
| Discount | Weekday: 20% off; Holidays: 10% off; none on weekends | |
- Whole Food Spa
- Overall: Whole food offers spa right in its supermarket now so that its customers not only could do grocery shopping but also could enjoy spa treatments at the same time. It has two kinds of spa right now
- Space, Time, Price:
1. Full Spa at Dallas
o The spa has 7 treatment rooms, and it offers different varieties of treatments. The spa tries to take into account that many of its customers might be busy doing their shopping and could only allocated limited amount of time for in-house spa. As the result, the spa offers services ranging from 5 minutes, 15 minutes, 25 minutes, 50 minutes to 80 minutes.
A link to its menu is right here. http://www.wholefoodsmarket.com/stores/preston/thespa/menu.html
o The spa’s website: http://www.wholefoodsmarket.com/stores/preston/thespa/index.html
2. Mini Spa at San Francisco
o The mini spa doesn’t offer as many services as the full one. Most of the services offered are facials and massages. The shorted time is 10 minutes, and the longest time is 150 minutes. It also uses the space to offer consultation services, which starts $50 for 20 minutes.
Rental Car
Revenue management has been practiced in many rental car companies to better forecast the demands of each location so that they know how to assign their fleet across the locations.
Even though the users can rent cars ranging from hourly to yearly, the time factor for the industry is usually explicit. Users have to specify the length of time they are going to rent the car for, and the rental car companies protect themselves by charging high rates for the users if they don’t return the cars at the time specified in the contract.
Typically, the number of spaces available at each rental car location is defined as the number of the combination of the varieties of cars they have. There are many different types of cars available for rent ranging from small cars to large vans and economic cars to luxurious limos. The space factor is implicit because the rental car companies don’t always rent the cars based on their sizes. They rent the cars usually based on the qualities of the cars, and the users define what type of cars they are looking for. In addition, quite often they change their car type preferences at the last minute, and they don’t return the cars at the time specified in the contract. As the result, it’s hard for the rental car companies to control the types of cars available at each location.
http://ezinearticles.com/?The-Car-Rental-Industry&id=491218
· Hertz
o Overall: As the largest car rental company, Hertz is usually the price leader in the industry. It has complicated revenue management system to look at each location differently to try to allocate the optimal amount of cars at given time. Hertz usually has the best location at airports and it has the most airport office locations than any other rental car company. For example, its researches show that there are always more people driving down from San Francisco to Los Angeles than the other way around. As the result, Hertz would try to allocate more cars in San Francisco to accommodate the needs
o Space: Hertz has more locations than any other car rental company, and usually has a good selection of different car types at each location.
o Time: Hertz rents cars daily, weekly and monthly. For monthly renters, the longer they rent, the cheaper the prices they can get.
o Price: On the average, Hertz usually has higher prices than its competitors and it justifies its prices with higher quality cars and better services. Hertz also partners with different corporate accounts and travel clubs such as AAA to offer special prices. Depending on the seasonality and demands, Hertz’s rental prices vary differently across locations. For a location’s slow period, hertz sometimes would lower its prices below its competitors to increase demands.
o Overall: Enterprise starts out as an intra-city car rental company that many people use when their cars are in the car shops or when they want to go for a driving vacation. Gradually, Enterprise also targets at business travelers who work around their locations. Compared to Hertz, Enterprise has more presences at small towns.
o Space: Enterprise maintains its fleet at each location by not allowing one-way rental so that it is not too hard for it to keep track of each location’s cars.
o Time: Enterprise rents cars daily, weekly and monthly. Monthly renters do get cheaper prices overall but they have to review the contract every month.
o Price: Compared to Hertz, Enterprise usually has lower prices. Since most of its revenue come from local businesses and people, enterprise offices often partner with nearby businesses to offer special discounts. In addition, enterprise offices also offer discounts to nearby residents to lure them to rent.
· ZipCar
o Overall: The model is that the company put cars strategically around a city to make sure most of their users can access the cars easily. Members around the cars’ neighborhoods can then pick up and return the cars at the same location. The company is membership based with certain restrictions on the driving records. Through the Internet, members could find out the available spots for the cars in their neighborhood and make reservations.
o Space: Since ZipCar’s model distributes its car across a city, it doesn’t really need big locations to store its cars. It probably could control its space better than its competitors because it only offered certain types of cars at each location.
o Time: Contrary to other rental car companies, ZipCar rents the cars both hourly and daily depending on the members’ needs.
o Price: The price varies depends on the type of membership. Users can choose to pay monthly use and get lower usage fees or pay higher usage fees without monthly fees commitment.
o Overall: There are many limo rental companies across the nation. They offer hourly rental as well as event rentals. For example, they offer services like airport transfer, wedding, party transfer and even tours. Compare to other rental types, limo rentals usually come with drivers, and it can actually control what car that the users will get.
o Space: The space factor for the limo rental industries is based on the various sizes of the limos each company owns.
o Time: Users can rent the limos hourly or for the whole event. If it’s an event rental, the timing factor can become somewhat implicit.
o Price: Prices vary depending on whether the users pay hourly or pay a flat fee for the whole event. The amenities and qualities of the limos can also change the prices.
Implicit Time-Implicit Space
Restaurant Industry
The restaurant industry is primary governed by a sense of explicit time. That is, the time is primarily controlled by the customer. However, there are ways that restaurants can attempt to make time more implicit and under control by them. However, the industry is characterized as having a stigma attached to blatant attempts to make time implicit for the restaurant.
Space in the restaurant industry is defined by “seats.” That is, revenue is generated based on the number of seats that are being filled in a restaurant. Theoretically, the more seats that a restaurant can fill; the more revenue can be generated – other variables aside (duration, price).
Daisy May’s has an interesting way of revenue managing its primary differentiating products. Daisy May’s will sell a whole or ½ pigs, large racks of lamb, or quantities of pork butt that are all taken from freshly spit roasted full animals that are cooked on premises. The revenue management occurs in that they take much of what is traditionally explicit time and implicit space and they seize control over much of this. First, there is a single seating for these items at 8:00 PM. Reservations for some items must be taken with a 2 day advance and deposits are taken to shield the restaurant from cancellations. Second, they specify the amount of people that groups can bring to dine on the products, imposing an additional cover cost of $35 for each additional person. Lastly, the base price is set for the group. Therefore, Daisy May’s attempts to gain control over price, space (seats), and time.
Joe Allen has an interesting market mix based on its proximity to the Theatre District. The restaurant, aside from its usual clientele, is a very popular place for the pre-theatre dinner crowd. Here, time is actually implicit in that it’s controlled by the theatre schedule. Space is defined in its usual manner, by seats. The restaurant in this case has control over its prices (which are slightly higher for the pre-theatre dinner crowd) and over the number of seats. Revenue management occurs based on filling the seats for the pre-dinner single seating and variable prices for this time sensitive market. Outside of this time period, time and space becomes explicit again, being controlled by customers.
Shake Shack is a phenomenon that is unlike most restaurant operations. This is a burger, hot dog, and shake stand in the middle of Gramercy Park in NYC. Their operation is a food cart type operation. For this set up, time is implicit, controlled by how fast the stand can create and distribute their products. Customers will wait in line for hours (literally) without deterrence just to get a burger. Therefore, customers are willing to give up their control over time in order to receive the products. Space for this operation is defined in an interesting way. They do not define space based on filling seats – most of their business is local business people who will take the food back to their offices or find other places to eat in the park. The business is not based on filling seats – although some are provided simply as an amenity to the stand. Therefore, space is defined by that which the stand has – how well the business can optimize its operational space to push product out. Revenue is generated by how many burgers a grill of a certain size can create and how quickly it can cook them – for example. This is possible primarily because there is such a constant queue of customers who are willing to give up both time and space to receive their food.
Buddakan has an interesting way of revenue managing its space. For this restaurant, space is defined in the traditional “seats” manner. However, each of the properties has a communal table in the center where guests are sat next to strangers and space filled. Therefore, space, which normally is implicit and controlled by the customer (parties of three still take up four seats usually). However, here, the restaurant makes space at the communal table explicit for the restaurant – seating guests right next to each other and not wasting space on empty seats. Therefore, table mixes and unused seats are moot because the restaurant is able to seize back control – a very common practice in many Asian restaurants. However, time (duration of stay) is still explicit and controlled by the customer; however, the restaurant has found an advantage in that it has gained control over one of the variables.
Theatre
The theatre is place where performers could express their ideas and innovation in form of drama, music, dance and other form of performing arts. There are several theatres that are very famous worldwide such as Broadway in New York and Sydney Opera House in Australia. Some theatres has shows that run for a long time and some just keep changing the shows. This is to drive the audience attendance. Here’s the link to theatre news and review.
Esplanade is a theatre in Singapore that was built in 2005 and it has a shape of durian (an Asian fruit). The building itself is a mixed use development where there are performing theatres, concert halls, exhibition space, retail space and F&B outlets.
- Time: it is defined as performance time and it is controlled by the performer. Some performance does have a certain time allocated for their performance but the chances of it extending is quite likely or sometimes people do come earlier than the performance time.
- Space: it is defined as theatre and concert hall. To make more money, Esplanade actually rent spaces outside the theatre and concert hall as exhibition space. On top of that Esplanade also provides tour of the building and training to performer-to-be. The roof top of the building is rented for events such as wedding and private parties.
- Price: Esplanade charges differential pricing. The rate fences they use are age restrictions (senior citizens, children), status (students), corporate client or group client. The prices also differ from seats location in the concert hall and theatre. To drive more visitors, Esplanade offers free performance.
Sydney Opera House has 8 venues: concert hall, opera theatre, drama theatre, playhouse, the studio, utzon room, forecourt and recording studio.
- Time: defined as length of the show plus time before and after the show that customers stay around the venues.
- Space: defined as capacity for each venue. In addition to the regular shows, the opera house utilizes the space quite extensively. At the times without performance, the opera house conducts tours to its different venues. At the times right before the productions, the opera house offers back stage tours. Some venues also cater for private parties.
- Price: offer differential pricing based on show, time and venue,
Regal Entertainment Group has theaters throughout the whole across ranging from small one screen venue to multi-screen mega movie venues.
- Time: defined as length of each movie. Compared to other theater types, the movie theater should have explicit time factor because all the movie lengths are set. However, in terms of private screening, the time factor become implicit as patrons may stick around after the private screening is finished.
- Space: defined as capacity for each screen. In addition to the regular movie showings, it also caters to private party and screenings.
- Price: Offer differential pricing based on time (matinee), profession(student discount) and day (Tuesday Special)
Typically in summer, many cities and towns across U.S. have outdoor theater performance in the park. There is usually no regulated seating as people just sit on the lawn space.
- Time: defined as the length of the performance. Many people do come early and stay late at the performance venues as they tend to come to social and picnic. In addition, some of these events are quite interactive, and the performers might spend more time if they enjoy the crowd. Consequently, it’s not easy to control the time for these events.
- Space: defined as maximum capacity of the lawn place. However, space is hard to define for these venues because people can try to watch the performances from outside the designated the performance area.
- Price: offer differential pricing based on the show and time
Industry Use of Time and Space (Lany, Shin, Wayne, Carmen)
1) Higher Education Industry
The higher education industry, which includes undergraduate / postgraduate / certificate programs has traditionally been in the classroom setting. Education seekers are subjected to complete their degrees or certification within a certain standard period of time say three years for a degree program (explicit time). On other hand, the number of students in a class is often determined by the school depending on the teacher-to-students ratio and external factors like popularity of the course which affects the amount of quality time a student time (implicit space). The school may allow a large class per instructor, or it may introduce additional instructor(s) to maintain quality teaching hours per student. Similarly, a class with smaller enrollment may have the class continued or cancelled.
The advent of technology as well as increasing pressure on education institutions to attract busy executives have changed the higher education landscape significantly that redefines the explicit time / implicit space model. The major change is the move from explicit to implicit time. Space is almost eliminated in many of the examples due to e-learning management system.
eCornell: eCornell is an online professional and executive development portal set up by Cornell University. It allows participants to log on from any part of the world at any time. Courses are structured flexibly, with new courses starting every month, 24 hr unlimited access to course materials. Participants have the flexibility to complete the course according to their schedule (implicit time). There are no constraints in the number of participants, since courses are voice recorded (unlimited access). This removes the typical space constraints in the form of lecturer although online instructor(s) still exist but responsible for facilitating discussion boards instead.
http://www.ecornell.com/
U21 global: U21 is an online graduate school backed by 21 world-class universities to provide online courses. It offers masters degrees and post-grad certification for education seekers. All courses are conducted online, and the program provides an ‘open time’ for participants to complete their courses in a longer timeframe based on their schedules.
http://www.u21global.edu.sg/
SIM Open University: SIM, Singapore’s fourth university is targeted at working professionals seeking further education. SIM prides itself at offering flexibility in their courses. Students may choose to graduate as soon as three years or take up to eight years to complete an undergraduate degree. They offer multiple progression paths, which means students may enter at any level depending on your qualifications and study your way up to graduate qualifications.
http://www.unisim.edu.sg/uni/pub/gen/uni_pub_gen_group.cfm?mnuid=27&id=250
E-learning SCPD Course: The Supply Chain Professional Development program is offered by the Chartered Institute of Logistics Singapore. The Diploma and Advanced Diploma are conducted online, similar to eCornell’s approach, except there is a half-day face-to-face component at end of the one month course and physical appearance for examination. There are four modules for each Diploma, and each module takes one month to complete and the same module is offered a few times a year so it is entirely up to the candidate to decide when they are ready to start a course.
http://www.cilt.org.sg/page.asp?catid=9&subid=32&sub2id=98&tbl=subcat2&id=Supply+Chain+Professional+Development+%28SCPD%29+Programme
2) Amusement Parks
The services of the amusement parks are tending to be pre-defined in time and space by the parks. However, we can find many parks which offer more flexible types of services.
Singapore Night Safari: As one of the most famous tourist attraction in Singapore, the number of visitors for the Singapore Night Safari is around 1.1 million people every year. As you can guess from the name of the park, this Singapore Night Safari operates from 7:30 pm to 12:00 am. It is up to the guests to decide when to come and to leave, however, the operation hour is clearly set as it is, so the service time at this facility is Explicit.
When it comes to the space, it is highly up to the guests themselves to where they go. In the Night Safari, there are two main facilities, the zoo and the bird park. The Night Safari itself has eight geographical zones and guests can exploit any of these zones by their own interest. In this point, this park is implicit in Space.
http://www.nightsafari.com.sg/
Six Flags: Six Flags, Inc. is the world's largest regional theme park company with 21 parks across the United States, Mexico and Canada. There are two big different entertainments in Six Flags; Rides and Safari tour. Season ticket, daily ticket, general admission, group, packages, VIP tour, and Flash pass are available for rides. All ride tickets can be purchased in different price structure if customers only get a general admission.
Within Six Flags, the prices between the Ride Park and Safari tour are different. Daily ticket and VIP tour ticket are available.
http://www.sixflags.com/greatAdventure/tickets/index.aspx
Everland: Everland is the biggest amusement park with museums, zoo, safari, and swimming pool in Korea. Everland is owned and operated by Samsung. General admission, daily ticket, and membership are available. All rides in the park are prices differently if customers get a general admission. Also daily ticket does not include tickets for museums, safari tour, and swimming pool. Those tickets should be purchased separately in the park. The swimming pool named Caribbean Bay requires different tickets with different prices in the morning and evening.
http://www.everland.com/information/fare/everland/everland.html
Tokyo Disney Resort: In all Disney Resort Parks, the Tokyo Disney Land and Tokyo Disney Sea has been the best performer in terms of revenue and the number of guests visited. The Tokyo Disney Resort offers many different types of tickets to fit many different guest needs. For example, the Tokyo Disney Land Park has following types of tickets, 1-Day Passport, Starlight Passport, Night-Passport, Multi-Day Passport, Group Passport and the Annual Passport. All those passports has different valid time of use, (in this context, this is Explicit) however, since the guest can choose any of those according to their needs, the services offered at the Tokyo Disney Resort is explicit in time, but has some implicit characters.
In terms of the space, the guests have more discretion to where to visit in the park. For example, the Tokyo Disney Land has 7 different zones (called Kingdom) and the customers can visit any of those, there is no need to visit all of those. In this context, the service space (attractions) in the Tokyo Disney Land is implicit.
http://www.tokyodisneyresort.co.jp/index_e.html
Implicit Time / Implicit Space
1) Business or Internet Café
Business Café is a place that accommodates necessary business-enable services. A traditional business café provides printing, copying, and binding services. The updated business café also offers video conferencing facilities or high-tech services. The primary clientele consists of small business and home office clients.
An internet café is a place where one can use a computer with Internet access, most for a fee, usually per hour or minute; sometimes one can have un-metered access with a pass for a day or month, etc. Also based on types of services customer is looking for customer is needed to seat on different spots with different service functions.
The services fees in the industry are different according to how long a customer uses services and spaces. Customers are asked to pay based on the time the use computers or other additional services. Also customers are required to move in order to use additional services so that the service fees can be variable.
http://en.wikipedia.org/wiki/Internet_cafe
FedEx Kinko’s: FedEx Kinko's offers a wide variety of production and finishing services, as well as FedEx shipping. Most centers have three distinct sections: self-service, shipping, and production. According to types of services (space type) and usage time, the service fees are variable. FedEx Kinko's also offers conference rooms to customers.
http://en.wikipedia.org/wiki/Kinkos
Monami Station: Monami Station is the first Business Café which opened its first shop on Feb 17, 2008 in Korea. Just like FedEx Kinko’s Monami Station provide a wide type of the business service. Uniquely, Monami Station introduces “High-Tech Zone” for customers who need to use unusual high-tech business services. The fee at the zone is related to the usage time (minutes). Every spot at Monami Station has different business functions so that customers can select where they like to go in order to get right services. Also Monami Station offers shipping services so that it can be considered as the total business service center.
http://www.monamistation.com
http://blog.naver.com/ljheeman?Redirect=Log&logNo=140048036837
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Web2zone: Web2zone is not only an Internet café but a premium specialty retail destination that operates in three segments of the technology marketplace located in New York. There are 3 distinct centers in the café; Entertainment Center, Internet Access Point, and Small Business Center. web2zone offers customers a private, yet social environment that combines convenience and speed. The center is an easy access point for checking e-mail, surfing the Internet, instant messaging, VoIP telephony and online shopping. Customers looking for cost-effective resources for their small business or individual needs find web2zone more economical when they need to access professional software, digital printing, data CD burning, faxing, image scanning, private conference room space and/or private shared office cubicle space. Depending on services, usage fees and spaces are provided differently.
http://www.web2zone.com/index.html
Head 2 Head Games: Head 2 Head Games is a Cyber cafe located in Canada. Head 2 Head offers customers the opportunity to utilize computers in a social setting. Multiplayer games can be played both within the store and over the internet. The fees are various according to the types of platform, services, party packages and LAN rooms. There are 4 party packages in Head 2 Head Games and fees are relevant to number of party participants, room types, game hours, and snack or beverage provided. The LAN room will hold 30 - 35 people and is available for rental from 8 pm to 11 am most days.
http://head2headgames.com/pages/prices.asp
2) Commercial Banking Industry
The services of the Commercial Banking Industry have been regarded as highly standardized and offered at limited time (operation hours of bank, ex: 9:00-17:00) at limited place (branch offices of the bank). Because it has been regarded that the daily transactions like deposit, withdrawal and loan consultation services have almost no difference across the customers. However, as the needs of the customers has become more personalized and more demanding, the services offered at the commercial banks have many varieties of their service duration (Time) and of their service location (Place).
Lately, the commercial banks design their services to show their appreciation towards their loyal customers by differentiating their available service time and place by using their e-banking (internet banking) system, the customers have an access to the bank at any time and place. In addition, the customers who have high customer status (the amount of the deposit above certain level) may carry out many of the services offered at the branch of the banks.
With these points, it can be said that the services of the commercial banks are now in the quadrant of Implicit Time / Implicit Space.
HSBC Bank: HSBC Bank is the commercial banking arm of the HSBC holdings. As the one of the largest banking institution, it offers varieties of services onsite (branches) and offsite (internet banking).
Their internet banking system gives customers access to their accounts and enable them to carry daily transactions out with ease. The customers can access to their account as long as they want at any time of the day. In this point, their banking services are implicit in time.
For the space, again, their internet banking services offer the points of access anywhere. As long as the customers have an internet access, they can complete any kinds of banking services that used to offer at the counter of the bank’s branches. In this point, their banking services are implicit in space.
According to their web site, it is possible for their customers to do the followings. (Loan and Mortgage application / Credit card application / Investing services)
http://www.hsbcusa.com/
Bank of America: The bank of America is another example of the commercial bank that offers their services by non-traditional way. Their services are implicit in Time and Space. As they boast themselves as the #1 online bank, their online services are highly differentiated. If the customer of their bank opened the account with them, there’s no need to pay any deposit as it used to, neither the customers required to keep the minimum balance in their account.
Their online service covers basic deposit / money transfers / paying bills. The customer also can have an access to their balance of the account and their usage history of the credit cards.
All those transactions are used to be carried out only at the counters of the banks and the customers had to spend relatively long time to do that. Because the required time for transactions will be vary according to the number of the teller at the counter or the number of the customers waiting. However, with their online banking system, it is possible for the customers to choose time at their own will almost at any time and on any day of the week. In this sense, it can be said that their service time is implicit.
When it comes to the place, the services mentioned above are not necessary to be done at the specific places (like the customer counter at the branch or the place where there are internet access), because the Bank of America now offers the Mobile Banking Service. Their mobile banking service is free, and the customers can do whatever the services they want at any place, as long as the services offered via Mobile Banking Services. In this point, the service of Bank of America is implicit in Space, too.
https://www.bankofamerica.com/index.jsp
Wachovia Bank: As one of the largest commercial bank in the east coast, Wachovia bank also offers comprehensive services in varieties of channels to service customers.
Same as its competitors, Wachovia bank offers web based and mobile based services to make their customers access to their banking related services across the time and the space.
The one feature of their service is online retirement services. The customer can change their investment decision at any time of the day by logging in to the web. There is no losing point in this web based service, when it compared to the services at the branches, the web system is highly streamlined with the bank itself and the changes made on the web site will be carried out at the same business day. (same as the counter at the branch) There is no need to their guests to visit the bank’s branch during the time of the bank’s operation. Wachovia’s banking services offered are implicit in Time and Space in this point.
http://wachovia.com/personal
Seven Bank: Seven Bank is the one of the latest established Japanese commercial bank mainly operates on the web site. After the deregulation of the banking business license, the Seven and Ai holdings company (The largest retailer in Japan (Like Wal * Mart in the U.S.)) started their on-line banking business. This holding company has their retail shops in almost any place in Japan and most of them operate 24 / 7. Seven Bank located their ATM in every retail shops of their holding company to offer their banking services. So, once the customer opened an account with Seven Bank, it is possible for them to fulfill their banking needs at any places at any time as long as they can go to those retail shops. Since their ATMs located in their company related retail shops, the customers do not have to pay any kind of commissions by any kinds of transactions.
Seven Bank offers new service system of the commercial bank and its services are highly implicit in the Time and the Space.
http://www.sevenbank.co.jp/intlcard/index2.html
Explicit time/Explicit space
1) Internet Information Providers
Internet information providers are websites that provide general information to the users. The general information may be specialized (Expedia) or remain broad (search engines such as Google). The examples below are specifically advertising companies within internet information providers. Although not directly classified as ad agencies, they perform the same duties of traditional ad agencies – they work with advertisers to design and implement marketing campaigns. Up until recently, advertising has been defined as an explicit time/explicit space model. The advertiser selects a specific time frame and space combination from an ad agency which is priced according to the length of time and size of the advertisement. For example, in television, the advertisement is played for a certain number of seconds and possibly across many different stations. However, companies today are discovering new ways to package and sell advertising space that redefines the traditional explicit time/ explicit space model.
Advertising Industry Information: http://mi.compustat.com/cgi-mi-doc/docserver.cgi?keytype=INDSUR&keyval=ADV&doctype=IS&docformat=pdf&date=200708&ie=.pdf
Google: Many people advertise on Google using AdWords. AdWords allows the customer to create an ad and then choose the keywords that are associated with the advertisement. This allows the customer to redefine the way space is traditionally used. Rather than explicitly selling space, the customer now has the ability to choose how much space they want to use on the internet by choosing how many search words they will associate with their advertisement. This allows for a more focused audience. This is analogous to an individual advertising in a special interests magazine rather than every magazine in circulation. Using the internet though, AdWords allows the advertisement audience to be more clearly defined.
https://adwords.google.com/select/Login
TravelClick: Using TravelClick, a company advertises on a pay per click basis. This ensures that the right price is given to each company. Essentially, it puts the element of space within the advertiser’s control. Another way to think of it is with the following example; a company can either choose to advertise on one or two billboards. The company does not have control over how many billboards to advertise on because they have to pay for the billboards up front. On the internet, it is easy to see how many people actually view the advertisement because we can measure the times the ad has been clicked on so companies such as TravelClick can measure how many “billboards” are used after the fact and then charge accordingly. As mentioned previously, the traditional method of selling advertising space is to explicitly state the time and space to the advertiser. The internet allows companies such as TravelClick to become more flexible with their pricing strategies as they relate to space.
http://www.travelclick.net/index.cfm
Facebook: Facebook, a social utility tool, allows individuals or businesses to put up social ads. Advertisers can either choose the CPC (cost per click) or CPM (cost per thousand impressions) cost models. CPM is a recommended choice for advertisers who are concerned about where their ad shows up and how it looks like. The advertiser selects a daily maximum budget and a maximum CPC or CPM. The ‘space’ is defined by Facebook where they select the ‘best ad’ to run based on CPC or CPM and ad performance (an advertiser may end up having zero clicks or impressions). Facebook has a process in place that will automatically calculate the minimum price that the advertiser could pay and still have the highest cost per click or CPM ad, and the advertiser will only be billed that price (within their budget). The advertiser is able to select the day of advertisement, but not the hours of when the ad is shown. Therefore, both time and space controlled by Facebook, which may put the model in the implicit time/implicit space category.
http://www.facebook.com/ads/
Shopping.com: Shopping.com is an online comparison shopping engine. Advertisers ‘feed’ their products to the website according to selected categories; when shoppers shop for a type of products, their products links and appear in the search results. More prominence is given to advertisers who pay more (cost per click) although shoppers can still sort based on price. Advertisers can set different CPC for each product category. A deposit is set up with shopping.com; when a shopper clicks through the product link, the CPC is deducted from this deposit. Like other CPC model, the higher the CPC the advertiser sets, the higher the chance of being clicked. In shopping.com, the three highest bidder will appeared as ‘featured product’ which increase their chances to 50% of being clicked. Thus, space (where the link appear) tend to be implicit and so is time (‘advertising’ stops once the deposit runs out).
https://merchant.shopping.com/enroll/app?service=page/PartnerWelcome
2) Music & Video Stores
Specialty Stores Industry Information: http://mi.compustat.com/cgi-mi-doc/docserver.cgi?keytype=INDSUR&keyval=RES&doctype=IS&docformat=pdf&date=200803&ie=.pdf
According to the Global Industry Classification Standard (GICS) (a common classification standard for companies such as Standard and Poor’s) traditional video rental stores (Blockbuster) would fall into the “Specialty Stores” GICS sub-industry category. Specialty stores are simply defined as businesses that typically sell either a single category of merchandise or a few closely related products (Bed, Bath and Beyond). For a more complete review, see the link above. However, for our purposes, we will classify video rental companies into the less commonly known Music and Video Stores industry. This allows us to compare companies such as NetFlix and Blockbuster directly even though they are in fact separate GICS industries. Traditionally, Music and Video stores had an explicit time/explicit space industry. The customer rents a movie for a time determined by the company or the customer purchases music in a block of space (in the form of CDs) that are determined by the company. The examples below illustrate how some companies are redefining how space and time are delivered to the customer using new technology available to us.
NetFlix: NetFlix has to started offer movies online for people to rent. In traditional movie rental stores, each movie type (VHS, DVD) took up the same amount of space and was priced equally. Now that their movies are online, NetFlix can price each movie according to the amount of virtual space that each movie takes up. As of now, the online movie rentals are included in the monthly price plans, but when NetFlix or another company develops a larger inventory of online, rentable movies I see no reason why pricing by space allocation (Revenue per available gigabyte) would be unreasonable. Of course, it is likely that a typical customer will get confused with the variable pricing of online movies and become dissatisfied with the service. NetFlix has changed the traditional model of fixed space into one where the products are of variable virtual space.
http://www.netflix.com/Register
http://www.inc.com/magazine/20051201/qa-hastings.html
iTunes: Traditionally, music stores would sell blocks of explicit time in the form of CDs. This is analogous to hotels selling room nights. The customer generally has little control in how the definition of time is constructed. In recent years, iTunes has allowed customers to buy songs individually and has redefined who has control over the time element of the product. The time is still explicit, but now the customer can decide more specifically how they want to purchase time. Now, the customer can essentially buy one-eighth or one-half of a CD. In fact, some hotels do sell time in smaller blocks than one night but these are not the types of hotels that many travelers would enjoy staying in. What’s interesting about iTunes is that all of the songs are priced the same, regardless of demand for the song.
What I foresee in the future is the ability of cable companies to give the customer control over how much time they purchase. I presume many people do not purchase cable because they do not want all of the extra channels. I realize that you can eliminate channels, but the ultimate dream for the customer would be to have access only to their favorite shows. Purchasing shows is already a feature on iTunes, so it may make its way to the cable realm as well.
http://www.apple.com/itunes/overview/
Blockbuster: In traditional movie rental stores, the duration of the video rental was defined and controlled by the company. Blockbuster followed the NetFlix model and allowed customers to keep the movie for as long as they want for a monthly fee. This shifted the time of the service from explicit to implicit. The duration of service is now defined by the customer, and no longer the company. Although a monthly fee concept is not a new concept, it changed the way that videos were rented.
https://www.blockbuster.com/signup/s/plan/p.26722/
Digital Video Express: Digital Video Express, which no longer exists, devised a unique way to rent movies using a pay-per-view methodology. The customer would buy a Divx disc for around $4 and then after the movie was initially viewed, the movie disc would self-destruct in 48 hours. This was a balance between not worrying about late fees but still not being tied down to a monthly service such as those offered by NetFlix and Blockbuster. The duration of the video rental was now within the customers control but the product was priced in a traditional fashion (by title). However, its demise was attributed to a lack of interest by the public.
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/1998/08/13/BU36940.DTL
