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Why Klook's Business Model is so successful?

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Klook’s Company Overview


Klook is a world-leading travel activities and services booking platform, providing travelers with a seamless way to discover and book popular attractions, tours, local transportation, best foods, and unique experiences around the world on its website and award-winning app ('Best of 2015', 'Best of 2017' & 'Best of 2018' by Google Play and Apple App Store). With Klook's innovative technologies, travelers can book on-the-go and redeem the services by using QR codes or e-voucher. Klook's platform connects travelers with local operators, ensuring a high-quality experience at a competitive price. The company is headquartered in Hong Kong and has offices in more than 20 locations worldwide.

Klook's business model is based on acting as an intermediary between travelers and activity providers. The company offers a platform where activity providers can list their services, and travelers can discover and book these services. Klook earns revenue by charging a commission on each booking made through its platform. This model allows Klook to maintain a lean operation, as they do not need to own or operate the activities themselves. In addition, Klook also generates revenue through promotional partnerships and advertising. For instance, activity providers may pay a premium to have their services featured prominently on Klook's platform. This multi-faceted revenue model has allowed Klook to expand its global presence and customer base rapidly.

https://www.klook.com/

Headquater: Hong Kong, China, China

Foundations date: 2014

Company Type: Private

Sector: Consumer Services

Category: Travel

Digital Maturity: Digirati


Klook’s Related Competitors



Klook’s Business Model Canvas


Klook’s Key Partners
  • T101 (Malaysia)
  • ACTIVITY-BRIDGE
  • AirAsiaGo
  • AliPay
  • AMWAY
  • AppWorks
  • Ayei Travel
  • AXTRIA
  • BeMyGuest
  • Biotherm Homme
  • BraveSoldier
  • Cabometyx
  • Changi Recommends
  • CitiBank
  • Citibank Credit Card Promotion
  • Citi PremierMiles Credit Card Promotion
  • CNE
  • CoAsset
  • Ctrip
  • DBS Indonesia
  • Dewar's
  • Digi
  • Discover Hong Kong
  • Discover Hong Kong Tourist SIM Card
  • Discovery Sandbox
  • Dyson
  • EcoAdventure Travel
  • Eez.io
  • EuropeTravel
  • FaceMe Mobile
  • Fave
  • Federation of Women Entrepreneur Associations of Malaysia (FEWAM)
  • Fez Travel
  • Fiji Airways
  • Fliggy
  • FlyBaggage
  • Foodpanda
  • France Pass
  • FWD Insurance
  • Galaxxi
  • GetYourGuide
  • Global Tax Free
  • GOGO
  • Good Hotel
  • Goodway Hotel
  • GroupOn Jump
  • Gudang Digital
  • Gullivers Travel Associates
  • H.I.S.
  • Happy Holidays
  • HSBC
  • Indonesia Tour Destination
  • Infinity8bali
  • Jade Villa Bali
  • JALRC (S)
  • Pte Ltd
  • Japan Resort Club
Klook’s Key Activities
  • IT platform development
  • IT platform operations
  • Product catalog expansion
  • Marketing
  • Advertising
  • Customer support
  • Financials
  • Research and development
  • Training and development
  • Community events
Klook’s Key Resources
  • Proprietary technology
  • Data scientists
  • 300 expert travelers
  • Network of over 8000 travelers
  • Operation team
  • Knowledge of holiday visits
  • Self-serve Klook Analytics platform
  • Data science team
  • Developers
  • Klook App (for end-users)
  • Global team of staff (presence in Auckland
  • Barcelona
  • Beijing
  • Hong Kong
  • London
  • Manila
  • New York
  • Oslo
  • Shenzhen
  • Singapore
  • Sydney
  • Taipei
  • Tel Aviv
  • Tokyo)
Klook’s Value Propositions
  • IT allows travelers to explore popular destinations via curated experiences at attractive prices
  • Book tickets and activities around the world
  • Book and enjoy exclusive deals for the Best Activities in Asia
Klook’s Customer Relationships
  • Online travel agency
  • Customer ratings and reviews
  • Convenience
  • Value-for-money
  • Verified
  • Personalized
  • Companion
Klook’s Customer Segments
  • Tourists
  • Local customers
  • Last-minute travelers
  • Booking platform
Klook’s Channels
  • App
  • Website
  • Live Chat
  • Bot
  • Social networks
  • Email
  • Phone
  • Blog
Klook’s Cost Structure
  • IT architecture
  • IT infrastructure
  • Staff compensation
  • Customer service
  • Partner commissions
  • Marketing and Advertising
  • Events
  • Travel experience inventory
  • Legal Structure
  • Taxes
  • Klook and The Travel Corporation (TTC) create a global strategic partnership
Klook’s Revenue Streams
  • Reseller's fee
  • Commission on bookings

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Klook’s Revenue Model


Klook makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • Advertising
  • Two-sided market
  • Transaction facilitator
  • Online marketplace
  • Experience selling
  • One-off experience
  • Cross-selling
  • Online to Offline O2O
  • Sharing economy
  • Mobile first behavior
  • Collaborative consumption
  • Network builders
Analytics


Market Overview
  • Patterns
  • Sectors
  • Categories
  • Companies
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Klook’s Case Study


Klook's CASE STUDY

As we delve into the dynamic and flourishing realm of Klook, we find ourselves exploring a platform that redefines the travel experience by seamlessly connecting travelers with local attractions, tours, and activities. Founded in 2014 and headquartered in Hong Kong, Klook has rapidly climbed the ranks to become a world-leading travel activities and services booking platform. Our journey with Klook begins with an understanding of its unique business model and what sets it apart in the competitive landscape of travel. Through storytelling and data-driven insights, we unravel the secrets behind Klook's success and its compelling value proposition to travelers around the globe.

The Birth of an Idea: Meeting Customer Needs

In the bustling streets of Hong Kong, three avid travelers—Ethan Lin, Eric Gnock Fah, and Bernie Xia—realized a common problem. The trio frequently faced challenges when trying to discover and book tours and activities during their travels. This gap between local operators and travelers led them to launch Klook in 2014, which stands for "keep looking." As travel enthusiasts themselves, the founders understood the emotional and functional needs of their future users: access to fun and entertainment, a simplified booking process that saved time, and a trustworthy platform that avoided the hassles of trip planning. Klook's digital maturity, dubbed "Digirati," exemplifies how a blend of advanced technology and intuitive design caters to today’s mobile-first behavior. Travelers can book on-the-go and effortlessly redeem services using QR codes or e-vouchers through the award-winning Klook app—hailed as the ‘Best of 2015,’ ‘Best of 2017,’ and ‘Best of 2018’ by Google Play and the Apple App Store.

The Business Model: A Two-Sided Market

Klook operates as an intermediary, bridging travelers with activity providers. This two-sided market model allows local operators to list services, ranging from cultural tours and adventure activities to local foods and exclusive experiences, on Klook's platform. Travelers, on the other hand, can explore, book, and redeem these services, often benefiting from exclusive deals. Revenue for Klook comes from charging a commission on each booking. This lean operational approach ensures that Klook doesn't shoulder the burden of owning or managing the activities directly, but rather focuses on expanding its platform and improving user experience. Moreover, promotional partnerships and advertising services also contribute significantly to their revenue streams. Activity providers, for instance, might pay a premium to have their services featured more prominently on the platform. To understand the scale, let’s examine some statistics: as of 2022, Klook boasts over 30 million monthly bookings, and has connected with more than 100,000 local operators globally, covering over 1,000 destinations. (Source: Klook)

Key Differentiators: What Makes Klook Special

At its core, Klook differentiates itself through innovation and customer-centric solutions. The company's proprietary technology allows it to offer curated experiences at attractive prices, ensuring quality and convenience. The seamless mobile integration with QR codes and e-vouchers simplifies the travel experience, reducing friction and ensuring that travelers spend more time enjoying their trips and less time worrying about logistics. Klook’s platform is comprehensive. It covers a wide range of activities—from mainstream tourist attractions to off-the-beaten-path adventures. This breadth not only enriches the traveler’s experience but also offers local providers a broad audience, boosting local economies and supporting small businesses. Klook’s API integration capabilities also ensure that their partners can easily sync inventories and offer real-time bookings and confirmations. Leading travel experts like Philip Wolf, the Founder of Phocuswright, commend Klook’s ability to enable a 'one-stop platform' for both providers and users which “is critical for achieving high operational efficiency and enhancing user satisfaction.” Furthermore, Klook invests heavily in data analytics and market intelligence, ensuring they stay ahead of trends and consumer demands. According to Mary Meeker’s Internet Trends Report (2020), the use of data science at Klook informs everything from marketing strategies to customer support, ensuring an optimized experience for all stakeholders.

Impact and Expansion: A Growing Global Presence

From its headquarters in Hong Kong, Klook has expanded to over 20 offices worldwide, embedding itself deeply in local markets and understanding regional traveler behaviors. Countries like Japan, which saw a 150% increase in Klook bookings post-2018 (Source: Euromonitor), illustrate the platform’s global traction. This global reach ensures that Klook remains nimble and adaptable, staying relevant in diverse markets and cultural contexts. A strategic global expansion requires solid partnerships, and Klook’s collaborations are vast and varied. Notable partners include AirAsiaGo, AliPay, DBS Indonesia, and Discover Hong Kong, to name a few. These relationships not only bolster Klook’s market presence but also ensure that users receive a diverse range of services and seamless integrations.

Challenges and Future Outlook

Despite its remarkable success, Klook is not without challenges. The travel industry’s volatility, particularly in the wake of the COVID-19 pandemic, required agile pivots. Klook quickly adjusted by enhancing its local experiences offerings and promoting domestic travel, which significantly mitigated the impact during the downturn. In fact, CEO Ethan Lin stated in an interview with Skift, “Our adaptability and diversified portfolio allowed us to sustain and even grow in certain markets.” (Source: Skift) Looking ahead, Klook’s focus remains on leveraging technology and expanding its portfolio to include more unique and personalized travel experiences. With a commitment to sustainability and community impact, the company is also exploring eco-friendly initiatives and supporting local artisans and businesses. In conclusion, Klook's story is a testament to how innovation, customer-centricity, and strategic partnerships can transform the travel landscape. By continually evolving with market needs and technological advancements, Klook not only meets but exceeds the expectations of modern travelers, ensuring a bright and dynamic future in the global travel industry. As we reflect upon Klook’s journey, it is evident that the company’s model of convenience, variety, and thoughtful curated experiences not only simplifies travel planning but also enriches the joy of discovering new horizons.


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