Product Analysis

According to Analysys' "China Online Vacation Travel Market Special Analysis 2018", the transaction scale of the online travel market has continued to grow rapidly in recent years, and its penetration rate in the tourism industry increased to 16.5% in 2017. .

From the above data, it is not difficult to find that the tourism industry and its online process are in a situation of simultaneous development. Comparing the two figures on the left and right, it can be seen that the online travel market is growing at a faster rate.

According to data provided by the National Tourism Administration and iResearch, the same growth trend can be found. The compound growth rate of tourism revenue from 2011 to 2016 was 15.8%, and the compound growth rate of the online travel market during the same period was as high as 33.9%. %, the growth trend of the online travel market cannot be underestimated.

As tourists pay more and more attention to the stay experience, the center of the product system of manufacturers has also begun to shift from the original "aircraft and wine service" annotation to the so-called "destination service" to enhance the user's travel experience and Tourism consumption capacity.

According to the "Scale Forecast of the Three Major Business Lines of the Tourism Industry in 2020" provided by Huajing Securities above, destination services will have a market size second only to tourism accommodation in the future, with great potential. Today, this business has not been dominated by too many industry manufacturers, and there are more opportunities and value to explore.

It is also worth mentioning that the majority (60%) of consumers purchase destination products during their travels, and they prefer to make decisions during their travels. This change in consumption structure prompts users to switch from their original The travel methods of simple air tickets, hotels, and group tours have gradually transitioned to more fragmented and personalized destination products. KLOOK, a product that focuses on the "on-the-go" process, is also consistent with this changing trend.

KLOOK focuses on travel experience and is a booking platform that provides destination services. Products on the market that are similar to Klook’s starting point include Photosynthetic Journey, Zhuyouyou, and Daydream Travel. The main differences lie in their user groups and operating models.

KLOOK itself is the leading travel experience booking platform in the Asia-Pacific, aiming to help users "discover a more fun world and book unique travel experiences". The platform provides tens of thousands of destinations around the world that are worth trying. The service specifically includes the following characteristics -

Although the tourism market is already a red ocean, KLOOK on the one hand meets the personalized needs of users for experiential travel. It is a vertical type and is conducive to finding Differentiated needs. On the other hand, it targets the Asia-Pacific region, which does not only include Chinese people. Both belong to directions that have not been explored too much, and they can be said to have captured the intersection of the market.

Based on the survey results of Qunar users’ concerns about factors in tourism marketing activities, it can be seen that users are increasingly paying attention to special activities.

KLOOK has its own travel experience experts and has the largest travel column "A Group of Travel Experience Experts" on Zhihu. Through the experience of travel experience experts, special activity products from various places have been sorted out, which perfectly caters to the growing demand of consumers for special activities. In addition, because experiencers need to personally try various special activities, the quality of the activities is guaranteed to a certain extent, and the corresponding column construction and promotion also make the product more disseminable.

Since 2015, KLOOK has received three rounds of financing, and two rounds of investment in 2017.

The strong investment lineup shows that KLOOK’s business model and product form are sufficiently attractive to investors, which is an affirmation of the product. Looking at its impact, the investment background is conducive to creating more attention and capital strength for KLOOK, which is conducive to better development of the product.

KLOOK respects international product teams and product businesses, which allows KLOOK to better integrate international resources, have a deeper understanding of destination resources, international customer groups and B-end merchants, and can better Control resources effectively and win customers.

I think KLOOK’s business model is quite interesting. It focuses on the control of resources.

The resources here refer to the lowest and most irreplaceable tourism resources in the tourism industry chain. As the most basic elements of the tourism industry, they are an element that no manufacturer can bypass. And KLOOK’s method is particularly direct. It does not use traditional intermediary agents such as travel agencies, but uses its own model to directly control the destination resources it needs.

Nowadays, when many OTAs are focusing on winning more consumers and solving the problem of customer acquisition at the upper level, KLOOK is taking a different approach and starting from the bottom. It has to be said that it has a deep understanding of the tourism industry. exploration and understanding.

After controlling the destination resources, what KLOOK does is to build a complete solution for the provider of the destination resources.

This part is actually KLOOK’s B-side model, which provides a one-stop solution for resource parties and makes up for the shortcomings in resource party services in the industry. The value it outputs to resource parties can help it obtain better resources and occupy a larger share, thereby also improving the quality and volume of its own resources.

Furthermore, better resources will be more attractive to users. Once this model can be established, the two models, 2C and 2B, will complement each other, and the driving force will be very obvious.

Here are some of my opinions, mainly stating some of my thoughts on KLOOK’s future product development.

According to iResearch’s research results, when users use online travel platforms, the most important factor they consider is price. Therefore, you can still follow the common promotion methods and increase the promotion and operation of preferential activities to attract users to consume.

Most users generally choose to travel during statutory holidays, so discounts and promotions can be targeted at holidays, winter and summer vacations and other periods.

Strengthen the promotion of various channels. Domestic advertising can be carried out on active channels such as travel websites, Zhihu, and Weibo. Overseas, promotion channels can be confirmed through further sampling and analysis.

When promoting, you can take users’ travel intentions as the starting point and the factors that most trigger users’ travel behavior as the entry point for promotion to enhance the promotion effect. Since the influencing factors of IP have increased significantly this year, we can focus on promoting based on such factors and learn to seize hot events.

In the promotion process, it is necessary to test the promotion effect, constantly adjust and optimize the promotion method, and find the most advantageous promotion strategy.

On the one hand, we rank users based on their interest in destinations, focus on developing related products, promote corresponding articles, and undertake the promotion strategies mentioned in the previous point to attract target users. For other potential users, we conduct in-depth investigations to understand the core needs. After digging deeper, we may also gain different results.

On the other hand, using the product advantages of experiencers, we can further explore the special activities of emerging destinations or existing destinations.

KLOOK’s current products are still mainly single products. This kind of fragmented products is very suitable for mature users, allowing them to flexibly match them freely. As the user group increases, product combinations can be considered for users at different stages.

For example, for users who still need itinerary/traffic guidance, we can provide packaged and combined one-day tours; for tourists with more dependent needs, we can consider providing more itinerary arrangements, local accompanying services and other services .

As mentioned earlier, more and more consumers are gradually turning to making decisions during travel. Just like when people are shopping outside, they will open Dianping to make a temporary decision on what to eat later. If KLOOK can open up overseas destination resources, it will have a good chance to build itself into an overseas version of a Dianping-like product. This is also the direction where there is a gap in the market today.

When I first decided to study KLOOK, I just wanted to learn more about it. But as my understanding gradually deepens, I feel that I have learned a lot.

I have always felt that I was lacking in business capabilities. During this period, by consulting various materials and searching for various data, I not only learned about the current situation of OTAs, but also learned about the business models and product cores of many companies. It’s really rewarding.

This is the first time I write a product analysis article from a market perspective. There are many shortcomings. Please give me your advice. Thank you!