How Klook Adapted to COVID-19: From Global Travel to Local Experiences
The Pandemic’s Impact on Travel Tech
Spring 2020 brought unprecedented challenges for Klook, the SoftBank-backed travel platform. As borders closed and lockdowns spread globally, the company experienced a staggering 90% revenue drop during March and April. This mirrored the broader travel industry crisis, with the World Travel and Tourism Council warning of potential 100 million job losses across the sector.
A Swift Strategic Pivot
Before COVID-19, Klook—valued at over $1 billion since 2018—boasted 30 million monthly user sessions. By April 2020, this plummeted to just 5 million. The travel restrictions that devastated their core business forced rapid innovation:
- Stay-at-home experiences: DIY kits for bubble tea, macarons, and candles delivered to doorsteps
- Virtual tourism: Partnered with global landmarks for livestreamed tours (660,000+ views)
- Local focus: Shifted from international to domestic travel packages as restrictions eased
“We’re in the business of fun experiences—whether at home or abroad,” explained COO Eric Gnock Fah. “The pandemic created opportunities to expand our offerings.”
Competing in Crowded Markets
Klook faced established players like Ctrip and Qunar in key markets like China. Their differentiation strategy focused on:
- Curated niche activities beyond typical tourist attractions
- Hyperlocal experiences like Shenzhen windsurfing classes
- Youth-focused offerings including skateboarding and skydiving
“China’s market is big enough for unique offerings,” Gnock Fah noted. “Competing requires more than just price—it demands distinctive content and trust.”
Building for the Future of Travel
Klook’s pandemic adaptations created lasting value:
- Merchant tech development: Digital tools for small experience providers
- Local inventory expansion: Activities appealing to both domestic and future international travelers
- Adventure tourism focus: Socially-distanced outdoor experiences saw 250% YoY growth pre-pandemic
The Road to Recovery
Data suggests strong pent-up travel demand:
- 60% of APAC/Europe searches were for domestic experiences (April 2020)
- Over 95% of Taiwan/Hong Kong searches became domestic (June 2020)
“While borders remain uncertain,” Gnock Fah observed, “the fundamental desire to travel persists. Recovery won’t mirror 2019 immediately, but attractive post-COVID deals will accelerate rebound.”
Lessons for Startups in Crisis
Gnock Fah’s advice for navigating disruption:
- Maintain core mission while being operationally agile
- Balance short-term survival with long-term vision
- Leverage existing strengths to identify new opportunities
With healthy cash flow and profitability in several markets, Klook remains positioned to emerge stronger. As travel becomes more integrated into daily life, their blend of local and global experiences may define the industry’s next chapter.
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