Should Klook prioritize expanding its local experiences inventory or focus on improving the booking process for existing popular attractions?

Introduction

The trade-off between expanding Klook's local experiences inventory and improving the booking process for existing popular attractions presents a critical strategic decision. This scenario touches on core aspects of Klook's business model, user experience, and growth strategy. I'll analyze this trade-off by examining the current product landscape, potential impacts, key metrics, and experimental approaches to inform a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming Klook is facing increased competition in the travel experiences market. Could you provide more context on our current market position and the specific challenges driving this trade-off consideration?

Why it matters: Helps frame the urgency and potential impact of our decision Expected answer: Klook is a market leader but facing pressure from new entrants Impact on approach: Would influence whether we prioritize defensive or offensive strategies

• Business Context: Based on typical OTA models, I'm thinking our revenue comes primarily from commissions on bookings. Is this correct, and are there any other significant revenue streams we should consider?

Why it matters: Ensures we're focusing on the right areas for revenue growth Expected answer: Commission-based model with some additional revenue from partnerships Impact on approach: Would help determine if we should prioritize volume (inventory expansion) or conversion (booking process improvement)

• User Impact: I'm assuming our user base includes both locals and tourists. Can you share the current split and any trends we're seeing in user behavior?

Why it matters: Different user segments may have varying needs and preferences Expected answer: Growing local user base, but tourists still make up the majority Impact on approach: Would influence which user segment we prioritize in our decision

• Technical: Considering the potential for scaling, how flexible is our current platform architecture for adding new experiences versus optimizing the booking flow?

Why it matters: Technical constraints could impact the feasibility of each option Expected answer: Platform is modular but may require significant work for major changes Impact on approach: Would help assess the technical effort required for each option

• Resource: Given that both options likely require significant investment, what's our current team capacity and budget allocation for product development?

Why it matters: Helps understand the practical constraints on our decision Expected answer: Limited resources, need to prioritize one major initiative Impact on approach: Would influence whether we can pursue both options simultaneously or need to choose one