Lee: TravelFlan Charges $10 Subscriptions, $15 Commissions, and $60K/Year for Data
Kenneth Lee · EP 379: Secret Travel App, $120k 2015 with Kenneth Lee · Aug 7, 2016 · at 2:16
Kenneth Lee, founder of AI travel concierge platform TravelFlan, breaks down his company's unit economics and pricing streams to Nathan Latka.
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“Customers, like commission part, we take up to 30% commission from the supplier side, so in average it's like 15 dollars, and subscription fee is like 10 dollars, average price is 10 dollars per service, and also the data is like the airlines and corporate space 60 K for the data per year.”
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More from Kenneth Lee
Lee: Churn metrics don't fit travel businesses due to infrequent repeat trips
“The churn doesn't really apply in the travel industry because once one person goes travel, they don't come back to for travel for at least like six months and mostly like one or two years.”
Lee: Travel companies must focus on B2B2C because B2C churn hits 99%
“Our business, especially travel industry, the traveling service industry you have to focus on more on the B to B to C side, rather than B to C, because once you spend your money for the B to C, To acquire a user, the churn rate is almost, like, 99%.”
Kenneth Lee: TravelFlan had under 2,000 paying subscribers by mid-2016
“So, so we have been providing the free services to us until, like, last month, and we recently launched our, like, premium service for services, so, like, it's very low, less than 2000 customers in Asia.”