TravelFlan founder Kenneth Lee argues why travel concierge businesses must rely on partnerships rather than direct consumer acquisition.
Insight
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.”
Assertion Not checkable as stated
Lee: TravelFlan Charges $10 Subscriptions, $15 Commissions, and $60K/Year for Data
“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 spa…”
Assertion Not checkable as stated
TravelFlan Generated $120,000 in Revenue in 2015
“Total revenue in 2015 was 1201 120,000.”
Assertion Not checkable as stated
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.”
Assertion Not checkable as stated
Lee: TravelFlan earned $20,000 to $25,000 in airline commissions in May 2016
“So, 20, 20, 25,000 dollars from airline.”
Assertion Not checkable as stated
Lee: TravelFlan generated about $50,000 in total revenue in May 2016
“Last month, last month's about 50,000 dollars.”