People will have more free time and space travel, the ultimate experience
They put their own money into the business, one of them selling his house. Together, they scraped together $1m. By 2018, their tours and activities platform was valued at around $1b, and the business continues to grow.
It’s hard to say who’s more surprised by the achievement – Ethan Lin (CEO) or Eric Gnock Fah (President) or perhaps their parents whom they talk about openly – but one thing is clear, these two co-founders are firm friends and have each other’s backs.
It’s uncanny how well they complement each other, as you will discover in this special WiT Podcast edition, marking their 10th anniversary, with WiT founder Yeoh Siew Hoon.
Listen to the full podcast here
In one of the most open conversations, the two founders relate not only the well-told story of how a trip to Nepal gave them the idea for the business but what actually happened on the trip that gave them the impetus and drive to actually do it. A life-or-death moment which sealed their fate, as it were.
And how that quickly went from a “phone note” to financial modelling on an Excel sheet (their banking background showing here). They still have that Excel sheet and it’s interesting to look back on how realistic that model was.
What they underestimated was the growth, things grew faster than they expected when the network effect kicked in. What they over-estimated was the margin – they had to give away higher discounts than they had baked into the model.
And contrary to perception that their banking background gave them the advantage in fund-raising, and hence their successful rounds of fund-raise, it was difficult at the beginning. In fact, their banking background worked against them because investors saw them as great at pitching but with no domain experience.
It was only when the business gained traction and after Series C that investors started showing serious interest.
Through it all though, they stayed focused on their goal.
Reflecting on the early days, Gnock Fah shared, “When we started, we didn’t have specific numbers in mind, but we had a vision to build a global platform that would serve travellers beyond just North Asia or Southeast Asia.”
The duo didn’t anticipate the rapid growth that Klook experienced, particularly in its first five to six years. As Lin noted, “Looking back, it’s been a fulfilling experience, even with the unexpected challenges along the way.”
The pair acknowledged the steep learning curve they faced, especially coming from non-tech backgrounds. Gnock Fah remarked, “What really threw me was how quickly the platform scaled with technology. It took some time to find the right people and get used to that rapid pace.”
Lin, who grew up in various cities, added that their diverse backgrounds helped shape their global outlook. “I feel equally at home wherever I am. That global mindset has been crucial in our journey,” he said.
The conversation naturally turned to the power of travel, a concept both founders are passionate about. “Travel bridges communities and gaps. When you experience different cultures and perspectives, you start to feel a part of the Earth,” Lin emphasised.
Gnock Fah echoed Lin’s sentiment, adding, “Travel brings out the best in us. It allows us to explore different parts of our personalities—sometimes as thrill-seekers, other times as cultural explorers.”
The interview wasn’t all business, though. Both Lin and Gnock Fah took the opportunity to share some of the personal aspects of their lives that have influenced their leadership qualities at Klook. Naming The Pursuit of Happyness as one of his favourite movies, Gnock Fah described how the perseverance and resilience portrayed in the movie resonated with their journey. You’ll have to listen to the podcast to find out which movie Lin decided to name.
Here’s a hint – it’s very emotional, quite literally, and it recently cracked $1.5b at the global box-office.
Here are the other key takeaways:
Big things have small beginnings
Lin emphasises the importance of “skin in the game”, which is why they put in their own money at the start. “It wasn’t just an idea on a table,” Lin said.
He noted that the funding environment has significantly changed, with investors now expecting companies to be profitable rather than just chasing growth, although he said there was a bit more give now from investors.
Recalling the early challenges of convincing merchants to work with them, given their lack of industry background, Lin said, “It didn’t matter how amazing our previous jobs were; we had to prove ourselves in this new sector.”
Longtime WiT delegates will also recall that back in 2015, Klook won the Startup Pitch at WiT Japan. “The people we met there, including members of our current executive team, have been integral to our journey,” Gnock Fah said, using the analogy of how everyone has to gather their own “flock of birds” around them.
Klook in the age of AI
Gnock Fah anticipates AI will accelerate growth within the tours and activities space, as increased productivity from AI will lead to more free time for people, ultimately driving demand in the travel industry. He also discussed how AI will transform the sale of unstandardised products, such as diving courses in Bali, by enabling what he called “conversational commerce.”
Meanwhile, Lin touched on the concerns of AI disrupting jobs, saying, “In the tech world, people are paid based on the outcome, not the hours worked.” He acknowledged that while some jobs may change in nature, he does not foresee a reduction in overall job availability, believing that AI will ultimately lead to increased productivity and better compensation for workers.
Addressing over-tourism and social responsibility
The conversation then shifted to the issue of over-tourism, with Gnock Fah and Lin discussing their company’s responsibility in mitigating its impact. They highlighted their efforts to work with local governments and tourism boards to develop infrastructure in lesser-known areas, thus spreading out tourist traffic. Lin provided an example of their work with small towns in Japan, where they are helping local governments digitise tourism products to attract visitors to areas beyond the well-known spots.
Gnock Fah added that the company has also been involved in initiatives such as improving animal welfare in Thailand, specifically in elephant sanctuaries. “We are creating a special task force to enhance the welfare of these animals,” he said, emphasising the company’s commitment to social responsibility.
Future trends, organizational development and Klook’s second decade
Looking ahead, Gnock Fah identified social (responsibility and media) and AI as major trends that will shape the travel industry. He emphasised the importance of adapting to these changes and the need for continuous organizational development.
Lin shared his insights on managing a growing team, noting that as the company scales, it becomes crucial to streamline communication and maintain efficiency. He advocated for keeping processes simple, particularly as the organisation expands to close to 2,000 employees across multiple locations.
Gnock Fah concluded by discussing the company’s decentralised approach, stating, “We don’t believe in a single headquarters; our headquarters is in the cloud.” This reflects their commitment to operating as global citizens, with each location being equally important in its local context.
As Klook looks to the future, both founders remain committed to their original vision of connecting travellers with unique experiences worldwide. “The journey has been exhilarating, and we’re excited to see where the next 10 years will take us,” Lin said.
Gnock Fah meanwhile is looking even beyond Earth – to space travel. “It’s the ultimate experience and Klook is all about experiences.”
Have a listen.
