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Pricing and distribution havoc hits in-destination with rise of OTAs: Klook’s Fan predicts shift to dynamic pricing | WIT

She added, “I am careful about where I want my brand to be seen. I sell tickets on Google and I pay commission to TripAdvisor because I pay for a booking that comes to me, not like spending on Google Ad Words which is like shooting in the air. If I work with a travel agent, I pay for the listing in the brochure and I pay commission on top of that. With OTAs, I pay when I get the booking.”

What’s also changed is pricing and if we know the Internet, it is really good at democratizing pricing – good news for travellers (short-term because longterm, it can erode quality) and bad news for suppliers (short or long term).

There was a lot of concern raised by providers about the loss of pricing control, and they point to well-funded players like Klook as leading the discounting trend.

Chief commercial officer of Klook, Wilfred Fan said that Internet shopping behavior is influenced by demand and supply “and what customers are willing to pay”.

“In-destination has a static structure, the price point comes from the operator understanding what the cost is, not what customers are willing to pay for. The Internet accelerates that decision. I believe pricing will become dynamic in future.

“Now the pricing is static because customers still do not have a lot of channels to pick and buy. We are the first one to ask the customers, this is the product, this is the price and we offer incentives, and we are starting to find the sweet spot and we share that understanding with our partners.”

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Pricing and distribution havoc hits in-destination with rise of OTAs: Klook’s Fan predicts shift to dynamic pricing – WIT.

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