Taiwanese travel experience platform KKday has laid off 38 employees, some of whom had jsut worked overtime on Sunday before receiving their layoff notices by Wednesday.
On February 26, KKday officially confirmed the layoffs, affecting approximately 3.7% of its workforce. The company assured affected employees that they would receive statutory severance, additional compensation exceeding one-month salary, and transition support such as resume optimization and recommendation letters.
Despite the layoffs, KKday emphasized that its operations remain strong. The company reported that its Taiwan market revenue in 2023 doubled compared to pre-pandemic levels in 2019, with a further 30% increase in the first three quarters of 2024.
These cuts come just months after KKday secured a USD 70 million funding round led by Japan's Cool Japan Fund in December 2024.
A competitive and evolving market
Klook, KKday, and GetYourGuide have attracted significant investment in recent years by offering one-stop travel experience booking. However, competition in the tours and activities sector remains intense.
Apart from these startups, a key player in the industry is Viator, acquired by Tripadvisor for USD 200 million a decade ago. While Viator was sidelined for years, its importance has grown—by Q3 2024, it contributed $270 million in revenue, accounting for 51% of Tripadvisor’s total earnings.
The in-destination travel market is facing significant headwinds:
* Fragmented Competition: The market remains highly fragmented and competitive, requiring substantial investment in marketing and supplier expansion, yet revenue largely depends on commission-based income.
* Changing Consumer Behavior: The pandemic has changed traveler preferences toward greater personalization and flexibility, increasing pressure on platforms to enhance their product offerings and service capabilities.
KKday’s layoffs may be just the beginning of a broader industry shake-up. In this evolving landscape, only companies that adapt and innovate will survive the fierce competition.
