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Travel giant Amadeus adds features for travel app developer Hopper

If Covid’s pandemic proves any axiom, one ounce of prevention is worth a pound of treatment. If you cannot prevent or treat it, get insurance.

Travelers take that lesson seriously and try to hedge their bets as easily as possible when, where and by guaranteeing travel and fixing prices when returning to cars, planes and cruise ships. increase. According to the travel app Hopper, they are willing to pay for their peace of mind.

Frederick Larondo, Founder and Chief Executive Officer of Hopper, said:

To meet that need, Hopper will partner with Amadeus on Tuesday to provide Madrid-based global distribution system and travel software giant customers with fintech insurance and price freeze solutions through HopperCloud’s business-to-business initiative. Announced.

Hopper is North America’s largest travel app and proud to be the “mobile-first travel market.”

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In return, hopper users will have access to Amadeus’ global car rental inventory through the Amadeus Travel Platform, with 40 car rental companies in more than 3,500 cities in 191 countries. Montreal-based Hopper recorded over 50 million downloads and $ 1.2 billion in sales over the past year from 2 million hotels, 300 airlines, and some existing car rental partners, at the end of last year. I started using Amadeus for flight content.

According to Lalonde, expanding partnerships is not surprising.

“Amadeus has a huge reach. As far as I know, Amadeus has become the largest travel technology provider in the world,” he added. [travel category].. “

This transaction is another step for hoppers to expand from travel to fintech, or financial services technology. “When we started thinking about how to bring our financial product, HopperCloud, to everyone, there was actually one name at the top of the list,” Lalonde said.

HopperCloud products from Amadeus include “cancel for any reason” and travel, which allows passengers to instantly cancel a flight reservation at least 24 hours before departure and regain more than 80% of the fare. Up to 14 days.

Travel agents using the Amadeus Travel Platform, such as online travel agencies and airlines, will be able to offer their customers Fintech products that Hopper takes on all risks once the company’s integration process is complete. According to La Rondo, the specialization of travel fintech products has allowed the company, with its US offices in New York and Cambridge, Massachusetts, to prosper as well as stand out.

“We are very good at pricing risks, price changes and turmoil,” he said, saying Hopper doubled its earnings during Covid.

“We are the only OTA [online travel agency] “I know it actually grew during the pandemic, except for the train-focused ones in India,” La Rondo said. Everyone? “

For Amadeus, this deal is part of an ongoing diversification project.

“We have been distributing traditional travel insurance from well-known insurance companies for many years. We have been very successful in a variety of channels, including online, offline and airlines,” said the company’s mobility. The person in charge, Peter Altman, said. Notice that Amadeus is empowering the website insurance purchasing services of 40 airlines.

We gradually moved from a travel agency to a financial company.

Frederick Larondo

Hopper CEO

But the hopper insurance type fintech is different, Altman said.

“We believe consumers buy more of these products than traditional travel insurance, especially the younger generation,” he adds, adding that cancellations for any reason as a financial services product are traditional insurance. He pointed out that he is not bound by global legal regulations. The policy is.

In addition, Altmann said, “To bring the app experience, we not only buy products in the app, but also do all the follow-up in the app.” So instead of submitting a billing form by registered mail or email, customers can complete their billing instantly via the app.

According to Hopper’s research, they are likely to be willing to find customers. According to the company, 80% of travelers say they will book a flight if they can change or cancel their tickets without penalty. (As part of that, Amadeus found that 41% of travelers book overseas travel within six weeks of the restrictions being lifted.)

Meanwhile, 60% buy at least one FinTech product as part of their travel booking, and 87% may buy it again, according to Hopper. According to La Rondo, these US travelers spend an average of $ 55 more on each booking.

Amadeus currently offers fintech such as Price Freeze, Photos and Cancel for Any Reason from travel app developer Hopper.

Amadeus

“For the same $ 1 trip, customers spend 15% more,” Lalonde told HopperCloud FinTech. Lalonde estimates that the total potential market for travel-related financial services is at least $ 200 billion. “It’s bigger than the game,” he said. “There is a great opportunity to develop it.”

Hoppers, whose FinTech development efforts launched in 2018 now account for half of their total revenue just a year later, may be looking at other financial services opportunities such as savings accounts. “We are very interested,” he said.

“We gradually moved from travel agencies to financial companies,” he said, saying Hopper took all the risks of FinTech products in the income statement. “There were more outstanding debt than cash,” La Rondo said when Covid hit. “There was a time when we were convinced that we were dead in 2020.”

“It was as bad as Covid, but later on, it’s invaluable to learn from the Black Swan event about customer behavior and risk models,” he added. “It would have taken decades to get the equivalent data.”

Travel giant Amadeus adds features for travel app developer Hopper

Source link Travel giant Amadeus adds features for travel app developer Hopper

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