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In comparison to a metasearch provider or aggregator, the company makes money via commissions on flight booking. Hopper is a mobile-only application that functions as an OTA.
HOPPER CUSTOMER SERVICE NUMBER SERIES
Pathways to a Just Digital Future Watch this tech inequality series featuring scholars, practitioners, & activists This has allowed the company to predict airfare prices with 95% accuracy up to one year in advance. Rather than just creating a matrix of prices between different travel locations, the combination of historical data, demand data, and other measures creates a powerful prediction engine. This creates a leading indicator that helps Hopper forecast how airlines will adjust their rates. Furthermore, Hopper has built up a data feed about the volume of demand across travel agencies, OTAs, and metasearch sites to examine what people are searching for and asking for. These include jet fuel prices and growth in capacity. In addition, the company collects a variety of different measures to help make predictions about future prices. For example, the cost of a particular flight from Boston to Beijing roundtrip might be stored as a price. This includes trillions of historic prices from the past decade, as well as an active feed of about 300 billion prices a month. To do so, the company has created the largest flight database in the world. The company also makes recommendations about whether users tracking a flight should “buy now” or “wait for a better price”. One of the key features that Hopper currently offers is to make predictions about future flight prices. Hopper has established a distinctive position by making recommendations for when consumers should make travel purchases and helping customers discover new trips outside of their search criteria.Īs an AI-driven and data-driven company, Hopper hopes to take advantage of proprietary algorithms and data that it has collected to increase engagement with customers and predict customer intent. There are a number of popular travel applications and websites that help people search for and book trips, from established technology companies like Expedia and to start-ups such as Hipmunk, Lola Travel, and Freebird. In 2018, the startup raised another $100 million in funding, money that it plans to use to build out its AI algorithms and expand deeper into international markets. Prior to launch, Hopper invested six years and over $10 million dollars to improve their prediction algorithms. Since its launch in 2015, the app has sold more than $600 million worth of flights and is currently selling about $1.5 million every day. Using AI, Cambridge-based OTA Hopper predicts flight and hotel prices and offers its users personalized recommendations about the optimal booking time, as well as alternative travel offers.