A tool based on the ability to predict airfare prices
By Hopper | Published on February 17, 2022
Problem and objectives
Problem
- Fluctuation in airfare prices and difficulty predicting the cost of a ticket for a given period of time.
Objectives
- Facilitate travel cost prediction;
- Provide a reservation option for users;
- Be a leader in airline and hotel bookings;
- Customer retention.
Proposed solution
Solution
Hopper is a Montréal-based airfare prediction and ticket booking company. Its app helps users compare ticket prices for selected dates and to determine whether prices are likely to increase or decrease in the coming days, weeks or months. The app also works for hotel reservations.
Principle
The Hopper app allows users to monitor the prices of flights they are interest in and decide to purchase their ticket now or at a later time. The app also allows users to compare dates by price and modify vacation dates accordingly, for instance.
User experience
Hopper users can download the app for free and enter the planned dates and desired destination. By looking at the calendar, future travellers will see the most affordable dates in green and the most expensive ones in red. Some dates may also be indicated in yellow or orange depending on prices. Users then have the option of receiving notifications for a destination on a given date. The application predicts whether the price will increase or decrease in the coming weeks. Internet users can also book a flight or hotel room directly through the app.
Role of AI
Hopper uses AI for its application to provide the most accurate predictions to its users. Hopper is involved in the following fields:
- Predictions;
- Custom recommendations.
Impacts
Main outcomes
Main benefits
- Accuracy in predictions regarding an increase or decrease in airfare prices, attaining 95%;
- Lower travel booking fees for users;
- Increase in airline bookings;
- Helps users make decisions about vacation dates.
Economic development
- Facilitates travel bookings;
- Job creation in programming and AI;
- Contributes to the recovery of post-pandemic tourism.
Conditions for success
Collaborations
Hopper is currently developing solutions for businesses. For example, a travel benefits project is currently being led by the company in partnership with Capital One.
Funding received
- Financing of $70 million in 2020 led by Westcap with the participation of Investissement Québec and the Caisse de dépôt et placement du Québec;
- Financing of $170 million in 2021 in partnership with GPI Capital;
- Round of financing of $128 million in 2018 with BDC Venture Capital as one of the partners
Project stages
$175 million in financing from GPI Capital in August 2021;
Increased post-pandemic activity.
Project stages - to come
Development of B2B solutions;
Growth in the market of flight booking applications;
500 new employees hired.
Context of the solution
Customers
The Hopper app is intended for anyone looking to book a flight or hotel room.