Today, Hubskip presented at TNW Conference 2013 in Amsterdam. We showed our latest Beta to the public and released our plans for the future.
We’ve all experienced it firsthand, massive price fluctuating of airfares. It’s even a fact that the people sitting next to you in the plane paid a different price for their seat than you did.
Hubskip set out on giving you complete peace of mind when it comes to booking airline tickets and the price you pay for them.
In order to get you the best price for your airline ticket, we analyse millions of price records every single day.
Our prediction engine can accurately determine when and by how much the price will change in the near future.
Price graph from a flight between Amsterdam and Istanbul
Once we’re confident that your airline ticket will become cheaper at a later point in time, we can delay issuing the ticket from the airline and only do so at a lower price point.
In case our prediction is not correct and prices would go up, we will still get you a seat at the same price, even if we have to upgrade you to business class because of availability.
Besides leveraging the arbitrage on expected price drops, we can also provide full cancellation insurance to travellers based on expected price increases in the future.
Business Model Performance
Considering that long-distance roundtrips are priced at an average of $1240, we can achieve a maximum arbitrage of $171 and a ROI of 0.26.
We completely cover our costs with revenues coming from our airfare price prediction and cancellation insurance.
When it comes to getting bookings, we rely on three pillars.
The first one is Hubskip.com, our own online travel agent that allows anyone to make a booking and serves as the perfect platform to implement and test technology improvements.
The second one concerns existing Travel Agents, both offline and online. We can tap into their existing customer funnels.
The third is our API, which we will release to developers later this year. With the API anyone can build applications with native search and booking features for airline tickets.
The complete pitch