Travel Trends with Dan Christian

Why Flexibility Is the New Fare: Inside Airline Innovation with Hopper

Dan Christian

Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.

0:00 | 1:01:43

Send a text

Flight canceled, heart rate rising, clock ticking. Now imagine a single tap that rebooks you on any airline in minutes or delivers a full refund without lines, calls, or frustration. In this episode, we sit down with Patrick Steadman, VP of Disruption at Hopper and Hopper Technology Solutions (HTS), to unpack the new playbook for certainty in an increasingly unpredictable sky.

We break down how cancel-for-any-reason, disruption assistance, and price freeze actually work in the real world, why they’re typically priced at 10–15% of trip cost, and how AI models balance risk, demand, and adoption. Patrick explains what happens the moment disruption hits: proactive alerts, a guided self-service experience, and a 98% automation rate that gets travelers moving again fast. We also explore who’s buying flexibility and why, from business travelers with double the attach rate to Gen Z and millennials prioritizing experiences, and premium flyers stacking fintech with loyalty instead of choosing one over the other.

Zooming out, we look at the global rise of travel fintech across banks and airlines including Capital One Travel, Commonwealth Bank, Air Canada, Frontier, Spirit, and partners in Japan and the Middle East. Patrick shares what this delivers for carriers: high-margin ancillary revenue, reduced operational strain during irregular operations, and customers who come back happier. We close with what’s next, from AI-powered customer service to seat upgrade bidding that captures lost revenue and meets growing demand for comfort.

If you’re an airline leader, advisor, or frequent flyer who wants travel to feel less like roulette and more like a plan, this conversation shows how flexibility is becoming core infrastructure for modern air travel.

Thanks to Heys for sponsoring this series! 

Enter our Heys Luggage giveaway!

Share your favorite Season 6 highlight in the comments on Travel Trends’ Instagram, LinkedIn, or TikTok for a chance to win a Heys Astro luggage set (valued at $1,500).* One winner will be selected each week of our Aviation series. 

*Winner must be located in Canada or United States

👉 Listen to Why Flexibility Is the New Fare: Inside Airline Innovation Now

🔥 Special Thanks to our Season 6 Title Sponsors for their Support: Holafly, Propellic, PayCompass, Kaptio, Civitatis and WeRoad

The #1 B2B Travel Podcast Globally. Over 100 Episodes. Listeners in 125 countries. New Episodes Every Weds.

https://www.traveltrendspodcast.com/

Contest, Series Setup, Guest Intro

SPEAKER_01

To your point, it's all about ease of use in these very stressful moments. And the products were like designed to do that whenever we were creating them.

Hopper’s Evolution And B2B Focus

SPEAKER_02

Hello, everyone, and welcome back to Travel Trends. This is your host, Dan Christian, and we're about to begin our second episode of our aviation series. And I just want to remind all of our listeners that we are having a major contest to wrap up season six of our podcast. You can win a$1,500 Hayes Astro luggage set. We're giving three away, one each week over the course of this series. And all you have to do is post a highlight on your social channels, anything from LinkedIn to Instagram about season six. It was at a great guest or particular topic. Tag at Travel Trends Podcast, and we will be awarding one person per week. And the first announcement will be coming out right after this episode on social media. So be sure to follow us on LinkedIn, YouTube, and Instagram and TikTok now as well. Today's conversation, I've been really looking forward to having Hopper back on our show. We had Hopper as part of our event spotlight from Focus Right, and they were keen to join us to be a part of this aviation series. Last week you heard from Roger Blackburn from One World, which was an excellent overview of not only the loyalty space within aviation, but all aspects of how airlines are evolving in 2026, their fleets and the emerging markets. And one of the big aspects of any of the airlines is technology. And most of these travel companies, as I've said for many times over the course of my career and on this podcast, is that travel companies are not typically technology companies. OTAs are technology companies. And one of the things that people expect from airlines is that they are very sophisticated in their use of technology. They have to be. But oftentimes they're so focused on the operational side of their business, they have the technology layer, but other companies come along, like Hopper, to introduce tools that travelers can really use, whether it be trying to actually source pricing, which is where Hopper got started, a great Canadian company, but also a now a very much a global success story. And today we have Patrick Steadman, who is the VP of Disruption and the Disruption Product at HTS, which is Hopper Technology Solutions. So I'm thrilled to bring him into the conversation as we continue our airline series. Now don't forget we do post clips and highlights on our social channels as well. So you can find more details there. But let's get into this conversation now with Patrick from Hopper so we can really understand the technology space and these products they offer and how consumer behavior is changing in 2026. So, Patrick, welcome to the podcast. Thanks so much for joining us. Hey Dan, thanks so much for having me. Super excited to be here. Fantastic. I'm really keen to continue the conversation here on our airline series and to have Hopper as part of the conversation. I have a great respect for the company, and I think people got a good sense from the introduction about uh your role and the conversation we're gonna have today. Uh, but tell everyone where you are, Patrick. Where in the world are you? And tell us a little bit about your role from your point of view.

SPEAKER_01

Yeah, so I'm in Chicago, Illinois. Uh it's quite cold here. I just got back from Miami this past weekend, so it's been a little bit of an adjustment getting uh used to the cold weather again. Uh, but here I am. Um so yeah, uh I I've been with Hopper for about five years. Um I oversee our disruption assistance for any reason product at Hopper and Hopper Technology Solutions. Um, and this is one of our key FinTech offerings uh that's available in the Hopper app across our HTS partners uh and travel banking portals and travel providers globally.

SPEAKER_02

Fantastic. And I've been a big fan of Hopper for many years. And I I know some of the team based in Montreal. I've seen you guys at conferences. Yes. And, you know, one of the big developments, of course, with Hopper, when many people and I've used Hopper a number of times for looking up flights, and I love the bunny and I love the whole branding. And so, but one of the one of the things I'm really keen to bring you into this series is to discuss the B2B angle because I know that's been such a focus for you. And you know, when people talk about Hopper, they often talk about being a fintech company, you know, a financial technology company, which is very different than uh other travel businesses and how you've grown and and specifically your role. But um, just before we get into all of that, I love Chicago. All of our listeners know I'm based in Toronto, which is very much the Chicago of Canada. You know, we're sitting at it, yeah. The weather system's the same. We're both on the lake, we have a similar skyline. And uh we're actually just doing a series right now with Travel Zoo, and Chicago is one of the best bets destinations for 2026 for uh Canadians and Americans. So there you go. So you guys are on the map this year. Yes, yeah.

SPEAKER_01

That's amazing. It's a great city. I highly recommend a visit during the summer. Maybe not the winter as much, but the summer is a great time of the year.

SPEAKER_02

Yeah, yeah. No, I love the winter as well. But that's good, it's a it's a four it's a four-season destination. But cool that you're in Chicago. And so tell everyone a little bit about Hopper. Give if you wouldn't mind. I think uh for any of our listeners that are not familiar with the company, tell us a little bit more about what Hopper is and what you guys do.

SPEAKER_01

Yeah, for sure. So I think most people probably know us for the app, the running money, as you as you mentioned. Um, and we still do have the app. It's a big part of our business, always will be. Um, but we also have Hopper Technology Solutions, which is our B2B division. Um, and this is growing very quickly. It now comprises 90% of the Hopper business, growing 50% year over year. And the core of the business is essentially distributing our fintech ancillary products that we've had such success with on the app to all of our partners. Um, this includes airlines, uh bank portals, uh, leading travel global providers. So um we kind of expand the network in terms of our distribution channels.

SPEAKER_02

So, this is the part that I think is really interesting is that you know, with with the Hopper app that I was so familiar with, and um, when you're looking to book a flight and it's helping one of the the clever aspects of the technology is that there's a lot of complexity to airfares and how they're priced. And one of the things that Hopper was very intent on doing was to try to make sure that it was much easier for the consumer to understand and to be able to pick out the flight deals when the best time when the time was right. Like this is like my favorite part of the technology was like, is this the right time to buy? Yes. You know, you guys were so ahead ahead of the curve on that that um even some of the other Meta search like kayak and others have you know picked up on your lead to to do something similar to help the consumer for a change, as opposed to work in the background for the airlines to try and maximize yield and profit.

Fintech 101: CFAR And Disruption

SPEAKER_01

Yes, yes. So our that is one of our most popular features for sure. Um and it also is kind of an example of how uh Hopper is a very customer-obsessed and customer-focused organization. Um, you know, if we tell a customer to wait, don't book the flight right now because we think the price is going to drop, uh, that goes a long way in terms of building trust and loyalty with the user. And that also extends over to our FinTech ancillary products. Um, so we have two core products. The first is cancel for any reason, and the second is disruption assistance for any reason. Uh cancel for any reason, just what it sounds like. Uh, if you attach this ancillary to your hotel or flight booking, you can cancel your flight or hotel for any reason without any uh documentation provided, without having to speak to a customer service represent representative. And so I think that that's a good example of how we kind of lean into that customer obsession as we scale.

SPEAKER_02

Yeah, well, I think that's the really interesting thing for me is that what seemed to be the core value proposition was this uh taking away the complexity, advocating on behalf of the consumer. And then ultimately, as you just explained, the idea of uh flexible products, like that you all of a sudden could um freeze pricing or the cancel for any reason or the flight disruption, all these things that unfortunately do happen and our plans change, and sometimes you know, uh as a result of our decision making or um the uh aircraft isn't uh ready to depart. Any number of things can happen when we're traveling. So the idea of peace of mind for travelers is paramount, and the travel industry and you guys have really capitalized on creating these flexible products. So uh the thing I wanted to go back to in in regard to those two is your role because you introduced you kindly introduced yourself, but one of the things I actually wanted to uh to go back to was the idea of this VP of disruption and you know what what it is that you your role. So tell us a little bit more about your role, given that you guys are primarily offering these fintech ancillary products.

SPEAKER_01

Yes. Um so I oversee disruption assistance for any reason, which is our uh second main fintech ancillary product. The way that the product works is if your flight's delayed or canceled on the day of travel, uh, you can rebook yourself on any other airline for free. Alternatively, if you want to keep your disrupted itinerary, you can receive a 100% refund of your ticket and essentially fly for free. Um so it's really designed to get our customers to where they want to be whenever a major disruption event happens, which uh unfortunately these days happens more often than not. So uh it's it's it's designed to solve that problem essentially.

SPEAKER_02

Cool. So let's let's get into a bit more on that with a guard with regards to the cost and uh exactly how it works, because we have you know a global audience, we have many travel agents that listen to our program, and obviously they're B2B, and and I want to understand the role in it for them to advocate uh purchasing this type of product for their clients. Um, but clearly COVID was uh was the very start of this podcast with the idea of what did travel look like post-pandemic. And one of the things I always talk about with startups on our podcast is the need to solve a problem. And that's what Hopper set out to do. And this this is exactly an example of that is that there's a pain point that you alleviate by introducing a product that people buy and clearly love, and there's a huge demand for. Because not only do you offer it like the whole B2B side, this is the part that uh fascinates me, is the number of companies now that want to work with you to leverage your technology because people want people want it and it works. Um so tell us a little bit about how how it actually works. So someone's booking a flight, how do they choose flight disruption? What are some of the costs involved? And yeah, ultimately, what are the the mechanics?

How Disruption Assistance Works

SPEAKER_01

For sure. Uh so if you're booking a flight in one of the channels where we offer our products, uh, you can simply select it as an ancillary that's offered in the booking flow. Uh it averages around 10% of the trip cost. And uh it's as simple as you know purchasing any other ancillary uh while you're booking travel. Um and then to your point about you know the need for flexibility and the pandemic. So I think a lot of this actually started because of the COVID pandemic. Of course, during that time, very a lot of uncertainty. People were very nervous to book flights in case they literally couldn't travel or in case the airline had to do a mass cancellation, whatever the case is. But it turns out that people are always feeling anxious and uncertain about travel. And it's a really emotional and uh expensive purchase for most people. So they want to make sure that they have that extra peace of mind and protection just in case things go wrong or in case uh plans change.

SPEAKER_02

And now clearly there's many different types of travelers. There's leisure travelers, there's business travelers, and today there's this term that we don't none of us like called leisure. There's so many other way better ways that we could refer to that. But many people, uh myself, today I'm flying to New York, I'm there for two days for a conference, I'm staying for the weekend. My wife is flying into town, and we're gonna have the weekend in New York. I'm so looking forward to it. And it changes business travel because all of a sudden now you've got a personal benefit to be able to be away and to extend. And I think that is that that has become the norm. So I'm I'm I think I'm in the majority there when you have business travel that you blend the two together, which is why I but you do nevertheless. You have business travel and you have leisure travel, and then also too, like the generationally, like that um, you know, you guys were a um a real hit with Gen Z and a lot of the millennial uh consumers. I know that when I was re reading some of the Hopper stats early, like most of the people who are using the platform were under 30. Um, but then you've got this huge market for you know uh premium customers. So, yeah, tell us a little bit about ultimately, I guess, who values that flexibility. What what do you see on the platform?

SPEAKER_01

Yeah, for sure. So we see pretty strong adoption across um all sorts of demographics. Um it's true that in the Hopper app, for example, we have a younger Gen Z and millennial audience uh for leisure travelers, and then we also offer the fintech products on more premium customer bases across our partner banking portals, such as Capital One Travel. Um and, you know, I think that it just kind of speaks to the fact that no matter what, people want to add peace of mind to their trip and make sure that their travel goes smoothly. Um I will say we do see a very strong use case in the business travel segment that you mentioned. Um, in that arena, we have a 2x attach rate of what we see on leisure. And I think the reason for that is basically the needs are different, right? If you're traveling for business, you want to make sure that you get to the meeting on time. You also want to make sure that you get home to your family after the trip is over. Um and so I think that that kind of uh segment makes sense for the fintech products.

Who Buys Flexibility And Why

SPEAKER_02

I love that you're speaking the language right now. Just uh I think I interpreted you correctly. Uh the the 2x attach. Does that mean that people are twice as likely to choose that? To purchase it. Yeah, that's correct. I like I like that. I prefer 2x attach rate. I like that. That's uh that's that's good, that's good industry speak. And uh that's exactly what you what you need to be able to say to partners. So um I just yeah, uh the other thing on this topic that I'm also keen to discuss with you when we think about the types of customers, um, especially business travelers, is that you know, myself for sure, I I rely a lot on my loyalty status to be able to have that flexibility. So, you know, when I'm, you know, I'm yes, I'm super elite with uh Air Canada, so Star Alliance, and I'm very loyal for all the reasons I know that if I have an issue with my travel, I got a direct phone number. I also have the ability to change my flights without any limited cost because the the class of flights I book, I try and make sure they're all uh changeable. Um even when I book a lower class, I'm like, I know I'm gonna get a seat, I get my bag included. So for me, status is everything in travel, and I know it is for a lot of other business travelers. And so where I'm going with this is a question of loyalty. We touched on loyalty this season in the podcast. So you know, we're finishing with uh with airlines and uh glad to have you joining this. And we we're gonna continue our discussion next season about loyalty. So I'm I'm keen to know from your vantage point where flexibility fits in that. Like, do people value flexibility? I know I do, but is it um would people value that over points, for example? So what what are you seeing in terms of the loyalty factor when it comes to these uh the cancel for any reason or change for any reason type products?

SPEAKER_01

For sure. Um so I don't think it's necessarily an either-or. I think that both loyalty and flexibility are valued by travelers. Um I'm also uh status with uh an airline and I purchase the fintech products for every trip that I take. And the reason is it just covers different needs, I think. You know, with loyalty, like you said, there's a lot of other value propositions such as lounge access, priority boarding, free luggage, uh, whatever the case is. With the fintech products, these just give you even more premium flexibility should things go wrong. So uh in your Star Alliance example, if you were to attach the disruption assistance for any reason product, if you get disrupted, you could rebook on non-Star Alliance partners too. Um, and so I think that that kind of additional flexibility is very valued by customers.

SPEAKER_02

Ah, that's interesting. I didn't know that because the last episode in this was with One World. So I think uh they'll be happy to they'll be happy to hear that. So uh as far as how that ties it together. Because the whole idea for these airline alliances, as our listeners heard last week, is very much the idea that if you're traveling within the group of brands, that they'll take care of you. You know, they'll rebook you on another One World partner or a Star Alliance partner. And that's another big reason for me. So that's uh that's that's an interesting new development for me that I didn't realize because I always get torn because I love all the benefits of Air Canada, but I also love flying Qantas, I love flying British Airways. And so for me, when I'm looking to go long distance, I'm like, man, so I I have both. I lived in Australia and lived in the UK. Um, so I have OneWorld as well, but given I'm based in Toronto, I default obviously to Star Alliance. But that's I'm gonna I'm gonna seriously consider that next time.

SPEAKER_01

You know, the goal of the product is really just to get our customers to their destination when something like this happens. And so uh, you know, the other thing is if there's an airline specific disruption event and like they're not flying any flights for whatever reason, um, that added flexibility to let the customer rebook on any airline helps them. And it also helps the airline actually reduce operational burden. So uh, you know, if there's a certain segment of customers who purchase the product, they are being taken care of via the product. And that helps the airline actually help their other customers who don't have the product. Um so that's kind of an important benefit from the airline perspective, too.

SPEAKER_02

We'll be right back. Dan Christian here from Travel Trends. If you're a travel advisor looking for the next big thing in group travel, then you need to know about WiiRoad. WeRoad is a community-driven small group travel brand that is designed for today's connection-seeking traveler. Their secret, about 90% of Wii Roaders start solo and end up with a whole new crew of friends. These trips run in tight-knit groups and are led by one of over 4,000 trained travel coordinators, whose entire mission it is, is to spark connection from day one. Wii Road is built for travelers in their 20s, 30s, and 40s who want same age, same language groups, and with over 300,000 travelers already on board, the demand is real. And for trade, this is where it gets exciting. WeRoad's new trade program gives advisors competitive land commissions, flexible holds, toolkits, training, dedicated support, and co-marketing opportunities. Plus, flights aren't included, meaning you control the air, ancillaries, and pre-post days. So it's time to partner with WeRoad. Give your clients the group trip they'll actually brag about. Head to WeRoad.com slash welcome dash travel dash advisors to get started. That's we road.com slash welcome dash travel dash advisors.

Loyalty Versus Flexibility

SPEAKER_00

Planning your next trip abroad? Stay connected the smart way with Olafly, the global leader in eSIMs for travelers. With coverage in over 200 destinations and a 4.6 out of 5 trust pilot rating, Olafly is the go-to for international travel. Forget fumbling with sim cards. Olafly's eSIM activates instantly with a QR code. You'll be online in just two minutes with unlimited data and no surprise roaming charges. Whether it's a short getaway, frequent business travel, or life as a digital nomad, Olafly has a plan for you. Get started today at esim.olafly.com. That's esim.com. In a world of endless travel options, how do you guarantee quality? The answer is curation, and it's the core of Civitadas, the leading marketplace for global tours and activities. Instead of just more options, their promise is more quality. Their experts handpick the best from over 90,000 activities in 4,000 destinations worldwide, ensuring every tour meets the highest standards of quality, availability, and price. They focus this winning strategy on capturing the world's fastest growing customer market, travelers from Latin America. By connecting these travelers to their global portfolio of experiences in native Spanish or Portuguese, Civitatus creates the powerful customer loyalty your business can count on. Their model is a proven formula for generating massive demand and driving industry-leading conversion. For the travel trade, the message is clear. Partnering with Civitatis is your strategy for capturing the massive outbound Latin American market and turning their growth into your revenue. Visit Civitatus.com for more details.

SPEAKER_02

And now, back to the show. One of the other areas I wanted to really spend time on is the airlines themselves and the partner partnerships you have and the adoption of this in the industry. Since you know, with this series, we want to try and educate our audience, myself and our audience for that matter, um, on all the developments that are happening in the airline space, which is why I was so keen to have Hopper as part of this, because even though the airlines themselves are massive business. Their focus is getting people where they need to go and operating their planes. And many of them have become technology companies, but it's not, they're not purely a tech company, whereas that's exactly what Hopper is. So you can work with an organization like that, and that's been my experience working in the industry, is that you know technology drives such a is is such an essential driver of the travel industry, but most travel companies are not technology companies. And so when we think about the companies that actually utilize this technology, give us a bit of an overview of Hopper Technology Solutions, who you guys power.

SPEAKER_01

Yeah, so Hopper Technology Solutions is live with dozens of partners globally, um, including some of the world's leading banks and airlines. Uh so for example, uh, we offer fintech products on Capital One Travel. Uh we power the Commonwealth Bank of Australia's entire uh travel portal. Um here in the States, we're live with disruption assistance on Frontier Airlines. Uh we have CFAR on Spirit Airlines. Um we partner with a variety of different uh travel providers globally.

SPEAKER_02

That's interesting. So there's a couple there that stand out to me. But one of the things that I was, you know, the types of airlines that you partner with are the ones that are what I take away from that, some of the more uh progressive in the industry that are like looking to continually address you know pain points for their customers. So you know, customer satisfaction is incredibly important um to drive loyalty. And then uh within that, you know, they're trying to maximize revenue as well by trying to increase, as our friends at Air Canada did, you know, you know, moving away from miles and moving towards what your spend was, which was already the case uh anyway, that you needed to match a certain spend level. But tell us what some of the reasons that you're seeing that success. Is it improved customer satisfaction? Is it increasing revenue? Yeah, what are what are some of the reasons that those partners are choosing you and or uh expanding their partnership with you?

Airline Benefits And Partner Wins

SPEAKER_01

Yeah, that's a great question. I think those are the two main reasons. So it's definitely improving customer satisfaction. Whenever a major disruption event occurs, it's obviously a very stressful situation for everyone involved. And I think the sooner that anyone can solve the problem, it reflects better on the brand itself, um, even if it's HTS sort of doing the rebooking on behalf of the customer. Uh and then yeah, the second is definitely unlocking incremental revenue. Um, these are high margin, uh, you know, very popular insular reproducts that can help airlines unlock new revenue streams. Um, beyond those two, though, I think there's a couple of other additional benefits. One being the reduction in the operational burden on airlines. Um, whenever a customer chooses to change their plans proactively via the CFAR product or uh rebook themselves with the disruption product. Um, that ultimately is a cost savings to our partners because uh it's one less customer that they have to take care of in that moment. Um, the other thing is our integrations are very, very easy. So uh it our our products offer simply as an overlay on top of any existing processes that the airlines might have. Um and so it's a simple integration. It takes a matter of weeks, not months, uh, to get the products up and running and the answer customers.

SPEAKER_02

Yeah. Well, whenever I have these conversations and I'm thinking about it as a as a marketer or someone in the travel industry, and trying to make sure I ask all the questions that our listeners would benefit from most, the things that always stand out to me is, you know, um, uh, why this change is occurring uh and how you can benefit from it, and understanding some of the the trends in the marketplace, hence obviously the name of our show. We um interestingly, there's a direct connection between the creation of travel trends and having conversations about airlines because Sherpa was the platform that we were using for e-visas, and they had partnered with a lot of different airlines to offer this solution during COVID to help travelers understand where you could travel to. And we were utilizing that data to try and figure out where we should market, what destinations we're opening up. And uh and so last week when I was talking to Roger Blackburn at OneWorld, I was asking him some of the questions I really enjoy asking, or which is around you know what you're seeing in different markets. Because, you know, given that we've got listeners in like 125 countries, although the majority are certainly you know, half our audience are in the US, maybe 25% is in Canada, but then UK, Australia. But we do have listeners all over the world. And and I always want to make sure I bring them into it because you know, whether it's our listeners in Colombia or in other parts of Europe, they're obviously keen to get an understanding of is this an opportunity for them? And so I want to ask you about the markets themselves and where you're seeing the fastest adoption, because we often talk about Asia and the Chinese market in particular as being ahead of the curve with uh super apps and payment platforms and those types of developments. Um what from your vantage point, what what markets do you see are the fastest in adopting this type of technology and these flexibility tools? Where are consumers responding most to this? If you wouldn't mind giving us a bit of an overview, I'm sure that would be really interesting for our listeners.

SPEAKER_01

Yeah, of course. Uh so our fintech products are actually live in 180 countries and regions. And I'll highlight a few specific ones that I think have been particularly successful with them. Uh we offer our fintech products on SMCC in Japan. Uh HTS also powers their entire travel booking portal. Uh, this is the largest credit card issuer in Japan. And so uh it's pretty cool to see us expand into non-North American markets. We also uh power Combank uh in Australia, their travel portal, where we also offer fintech products there. Um on the airline side of things, we offer our CFAR product actually in Air Canada. Uh so next time you're booking, you can make sure to purchase it. Um and we recently launched fintech products in the Middle East with Jazeera and Flya Deal. Um so it's really not one particular region that we're seeing more traction in. It's uh a kind of global thing. And I think that just speaks to the fundamental power of the products, which is to give our customers peace of mind. Everybody wants to feel safe and protected when they travel, uh regardless of where they are in the world.

Global Adoption And Market Trends

SPEAKER_02

Yeah, that's really interesting. So the um uh and uh is there so within that, knowing that it is uh truly global as well, it sounds like you've got even more countries covered than we have listeners at the moment, which is interesting to know. I was uh but when you think about the f uh the regions that are you're seeing the greatest adoption with, like you mentioned Japan there as a good example of like all the places you're like are you seeing just trending wise in terms of region, doesn't have to be a specific country, um, but are you seeing more adoption in Asia or Europe or uh North America? Like, how does it vary by market?

SPEAKER_01

Yeah, I would say we are definitely starting to see a lot of traction in Europe, um, which is kind of cool to see. It's our next expanding growing market. Um, and we're excited to see that.

SPEAKER_02

Yeah, Europe's an interesting one. I was asking Roger about that as well because he's based in London and worked at British Airways for many years, and you've all of a sudden got these low-cost airlines, you know, and you have them in the US as well, the ultra-low-cost airlines. We've unfortunately been rather unsuccessful here in Canada, given the size of our market, to have any uh any truly successful uh low-cost airlines. When it comes to those customers, because I know like you know, Southwest and some of these companies, the way that they actually made money was if you wanted to bring a bag, like the price seemed incredibly reasonable until you actually like there's the you know, there's an ongoing joke that it's gonna cost more to get to the airport than to take some of these flights in Europe. Um and so uh unless you can take the subway or the, you know. But when it comes to low-cost airlines, uh are you seeing opportunities there as well? Because I know they're so fixated on you know finding new revenue sources so that you can get the lowest cost seat, but then you pay for everything else.

SPEAKER_01

Yeah, we see a lot of traction actually here. And uh, you know, I'll highlight the Frontier Partnership actually is a great example of this. We launched disruption assistance on their direct channel, I think, in August of this past year. Tremendous success. If you actually just Google Frontier Disruption Assistance, you'll see that their customers are super excited about the product. And uh I think that is also a testament to the product market fit of it, right? Um in the uh last month when there were disruptions in the Caribbean as a result of the situation in Venezuela, uh Frontier flies to a lot of those destinations. And so we were able to help their customers get out of the airports or get uh get home uh on time. And so I think it just speaks to the power of the products.

SPEAKER_02

What's really interesting there for me, I as you highlight Frontier and some of those partnerships is the when you have a low-cost airline that is so focused on trying to achieve a certain price, what I'm keen to know is what the market will bear in terms of you know what them people pay for these products. So my question, I knowing that this is like financial technology, uh fintech, and it's very much I know it's not insurance, and that's that that's an important classification, right? It's not, it's I I know that much about the industry to know that fintech is not insurance. Um, one of our great partners is uh Protect Group, um, that's part of um next season. We've worked with Protect Group before, and they have a cancel for any reason product. So I've become familiar with um this category. And it what but one of the things I wanted to ask you specifically was that uh, and I've seen a friend that had done a great keynote presentation uh talking about the fact that consumers overwhelmingly are willing to pay you know about 25% more when they see three different options if they know that they're gonna have peace of mind and a flexibility, even though there's a 95% chance that their plans are not gonna change, but in that unlikely 5%, they're willing to pay, say, 25% more. And I think like and this is where consumers, you know, they vote with their wallet, they make those decisions, and clearly this is something that they're saying that they definitely want and see benefit from. So when you're pricing it, that's the part I'm keen to understand, just as a frame of reference for our listeners, and I'm assuming like similar to insurance, you have to try and work out the odds of whether or not someone's going to actually cancel or be disrupted. Um so is there a rough idea of the percentage of the price that someone would expect to pay for the product itself?

Low-Cost Carriers And Monetization

SPEAKER_01

Yeah, for sure. So for both products, it's between 10 and 15% of the trip cost. And you know, HTS was founded on the idea that we can leverage data and uh predictive modeling to improve how people book travel. Um, and so we've taken that same idea uh and applied it to the dynamic pricing of our fintech products, both to calculate the risk of someone using them, of course, but also to calculate the probability of them attaching or purchasing the product. And so those are the two kind of main inputs to how we price. And again, our goal is to always add real value to customers and to get the product into the hands of as many customers as possible. Um so you know, we make sure that we're trying to price them in a fair way, always.

SPEAKER_02

Yeah, of course. And I guess that's where when you've talked about the three different products, because obviously there's cancel for any reason, disruption assistance, and then also price freeze. And if I understand it correctly, this journey started with price freeze and then kind of expanded to the cancel for any reason and disruption assistance. Is that is that is that the sequence? Did I get that right?

SPEAKER_01

Uh I think actually our cancel for any reason might have been first. I don't recall which is exactly first, but um, you know, the core of the app uh is, you know, the price prediction functionality, like you mentioned at the top of the call where we tell our customers to book now because we think prices are gonna go up or to hold off because they're going to go down. Uh so like I think that was a really good example of us from uh finding product market fit uh and working backwards from what customers really want, which in that instance is basically you know, they're price sensitive. They want to make sure that they're getting the best uh flight costs that they can. And with the disruption assistance and cancel for any reason products, it's the same thing. It's all about just finding the customer who wants that added piece of mind or protection.

SPEAKER_02

Now, understanding those three, when we talked about the pricing, the roughly 10 or 15%, is that that's for the cancel any reason and disruption assistance? Is that the same for price freeze or price freeze is different?

SPEAKER_01

Uh it's it's similar to that, yeah.

SPEAKER_02

Got it. Okay, cool. And the reason I wanted to ask is because knowing that you have those three products, which for anyone that is just coming into this conversation, learning about Hopper, HTS, and the different uh fintech products that you offer, hopefully that is now clear for everyone. Because what I also wanted to understand is what's next.

unknown

Yes.

SPEAKER_02

And like in in the in the world of flexibility, because you guys were so ahead of your time with the pricing prediction model and and introducing these services, because like I can think back to a Skift conference uh four or five years ago, like right after the pandemic. And uh there was it was at a time when uh Hopper was being challenged by some of the other OTAs because many way, in many ways, is the way I saw it and read it in the room, and I was like, that they, you know, they feared uh Hopper as being a competitor. Obviously, you guys have worked as a uh well as it's evolved, been very complimentary, and you work like within the whole uh B2B side of travel, but they were definitely concerned that Hopper was going down the path of B2C and and becoming an OTA. And so it was one of those things I I read it pretty clearly in the room that there was this concern that wait a second, you're now gonna compete against us. And so it it, if anything to me, it highlights the fact that Hopper was just that far ahead of their time. And I would say the market is only still catching up to the products you've introduced, which tells me that you know, in 2026 and beyond, people are choosing these products now more than ever. So um, so I I I actually also wanted to know of those three, um, which you're which and I know you represent the disruption assistance, so I'm assuming that has got to be one of, if not the most important. So, yeah, tell us tell us which of those three actually is getting the most traction, and then tell us a little bit about where you're headed from here.

SPEAKER_01

For sure. So it is actually disruption assistance, and I'm biased, of course, but um, we are seeing a lot of traction with this, especially on the airline side of things. I think that, you know, with all the uncertainty in the world as well as disruptions, it's really a win-win to create brand loyalty for their customers, reduce operational burden, and also create incremental revenue streams for them. So disruption assistance for sure. Um I will say, you know, Hopper has never done the innovating. And so we actually just launched uh HTS seat upgrades product where uh customers can bid uh to upgrade their seat essentially, which uh also helps uh stop revenue leakage on the airline side of things if they have unsold premium inventory. Um we're enabling the customers to bid on that uh to fill those seats and actually uh you know create revenue stream from it.

Pricing, Risk Models, And Seat Upgrades

SPEAKER_02

Ah, interesting. Interesting, because that is a space that there is a local company in Montreal that is very uh uh plus great. And plus great started started as an upgrade to business class and the founders and great story of you know him traveling and seeing all these empty business class seats. And I've got a number of colleagues because I used to uh to work at points.com, a plus crate bought points.com. And and I've you know I'm very uh fascinated by that loyalty space. And we've got a great partner in uh loyalty status quo that is uh sponsored our series this year, and um and my colleague there, Aaron Murray, she worked at points, she she knows plus crate, she knows the loyalty space incredibly well. She worked at Air Miles, um, and it's gonna be part of our focus next season as well because the loyalty space is so uh it's it's a massive industry unto itself. But one of the things that everyone wants, myself included, the first thing I do whenever I book a flight is I make sure I book a flight that I have an e-upgrade option. And I double-checked it last night before getting on my flight today to see what the likelihood of me getting an upgrade is. So that makes total sense to me that like, you know, up upgraded seats um and giving airlines the ability to sell um uh that unsold inventory. So tell us a little bit when is that gonna happen?

SPEAKER_01

Yeah, so we have partnerships live already. I will say I think that the need for this is going to become more and more important, especially as millennials build their wealth and prioritize comfortability, as you just mentioned, uh, over sort of anything else. I think that, you know, we found in a recent survey that only 26% of millennials say they booked the cheapest option on their most recent flight, and 40% should said that they chose the most comfortable and convenient option. So I think as that generation matures, I think we're just gonna see more and more uh opportunity for premium experiences.

SPEAKER_02

Well, for sure. And the millennial and Gen Z traveler, as we both know, and has been highlighted in the media to start 2026, are more than ever prioritizing travel over home ownership, saving for retirement, all the things, you know, they're this is a very different generation. And if anything, I'm like, I couldn't be uh more pleased to see that. They're making the decisions to say, I'm not gonna wait until I retire. They're seeing their parents, and this is like a massive change in consumer behavior. So I've got um uh my wife and I have twins that are 18, but first year university. And so you can see the change in behavior and when we fly them our daughter home for uh like she uh her level of expectation and also her uh many people have joked that this uh millennial generation uh is more interested in the avocado toast, right? Than um than buying a house or like which is totally unfair, completely unfair. I actually think they got I think they have their priorities straight. I feel like I'm just like like like every day to the fullest. Like great. I love avocado toast. I love flying first class. I love like I love flexibility. So I I think they're I think I was a generation ahead of my time. And uh because this this so I don't I don't take any issue with the decisions they're making, including including this.

SPEAKER_01

Yeah. And I I think I think it's all about like prioritizing experiences and not things. And I think that that's you know ultimately what well I'm the millennial too, so I'll speak for myself, but like that's how I kind of think about my discretionary spending. Uh and it is also why people are purchasing the products at such a high rate, because they want to make sure that when they're spending that much money on something, that they're actually getting the value out of it. And it gives them additional peace of mind. So um, yeah.

SPEAKER_02

The market that this generation is entering into is in the world of AI. You know, we had social media, we've had that now for 20 years, and really that whole idea of social, social commerce, it's still fundamentally important. But at the same time, every industry now is being disrupted by AI. That's why we have our AI summit that we've run the last two years to understand how AI is impacting the travel industry. And so I need to ask you about AI, especially given that Hopper is a technology company and you guys have your prediction models and like risk scoring. So tell us how you are leveraging AI, especially in pricing, but also introducing these products or optimizing them. How, how, how have you guys built that in? What is in the background that's helping the consumer experience?

SPEAKER_01

For sure. So it is definitely the pricing on the fintech side of things, but I would also say on the customer service side of things, we're really going all in on this. So uh on fintech right now, if you tried to use the products in the app, uh there is an AI uh empowered agent who can actually do everything on your behalf. Um and we also just launched our HTS Assist product, which is a Gentech AI for travel, regardless of the the platform. So we can take uh, you know, we've been able to train our data on 10 years of customer service interactions from the Hopper app. And with powerful AI models powering that now, uh, it creates a really interesting product for our customers, our airline and uh bank portal customers of us.

Millennials, Premium Comfort, And Demand

SPEAKER_00

We'll be right back. Today, 65% of travel queries trigger an AI overview. If your brand isn't showing up there, you're losing bookings. It's that simple. This is the new reality that Propelic, the AI first digital marketing agency for travel, helps brands master. Their entire focus is on delivering what matters performance bookings, not just clicks. They've done the research on how AI is changing everything from search to purchase. You can find their groundbreaking new report right on their website. While you're there, join over a thousand travel marketers by subscribing to their newsletter, the Navlog. Stay ahead of the curve. Visit Propelic.com. Travel has changed. But many multi-day tour operators are still stuck with spreadsheets and disconnected systems. Today's travelers expect more choice, flexibility, unforgettable experiences without the friction. That's where Captio comes in. Built on Salesforce, Captio is the modern platform designed specifically for multi day tour operators. From tailor made trips to group tours, rail to river. We bring your itineraries, bookings, payments, and operations together in one seamless system. With automation, real-time inventory, and supplier integrations. We make complex travel simple so you can do what you do best. Serve travelers, not spreadsheets. Check out Captio.com for more details. Pay Compass is the leading merchant processor built specifically for the travel industry. Pay Compass makes it easy for travel businesses to get approved with high processing limits, so operators and agencies can scale without barriers. They deliver some of the highest authorization rates in the industry, backed by powerful chargeback mitigation services that protect revenue and reputation. Plus, with tools like virtual cards, Pay Compass helps travel brands manage payments smarter and more efficiently. Simply put, Pay Compass isn't just a processor. They're helping travel businesses grow stronger and faster. And now, back to the show.

SPEAKER_02

When travelers can leverage these products without having to speak to an agent, because this is like the you know, the modern traveler. What is it that is changing about their behavior? One of the things is like they expect instant, uh, I mean, ever since Amazon started dominating the e-commerce space, like it's like um as Ronnie Chung, it's like Amazon now, Amazon now, like I want it to my house today, like at an hour. Like it's like it's no next day is not sufficient anymore. So and it and it couldn't be more relevant for travelers is that you know they expect if something's been disrupted, I you know, we've all been there at the airport, and the announcement comes on, and then people are like rushing to the desk, people are like picking up their phones, and it's a horrible feeling. Um and so how do you, whether it's through AI or technology, make sure that someone doesn't necessarily have to speak to someone? Like it just because one of the things I've certainly seen is you instantly get rebooked. Like it's that's my like you know, they're like everyone tells you, and I'm I'm asking this question for not only my education, but for all of our listeners out there that because I see this behavior is that when that when that flight gets canceled, they literally tell you that um just wait to be informed. Yeah, but still people flood to the desks, and it's like they're like, we can't help you, we don't have any more information. Right, right. Just and that and then I look at my phone and I'm like, oh, I've been rebooked. It's like, oh, that's a flight in an hour from another gate, and it's just like all that stress for nothing. Yeah. So tell tell me how that's the part I'm I guess excites me about AI, is the ability for the platform rather than a person to be able to quickly reroute you.

AI In Pricing And Customer Service

SPEAKER_01

For sure. Um, so our fintech products do have a 98% self-serve automation rate. That means 98% of our customers who uh are try to use the product are able to do so without human intervention. So they can hop in, they can open the hopper app, for example. There's a completely self-serve tool, both for the rebooking part as well as the refund part. Um, and the product is actually proactive. So, like what happens in this situation is we proactively notify our customers either via push notification, SMS, uh, just letting them know that they're eligible to use the product and taking them directly into that exercise portal where they can use the self-serve tools themselves. So I think it's a really, to your point, it's all about ease of use in these very stressful moments. And the products were like designed to do that whenever we are creating them.

SPEAKER_02

Got it. And then when people are in that situation of distress, they often take to social media. And I saw something that I really want our listeners to know about, and I've been meaning to mention it in the introduction to a podcast, but um this relates to um uh car rentals than air, but it's still uh Jason Priestley, famous for Beverly Hills 90210. Over the holidays, I looked at my phone and there was a picture of Jason Priestley, which I wasn't expecting to see, and it was like him looking angry, and his kids were in the background. He was there with like a like a luggage cart. And what I quickly kind of realized what had happened, I've read, I read, I've read it because I was just like, it was like suggested for me. I'm like, and the the uh the post amounted to the fact that he'd arrived, I think it was at um it was in California, but anyway, he had arrived at I think it was Long Beach Airport and had gone to the Hertz and they didn't have a car for him. And he was and he he's like, I've been a gold member for 20 years, and it was like Hertz sucks, never again. And I was like, whoa, whoa, whoa. Like I've been on the receiving end in the travel industry of upset customers, and sometimes things happen and you have to sort them out, and and like that's that's the priority. And you customers are going off like that. But to me, I was like, all I felt for was that poor social media manager who is now all of a sudden having to go to their boss at Hertz and say, Whoa, what do I what do I do with this? We've Jason Priestley is mad at us, and uh, we I think we've lost a customer, and so so social media is still very relevant. So, in the situations where someone is wound up, are you seeing this this is my question for you because I I I I I I would hope that having this type of product would decrease the likelihood that you're gonna have raging guests going off on social media because that's their you know the that's their only mode of airing their frustration. And um and we saw a lot of that less and less, so that was like I think he's uh he's a bit out of date with doing that, but nevertheless, that's uh his his right to do it. Uh but yeah, tell us when it comes to social media and the and like has that uh introducing these tools, has it decreased the likelihood of that? Has that has that ever come up with any of your uh partners?

SPEAKER_01

I don't know if it's decreased the likelihood. I will say though that when we offer these products, we do see uh, you know, positive brand handle effect by introducing them. Um, you know, so let's take the situation of a customer whose flight has been canceled and they opt to get the 100% refund of their ticket and travel for free. That's a customer that that airline has probably just made for life. And we do see that in our repeat attach rate, too. So the percentage of customers who are eligible to use the product purchase it again and a percentage of 84%. So uh customer satisfaction is super high. And that also reflects well on the airline uh whenever their customers purchase the fintech products, right? Because they're just thinking about the customer is just thinking about it from the perspective of did I get to my destination on time? Not how it happened, but did it happen?

Self-Serve Rebooking And Proactive Alerts

SPEAKER_02

Yeah, yeah. Well, and here's another one that um based on that, like this that sometimes consumers don't have a full understanding of who's responsible and who's to blame, especially when you lose your bag. That's another you know situation that unfortunately occurs when you're traveling. It happened to us last year. We were flying to Barcelona to get to Madrid. We missed our connection, our bags didn't, they lost, they ended up losing our luggage, like and it really ruined the first three or four days of our trip. And I actually wasn't well prepared because I didn't realize that we had we ended up in this really bizarre situation where you know Air Canada had given our bags to the next carrier, and they neither of them had any knowledge of uh where our bags were. But like we Air Canada said, yeah, we gave them, and the other airline saying we don't know that we receive them. And so everyone's telling us, don't you have like uh don't you have like the tracking tags in your bags to at least know where your bags are? Like, and so never again to all of our listeners that I'm just like air tags. Yeah, air tags, air tags are the way to go. Um but let let's talk about some of the misconceptions around these flexibility products and understanding who's responsible. So in that situation, you know, um, if I had bought the product, if I had brought a disruption product, would the duty of care be on hopper to sort to sort that out? How do how does that work? And though once you've bought a hopper product, who's then responsible in those situations?

SPEAKER_01

Yeah, so it is on hopper because you know, we are the ones that are telling the customer that we'll rebook you if something happens, if your flight is delayed or whatever. I think that uh misconceptions-wise, uh, I think that sometimes people confuse the products with insurance, as you mentioned before, and they're really not designed to replace travel insurance. They're designed to exist alongside of it, and they serve very different needs on the customer journey. So, in your luggage example, uh, you know, it's possible that you would have an insurance policy that covers lost bags. Uh, disruption assistants in CFAR do not do that. Um, they give our customers flexibility to change their plans or to get to their destination if they get disrupted. So I think that there's a world in which all these products exist alongside of each other because they are targeted to solve very specific things for the customer.

SPEAKER_02

That's an important one, the travel insurance. So I'm glad like that's because that's one that took me a moment to wrap my head around was like, well, wait a second, this isn't travel insurance, because most people do buy travel insurance. I always make sure I have medical insurance, for example, um, misperceptions of people. What are some of the other ones that stand out to you that you hear that um that it would be worth clarifying now for our listeners to know the difference between what the airlines are, what hopper when where Hopper steps in.

SPEAKER_01

For sure. Um I think another one is that the flexibility products only matter when there's like a really bad disruption event. Um it is true that when we have things like the government shut down last year uh or the crowd strike incident a couple of years ago where 50% of global flights were uh were halted in one day. It's true that the products definitely add additional value in those situations, but it's also true that on an everyday basis, you know, carriers face a variety of uh challenges, including bad weather, which is nobody's fault. Um, and so, you know, whenever there's like a storm here out of O'Hare, uh, you know, the customer can use the product and it adds value, even though it's just isolated to, you know, that one geographic location. Um I think that that's a big one. And then lastly, I would say on the airline side of things, sometimes we hear that this could increase cost and operational burden. Um, and that's really not the case. Disruption assistance in particular is designed to work seamlessly alongside the existing AirOps process that the airline has and operate simply as an overlay uh to help uh customers get to their destination on time.

Insurance Myths And What’s Covered

SPEAKER_02

Well, um uh my son is training to become a pilot and uh using his first first year university. So he loves like I've been I've spent many years at the airport as he's been an avid plane spotter, and many of our listeners obviously know that from some of my introductions, especially to the series, and why I was keen to do this. And I, you know, uh I'm often have him in mind too when I'm because you know when he's thinking about this role and the the um his the importance of getting people safely to their destination, and then there's all you know there's the there's you know the aircraft, there's the crew, there's and then there's all this uh technology wrapped around it, and then partners. Um the um uh I've always trying to be uh mindful of because if most people put everything on the airline, so I'm I'm I'm I think it's important we clarify that aspect of it so that you know this this now sits with Hopper and you guys are um you sit over and above because people have chosen that option. Um as we exactly as we go forward though, uh and that and I say that because what I don't want him to have to deal with is those angry customers that sometimes you uh you know you can see at the check-in desk, and he's he's watched no shortage of shows to see people getting enraged at the airport. And for whatever reason, it seems to be the case that whatever's going on in your life, it seems to come out when you travel. Like you take it out on people, you're just like, you know, the stress that you have in life, like it comes out on the car rental person or the flight desk, or like, or it comes on the travel. I've seen it since the beginning of my role in travel with people calling into the call center and taking it out on a travel agent who had no like role or responsibility in what happened, but they need to vent, right? And so um, so I want this to like if customers have this flexibility as an expectation going forward, like it'll decrease the likelihood. Like I've had situations where I, you know, I with an easy jet where I am already landing late and it's already rebooked me on the next flight, and I'm just like, oh, like I'm just like so you don't have to go through that emotional roller coaster. So I'm really hoping my son, my son, as he enters the uh the workforce that this is that this is the new world that he enters into. So so so let's let's for sure. Yeah. So let's let's talk a little bit about where we're headed and uh obviously where Hopper is headed and where you see airlines in 2026 and beyond.

SPEAKER_01

Yeah, I think you nailed it. Like the future of travel is really demand for flexibility as kind of a baseline expectation. Uh, you know, customers do have higher expectations that things go well in a modern world where we have personalized experiences, digital first technology. Um, so I think that that's definitely one of the big things. Um, the other thing is personalization across the journey. I think that, you know, when even when they're booking a flight, customers are expected to see an offer that's relevant to them and that will ultimately achieve Urban Line with their travel goals. And I think that that's where our AI pricing comes in and making sure that we're offering the appropriate sort of flexibility option to the traveler based on based on their needs.

SPEAKER_02

Yeah. What the one thing that stands out to me there when we were is personalization, because it's one of the things that we've talked about in the travel industry for so long. But yet, you know, when you check in for your flight, you still have to pick like aisle or window, or like it's like you should know me. And I do see some of these great AI tools that you can voice book a flight within like 90 seconds. Just like you know, get some options. Uh and that to me excites me. And I it's getting partly because of my status and Air Canada increasing their um uh uh improving the customer flow and retaining more information and being able to, but it's it's nowhere near where I think it should be. Just just for all our friends at Air Canada. You guys are I'm not letting you off the hook, you're not there yet, but you're moving in the right direction. I like to know that my bag is loaded on a plane. I like to get a little message that makes me feel good. I appreciate that. Um, but personalization, you know, as from my perspective, we're still nowhere near where I think we should be. And I think uh airports have a role to play in that, like because there's so many different people to collect our information and we pass through different uh checkpoints. Um, how do you guys look at personalization in particular? Like and your role in that, because clearly, you know, you play one role, uh, but it's in a very important one, and also personalization. So, yeah, how is Hopper looking at that for your customers?

Everyday Disruptions, Not Just Crises

SPEAKER_01

Yeah, so I think it's really focused on sort of the servicing side of things, which uh with our HTS Assist product, we have a lot of data on our customers, and our focus is really understanding how we can use that data to improve their experience if things do go wrong. So, you know, for example, I mentioned that we send proactive notifications to our customers if there's a delay or a cancellation. Um, I think that there's a cool opportunity to provide them with rebooking options that are, you know, let's call it if you're at O'Hare, you don't want to move all the way from Concourse C to B. You want to make sure that there's a gate that is readily available so you can just get on that first line out. So I think that, you know, better understanding the context of the customer is where we're focused on the service side.

SPEAKER_02

All right. Those two more questions I want to ask you because I've got so much I want to cover with you. And I know um one of the things that I really love to do when we're planning our next season, as our listeners know, we're going into season seven of our podcast, we're finishing season six with our airline series, and we always do a team get together, and we like, you know, there's Zach, our producer, and Catherine, who you met, that does all of our guesting and marketing. Um, Eugene is our marketing coordinator. Melanie does all of our partnerships, Melissa does all our social media. So, like, we've got a great team behind travel trends, and I really want to make sure that not only do we factor in like the team's input, but all of our listeners' input based on this season. So we're running a contest right now for all of our listeners to be able to tell us what they really enjoyed about season six. If it's this conversation right here uh with Patrick from Hopper, um, let us know that because we would we want to figure out based on your feedback so we can decide what topics we want to cover, what guess. And so where I'm going with this is I often approach this as if we were starting our next season from scratch, as opposed to building on what we already have. And I think about this with airlines. So, like given that the pain points have emerged from the system that is in place, which creates opportunities for companies like Hopper, which is uh um, but at the same time, if we were to step back, like imagine you guys actually ran the airline and like there was a Hopper airline. So if you could redesign um the airline experience, no legacy rules, no old fair classes. Tell us a little bit about what the ideal system would look like for the traveler.

SPEAKER_01

Yeah, I think it would be traveler-centric and personalized, as we talked about. You know, so instead of having fair classes that don't necessarily provide the customer with the level of flexibility they want or expect, um, you know, it should be offered a la carte, um, having free changes, refundable options, including disruption assistance in the fair, things like that. Um, I think that that's the number one thing. Uh, I also think that the expectation that flexibility should be proactive as opposed to reactive. Um, you know, so like in your example, when uh you're uh you're at the airport and you get the notification that you're disrupted, having someone reach out to you and say that you can rebook yourself for free, um, I think is kind of like what I would envision as sort of like a best-fit class experience. Um and then lastly, I think that it should be like flexibility should be perceived as a growth engine for airlines. Um, you know, rather than eroding revenue, it can create sustainable high margin ancillary revenue that also creates these positive experiences for the customers. And I think those three things would be a win in combination if I were to redo it all.

Rethinking The Airline Experience

SPEAKER_02

Yeah. Well, and there's a lot I could add to this. I won't now because I like uh I won't, I don't want to pontificate, but I I I I feel quite strongly on biometrics myself and the need for so I'm very comfortable with being able to be scanned in. And like for me, I'm like, that's the like the fastest way to get through the airport. And so I actually see it on that's one of the things I want to see changed. Um, is on the is it I've realized it's not the airlines I'm frustrated with, it's airports. And it it's like uh my son, his favorite part of the traveling this, I get a kick on this every time. Uh, whenever we're traveling with a family, his favorite experience is the airport. And I'm like, that's literally the part that I just want to get through and get to my destination as fast as possible. Yeah. Um, but anyway, that's what that's where I still see there's a lot of room for innovation. But um the other thing I wanted to ask you, given that we have a lot of airlines listening to this series and it being the first airline series that we have done on travel trends in our you know, six seasons, I wanted to ask you what recommendations you'd have for them, because so many people that work in the airline space are dealing with legacy systems and they also have this often internal inertia. Like there's always it's it's so hard to get things done or to change, and that's why they get disrupted themselves by low-cost carriers and like um and these upstarts because they're so beholden to the systems they've created. And I'm sure you see that all the time when you're working with other people that they're going, wait a second, Hopper, you guys move fast. And it's like you have to if you're a technology company, like that's your competitive advantage. Um, so what would your advice be to airlines listening to this that want to innovate faster and be much more progressive for their customers, similar to the culture at Hopper?

SPEAKER_01

Yeah, for sure. I think uh first you don't have to reinvent everything internally. Um, I think using partners like HTS to strategically partner to solve a particular product for or problem for their customers is actually a winning strategy. Um, you know, you don't have to overhaul core systems. Instead, you can take HTS's disruption assistance product and layer it on top of your existing solutions. They're not designed to replace them, they're just a more premium experience for customers who purchase it. Um, and then also not necessarily focusing on innovating every single part of the customer journey. Um, instead, I think choosing the moments that really matter. So, you know, when you do experience a disruption, creating products and experiences that actually solve the problem for the customer and make it easier for them, that's way more important than trying to do every little uh part of the customer journey and innovating around it. Um Yeah, so I think that those are the big things and just empowering the teams to iterate on them. So when we launch using data to uh collect information on customer feedback and showing that these products are real additional value to their customers is super important too.

SPEAKER_02

There's so much to continue in this uh conversation. I'm I'm you know, I'm I'm glad you've joined us. We've covered a lot. I'm sure our listeners might have additional questions, which you can post in the comments or uh reach out to me anytime, Dan, at traveltrendspodcast.com. Because if there's something that we haven't covered, you want to make sure that we address next time or next season, especially with having someone like you, Patrick, that knows this space. So well and your role at Hopper. I've been so keen to have Hopper on the podcast, so I can't thank you enough for joining us for this conversation. But let's let's make sure that any of our B2B partners are know where to find out more information to work with you guys over at uh uh HTS. And also, if you wouldn't mind too, just for consumers that are listening to this, because our our B2C audience is really increasing now, which I'm excited about, partly because of our Travel Zoo series, where we've been focusing on destinations. So I'm welcoming them into the conversation as well to know how they can make sure that they choose this on their next trip.

Advice For Airlines On Innovating

SPEAKER_01

For sure. Uh so on the airlines or the partner side of things, uh, you can go to hts.hopper.com. Uh there's a link you can click to reach out to one of us. Um, I'm also available on LinkedIn. Uh I'm sure there will be a link to this in the podcast, but uh happy to uh answer questions for sure. And then on the customer side of things, uh download the app. Um that's our showcase and we have our Fentech products there and try them out.

SPEAKER_02

Fantastic. Well, Patrick, thank you so much for joining us. I wish you and the team great success in 2026 and beyond. And I look forward to keeping in touch. And I know you guys were on our uh event spotlight episode from Focus Right. And yeah, it's it's great to have this opportunity to speak with you guys, and I look forward to further collaboration. So thank you so much.

SPEAKER_01

Same here. Thanks for having me, Dan. Really appreciate it.

SPEAKER_02

Thanks so much for joining us on our latest episode of Travel Trends and the second episode in our aviation series. I hope you enjoyed the conversation today with Patrick Steadman, the VP of Disruption at Hopper. I also just want to acknowledge the team at Hayes Luggage for sponsoring this aviation series and the contest that we have running at the moment. So make sure that you do post a highlight from season six on any of your social channels and tag at Travel Trends Podcast. And we'll be announcing one winner each week of a$1,500 Astros luggage set from our friends over at Hayes. If you're interested in learning more about Hayes, check out heys.com. That's Hayes.com. If you're interested in luggage or any of their travel accessories, I travel with Hayes. You'll see me at the airport, and I hope to see many of you with your Hayes luggage as well, especially the three winners of this contest. And don't forget, we do post clips and highlights on our social channels, LinkedIn, YouTube, and Instagram. So you can see clips from the conversation we had with Patrick here today. Thanks again to the team at Hopper for being available for this series. It was really great to have you as part of it. And I look forward to continuing our conversations on airlines and aviation as we move into season seven and seeing many of your feedback and suggestions for where we should go in season seven and season eight in 2026. Thanks again for joining us, and until next week, safe travels.