Airlines increasingly leaning into AI tech for their payment systems

With artificial intelligence entering the aviation industry earlier than many others through everything from predictive maintenance and route optimization to autopilot systems, multiple airlines are rushing to invest in it for more features that reach consumers directly.

Hopper Technology Solutions (HTS), both a B2B and consumer booking platform providing the fintech and AI technology for travel agencies and airlines to build their cloud databases, is increasingly getting integrated into the platforms that airlines present directly to consumers.

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At the end of May, Virgin Australia announced that it was partnering with HTS to launch a new “Cancel For Any Reason” widget into its booking and flight management system.

Frontier and Spirit have both partnered with Hopper Technology Solutions for their booking platforms.

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New fintech system to refund ‘value of the fares for original flight booking'

The new feature, which the airline recently expanded to its Economy Lite and Choice fares in an effort to draw in customers who may be hesitating about booking a flight, automates the refund of either 80% or 100% that the traveler can claim up to 24 hours before the flight.

HTS technology powers the automatic refund while the amount given back to the consumer depends on the specific flight distance and how much the user chose to insure.

“At the time of purchase, you can add Cancel For Any Reason to your booking, choosing between either an 80% or 100% refund of your fare (as available on the Site at the time of booking),” Virgin Australia writes to advertise the new feature to consumers.

“The amount of the Cancel For Any Reason refund we pay will be based on the value of the fares for your original flight booking. This is the original fare cost (including other applicable taxes, fees and charges (TFCs) and not for any subsequent or additional costs because of any voluntary changes you made to your booking (including changes to the departure date or travel extras you added to your booking, like additional checked baggage or seat upgrades).”

HTS's use of machine learning allows the fintech model to offer the refunds with dynamic pricing models and hybrid payment options in which the airline's customers use a combination of cash and loyalty points to pay for fares.

Frontier and HTS partnership creates ancillary fintech channel for baggage, seat selection

At the end of April, Denver-based budget airline Frontier Airlines (FRON) also announced a new partnership with HTS to both automate dynamic Frontier fares to the Hopper website and mobile app and integrate a channel offering content bundles and ancillary features such as baggage and seat selection.

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According to statistics provided by the platform, the Hopper app has been downloaded over 120 million times; the upgrades are intended to improve Frontier's capacity to reach younger consumers in particular with an integrated e-commerce product.

Fellow low-cost competitor Spirit Airlines (SAVE) has also been partnering with HTS since 2021 to bring the latter's machine learning and pricing algorithm to its website and mobile app. Across different airlines, some of the partnerships simply integrated the airline's fares into the Hopper platform while others bring HTS technology directly to its own booking system as in the case of Virgin Australia's new refund feature.