Hopper is a Canadian travel startup app company that uses predictive analytics to make the best travel recommendations to customers. The mission of the travel business and its guiding principles are all based upon building a system that is accurate, trustworthy, reliable, easy, and helpful for customers.
According to the startup company, there have been more than 57 million Hopper app installs and nearly 160 million trips planned through the platform. Additionally, customers have saved more than $3.6 billion through the services the business provides.
Hopper has raised more than $250 million in financing backed by investors like Citi Ventures, Brightspark, OMERS Ventures, Accomplice, and more. Today, the travel app business announced it raised $170 million in a Series F funding round.
New Funding and Partnership
The startup company completed its largest funding round yet, which was led by Capital One, and also features investments from Inovia Capital, Citi Ventures, WestCap Group, and GS Growth.
As the pandemic still surges on, hospitality and travel industries have taken an especially large hit. Although Hopper laid off 45% of its workforce last year, the startup company was able to navigate through COVID-19 struggles by offering more financial flexibility to customers around their travel bookings.
Fred Lalonde, CEO and co-founder of the travel app business, said, “A year ago we were running out of toilet paper...People weren’t invested in travel. There’s just been renewed interest, and the innovative travel companies are probably going to do a lot better in the new world post-pandemic.”
With this new funding, the business plans to develop new categories on the app, including car rentals and alternate accommodations. Additionally, Hopper plans on investing heavily in customer support while offering fintech products like Price Freeze and a Flexible Dates Plan. Furthermore, the business is looking to launch its new B2B initiative, Hopper Cloud.
Lalonde said, “You’re going to see a lot of initiatives. We’re a bigger company than we were when we shut down already so you’re going to see us innovate around that.”
While the startup has set its sight on the prospects for the new funding, the travel app company has also entered a partnership with Capital One to create Capital One Travel, powered by Hopper. The new travel app portal will feature price prediction and alerts for flights, hotels, and car rentals, plus capabilities for customers to change or cancel reservations. Hopper also plans on integrating the Capital One rewards program into its offerings.
Lalonde said, “The money is obviously important to us but we’re actually super excited to be working with Capital One on this...We’re basically rolling out something completely new that is built for the Capital One cardholders.”
This is not the first time Capital One has been in the travel space. Last year, Capital One acquired Freebird, a flight protection startup company, at a $40 million valuation.
Capital One Travel is set to launch in the second half of 2021.
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.