Amadeus announces that it has brought to Brazil the first solution that “blocks” the price of air tickets by consumers for a future purchase, through an alliance with the startup FLYR, in the which Amadeus is an investor.
FareKeep, a FLYR product that makes the lock, runs as a ticket price insurance. When you see a rate that you find interesting, but you have doubts about the purchase – whether for travel availability or for any other reason – the traveler can pay a premium, which will be between $ 5 and $ 25, to be insured against increases in that rate for a week.
The amount of the premium to be paid in the contracting of the block is defined by a logarithm based on the risk of rate change.
If the value rises within seven days, FLYR will pay the difference up to a ceiling of $ 200. If it is less than the ceiling, the amount to be reimbursed will be the difference between the rate at the moment of blocking the ticket and the amount actually paid. If all aircraft seats are sold during the term of the insurance, the passenger will be reimbursed with the amount of the ceiling.
Initially, the solution will be offered to online travel agencies in Brazil and Latin America. The technology is already used in some of the largest air ticket dealers in the United States and Europe, but for the first time will be available to Latin American companies.
Online travel agencies spend up to one-third of their marketing money to attract customers, but 95% of them leave the site without making a reservation. The FareKeep, whose coverage exceeds 93% of the available flights, came to improve these numbers and give more peace of mind to the final consumer.
“We are very happy to bring this technology to Latin America. Online agencies lose a lot of sales because the customer sees the rate, checks their availability, and when they return to make the purchase, the price has already changed. In the same way, the consumer is frustrated after an initial moment of ecstasy at a good rate found. FareKeep solves these two problems in a win-win relationship that promises to revolutionize the way we buy tickets online, “said Fernanda Assunção, Amadeus Alliance Manager for Latin America and the Caribbean.
“When automobile insurance emerged, consumers soon saw great value in it as it avoided the possibility of a large-scale loss. The same is true in travel, but in this case the losses are unfulfilled dreams. FareKeep has the potential to solve many of these impasses, “said Jean Tripier, CEO of FLYR. “The Brazilian consumer is one of the most demanding that exists, and really wants to have flexibility and tranquility. By bringing the FareKeep to the country, Amadeus is headed in the right direction. ”