The Hopper travel app has taken a $96 million follow-on investment from Capital One Financial Corp.
Reporting from Reuters said that partial funds go toward building the social commerce business and aiming it at younger travelers.
Hopper also said the investment would grow its business-to-business unit. This includes creating fintech products and travel portals for Capital One and similar partners. Dakota Smith, President of Hopper, also said that the social commerce business includes games and referral programs to earn travel credits.
Fintech offerings like Price Freeze and Flight Disruption Guarantee represent around 40% of app revenue and 70% of air bookings.
What is the Hopper Travel App?
Hopper is, for all intents and purposes, an app designed to help travelers save money on bookings.
These bookings include both airfare and hotels with plenty of perks in between. Those booking for the first time can claim $30 in vouchers, and “Carrot Cash” goes toward discounts and extra savings.
That Carrot Cash can also be applied to most bookings for an additional $1 USD of savings.
The deals generally come from the app’s travel partners, such as tourism boards. The rates release for a limited time onto the app, so they recommend turning on notifications to keep up with the latest bookings.
Back in 2021, Capital One and Hopper also launched the Capital One Travel card. This card offers Capital One card holders price drop protection and travel rewards. New funding goes toward extending this partnership.
Capital One also previously stated they’re investing in their franchises to include travel portals and airport lounges in an effort to market to heavier spenders.
The bank said, “Through this strategic partnership, we’re well-positioned to adapt to a rapidly changing travel environment and create industry-leading solutions for our customers.”
The new investment from Capital One follows a previous investment of $100 million toward Hopper last year.