British Airways owner International Airlines Group (IAG) is investing in a US startup that allows passengers to bid for premium upgrades in a live auction while at the airport.
While giving passengers the opportunity to upgrade their ticket, SeatBoost also provides a new, innovative revenue stream for airlines on seats that would otherwise remain empty or “spoiled”.
Founded in 2012 and based in California, SeatBoost already counts IAG-owned Iberia as a customer plus international airlines such as TAP Air Portugal, Condor, Avianca and LATAM.
Receiving a free upgrade at an airline check-in desk has long been the Holy Grail for many passengers but sadly only a very small number are ever lucky enough.
SeatBoost hopes that the new investment from IAG will give even more passengers the chance to bid on upgrades during live auctions while waiting for their flight at the airport.
“We’re excited to partner with IAG at this important stage in our journey. This collaboration not only supports our vision but also helps us accelerate our growth and innovation. Our aim is to enhance data-driven insights to create personalized experiences for travelers while maximizing revenue for airlines,” Kevin Stamler, CEO of SeatBoost, said.
Stamler added: “The investment from IAG validates our business model and underscores the potential of SeatBoost and the positive impact we can achieve together in the travel industry.”
Whether the new investment will signal the app being available on additional IAG airlines, such as British Airways, Vueling, Level and Aer Lingus, will remain to be seen, but with a huge consumer appetite for “bargain deals” it would be not surprising if the technology was rolled out further.
“Innovation is a core function at IAG, and through innovation we can deliver better customer experiences, more efficient operations, more sustainable aviation and a better-performing business overall. That’s why we think the creative approach of SeatBoost to unlock meaningful revenue from new sources of demand is aligned with our view,” said Raza Ali, IAG’s Vice President of Innovation.