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More Airlines Use Next-Gen Tech to Sell Journeys on Other Carriers or Trains
25.08.2023 - 13:15 / skift.com / Sean Oneill / Airlines
Airlines have long sold tickets on each other’s flights using interline agreements and strategic marketing deals called codeshares. But dozens have recently been adopting alternative and more flexible arrangements with the help of software from startups such as DoHop.
Several low-cost airlines that lack large route networks are using software for what you might call “alternative interlining” – maybe a flight on one airline matched with a train trip to the final destination.
The process offers a workaround to some of the complexities of traditional interline agreements and helps smaller airlines serve more complex and far-flung itineraries.
Exhibit A: EasyJet has since 2017 been ramping up a project that sells flights on selected airlines that include connections with its own flights. It now has 21 partners, including airlines like Air France, Avianca, Emirates, Air Transat, and Singapore Airlines, and rail operators like German giant Deutsche Bahn and French giant SNCF.
The deals extend the carriers’ reach. EasyJet, which doesn’t fly to the U.S., can now offer its customers package flights to the U.S. thanks to its partnership with Norse Atlantic Airways.
EasyJet uses tech from Dohop, a travel startup based in Iceland. Dohop’s competitors include Airsiders, Air Black Box, and ETraveli (via its TripStack subsidiary that’s been signing up carriers). Travel tech giant Amadeus also has ambitions. In the online travel agency space, Kiwi.com is one company with a similar product.
But because Dohop appears to have the most clients actively using the concept, we chose to focus on it as an example for simplicity’s sake. Skift recently sat down with CEO David Gunnarson at his Reykjavík office for an update.
Airline interest in alternative interlining — which drives about 95% of Dohop’s business — has sped up since the pandemic, Gunnarson said. Dohop has gone from EasyJet as its only client in 2017 to roughly 20 travel companies selling other companies’ travel today, with about 50 airlines supplying content.
Dohop, a privately held company, has used revenue growth to justify going from roughly 30 to 80 employees.
The gains have apparently boosted investor interest. Dohop recently did a previously undisclosed round of about $8.3 million (€7.5 million) that included Scottish Equity Partners as an investor.
One of the biggest hurdles to adoption has been consumer concerns about transfers. A problem for passengers using carriers that don’t have formal interline agreements is that, if they want to check baggage, they have to check their bags on each leg.
Dohop would like airports to make it clearer to passengers how to move bags from one aircraft to another, but that’s a tough hill to climb.
“We’re working with
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