IAG Invests in SeatBoost Software to Enhance Flight Upgrade Bidding
International Airlines Group (IAG), the parent company of British Airways, is investing in the U.S. startup SeatBoost, which allows passengers to bid for premium upgrades through live auctions at airports. This innovative platform not only provides travelers with an opportunity to upgrade their tickets but also creates a new revenue stream for airlines, particularly for seats that might otherwise go unsold.
Founded in 2012 and based in California, SeatBoost has already partnered with IAG-owned Iberia, along with international airlines such as TAP Air Portugal, Condor, Avianca, and LATAM. The platform aims to revolutionize the traditional upgrade process, where receiving a complimentary upgrade at check-in is often seen as the ultimate prize—one that very few passengers achieve.
With IAG’s investment, SeatBoost hopes to expand its reach and give even more travelers the chance to bid on upgrades while waiting for their flights. “We’re excited to partner with IAG at this important stage in our journey,” said Kevin Stamler, CEO of SeatBoost. “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.”
Stamler emphasized that the investment from IAG validates SeatBoost’s business model and highlights the potential impact the partnership could have on the travel industry. Although it’s still unclear whether this investment will lead to the SeatBoost app being available on other IAG airlines, including British Airways, Vueling, Level, and Aer Lingus, the strong consumer demand for “bargain deals” suggests a wider rollout could be forthcoming.
Raza Ali, IAG’s Vice President of Innovation, noted, “Innovation is a core function at IAG. Through innovation, we can deliver better customer experiences, more efficient operations, and a more sustainable aviation industry. The creative approach of SeatBoost to unlock meaningful revenue from new sources of demand aligns perfectly with our vision.”
The integration of SeatBoost’s technology could enhance the travel experience by offering passengers a more engaging way to secure premium upgrades. The bidding process allows travelers to choose how much they are willing to pay for an upgrade, making it a dynamic and potentially rewarding experience.
As the travel industry continues to recover, IAG’s investment in SeatBoost signifies a commitment to embracing technology that not only benefits airlines but also enhances customer satisfaction. The potential for increased revenue and improved passenger experiences may lead to a transformation in how airline upgrades are handled, making it a win-win for both travelers and airlines alike.
Overall, this partnership exemplifies how innovation can reshape traditional airline practices, paving the way for a more flexible and consumer-friendly approach to air travel. As SeatBoost expands its offerings, the collaboration with IAG could set a new standard for premium upgrades in the airline industry.