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How Does Hopper Make Money (Business and Revenue Model)

The Hopper business model

How Does Hopper Make Money?
Here’s what you should know:
  • What is Hopper, and how does Hopper work?
  • How does Hopper make money?
  • Commissions on Bookings (from Travel Partners)
  • Hopper Cloud (B2B)
  • Hopper Subsidiaries, Acquisitions, and Exits
  • Hopper profit and revenue
  • What is the Hopper business and revenue model?
  • Hopper funding and valuation

How does Hopper make money if it’s free to use and charges no fees? Here is a full, in depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the Hopper business model, their year over year revenue, and how Hopper works.

What is Hopper, and how does Hopper work?

Hopper is a travel app that uses predictive analytics to help users find and book the best travel deals on flights, hotels, car rentals, and more.

Founded in 2007 by Frederic Lalonde and Joost Ouwerkerk, Hopper has since booked and planned more than 197 million trips through its platform.

How does Hopper work? To use Hopper, users must first download the app from the iOS App Store or Google Play store.

Once downloaded, they can search for flights by simply entering in the departure / arrival cities, selecting the desired airports, and choosing either round trip or one way. Once they found a flight, they can do things like freeze the price and or get notified of when the price is at its cheapest, etc.

Some of Hopper’s competitors include Tripadvisor, KAYAK, Airbnb, trivago, Expedia, and other online travel booking websites.

Hopper App in Apple App Store | Hopper Business Model | How Does Hopper Make Money? | How Does Hopper Work?
Source: Apple App Store | Hopper

How does Hopper make money?

According to Hopper’s about page, Hopper has booked and planned over 197 million trips on its platform. So how does Hopper make money off of those booked trips?

Below is a breakdown of how much money Hopper makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 2 ways of how Hopper makes money (in 2022):

Hopper has a business model that makes money in two (2) ways; by getting paid a commission from bookings and Hopper Cloud.

#1. Commissions on Bookings (from Travel Partners)

Hopper makes the majority of its money from getting paid commissions from its travel partners.

How does Hopper make money from commissions? Hopper makes money every time a Hopper user books a trip from a travel partner (airlines, hotels, car rentals) through the Hopper platform.

As noted above, Hopper has booked and planned more than 197 million trips since its founding back in 2007. Of which, Hopper receives a commission on all of it. Although it’s unclear how much money Hopper receives in commission per booked trip.*

Hopper Fees | Hopper Business Model | How Does Hopper Make Money? | How Does Hopper Work?
Source: Hopper

Note: Some reports suggest Hopper could be earning anywhere from 1% to 10% of the booking’s sales price.*

#2. Hopper Cloud (B2B)

In 2021, Hopper hopped into the B2B (business to business) side of things by releasing a B2B product called Hopper Cloud.

Hopper Cloud makes money by licensing out and or selling its proprietary travel fintech software to businesses so they can use it in their own travel business to help increase revenue. Some of their business clients include notable brands such as KAYAK, Trip.com, Capital One, and more.

These fintech products include tools like Price Prediction, Price Freeze, Price Drop Guarantee, Cancel for Any Reason, Flight Disruption Guarantee, and Travel Insurance.

Hopper Cloud Cost | Hopper Business Model | How Does Hopper Make Money? | How Does Hopper Work?
Source: Hopper

Hopper Subsidiaries, Acquisitions, and Exits

To date, Hopper, Inc. has made a total of 5 acquisitions.

* Mergers and acquisitions business model
Source: Crunchbase | Hopper

Hopper profit and revenue

Hopper has not released any official reports in regards to company earnings.

Note: Because Hopper, Inc. is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the Hopper business and revenue model?

Hopper makes money through a few revenue models that they combine within their company, they are:

  • Commission based business model
  • Licensing business model
  • B2B2C (partnerships) business model
  • Mergers & acquisitions (M&A) business model

Hopper funding and valuation

According to Hopper’s Crunchbase profile, Hopper has raised $633.7 million over 11 rounds and has a valuation of $5 billion as of February 2022.