Hopper Raises $175M at $3.5B+ Valuation - Travel & Fintech News

Hopper Secures $175 Million in Series G Funding

Hopper, a prominent travel technology firm, has announced the completion of a $175 million Series G funding round, the company revealed today. This investment closely mirrors the amount secured in a Series F round finalized earlier in the year.

Total Funding and Valuation

These represent fresh capital infusions, elevating the company’s total funding to approximately $600 million. Consequently, Hopper’s valuation now exceeds $3.5 billion.

Growth Driven by Travel Resurgence

This latest funding arrives as Hopper observes substantial growth, coinciding with the recovery of the travel sector following declines in COVID-19 cases in North America, spurred by widespread vaccination efforts.

Revenue Surge

Hopper projects a 330% increase in revenue compared to the previous year. This surge is understandable, considering 2020 marked the pandemic’s peak and a significant disruption to global travel.

More notably, Hopper’s revenue has already surpassed pre-pandemic levels by 100%, demonstrating the effectiveness of strategic adjustments and product prioritization undertaken during the crisis.

Impact of the Delta Variant

Concerns regarding the Delta variant and other COVID-19 strains, currently fueling a resurgence of the disease in North America, pose a potential threat to the travel industry’s recovery. Fred Lalonde, CEO and co-founder of Hopper, was questioned about Delta’s impact on the company’s operations.

“Currently, we haven’t observed any additional impact from the Delta variant on Hopper’s domestic bookings,” Lalonde stated. “Recent trends indicate increased domestic bookings and decreased international bookings, as travelers prefer to remain closer to home. Given that Hopper’s customer base largely consists of younger, leisure travelers, and domestic bookings have been dominant throughout the pandemic, our domestic bookings remain stable.”

Demand for Fintech Products

Despite potential shifts in booking patterns, Lalonde emphasized the growing demand for Hopper’s fintech products. These offerings are increasingly seen as a key differentiator, providing solutions for uncertainties like the impact of the Delta variant on travel plans.

Increased Demand for Flexible Booking Options

“We are witnessing heightened demand for our flexible booking products in recent weeks,” Lalonde explained. “Purchases of Hopper’s ‘Cancel for Any Reason’ option have risen by 33% since early July, ‘Change for Any Reason’ is up 9.3%, and the ‘Rebooking Guarantee’ has increased by 12% in the past month, as travelers seek greater flexibility and protection for their trips.”

These AI-driven tools provide safeguards against price fluctuations, simplified rebooking processes (even the day before travel), and assistance with missed connections across different airlines.

Image Credits: Hopper

Investment in Customer Support

Hopper intends to utilize the new funds to strengthen its operations, particularly by expanding its customer support team. The team has already grown by 200%, and new automated tools now resolve 60% of incoming requests “instantly.”

The company plans to hire 500 new employees soon, with 300 positions dedicated to customer service.

Acqui-Hiring Strategy

Hopper is also exploring acqui-hiring opportunities, targeting teams specializing in “travel, data science, or engineering-focused startups.” This strategy aims to introduce new product offerings and support international expansion.

Product and Global Expansion Plans

The company’s product roadmap includes the integration of home rentals onto the platform. Its global ambitions encompass expansion into Europe and Asia.

Partnerships and White-Labeling

In March, during its Series F funding round, Hopper announced the white-labeling of its booking products through Hopper Cloud, initiating a partnership with Capital One to launch a travel booking portal for its cardholders, scheduled for release later this year.

Subsequently, Hopper revealed a collaboration with Amadeus to extend its fintech products to various travel providers, including airlines and online travel agencies.

Adapting to a New Travel Landscape

COVID-19 presented unprecedented challenges across industries, with the travel sector experiencing particularly severe disruption. Hopper’s success in attracting substantial funding, including this latest round led by GPI Capital, underscores its adaptability and ability to create a new type of digital travel company that anticipates and capitalizes on market volatility.