Fetcherr, a platform built on AI algorithms to optimize prices for airfare, has announced its latest funding round of $12.5 million led by Left Lane Capital. Bringing Fetcherr’s total raised to $31 million across equity and debt, this funding is set to be used for market expansion, business development and growing its U.S. presence.
The brains behind the idea is co-founder and CEO Roy Cohen, who comes from the e-commerce industry. With a vision to utilize AI to its full potential, Cohen sought to tackle the airline industry’s perspective of relying too heavily on legacy technologies and decrepit infrastructures. Fetcherr’s aim is to simulate airline customers air travel, as well as provide pricing recommendations using AI-trained algorithms based on years of booking, flights, availabilities, fares, events, weather and more. Azul Airlines is among one of the company’s customers.
However, dynamic pricing and algorithmic pricing have been met with some contempt from the public due to its unpredictable nature. John Thornhill from the Financial Times has even cited a problem of ‘implicit collusion’ and suggests that companies with sophisticated pricing models appear to be ‘matching price cuts’, effecting consumer choice. Fetcherr is aiming to take a different approach to this kind of pricing, by also offering a ‘zero-risk onboarding’ that does not interfere with a carrier’s IT infrastructure, thus potentially affecting price manipulation.
The company, which is based in Tel Aviv, is set to disrupt traditional and rule-based revenue systems through deep learning methodologies. By providing an user-centric customizable dashboard, Fetcherr could save manpower by updating prices across channels and predicting demand in any kind of situation.
CEO Roy Cohen, an influential figure in the air travel industry, has ambitions to revolutionize the way airlines deals with these issues. His forward-thinking roots were enforced while he was doing his Master in Business Administration in 2009. He has since been working with both well-known and upcoming travel companies, specializing in analytics, AI and customer insights. Cohen is passionate about implementing new hospitality technologies, and as such has pursued his dream with Fetcherr.
The interesting case of AI-powered airfare pricing is likely to come under scrutiny as more businesses look to emulate its success. With a focus on technological advancement, Fetcherr stands a promising chance of achieving its goals.
