AI-Powered Post-Flight Solution Seduces Investors, Aims to Transform Customer Experience
While airlines dedicate up to 56% of their budget to loyalty programs that are often exclusive, startup Arcube, founded by two 20-year-old entrepreneurs, announces a $1.5 million funding round. This round, co-led by 216 Capital, Fuel Ventures, and Oxford Capital Partners, with the participation of the CEO of Pegasus Airlines, aims to accelerate the deployment of its B2B platform revolutionizing the management of ancillary services through artificial intelligence.
Facing a 54% drop in ticket prices since 2013, airlines are betting on ancillary revenue. However, traditional loyalty programs only benefit 5% of frequent travelers. Arcube, the world's first "post-flight" solution, uses AI to analyze hundreds of data points and offer personalized offers, turning irritants into opportunities. For example, offering priority access to security checks in exchange for loyalty points to a passenger with a connecting flight in a busy airport.
Conclusive Results with Etihad Airways
Born in 2022 from the ambition of Prithveesh Reddy and Harvey Lowe, then students at the University of Manchester, Arcube convinced Etihad Airways in its first year. In two years, the startup generated $1.6 million in additional revenue for the airline, increased average customer spending by 10.3%, and improved customer satisfaction.
With 14 airlines in discussion, Arcube is now targeting the travel ecosystem (car rentals, cruises, hotels). "Their solution has potential far beyond the airline sector," explains Dhekra Khelifi, Partner at 216 Capital, highlighting the strategic importance of Tunisia as a springboard to the growing African tourism market.
