Barcelona-based Caravelo has received a €3 million capital injection to fuel the growth of its flight subscription services.
The support, from Banco Sabadell via Sabadell Venture Capital and Inveready Venture Finance, brings the company’s total funding to €5.7 million.
Caravelo, which rebranded from Changeyourflight in 2015, offers subscription, revenue optimization and customer service automation solutions for the airline and travel industry.
Its partners include Mexico-based ultra-low-cost carrier Volaris and South African low-cost carrier Flysafair. In February of this year, Caravelo partnered with Alaska Airlines, making the airline the first major U.S. carrier to launch a flight subscription program.
Caravelo says revenue from its subscription solutions doubled in the first half of this year and is expecting a 4X growth by the end of 2022.
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“In the past year, the industry has finally woken up to the power of subscriptions, and we have seen a marked increase in the number of airlines that are working with us to build subscription programs,” says Caravelo CEO Iñaki Uriz.
“We are expecting to make new announcements before the end of the year, including the launch of a new type of subscription product by a large carrier in Latin America.”
Caravelo says its clients, including Volaris, which launched its V.Pass program with Caravelo in 2018, are seeing an uptick in adoption of subscriptions by travelers. Volaris recently reported a 95% increase in users year-on-year as well as revenue 105% above pre-COVID levels.
With the new funding, Caravelo plans to strengthen its competitive position, reduce the time to market for new programs and develop additional features.