Predicting Airfare Is a $750 Million Business
- Funding round led by Ontario pension fund totals $100 million
- Startup says its predictions are 95 percent accurate
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Trying to predict the price of plane tickets has become something of a parlor game for companies looking to stand out in the online travel business. Microsoft Corp. gave it a shot with Bing Travel before abandoning the feature several years ago. Kayak offers its own buying advice tool, with a warning that draws comparisons to the reliability of a weather forecast.
Today’s emerging contestant in airfare prognostication is Hopper Inc. The travel-booking startup said its predictions are 95 percent accurate. Travelers -- and investors -- are buying in. A new investment values the business at about $750 million, said a person familiar with the transaction, who asked not to be identified because the terms are private.