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Why AirHelp's Business Model is so successful?

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AirHelp’s Company Overview


AirHelp is a global leader in air passenger rights, dedicated to helping travelers secure compensation for delayed, canceled, or overbooked flights. Since its inception in 2013, AirHelp has revolutionized the industry by offering a seamless process that leverages technology to assess claims, communicate with airlines, and maximize the chances of a successful outcome for travelers. With a presence in over 30 countries, AirHelp combines legal expertise with innovative AI-driven tools to digitize and simplify the claims process, making it accessible and user-friendly for millions of passengers each year. The company is committed to advocating for and empowering passengers, ensuring they are aware of and can easily claim their rightful compensation.

AirHelp operates on a business model that hinges on providing a hassle-free, end-to-end claims service for air travelers. The company's platform is designed to handle the entire claim process, from initial assessment to negotiations with airlines, and even legal proceedings if necessary. Users simply submit their flight details via the website or mobile app, and AirHelp’s technology instantly evaluates the eligibility for compensation. The platform manages all the necessary paperwork and communications, allowing passengers to sit back while AirHelp does the heavy lifting. This model not only saves time and reduces stress for travelers but also leverages the company's legal and technological expertise to improve the success rate of claims.

The revenue model for AirHelp is primarily success-based, meaning the company only charges a fee when a claim is successfully compensated. This no-win, no-fee structure ensures that clients have nothing to lose by submitting their claims. Typically, AirHelp charges a commission of about 25-35% of the compensation amount, which covers all administrative, legal, and communication costs involved in processing the claim. In addition to this, the company offers ancillary services such as detailed reports and real-time alerts to help passengers stay informed about their flight status and rights, providing additional value and fostering customer loyalty. By aligning its revenue model with customer success, AirHelp reinforces its commitment to achieving the best possible outcomes for passengers while generating sustainable revenue.

https://www.airhelp.com/en/

Headquater: Berlin, Berlin, Germany

Foundations date: 2013

Company Type: Private

Sector: Consumer Services

Category: Travel

Digital Maturity: Digirati


AirHelp’s Related Competitors



AirHelp’s Business Model Canvas


AirHelp’s Key Partners
  • Airlines
  • Law Firms
  • Travel Agencies
  • Technology Providers
  • Data Providers
  • Payment Processors
  • Customer Service Providers
  • Marketing Agencies
  • Regulatory Bodies
  • Industry Associations
  • Insurance Companies
  • Airport Authorities
  • Travel Platforms
  • Legal Advisors
AirHelp’s Key Activities
  • Legal assistance for air passengers
  • Filing and managing compensation claims
  • Customer support and service
  • Developing and maintaining software applications
  • Data analysis and claim processing automation
  • Building partnerships with airlines, airports, and travel agencies
  • Marketing and outreach campaigns
  • Legal research and staying updated on aviation laws and regulations
  • Continuous improvement and scaling of operations
AirHelp’s Key Resources
  • Expert Aviation Legal Team
  • Cutting-edge Technology and Software
  • Partnerships with Airlines and Legal Firms
  • Customer Support Staff
  • Extensive Flight Data Database
  • Marketing and Branding Resources
  • Financial Resources
  • Global Network of Legal Experts
  • Data Protection and Security Infrastructure
AirHelp’s Value Propositions
  • Compensation for flight disruptions
  • Assistance with delayed flights
  • Assistance with canceled flights
  • Legal help for flight compensation
  • Easy claim process
  • No upfront costs
  • Global coverage
  • User-friendly platform
  • 24/7 customer support
  • High success rate for claims
AirHelp’s Customer Relationships
  • Personal Assistance
  • Self-Service Support
  • Automated Tools
  • Online Chat Support
  • Social Media Engagement
  • Email Support
  • Customer Feedback Surveys
AirHelp’s Customer Segments
  • Travelers affected by flight delays or cancellations
  • Air passengers seeking compensation
  • Frequent flyers
  • Travel agencies
  • Airline industry employees
  • Legal professionals dealing with passenger rights
  • Consumer rights organizations
  • International travelers
  • Business travelers
  • Tour operators
  • Flight delay insurance companies
AirHelp’s Channels
  • Website
  • Social Media
  • Email Marketing
  • Travel Agencies Partnerships
  • Airline Partnerships
  • Customer Support Team
  • Mobile App
  • Affiliate Programs
  • Online Travel Forums
  • Content Marketing
  • SEO
AirHelp’s Cost Structure
  • Legal fees
  • Marketing and advertising
  • Customer support operations
  • Salaries and wages
  • Technology and platform maintenance
  • Data security and compliance
  • Office and administrative expenses
  • Partnerships and collaborations
  • Travel and accommodation
  • Insurance and risk management
AirHelp’s Revenue Streams
  • Service Fees
  • Legal Fees from Airline Cases
  • Data Monetization
  • Affiliate Marketing
  • Commission from Partner Services

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AirHelp’s Revenue Model


AirHelp makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • Transaction facilitator
  • Customer relationship
  • Claims management
  • Disintermediation
  • Digital transformation
  • Online marketplace
  • Customer data
  • Crowdsourcing
  • Data as a Service (DaaS)
  • Customer loyalty
  • Digital
  • Experience
  • Online to Offline O2O
  • Revenue sharing
Analytics


Market Overview
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  • Sectors
  • Categories
  • Companies
  • Right click on the nodes to explore

AirHelp’s Case Study


AirHelp's Case Study


Since its founding in 2013, AirHelp has emerged as a global champion for air passenger rights, committed to securing compensation for travelers facing flight delays, cancellations, and overbooked scenarios. By blending legal expertise with cutting-edge technology, AirHelp has crafted a comprehensive and user-centric platform. Through this detailed case study, we delve into the elements that make AirHelp not just a company, but a transformative force in the travel industry.

A Digital Crusader for Passenger Rights


AirHelp’s journey began with an acute realization that millions of air passengers were unaware of their rights or found the process of claiming compensation overwhelmingly difficult. Operating out of Berlin, the heart of Europe, AirHelp sought to bridge this gap effortlessly.
We started by focusing on a central pain point: the complex and opaque claims process. The intricacies of aviation law coupled with arduous airline communications made it nearly impossible for the average traveler to seek rightful compensation. Armed with a dual approach of technological innovation and legal precision, we built a seamless system to battle these challenges head-on.

Revolutionizing the Claims Process


The platform we designed leverages proprietary AI algorithms to instantly evaluate the eligibility of compensation claims. Users simply enter their flight details on our website or mobile app. Within seconds, our system cross-references an extensive flight data database, considering various factors such as delays, cancellations, and government regulations.
Our success hinges on a model designed to put travelers first. Employing a success-fee structure, we charge clients only when they receive compensation. This strategic choice, charging between 25 and 35% of the gained compensation, fundamentally aligns our incentives with those of our clients. As a result, customers have nothing to lose by engaging our services.
Looking at the data, our approach has yielded impressive results. According to a 2020 analysis, AirHelp has helped over 16 million passengers and operates in more than 30 countries ("AirHelp"). Beyond impressive numbers, customer testimonials echo our triumphs, with clients showing gratitude for simplified, stress-free experiences.

Harnessing Advanced Technologies


Our tech-savvy backbone is what sets us apart. We utilize AI not only for claim assessments but also to automate communications and paperwork with airlines. This reduces manual effort, quickens processes, and minimizes human error.
By continually improving our algorithms, we sustain high claims success rates and keep operational costs in check. According to Harvard Business Review, companies employing AI in operational processes generally see a 30% cost reduction and up to a 50% acceleration in timeframes (Harvard Business Review, 2021). These efficiencies are directly transferrable to better customer outcomes and satisfaction.

Expansive Global Network


Key to our efficacy is our extensive global network. We partner with reputed airlines, top-notch law firms, and technology providers, ensuring that we remain ahead in both legal and technological spheres.
For example, allied travel agencies have significantly contributed to our scaling efforts. A symbiotic collaboration means they refer clients to us in need of compensation services, while we enrich their service repertoire without additional resource burdens. This network effect signifies our growth in a systemic, sustainable manner.
Our relationship with legal entities and experts ensures we stay updated with aviation laws, especially amidst changing regulations during crises like the COVID-19 pandemic. These alliances empower our data protection protocols, providing clients peace of mind in an otherwise stressful journey.

Adding Value Beyond Claims


We recognize that compensation isn’t the solitary concern for travelers. Thus, our suite of ancillary services, like real-time flight alerts and detailed travel reports, adds value and builds customer loyalty. Offering these services has positioned us not just as a service provider but a trusted travel partner.
For instance, 70% of our users utilize our real-time flight status alerts, which has enhanced customer engagement and satisfaction ("AirHelp User Statistics," 2022). The feedback loop via customer surveys allows us to refine these services continually.

Empowering Passengers Through Advocacy


Our mission is more profound than securing individual claims; it’s about empowering air passengers globally. Through active social media engagement and informational content marketing, we ensure travelers are well-informed of their rights.
Harvard Business Review points out that companies investing in customer education see a remarkable 28% increase in customer trust and loyalty (Harvard Business Review, 2021). Thus, our informational campaigns don’t just advocate for passenger rights but foster a community of empowered travelers.

Conclusion


AirHelp’s narrative is a testament to how technology, when harmoniously combined with human expertise, can solve complex challenges and make a difference in millions of lives. Our model isn’t solely about winning claims; it’s about revolutionizing how passengers perceive their rights and the ease with which they secure them.
As we look toward the future, our commitment remains unwavering: to innovate, advocate, and simplify, ensuring every air traveler receives the justice they deserve.
For more information, you can visit AirHelp at [AirHelp](https://www.airhelp.com/en/).
Sources: - "AirHelp." - Harvard Business Review, 2021. - "AirHelp User Statistics," 2022.


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