Skift Take
This startup has the JetBlue Tech Ventures seal of approval, which means something in the travel space. But we're not sure why consumers would rather receive a gift card for airplane hours, than a gift card worth cash.
Many retailers this time of year prepare for the festive season, shipping gift cards to consumers who may, or may not, redeem them. It's big business — worth well over $100 billion annually, one study reports — but not a major emphasis for most airlines.
Many do offer gift cards. But they're not major players, and according to data from Wallet Hub, only one U.S. carrier — American Airlines — offers one of the 50 most popular cards among U.S. consumers, at No. 47, behind such brands such as Red Lobster, T.J. Maxx and Old Navy. Amazon is the market leader, the study reports, with Visa, Wal-Mart and American Express not far behind.
One start-up, however, wants to change that. It's called Skyhour, and it works differently than the typical gift card. Rather than being worth a set cash amount at one retailer, Skyhour's credits defray a set number of flight hours for the recipient. Each flight hour costs $60 and can be used on more than 350 airlines worldwide.
Skyhour borrows its model from the private jet industry, which charges by the hour (usually thousands of dollars), rather than by flight.
