Thursday 28 January 2016

SAETEROO, swap your neigbour for better horizons

What if you realize that on your way to your honeymoon your airline did not allocated you a seat next to your recently married husband?  
SAETEROO, an app launched earlier this month may have a solution for you! 

Seateroo interface, the future of swapping flight neighbor is in your hands - Official website

How does it work?

SEATEROO is an app, free of charge. It aimed at connecting 2 types of passengers on the same flight: the buyers who want to change their seats after boarding because they are not satisfied with its localization, and the sellers, who are willing to accept to change their seat in exchange for money.
Basically, by creating a marketplace, sort of a stock exchange of flight seats, SEATEROO will allow passengers in the same flights to swap their seats. Sellers will offer their seats, from the same category (Premium, Economy…) in the marketplace at a certain rate they will set with a minimum of $5. Buyers will check the different seats available and be able to change their seats for a fee to the buyer. Eventually, the app will take a 15% commission on the transaction from the seller.
This app is useful when “preferred seat” option is not available at booking, but also when having a bad surprised seat: close to toilets, loud neighbor, kids or simply to have a window seat instead of aisle. Seataroo can really have a success to people with superstitious mind who want badly their preferred seat.

What does it mean for the industry?

Airlines should be careful about the recently born app. This innovative app can threaten one of the main pilar of airlines business model: the extra fees for seat allocation when flyers register online. It also shows that the parallel economy and peer to peer transactions can be really dangerous for inflexible business model. The airline industry is seen as one of the industry that exaggerates the most when it comes to the price to quality ratio. So it is not surprising that such innovation loom. People want the best for their money, and they are really creative  when it comes to this.

Any limitation?

There is a doubt about the strength of the business model to survive because it means that there will be a lot of passengers knowing the app, using it and also that they will be willing to change their seat for one which is supposed to be less comfortable in terms of environment. If there are not enough operators in the market, the marketplace will die.
One important limitation is also that it means that flyers  have a WIFI access onboard. Not every company provides it. It restricts the use of the app to the period before landing and before mobile devices have to be turned on flight mode. The weakness of this innovation relies partly on the evolution of the service provided by airlines companies on their flights.
Moreover, seats allocation at first exists because in cash of crash, identification of people is easier, for meal allocation or medical purpose as well, having a designated seat is easier to control and faster to get access to the person in case of emergency. This app could create security issue and post-emergency problems for identification. But also, change can be prohibited because if there is still some seats available on premium class, they probably won’t let people swap from economy to premium through the app, but ask for a fee to change in class.  
They expect people to mostly use it during long-haul flight for an average exchange of $34, which is only 10 more than short-haul flight average price swap, not sure if it’s attractive enough to convince passengers to prefer it to the traditional solution.
Finally, it seems important to note that social interaction to just swap seat by asking the other person will be reduced to the minimum and money exchange will take the lead over courtesy.

 Your favorite journalists, Marly and Emilie


Sources: 

http://www.tourhebdo.com/actualites/detail/90977/seateroo-l-appli-qui-va-agacer-les-compagnies-aeriennes.html
http://www.dailymail.co.uk/travel/travel_news/article-3362316/Forget-stuck-row-plane-new-app-allows-pay-swap-SEATS-passengers.html
http://seateroo.com/

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