International Airlines Group (IAG) has invested in US startup and seat auction platform SeatBoost.
The platform offers passengers the chance to bid for premium seating made available by airlines. The company claim it not only allows for customers to be engaged as they bid for premium upgrades, it also generates revenue on seating that would "otherwise spoil".
SeatBoost said the funding from IAG marks an important stage in its development.
"This collaboration not only supports our vision but also helps us accelerate our growth and innovation," said SeatBoost CEO Kevin Stamler. "Our aim is to enhance data-driven insights to create personalised experiences for travellers while maximising revenue for airlines."
The investment will enable the platform to build upon its current offerings as well as helping to establish additional solutions to streamline and improve the customer experience.
Stamler added: "The investment from IAG validates our business model and underscores the potential of SeatBoost and the positive impact we can achieve together in the travel industry."
SeatBoost's current partners include IAG brand Iberia, as well Avianca, Condor, LATAM, and TAP Air Portugal.
"Through innovation we can deliver better customer experiences, more efficient operations, more sustainable aviation and a better-performing business overall," said IAG vice president of innovation Raza Ali. "That's why we think the creative approach of SeatBoost to unlock meaningful revenue from new sources of demand is aligned with our view."
Several airlines give customers the option for customers to place a bid for a seat upgrade before departure, including IAG's own Aer Lingus. However, in these scenarios customers have to given approval by the airline. With SeatBoost, it 'gamifies' the process with customers competing to win that coveted seat upgrade.