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Costco Travel and Hawaiian Airlines Join In Intriguing New Pair-Up



In a move that could either redefine air travel booking for some Hawaii travelers or raise more questions about how airlines market to us, Costco Travel has teamed up with an Indian tech innovator based in Singapore to provide exclusive ” target=”_blank” rel=”noreferrer noopener”>Hawaiian Airlines “premium content” to the Costco Travel booking platform. This partnership is touted as a game-changer, but is it really poised to deliver on its promises?

According to the press release, this means better airfare deals when using Costco Travel and their ability to up-sell services, which they could not do adequately before.

Neither of these companies are ones that exemplify leadership in travel technology.

There is much good that can be said about these two companies. On the other hand, Costco Travel and Hawaiian Airlines don’t exactly have a stellar track record with technological innovation, making this new partnership’s ambitious claims a tough sell until proven otherwise. Read on for more on that.

Also, with the pending merger between Hawaiian and Alaska, we are unsure how Alaska Airlines feels about this latest tie-up, since they have a different program they use with overlapping capabilities, including handling both dynamic fare pricing and ancillary up-sales. That product is called Architect.

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A new era of Hawaii air travel booking, or just more of the same?

Mystifly’s Smart Selling Platform (SSP) claims to simplify the fragmented world of air travel booking by consolidating multiple sources into one seamless visitor experience. It employs AI and natural language processing to enhance data accuracy and automate post-booking services. While this sounds impressive, it’s worth questioning whether these technologies significantly improve existing systems.

Rajeev Kumar, founder, CEO, and managing director of Mystifly, touts SSP as a revolutionary solution. “SSP is the industry’s first cloud-based solution purpose-built for selling and servicing air at scale,” Kumar says. However, travel has seen many so-called revolutionary technologies that ultimately failed to deliver lasting value for consumers.

“Exclusive Hawaiian Airlines content” for Costco members – but at what cost?

The partnership promises exclusive access to Hawaiian Airlines’ content for Costco Travel members, better deals, including what they’re referring to as “Neighbor Island point-to-point flights,” as well as dynamically priced ancillary services (seat selection fees, baggage fees, trip insurance, and anything else Hawaiian could sell).

“While these offerings might appear attractive, they also raise questions. Are these “exclusive” options really beneficial to the average Hawaii visitor, or are they another marketing gimmick using the ploys of scarcity and urgency to create more bookings at higher cost?”

Beat of Hawaii Editors

Brent Overbeek, EVP & Chief Revenue Officer at Hawaiian Airlines, said, “This integration ensures our offerings are seamlessly available to Costco members, enhancing their overall travel experience.”

We’ll continue to scrutinize whether this integration genuinely enhances the experience to the benefit of Hawaii travelers or adds another layer of complexity for more ancillary sales.

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Are we solving industry challenges or adding new ones?

This is in part intended to make it easier for Costco Travel to offer a variety of Hawaiian Airlines flights and services, potentially providing more options and, we hope, better deals for travelers. However, as we’ve seen with technology, and especially in Hawaiian’s case with its still incomplete Amadeus reservation system, following a failed upgrade from their prior reservation system, the complexities of integrating new technologies can lead to unforeseen issues and costs, leaving us cautious.

The future of Hawaii travel innovation or just another tech gimmick?

Mystifly has a strong and impressive customer base, including big names in Hawaii travel like Priceline and American Express Leisure Travel. That suggests a level of credibility and success, as does their recent $8 million Pre-Series B funding round. The company is now under pressure to grow while delivering rapid, tangible results.

Mystifly’s other recent partnerships include Google Cloud, which enhances the performance and analytics of its AI-driven “personalized offers” and dynamic pricing​. Additionally, Mystifly’s partnership with Qantas Airlines significantly strengthens its position in the airline sector.

Costco Travel technology has long been lacking.

From the viewpoint of its customer interface and user experience, many, including us, see the Costco Travel experience as lagging behind, in spite of frequently good deals.

Some describe the website interface as rather outdated and not as user-friendly as other modern travel booking websites. Yesterday, when using Costco Travel, we were referred to their call center instead since not all options were available online. After experiencing long wait times, we ended up hanging up.

While there is no doubt that Costco Travel offers competitive deals that many of take advantage of, the choices available are often quite limited and thus don’t always reflect either the most diverse options or the best rates.

Despite the user-facing issues, Costco Travel is striving to enhance its technology, and this Mystifly tie-up is an example of that effort. However, the success of this integration in improving the Costco Travel user experience still awaits us.

In the end, will the Mystifly-Costco Travel-Hawaiian partnership deliver?

We are intrigued by this latest promise of exclusive Hawaiian Airlines content and a streamlined booking process. However, travelers and industry watchers are wise to remain skeptical.

Both Hawaiian and Costco Travel are latecomers in the endless catch-up game of travel technology. Only time will tell if this innovative tech pair-up will help these partners and live up to its media hype, or if it will become yet another overpromised and underdelivered solution in the Hawaii travel tech space.

Please share your thoughts!

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