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Two pivotal flights altered the course of entrepreneur Aktarer Zaman‘s life. The first occurred when he was just five, as his family emigrated from Bangladesh to the United States, providing them with newfound opportunities. “That experience opened my eyes to the significance of travel accessibility,” Zaman shared with Entrepreneur. The second milestone came at 20, during his tenure at Amazon, when he discovered that flights to Seattle with layovers in San Francisco could be significantly cheaper.
This insight sparked the idea behind Skiplagged, a travel platform that capitalizes on “hidden city tickets.” This method involves purchasing a ticket where the layover is the actual intended destination, allowing travelers to forgo the second leg of their journey.
Skiplagged has garnered attention from both travelers and airlines, facilitating over a million bookings annually. However, the platform has also faced legal challenges from major carriers like United Airlines and American Airlines, which argue that Skiplagged’s operations violate their terms of service.
Despite the legal challenges, Zaman remains steadfast in his mission. In an interview, he shared his perspective on testing innovative ideas, navigating legal hurdles, and developing solutions that cater specifically to consumer needs.
Can you summarize your business and your background?
Skiplagged helps travelers find the best deals on flights, hotels, and rental cars, including options often overlooked by other services. Airlines establish prices based not only on distance but also on maximizing profits in each market. While we offer various hacks to secure the best deals, we’re particularly recognized for exposing layovers at the intended final destinations, frequently resulting in significant cost savings. These “hidden city tickets,” or “skiplagging,” enable travelers to save an average of 47%, equivalent to about $180. Many of these savings emerge as flights swell in price closer to their departure dates—over half of the flights booked through Skiplagged occur within a week of travel. Our platform generates over $1 billion in annual ticket sales for airlines.
What exactly is skiplagging?
Skiplagging entails finding a flight with a layover in your desired destination that is cheaper than a direct flight, and opting not to take the second leg. Our users benefit from average savings of 47% thanks to our extensive visibility into pricing options. This concept has existed for decades; however, I was the first to create a user-friendly platform that reveals diverse options spanning various dates and airports. Importantly, skiplagging is legal, and the risks associated with it are minimal; in fact, 99.8% of our users fly without any complications.
Related: How to Successfully Disrupt Your Industry in 6 Steps
What advice would you offer to entrepreneurs seeking to disrupt their respective industries?
Always prioritize the customer. This entails identifying market inefficiencies and being willing to bring forth solutions that may not be immediately lucrative. Look for inconsistencies in existing solutions. Additionally, ensure that your approach can adapt over time; for instance, the algorithm powering Skiplagged is designed to analyze data in real-time, allowing it to track changes in airline flight schedules.
A crucial aspect of industry disruption is developing a solution that, while potentially unpopular with larger players, serves the interests of the consumer. Seek out concepts that resonate positively on social media and forums like Reddit. Our user base has primarily grown through word of mouth, as many view our service as an advantageous “insider secret” that they are eager to share.
How do you protect your business from litigation by industry giants?
It is virtually impossible to shield yourself from legal challenges; this often accompanies the territory of innovative ideas. The key is to establish a company grounded in principles you stand behind. Skiplagged didn’t create the loophole; it simply developed a tool that helps users uncover hidden-city tickets utilizing publicly available airfare information. The inherent pricing structures of airlines create gaps that we highlight without directly infringing on their contracts.
Can you elaborate on your recent court case with American Airlines?
We recently concluded a significant trial where American Airlines attempted to prevent Skiplagged from publishing hidden city fares—and they were unsuccessful. Conventional wisdom might suggest backing down when facing such a large entity, but I was confident no rules were being violated and that we exist to benefit consumers. Notably, one of American’s claims was centered on the idea of unfair competition, but they retracted this allegation just prior to trial. Ultimately, out of four claims made by them, Skiplagged was not found liable for three. The fourth involved copyright infringement regarding the display of the American Airlines logo on our platform to help users identify relevant flights. However, we remain able to reference American Airlines in our listings.
What should someone do if they have a brilliant tech concept, but lack the technical skills to implement it?
For those seeking assistance with the technical aspect of their idea, it is essential to find someone who enjoys analyzing data and discovering patterns. While you may not grasp every technical term, look for individuals who share your passion for solving challenges and elevating lives through technology. My journey began at 20, and now at 32, Skiplagged is successful and attracts over a million users yearly. Yet, my primary motivation remains coding and scaling the platform—each positive feedback from our users drives my enthusiasm further.
Related: What Is the Best Airline in the World? New Rankings.
How can one effectively test an idea prior to committing time and resources?
To avoid unnecessary time investments, explore other industries where your idea has fallen short, as this can help disprove your hypothesis. In my case, I searched for parallels in other sectors regarding mandatory participation in both legs of a flight, but no other industry had such restrictions. For instance, when purchasing a bag of chips, you’re free to enjoy only part of it, and with hotel bookings, you’re allowed to check out early. If you are presenting more options than your competitors, delve into why they refrain from doing so. Are you prepared to forgo some profit for greater transparency? Are you scrutinizing competitors or prioritizing consumer needs? Continuously align with the consumer’s interests for both the short and long term. Growing up, I recognized that embracing risks is essential for achieving meaningful goals; I viewed these risks simply as unexplored opportunities.
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