At just 18 years old, Harvey Lowe and Prithveesh Reddy took a bold step—sending a cold pitch email to Etihad Airways with an idea that could revolutionize airline loyalty programs. What started as a simple email turned into a game-changing partnership, leading to $1.6 million in extra revenue for the airline.
Now, at 21 years old, they have raised $1.5 million in funding and are set to transform the travel industry with their startup, Arcube.
Why Are Airline Loyalty Programs Failing?
Airline loyalty programs promise exclusive perks, but in reality, they are hard to access for most travelers. Research showed that only 5% of flyers actually benefit from these programs, as they require frequent travel to unlock even basic rewards.
Instead of generating true loyalty, these programs often lead travelers to price comparison sites, where they simply book the cheapest available flight without considering airline loyalty.
How Did Arcube Identify the Gap in the Market?
Lowe and Reddy, both frequent flyers while studying at the University of Manchester, recognized this flaw. Airlines were failing to build true customer loyalty because their rewards were out of reach for casual travelers.
Their research found two key insights:
- Airlines weren’t engaging with passengers after their flights, missing out on opportunities to build long-term loyalty.
- Post-flight upselling of ancillaries (like seat upgrades, WiFi, or priority boarding) was nonexistent, despite its potential to enhance customer satisfaction and revenue.
This insight led to the birth of Arcube, the world’s first AI-driven post-flight loyalty solution that replaces ineffective points-based rewards with personalized offers based on each traveler’s journey.
How Did Arcube Secure Etihad Airways as Their First Client?
With no prior connections in the airline industry, the duo decided to cold-email Etihad Airways’ London office in January 2022—a move that would change everything.
Surprisingly, Etihad responded within days, showing immediate interest. After negotiations, Arcube sealed the deal in June 2022, launching their AI-powered post-flight engagement platform.
What Were the Results of Arcube’s Partnership with Etihad?
The impact of Arcube’s solution was remarkable:
- 1,300 Etihad passengers customized their travel experience through Arcube’s platform.
- $1.6 million in additional airline revenue was generated.
- Customer spending increased by 10.3%, proving the effectiveness of post-flight engagement.
These results validated Arcube’s concept, catching the attention of investors eager to support its expansion.
How Did Arcube Raise $1.5M in Funding?
The success with Etihad helped Arcube secure $1.5 million in seed funding in February 2025, co-led by:
- Fuel Ventures
- Oxford Capital Partners
- The Chairman of Pegasus Airlines
This funding is being used to enhance Arcube’s technology and expand into new markets, with 14 airlines currently in talks to adopt their platform.
What’s Next for Arcube and the Future of Travel Loyalty?
Arcube is not stopping with airlines—their vision extends to all travel industries, including:
- Car rental companies
- Cruise lines
- Hotels
By replacing outdated points-based systems with customized, AI-driven perks, Arcube aims to democratize travel rewards so that more than just the top 5% of travelers benefit.
FAQs
How did Arcube’s co-founders start their entrepreneurial journey?
Both co-founders had prior business experience as teenagers, selling their first companies before meeting at the University of Manchester.
What problem is Arcube solving in the airline industry?
Traditional airline loyalty programs are ineffective for most travelers. Arcube replaces points-based rewards with AI-driven post-flight offers, increasing customer loyalty and airline revenue.
Why did Etihad Airways partner with Arcube?
Etihad saw the value in Arcube’s AI-powered platform, which helps airlines engage passengers post-flight and boost revenue through tailored ancillaries.
How much funding has Arcube raised?
Arcube secured $1.5 million in seed funding in February 2025, backed by major investors including Fuel Ventures and Oxford Capital Partners.
What results did Arcube achieve with Etihad?
The platform helped 1,300 passengers personalize their travel experience, generating $1.6 million in extra revenue and increasing average customer spending by 10.3%.
What industries can Arcube’s technology be applied to?
Beyond airlines, Arcube aims to transform loyalty programs in car rentals, hotels, and cruise lines by making rewards more accessible.
What is Arcube’s next step?
With funding in place, Arcube is expanding its reach, currently in talks with 14 airlines and preparing for global rollout.
How does Arcube use AI to enhance travel loyalty?
Arcube’s AI analyzes hundreds of data points (such as previous purchases, travel history, and onboard preferences) to offer personalized post-flight perks, replacing traditional loyalty points.
Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.
