How Much Does It Cost to Develop a Flight Booking App Like Kayak or Skyscanner?
Travel apps are becoming increasingly popular as travelers look for affordable and convenient ways to plan their trips. These apps help users find the best deals on flights, hotels, and other travel-related services. Skyscanner, Kayak, and Hopper are prime examples of successful travel apps. They offer a user-friendly and intuitive interface that makes it incredibly easy for users to find cost-effective solutions for their travel needs, compare prices, and access important information on the go.
If you are thinking about building a flight booking or similar travel app, it is important to understand the cost involved, its market potential, and the main features you will need to launch a successful app. In this article, we will cover the various aspects of building a travel app, from concept creation to development and monetization options.
How Do Skyscanner or Similar Flight Booking Apps Work?
Skyscanner and its alternatives function as travel search aggregators that assist travelers in searching for cheap flights, hotels, and car rental services all at one website rather than finding offers on several sites and comparing them manually. Users can simply input their travel information, and the platform will compare thousands of prices and show the best available options. Some aggregators allow direct bookings within the platform, while others don't. For instance, Skyscanner doesn't sell tickets, it just links you to the airline or travel company where you can book your journey, while Hopper allows direct booking through the platform.
Main Factors That Affect the Development Cost
When we talk about the cost of building a flight booking app like Kayak or Skyscanner, some of the factors that determine the cost of developing such type of software include:
Platform Choice
The development cost is directly impacted by the platform you select (Web, iOS, Android, or cross-platform) and the devices supported. Each platform has its own set of characteristics, development tech stack, and user base. You can opt to create a web or mobile app, but for flight booking apps like Skyscanner and accommodation and car rental apps like Booking or RentalCars, it is more common to develop both web and mobile apps. While each platform has its own unique interface, web, and mobile platforms typically share a common backend.
When speaking about mobile apps specifically, iOS and Android are the two main platforms on the market. Android has a larger user base, but developing for it can be more time-consuming and costly due to the need for testing on various devices. If budget is a concern, consider starting with a single platform (iOS or Android). It will save money but will also limit your reach. Another option to consider is cross-platform development. Tools like Flutter or React Native allow building an app that works on both iOS and Android using a single codebase. Cross-platform development can save time and cost, and while it may have some limitations in contrast to native development, experienced developers can help minimize any issues.
Development Approach
There are three main ways to find a development team: hire a full-time team, find freelancers, or outsource. The choice between these options depends on your budget, specific needs, and the level of responsibility required for your app development project.
Hire: You hire a team that works directly for your company. This option offers optimal control over the development process and simplifies communication, but it is the most expensive. You will have to pay additional costs for equipment and office rent and spend money on recruiting and managing the development team.
Freelance: You select specialists for a specific project. This option is suitable if you need flexibility and low cost. However, finding the perfect specialist with a suitable portfolio takes a lot of time and effort. In addition, managing several freelancers for different tasks can lead to communication and coordination issues. While freelancers have lower rates, this development approach will not provide the same level of security and compliance as others
on the list.
Outsource: You hire a dedicated software development company. Such agencies have access to a wide talent pool and offer a ready-made team of experienced specialists for your particular project. In such teams, all internal processes are already well-established to secure effective project management, planning, control, and communication. Moreover, outsourcing is a cost-effective option since you don't have to invest in infrastructure or incur the costs associated with maintaining an in-house team. In addition, this approach allows you to focus on your core business, leaving the technical aspects to the
experts.
Team Location
The location of your development team will also significantly affect the costs. The reason is obvious—the salaries of specialists, taxes, and standard of living can greatly vary by country. Regions with a high cost of living and corporate taxes, such as North America, Canada, or Australia, have higher developer rates, while popular outsourcing destinations like India offer more affordable rates. Eastern Europe and Latin America provide a perfect ratio between quality and cost.
Here is a detailed breakdown of costs in the major development hubs:
The USA and Western Europe are among the most expensive regions. Developers here earn $80-150 per hour, and a full-fledged application can cost $100,000 or more. High taxes, strict quality standards, and high salaries make development an elite service here.
Eastern Europe (Ukraine, Poland) offers a good value for money. An hour of work costs $30-80, and an application can cost $25,000-75,000. That's why foreign companies often choose this region.
India and Southeast Asia are the most budget-friendly options. The developer rate is $15-40 per hour, and the average development costs start from $10,000. However, it is important to consider the time difference, possible language barrier, and level of expertise.
Latin America (Argentina, Brazil) is the golden mean. Hourly rates here are $25-60, and the average project cost is $20,000-70,000. Proximity to the US, vast talent pool, skilled professionals, and problems in other markets make it one of the most preferable outsourcing destinations nowadays.
Functionality
While the functionality of some other types of software can significantly vary based on the app's complexity and include such advanced features as Augmented Reality or GPS navigation, most travel apps are quite similar in terms of the functions they provide. Their core function is to provide advanced search functionalities. This is why most flight booking sites like Skyscanner have easily integrated hotel bookings into their platform.
Still, such apps may also offer such functionalities as user registration and login, booking and payment systems, geolocation services, push notifications, personalized recommendations, etc. To differentiate your app from other alternatives, you can add unique features like exclusive deals or partnerships with travel services or innovative user engagement features like gamification. The more features and functionalities you decide to include, the more time and effort it will take to develop. The complexity of these features can also vary based on your specific requirements.
Most popular travel apps have the following main functions:
Here is the breakdown of each functionality starting from the most essential ones and proceeding to additional advanced features:
Flight and Hotel Search: In order users could search for flights and hotels based on their requirements and preferences, the app should integrate with popular online travel agencies (OTAs) and global distribution systems (GDS) APIs to pull real-time availability and pricing and display the best options.
Real-Time Price Comparison: The app can provide comparisons of flights and hotels booking options from different providers.
Multiple Language Support: Supporting different languages will expand your app's reach and increase your potential user base, which in turn will lead to higher conversion rates.
Real-Time Notifications: The app can send users push notifications or emails about price drops, new deals, and booking confirmations. Users should be able to customize these notifications, choose their preferred communication channels, or opt out of receiving them.
Booking Integration: Some platforms let users book directly within the app, while others redirect them to third-party sites like Expedia or airline websites. If you choose the direct booking approach, integrating with secure payment gateways like Stripe, PayPal, Apple Pay, or Google Pay is a must.
User Profiles: An app can offer the possibility to create a personalized profile with user’s preferences, saved searches, wish lists, and history. It will ensure better personalization, improve the overall user experience, and encourage users to continue using your app to plan future trips. Single sign-on (SSO) implementations allowing users to log in with Google, Facebook, or Apple instead of filling out long forms help streamline the booking process, making it more convenient and secure.
Personalized Recommendations: The app can analyze users' preferences, search history, and saved destinations to provide them with customized offers on flights, hotels, and vacation packages, which increases user engagement and retention.
Reviews and Ratings. Many people prefer to check reviews before booking a flight or hotel to check if the company is reliable and if there are cancellations or flight delays. That's why adding user reviews can make a big difference. Allow users to rate airlines, hotels, and travel agencies, leave reviews, and even upload photos from their trips. You can also aggregate reviews from platforms like TripAdvisor or Google Reviews to increase trust.
Offline Access to Bookings: Many users require viewing their itineraries, e-tickets, and boarding passes without an internet connection, and they will highly appreciate if your app will offer this possibility.
Loyalty Programs & Rewards: Adding loyalty programs to your app can keep users coming back. You can integrate with existing airline frequent flyer programs so users can collect miles automatically when booking flights. Another option is to create an in-app rewards system, where users earn points for every booking and use them for discounts or travel perks. Gamification elements, like "unlocking" exclusive deals after a certain number of bookings, can also keep users engaged.
Design Complexity
Design complexity also plays a role in determining the development cost. An attractive, user-friendly interface that delivers the best user experience is crucial to the success of your travel app. The more sophisticated and customized the app design, the more time and effort designers will require for its implementation.
When designing and developing your user interface, consider the following guidelines:
Consistent design: Using consistent design elements such as colors, fonts, and layout throughout your app will create a unified visual experience and help users navigate your app easily.
Intuitive navigation: Make sure that your app navigation is simple and logical. Users should be able to find the information they need and perform actions with minimal effort. Avoid cluttering your UI with unnecessary elements and prioritize core features and functionality.
Responsive design: Make sure that your app is responsive to different screen sizes and devices.
Animations and transitions: Using animations and transitions helps improve the user experience and make your app more engaging.
Accessibility: Design your app with accessibility in mind. Consider including text-to-speech features, large text options, and high-contrast color schemes to accommodate users with disabilities.
Localization: The ability to adjust the language, content, and design of your app based on the cultural expectations and preferences of users in a given country can increase your app's appeal to a diverse audience and maximize its potential reach.
Backend Infrastructure and Integrations
Most travel apps require a backend infrastructure to handle communication between the app (client) and the servers that store and process data. The backend manages user data, processes searches, integrates with third-party APIs for flight and hotel availability, handles payments, and ensures security. Since your app doesn’t own flights or hotels, most functionalities of Skyscanner-type apps rely heavily on integrations with Global Distribution Systems (GDS) and Online Travel Agencies (OTA) to fetch real-time data. Some examples of GDS APIs include Amadeus API, Sabre API, and Travelport API for real-time flight, hotel, and car rental data, while OTA APIs like Skyscanner API and Expedia API are used for fetching additional travel services.
Beyond flight and hotel data, there are other ready-made integrations for such functionalities as payment gateways using Stripe, PayPal, Apple Pay, or Google Pay, push notifications using Firebase Cloud Messaging, geolocation, and mapping using Google Maps API or user reviews using Google Reviews API. Implementing such integrations may also require subscribing to a service that incurs additional costs.
When estimating backend development costs, it is necessary to consider the complexity of API integrations and the number of services required, API provider costs (some require subscriptions or usage fees), and the need for data synchronization to ensure up-to-date, real-time information. The more APIs you decide to integrate, the higher the development costs will be. However, partnering with airlines, hotels, car rental services, and industry blogs can significantly increase visibility of your platform and attract more users.
You may also need an admin panel for your app to manage content, user permissions, payments, and notifications. For the basic administration panel, you can opt for ready-made solutions as it will help reduce development costs. However, for advanced needs, it will be necessary to build a custom admin panel from scratch, which will obviously contribute to the overall development cost.
App Maintenance Costs
Many businesses focus on development costs but forget about long-term expenses. Software isn't a one-time set it and forget it solution, it requires maintenance and updates to ensure its optimal performance, security, and user satisfaction. As your app’s user base expands, their needs evolve, and the market changes, post-launch support is critical to the long-term success of your app. Continuously improving your app by adding valuable features will encourage users to stay on your platform and also attract new customers. Annual maintenance costs are typically 15-20% of the initial development cost.
You shouldn't forget about marketing expenses either. Your marketing strategies should include app store optimization (ASO), social media campaigns, influencer partnerships, and content marketing. Thoughtful marketing campaigns will help grow your user base, increase conversions, and establish trust with travelers.
So, How Much Does Travel App Development Cost?
The cost of developing a travel app ranges between $40,000 for basic apps to $200,000 and more for apps with advanced functionalities. The more features and functions you want to include, the more development time and cost will be involved.
Based on the app scope:
You can expect to pay about $40,000 to $70,000 for a basic MVP app with limited features.
The price range for a full-featured app comparable to Skyscanner or Kayak will go up to $70,000 - $150,000. A full-fledged flight booking app should be able to handle millions of searches daily. Advanced technologies like load balancing, caching (Redis, Memcached), and cloud auto-scaling are required to maintain high performance.
For an enterprise-level app that requires custom development & machine learning for advanced AI price prediction, advanced analytics, personalization, data analytics, syncing with airline miles & promotions, etc., the price tag can go up even higher and reach $200,000+.
Here is the breakdown of approximate development cost:
UI/UX design
The design of your website or app makes up a significant portion of the total cost. Basic design focuses on functionality and usability, while custom design provides a unique, branded user experience. Basic design is estimated at $1,000 - $5,000, and custom design is estimated at $5,000 to $20,000.
Frontend & Backend Development (for one platform)
The cost of developing the frontend and backend of the app that covers basic functionality such as search, filtering, user accounts, and secure payments will amount to $30,000 - $60,000. It is the backbone of any travel app that focuses on providing users a seamless search and booking experience.
Advanced features implementation costs:
Price Alerts and Notifications: $5,000 - $15,000
Booking and Payment Integration: $10,000 - $25,000
AI Chatbot and Customer Support: $7,000 - $15,000
User Profiles and Preferences: $5,000 - $10,000
Reviews and Ratings: $3,000 - $7,000
Multi-language and Multi-currency Support: $5,000 - $12,000.
Frontend Development (for additional platform)
Developing a frontend for an additional platform sharing a common backend (e.g., Android after iOS or a web version) will cost about $10,000 - $20,000.
Testing and QA
Testing and QA are required to ensure the app is bug-free, secure, and performs well under load. The complexity of the app will determine how much QA is needed, but it is usually within the range of $10,000 to $20,000. Additionally, security measures like data encryption and vulnerability assessments can add to costs.
SEO and Marketing
Investing in marketing and SEO is crucial for helping users find your platform and improve your visibility. Be ready to spend $2,000 - $10,000/month on promotion efforts like app store optimization (ASO), SEO for a web version, or paid ads and influencer marketing.
Maintenance & Support
Ongoing maintenance is necessary to ensure that your app remains up-to-date, secure, and free of bugs. Regular support is also essential to help users with issues or questions. It amounts to 15-20% of the initial development costs per year.
Cloud Hosting
Hosting is the server space required to store your app’s files and data. For a high-traffic travel app handling millions of searches daily, cloud hosting costs (compute, bandwidth, load balancing, caching) typically range from $500 - $3,000/month.
Third-Party APIs
While setting up the APIs that power your app’s features are made during development, it does not include the costs of using third-party APIs, which are a separate expense you’ll encounter once the app goes live. Some APIs require monthly subscriptions, while others charge per request or transaction. For instance, APIs like Amadeus or Travelport charge based on usage (e.g., per API call). Costs could range from $500/month for low usage to thousands for high-traffic apps. Firebase Cloud Messaging (FCM) and Google Maps API offer free usage limits, but usage beyond this incurs charges based on request volume. When planning your app's development budget, it's crucial to account for these API-related expenses, as they can significantly impact overall costs.
What Are Monetization Strategies for a Travel App Like Skyscanner?
Searching and selecting flight or other travel services using apps such as Skyscanner usually costs nothing for users. Such apps rely on different strategies to receive revenue, and here are the main of them:
Affiliate Model: As a travel aggregator, you can earn a commission on every booking made through your app. It falls under the affiliate model, when users book through your app using affiliate links and you receive a percentage-based commission. It is a major revenue stream for metasearch engines like Skyscanner.
Advertising model: You can monetize your app by displaying ads from hotels, airlines, and travel companies, and revenue is generated whenever a user clicks on an ad (Pay-per-click). Allowing other websites to utilize the ad space on your webpage or app is another way to monetize your application. Check more on this model here.
Social Media Campaigns or Promotions: You can collaborate with other players in the travel industry, like travel agencies, airlines, and tour operators, to offer your users exclusive deals and promotions and earn money from such promotions on social media. Some platforms also partner with influencers to drive traffic and increase bookings.
Commission Fees: You can charge hotels and travel agencies extra fees to feature their listings at the top of search results.
Final Thoughts
Developing and launching a budget travel app like Hopper or Skyscanner may seem complex, but with the right planning, execution, and post-launch support, success is quite achievable. While travel app development can involve significant costs, start with a Minimum Viable Product (MVP) that includes essential features, allowing you to validate your idea and gather user feedback. Opt for cross-platform development to save time and costs by using a single codebase for multiple platforms. Outsourcing development to an experienced team can further effectively reduce development costs while still ensuring high-quality execution of your travel app idea.
