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Skiplagged
Skiplagged
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Skiplagged.com is an online travel agency and metasearch engine for booking flights and hotels. It popularized the tactic of hidden city ticketing,[1][2] also known as skiplagging.

Key Information

History

[edit]

The website was started by Aktarer Zaman in 2013, when he was 20 years old.[3][4]

In November 2014, United Airlines and Orbitz filed a civil lawsuit for $75,000 in lost revenue, claiming that the website violated fare rules.[5] The Orbitz lawsuit was settled out of court, in which Skiplagged agreed not to redirect traffic to Orbitz sites or use Orbitz branding.[6] The United lawsuit was dismissed by the courts on procedural grounds.[7] United did not pursue further legal action.[8] Donors contributed for legal expenses via GoFundMe.[9]

In 2021, Southwest Airlines sued Skiplagged for displaying the airline's fares.[10] The lawsuit was settled out of court.[11]

In 2023, Skiplagged was sued by American Airlines.[12] In August 2024, a district court judge in Texas ruled that Skiplagged had not breached contract, but had violated American's copyrights.[13]

See also

[edit]

References

[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Skiplagged

View on Grokipedia
from Grokipedia
Skiplagged is an American online and flight founded in 2013 by Aktarer Zaman, specializing in hidden-city ticketing—also known as skiplagging—to uncover cheaper airfares by suggesting itineraries where passengers disembark at a layover destination rather than completing the full journey to the ticketed endpoint. The platform aggregates flight and options from various vendors, charging service fees of $0 to $35 per booking or earning commissions, and claims to help users save an average of $180 per flight, or up to 47% on fares, with over 298,000 users saving $53.6 million in the past year as of late 2024. It also offers a mobile app for and Android, featuring exclusive deals and tools like the Skiplagged Guarantee, which provides automatic protection for flight disruptions at no extra cost. The hidden-city strategy exploits pricing discrepancies in airline fare structures, where nonstop or direct flights to a destination can cost more than multi-leg routes extending beyond it; for example, a flight from New York to Orlando via might be cheaper than a direct New York-to-Orlando ticket, allowing the traveler to exit in and skip the final leg to Orlando. While not illegal, this practice violates most airlines' , potentially leading to consequences like cancellation of return flights, forfeiture of frequent flyer miles, or lifetime bans if detected—though Skiplagged reports a 99.7% success rate and rare enforcement as of 2024. Zaman, who immigrated from to the U.S. as a child and developed the site after working at Amazon, has positioned Skiplagged as an empowerment tool for budget-conscious travelers, particularly younger demographics like Gen Z and facing economic pressures, with over 12 million visitors in the past year as of late 2024. Skiplagged has faced significant backlash from the airline industry, which argues the tactic disrupts revenue models, leaves empty seats on later legs, and complicates operations like baggage handling. Major carriers including , , and Southwest have pursued lawsuits against the company; a federal jury awarded American a $9.4 million judgment in October 2024 for and related to displaying fares without permission, a ruling upheld by a federal judge in May 2025, though Skiplagged continues operations. Earlier suits, such as United's in 2015 (dismissed) and Southwest's in 2021 (settled), underscore the ongoing legal tensions, yet the platform's popularity persists, with 25,000 monthly skiplag bookings and top destinations including , , New York, , and . Despite these challenges, Skiplagged generates over $20 million annually and emphasizes user education on risks, such as booking one-way tickets, avoiding checked luggage, and limiting use with any single airline to evade detection.

History

Founding

Skiplagged was founded by Aktarer Zaman, a graduate who immigrated from to the at the age of five. Zaman, then 20 years old, developed the platform while working at Amazon, where he became aware of significant inefficiencies in airline pricing structures, particularly how fares for multi-leg itineraries often undercut direct flights to intermediate destinations. His early interest in hacks stemmed from personal experiences with cheaper routes, inspiring him to create a tool that would democratize access to such savings for everyday travelers. Zaman launched Skiplagged in 2013 as a website designed to uncover "hidden city" flight deals by exploiting pricing loopholes in publicly available data. Initially developed as a simple , the site focused on transparency by displaying cheaper options that airlines typically obscured, without offering direct booking capabilities—users were directed to purchase tickets through the airlines themselves. This approach automated the discovery of pricing anomalies, allowing consumers to compare and select itineraries where the city served as the effective destination, often saving up to 80% on fares. Prior to Skiplagged, Zaman had earned a bachelor's degree in from at age 20, building a foundation in that enabled him to construct the platform's efficient search algorithms. As a 22-year-old entrepreneur by late 2014, he positioned the site as a consumer advocacy tool against opaque practices, emphasizing its role in promoting fairer access to affordable .

Growth and early challenges

Following its launch in late 2013, Skiplagged experienced rapid growth in user adoption during 2014 and 2015, driven by media coverage that highlighted its algorithm for uncovering cheaper fares through hidden-city ticketing opportunities. Publications such as Bloomberg and Lifehacker spotlighted the site's innovative approach to exposing pricing inefficiencies in airline tickets, attracting a growing audience of budget-conscious travelers seeking savings of up to 80% on flights. This publicity helped popularize the practice among everyday users, transforming it from an insider tactic used by frequent fliers to a mainstream hack. In 2014, Skiplagged expanded its functionality by integrating affiliate partnerships with online travel agencies (OTAs) like and airlines, allowing users to flights directly through links on the platform rather than manually searching external sites. This shift enhanced user convenience and supported the site's growth by streamlining the path from fare discovery to purchase, though bookings remained facilitated via third-party partners. Early revenue primarily came from commissions earned on these affiliate redirects, supplemented by , as the company navigated limited direct monetization options in its nascent stage. The platform's expansion faced significant early challenges from the travel industry, most notably a lawsuit filed in November 2014 by and against Skiplagged and its founder, Aktarer Zaman. The suit alleged unfair competition, , and intentional interference with contracts, claiming the site induced users to violate policies and cost and United an estimated $75,000 in lost revenue. settled its claims out of court in February 2015, agreeing to remove itself from the litigation, while United's case was dismissed in May 2015 by a Chicago federal judge due to lack of over Zaman, who resided in New York. These legal hurdles underscored the industry's resistance to Skiplagged's model, straining resources and highlighting ongoing tensions over revenue impacts from hidden-city strategies.

Recent developments

In the early 2020s, Skiplagged enhanced its accessibility through its mobile application, available on and Android, which allows users to conduct flight searches, book hidden-city itineraries, and receive real-time alerts for price drops directly from their devices. This development supported the platform's growing emphasis on user convenience amid increasing demand for affordable travel options during post-pandemic recovery. In 2018, Skiplagged diversified its offerings beyond by launching a rewards program that enables users to earn up to $25 in travel credits per booking for future flights or , including through referrals, and introducing hotel bookings through "Stays" featuring exclusive discounts on accommodations. These expansions aimed to create a more comprehensive travel ecosystem, reducing reliance on flight bookings alone and appealing to budget-conscious users seeking bundled savings. In 2025, Skiplagged introduced the "Skiplagged Guarantee," effective for bookings from May 6 onward, which provides coverage for flight disruptions such as cancellations or significant changes by the , along with automatic refunds for subsequent price drops on the same itinerary. This feature, launched alongside enhanced refund tools, addresses common traveler concerns with hidden-city bookings and has been positioned as a zero-stress addition to every ticket purchased through the platform. Skiplagged's user base expanded significantly, reaching 10 million monthly active users by mid-2025, with a notable surge among Gen Z and aged 18-34 seeking cost-effective travel hacks. Hidden-city bookings via the platform increased by 30% in early 2025 compared to prior months, reflecting heightened adoption despite ongoing industry scrutiny. To mitigate financial pressures from legal challenges, including a $9.4 million verdict awarded to in October 2024 for related to fare displays, Skiplagged adjusted its fee structures, such as introducing small service charges on certain bookings to sustain operations without compromising core affordability.

Business Model and Services

Core operations and revenue

Skiplagged functions as a that aggregates real-time flight data from and online travel agencies, systematically scanning for discrepancies to highlight hidden-city ticketing options—where the layover city serves as the true destination—alongside standard nonstop and connecting fares. This approach exploits anomalies in algorithms, where multi-leg itineraries can cost less than direct flights to the same endpoint. The platform's search , maintained by founder and CEO Aktarer Zaman, continuously monitors these irregularities to deliver optimized results for budget-conscious travelers. In the booking process, Skiplagged does not handle transactions directly on its platform; instead, users are redirected to affiliate partners such as or airline websites to complete purchases, allowing Skiplagged to earn commissions on each referral, typically ranging from a few dollars up to $35 per booking depending on the vendor and fare type. This affiliate model forms the core of its operations, generating the majority of revenue through vendor kickbacks for driving traffic and conversions. Based in , the company is led by Zaman, who oversees a lean team dedicated to refining the search algorithms that detect and prioritize these cost-saving opportunities. To diversify beyond commissions, Skiplagged introduced service fees in 2022 for bookings facilitated through its site, charging travelers $0 to $35 per booking to cover operational costs and enhancements like price guarantees. These fees, along with optional premium features such as flight alerts, contribute to a that exceeded $20 million annually as of 2024, underscoring the platform's profitability amid growing user adoption. While affiliate commissions remain dominant, the addition of direct fees has helped stabilize income against fluctuations in demand and legal pressures from airlines.

Key features and offerings

Skiplagged's flight search interface enables users to discover affordable options by highlighting "hidden city" deals, where travelers exit at a destination to save on fares, alongside standard direct routes and multi-city itineraries. The platform aggregates real-time pricing from various airlines and third-party providers, displaying results in a user-friendly format that prioritizes cost savings, often up to 80% compared to traditional bookings. This search functionality is accessible via both the website and , allowing for flexible date and destination inputs to identify optimal deals. The mobile application, available on and Android since 2014, enhances with features such as push notifications for fare alerts on monitored routes, comprehensive itinerary management for tracking bookings, and one-tap booking to streamline purchases directly from search results. These tools cater to on-the-go travelers seeking efficiency, integrating seamlessly with the platform's core to provide exclusive rates not visible on other sites. In addition to flights, Skiplagged expanded its offerings with the "Stays" service launched in 2023, which integrates hotel bookings and car rentals through partnerships with providers like and Rentalcars.com, offering discounted rates for bundled travel arrangements. Complementing this is the loyalty rewards program, where users earn points on every booking redeemable for future flight or hotel discounts, encouraging repeat usage and long-term savings. Unique tools further distinguish Skiplagged, including interactive prediction graphs that visualize trends over time based on historical , helping users decide whether to immediately or wait for potential drops. The Skiplagged , enhanced in 2025 to include automatic refunds for drops and protections against cancellations or changes, covers the difference in costs for rebooking or disruptions at no extra fee for eligible tickets purchased after , 2025. This policy applies to all bookings made through the platform, providing added security for hidden-city and standard itineraries.

Skiplagging Practice

Definition and mechanics

Skiplagging, also known as hidden-city ticketing, is a travel strategy in which a passenger books a connecting flight itinerary to a final destination that extends beyond their intended stopover city, then intentionally disembarks at the layover point to reach their actual destination at a lower cost than a direct or nonstop fare would require. For instance, a traveler seeking to fly from New York to Chicago might book a ticket from New York to Los Angeles with a layover in Chicago, exiting the aircraft during the stopover rather than continuing onward. This practice exploits fare structures where the total price for the longer itinerary is less than the fare to the intermediate city alone, allowing passengers to avoid paying the premium associated with direct routes. The mechanics of skiplagging involve a straightforward process that relies on standard booking and boarding procedures, without requiring any special notification to the carrier. First, the traveler searches for flight options where the city aligns with their desired destination, identifying itineraries priced lower than equivalent direct flights to that stopover. Second, they book a one-way ticket for the full itinerary, ensuring no is used, as luggage would be routed to the final destination and could complicate retrieval. Third, upon arrival at the , the simply disembarks with their items and proceeds through as a regular arrival, skipping the subsequent flight segment without informing staff. This method works because airlines typically do not verify a passenger's intent to complete the full journey at or boarding for the initial leg, though frequent use or patterns may trigger scrutiny. Economically, skiplagging arises from airlines' strategies, which set lower price ceilings on itineraries to fill seats on less popular segments and maximize overall network utilization, particularly in hub-and-spoke systems. These pricing differences stem from variations in demand elasticity—such as higher business traveler demand on direct hub routes commanding premium fares, contrasted with leisure-oriented flights priced more affordably to attract price-sensitive customers and ensure load factors. By booking the extended itinerary, passengers this structure, paying less for the initial leg while the airline forgoes potential revenue from the unused portion, which cannot be resold on short notice. Studies indicate such opportunities existed in about 17% of U.S. markets as of 2001, often yielding savings of $100 or more per ticket in equivalents. The practice predates digital booking platforms and originated in the post-deregulation era of the U.S. airline industry following the , with documented use emerging in the 1980s amid complex fare rules that incentivized creative ticketing to navigate pricing anomalies. Travel agents and savvy passengers exploited these rules to "get over large fare humps" on international or long-haul routes, as reported in industry discussions by the mid-1980s. By the early , government analyses confirmed its prevalence in hub-dominated networks, though airlines implemented measures like fare restrictions to curb it.

Risks and airline policies

Skiplagging poses several risks to users, including the potential for lifetime bans from frequent flyer programs, voiding of tickets, and denial of boarding on future flights. may revoke accumulated miles or elite status if they detect intentional itinerary skipping, and users could face demands to pay the fare difference for the intended route. The practice may also interfere with earning miles or status credits on the booked itinerary. To minimize detection, skiplaggers are advised to travel only with carry-on luggage, as checked bags are automatically routed to the ticket's , potentially complicating retrieval. Key rules for hidden city ticketing include its prohibition in airline contracts of carriage, the requirement to use carry-on baggage only, incompatibility with round-trip itineraries, and potential interference with earning miles or status credits. Most major U.S. carriers explicitly prohibit skiplagging through clauses in their contracts of carriage that ban intentional no-shows on flight segments or purchasing tickets without intent to complete the full itinerary. For instance, states that fares apply only to travel between published points on the ticket, and failure to complete the journey may result in ticket invalidation, itinerary cancellation, and refusal to board future flights. forbids "hidden city" or "point beyond" ticketing, with penalties including revocation of frequent flyer miles and elite status, or even permanent bans in severe cases. similarly prohibits "throwaway" or hidden city ticketing, treating it as a violation that can lead to ticket cancellation and forfeiture of fees. Airlines detect skiplagging by monitoring booking patterns, passenger manifests, and travel histories through data analytics, as well as via gate agents who flag suspicious itineraries, such as a traveler's ID not matching the layover city. Enforcement occurs occasionally, often triggered by repeated use of the practice on the same routes. Despite these risks, bans and penalties were statistically rare as of 2024, affecting less than 1% of users according to Skiplagged's estimates, with no reported lifetime bans among its customers over 11 years of operation and a success rate exceeding 99.7%. However, enforcement has increased in 2025, with airlines employing advanced tracking software to identify patterns and gate agents confronting suspected skiplaggers, as seen in incidents where American Airlines threatened bans against passengers attempting to disembark at layovers. High-profile enforcement cases, such as a 2023 incident where American Airlines detained and rebooked a passenger at full fare, heighten user concerns. Skiplagged itself issues warnings during searches about potential ticket cancellations and the need for one-way bookings to mitigate return flight issues.

Airline opposition

Airlines have long viewed skiplagging as a direct threat to their optimization strategies, primarily because it allows passengers to purchase lower-priced connecting itineraries without completing the full journey, leaving seats empty on the final leg that could otherwise be sold at premium nonstop fares. This practice undermines systems, where airlines carefully calibrate prices based on demand, route competition, and passenger behavior to maximize income from each flight; by filling initial segments with "no-shows" for subsequent ones, skiplagging disrupts these models and results in lost upsell opportunities for higher-yield direct flights. For instance, experts note that such tactics lower the overall yield per seat in an industry already operating on thin margins, potentially eroding millions in potential across major carriers. Strategically, skiplagging complicates operations by blocking seats on connecting segments for genuine passengers who intend to complete their itineraries, which can reduce availability during peak times and force adjustments in overbooking algorithms or scheduling. This not only hampers the ability to accommodate true connectors but also incentivizes airlines to invest in and measures, diverting resources from core efficiencies. The practice exploits discrepancies—often stemming from hub-based route structures—challenging carriers' efforts to maintain competitive advantages on high-demand nonstop routes. Major airlines have publicly condemned skiplagging as "deceptive and abusive," with explicitly stating in legal filings that it misleads consumers about itinerary obligations and erodes trust in their booking processes. has similarly prohibited the tactic in its , issuing internal directives to staff to monitor for it and warning of potential ticket cancellations. These stances reflect a unified industry position, as seen in policies from Delta and Southwest that label hidden-city ticketing a violation warranting penalties. In response, the sector has intensified efforts to reform mechanisms and forge tighter integrations with online travel agencies (OTAs) to detect and prevent hidden-city bookings through enhanced data-sharing and fare restrictions. This push includes issuing Agency Debit Memos to penalize OTAs for facilitating skiplagging, fostering partnerships that align intermediary incentives with airline revenue goals.

Major lawsuits

In 2014, United Airlines and Worldwide filed a against Skiplagged's founder, Aktarer Zaman, in a federal court, alleging with business contracts and by promoting hidden-city ticketing that redirected users away from official booking sites. reached a settlement with Skiplagged in February 2015, under which Skiplagged agreed to cease redirecting traffic to Orbitz-owned websites without admission of wrongdoing, while the terms remained confidential. United's portion of the suit was dismissed later that year due to lack of jurisdiction, as Skiplagged had no physical presence in . In August 2023, American Airlines initiated a lawsuit against Skiplagged in the U.S. District Court for the Northern District of Texas, accusing the company of trademark infringement through unauthorized use of the airline's logos on its platform, as well as copyright infringement for displaying American's flight schedules, alongside claims of breach of contract, tortious interference, and unfair competition. The case proceeded to trial in October 2024, where a jury found Skiplagged liable for copyright infringement but awarded no damages on the trademark claims, ultimately ordering Skiplagged to pay $9.4 million in total—$4.7 million in actual damages and $4.7 million in disgorgement of ill-gotten profits. Skiplagged appealed the verdict, but the judgment was upheld in May 2025; American Airlines announced plans to appeal the court's finding of nominative fair use for its trademarks. Other legal actions against Skiplagged have been limited. In 2021, pursued a dispute over skiplagging practices, which was settled out of court with undisclosed terms and no admission of liability by Skiplagged. As of November 2025, no formal antitrust investigations by the U.S. Department of Justice targeting Skiplagged have been publicly announced, though broader scrutiny of pricing and competition practices continues in the industry. These lawsuits have prompted Skiplagged to modify its platform, including reducing the prominence of airline logos in search results to mitigate future infringement risks, while increasing its legal reserves for ongoing defense; however, the company has not ceased operations and maintains that its core hidden-city ticketing service remains viable.

References

  1. https://www.nytimes.com/2024/11/12/travel/skiplagged-flights-hacks.html
  2. https://www.forbes.com/sites/brittanyanas/2024/11/27/what-is-skiplagging/
  3. https://www.businessinsider.com/skiplagged-ceo-tips-travel-hack-cheap-tickets-not-get-caght-2025-5
  4. https://news.bloomberglaw.com/ip-law/judge-affirms-american-airlines-9-million-copyright-verdict
  5. https://www.businessinsider.com/skiplagged-will-continue-selling-hidden-ticket-throwaway-fares-american-lawsuit-2024-10
  6. https://www.entrepreneur.com/business-news/how-skiplagged-is-disrupting-airline-ticket-prices/488608
  7. https://www.forbes.com/sites/willskipworth/2023/08/21/american-airlines-suing-skiplagged-over-loophole-it-uses-to-find-cheaper-hidden-fares/
  8. https://www.boston.com/travel/travel/2014/12/31/airline-suing-22-year-old-for-promoting-stopover-trick/
  9. https://nypost.com/2014/12/30/united-airlines-suing-22-year-old-computer-whiz/
  10. https://techcrunch.com/2014/12/30/united-and-orbitz-sue-hidden-cities-flight-search-engine-skiplagged/
  11. https://skiplagged.com/about
  12. https://www.businessinsider.com/airlines-fight-skiplagging-court-lawsuits-thrown-out-settled-2023-7
  13. https://www.latimes.com/business/la-fi-united-and-orbitz-sue-to-halt-hidden-city-booking-20141121-story.html
  14. https://www.bloomberg.com/news/articles/2015-02-09/orbitz-ends-lawsuit-against-hidden-city-ticketing-website
  15. https://money.cnn.com/2015/05/01/investing/united-airlines-lawsuit-skiplagged/
  16. https://apps.apple.com/us/app/skiplagged-travel-hacks/id823443083
  17. https://play.google.com/store/apps/details?id=com.skiplagged&hl=en_US
  18. https://skiplagged.com/hotels
  19. https://skiplagged.com/rewards/summary
  20. https://www.going.com/guides/how-to-use-skiplagged-to-find-cheap-flights
  21. https://support.skiplagged.com/hc/en-us/articles/31901331344791-Is-the-Skiplagged-Guarantee-included-in-every-ticket-purchase
  22. https://www.travelandleisure.com/skiplagged-new-airline-ticket-price-hacker-tools-11788951
  23. https://www.facebook.com/Skiplagged/videos/new-skiplagged-guarantee/1487225069091464/
  24. https://www.yahoo.com/lifestyle/skiplaggeds-ceo-tips-travel-hack-091701250.html
  25. https://skift.com/2025/06/16/skiplagged-ordered-to-pay-9-4-million-to-american-airlines-they-want-to-take-us-down-ceo-says/
  26. https://www.courthousenews.com/jury-awards-american-airlines-9-4-million-from-website-behind-skiplagging-hack/
  27. https://aviationa2z.com/index.php/2024/12/01/what-is-skiplagging-and-why-airlines-dont-like-it/
  28. https://www.inc.com/bruce-crumley/as-skiplaggeds-hidden-city-flight-business-booms-airlines-fume/91018327
  29. https://tracxn.com/d/companies/skiplagged/__hk1zwJz9b8-58m5BW2sTIlv8vAnlZHsoXMVwhcK5jeM
  30. https://finance.yahoo.com/news/skipplagged-still-offering-american-airlines-201128054.html
  31. https://liveandletsfly.com/skiplagged-fees/
  32. https://money.com/skiplagged-flights-save-money-risk/
  33. https://skiplagged.com/
  34. https://support.skiplagged.com/hc/en-us/articles/115001381753-Where-are-the-price-graphs-for-flights
  35. https://www.gao.gov/assets/gao-01-831.pdf
  36. https://web.stanford.edu/~yyye/hiddencity3.pdf
  37. https://www.npr.org/2023/08/23/1194998452/skiplagging-airfare-flying-skiplagged-american-airlines
  38. https://www.latimes.com/archives/la-xpm-1986-04-27-tr-23868-story.html
  39. https://thepointsguy.com/airline/what-is-skiplagging/
  40. https://www.cnbc.com/2024/12/06/skiplagging-can-save-on-flights-what-happens-if-you-get-caught.html
  41. https://blog.skiplagged.com/skiplagged-the-ultimate-guide-to-hidden-city-travel/
  42. https://www.businessinsider.com/every-airlines-policy-regarding-the-controversial-skiplag-practice-2023-7
  43. https://www.aa.com/i18n/customer-service/support/conditions-of-carriage.jsp
  44. https://www.united.com/en/us/fly/contract-of-carriage.html
  45. https://www.delta.com/us/en/legal/contract-of-carriage-dgr
  46. https://www.yahoo.com/lifestyle/articles/airlines-cracking-down-beloved-travel-185413251.html
  47. https://viewfromthewing.com/fly-this-segment-or-youre-banned-american-airlines-agent-catches-skiplagging-passenger-red-handed/
  48. https://www.bbc.com/worklife/article/20190226-the-travel-trick-that-airlines-hate
  49. https://simpleflying.com/united-airlines-skiplagging/
  50. https://www.travelagentcentral.com/your-business/wtaaa-demands-end-unfair-skiplagging-penalties-advisors
  51. https://www.tourismupdate.com/article/agents-call-on-airlines-to-play-a-straight-game-on-skiplagging
  52. https://www.travelpulse.com/news/airlines-airports/the-hidden-city-booking-trick-is-still-legal-according-to-a-court-ruling-what-travelers-should-know
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