FLO Corp. this month announced the completion of $7.1 million in financing, allowing it to complete its acquisition of Unisys' Registered Traveler assets and ramp up enrollments for its security-screening program.
FLO and Unisys in October agreed to the transaction, which arms FLO with "enrollment and verification kiosks and related equipment, intellectual property, prepaid RtGO memberships, the designation and certification of Unisys' Registered Traveler technology and certain material contracts," according to SEC filings.
Unisys in June launched its first Registered Traveler lanes at Reno-Tahoe International Airport. Though they were temporarily shut down in April due to what the supplier calls a "technicality," FLO executive vice president of strategy Luke Thomas said they are running and the company, with Unisys assets in tow, is bolstering enrollments.
Verified Identity Pass' Clear program remains the dominant Registered Traveler offering, as it has secured all but one of the airports offering the program and boasts more members than any competitor. However, Thomas said the injection of funding allows FLO to "aggressively ramp up field operations," he said, adding, "We've been meeting with corporations for the better part of six to nine months, enrolling them and doing a lot of field activities under the Unisys RtGO banner. We're building more enrollment kiosks, and that's the whole gateway to the membership."
Thomas said FLO is attracting corporate membership through marketing arrangements with such organizations as ASIS International, Garber/FCm Travel Solutions, HRG, Radius and Tzell Travel Group. The company has secured "several thousand members" and claims corporate commitments that total 150,000 memberships, he said, adding, "We're basically fully booked for the next couple of months with the kiosks we have, going around corporate campuses with the enrollment teams."
Steven Brill, founder and CEO of Verified Identity Pass, said the Clear program is growing at its fastest clip yet, claiming between 600 and 900 new registrants per day with a total of about 155,000 registrants as of May 5. Brill said given the lag between signing up for the program and gaining Transportation Security Administration approval and a biometric card, about 120,000 Clear cards were in force. "If you and I had this conversation a month ago, I would have said we're growing at a rate of 400 a day," Brill said. Sixteen airports have adopted the Clear program, including Salt Lake City, which is scheduled to launch lanes this month, and Brill expects that number to grow to 22 by year-end.
A rash of other suppliers have entered the Registered Traveler market, but only Clear, FLO and Vigilant Solutions, with a program at the airport in Jacksonville, Fla., operate lanes and actively issue memberships. Their approaches diverge, as Clear is focusing solely on a speedier security checkpoint and FLO is bundling other "door-to-door benefits," including travel discounts, emergency services, airport lounge access and other services, through two membership levels.
Meanwhile, TSA continues to expand a program that allows travelers to select screening lanes (BTN-online, March 17). Since launching the lanes in Salt Lake City and Denver airports, TSA has said it would expand the program to Boston-Logan, Orlando, Spokane and Milwaukee.
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