Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Let's soft travel.
Speaker 3: The worst of the TSA chaos maybe easing, but wait
Speaker 3: times remain uneven, especially at major hubs like Newark and JFK.
Speaker 3: The question now is whether that surge and demand for
Speaker 3: services like Clear can last for more. We're joined by
Speaker 3: Karen Sidman Becker, chairman and CEO of Clear, and I say,
Speaker 3: services like Clear, but is there anything else like Clear?
Speaker 2: I don't think other than TSA.
Speaker 1: Roger speaking, I don't think so. I think we're one
Speaker 1: of a kind.
Speaker 3: So you must have gotten a big boost from your
Speaker 3: initial agreement with American Express. At least everybody in this
Speaker 3: office started to use Clear when that came through, and
Speaker 3: I know you've renewed that.
Speaker 2: How much have you gained from.
Speaker 3: The TSA issues that we've had during this government partial
Speaker 3: government shutdown?
Speaker 1: I think what you saw in this government shutdown is
Speaker 1: that travel is hard and getting harder, and that travelers
Speaker 1: want solutions, and so we introduced a lot of new
Speaker 1: products right ahead of this. I would say coincidentally that
Speaker 1: got a lot of awareness from this shutdown, whether it
Speaker 1: be our relaunched mobile app and the home to gate capabilities,
Speaker 1: whether it be our beloved e gates, which we're still
Speaker 1: rolling out and there in forty airports today and are
Speaker 1: totally magical, or whether it be our concierge and pre
Speaker 1: check products. We have a significant percentage of the pre
Speaker 1: check enrollment market. And I think what's important Travelers want predictable,
Speaker 1: frictionless experiences.
Speaker 4: This was anything, but so did you get a lot.
Speaker 5: Of big boosts to subscriptions over this period.
Speaker 1: Then I think people's love of Clear grew significantly during
Speaker 1: this time period.
Speaker 2: Really, you see the numbers. Don't you see the numbers?
Speaker 2: I don't they bring them to your desk.
Speaker 4: I see the numbers. I do see the numbers.
Speaker 1: And I think we reported a very strong fourth quarter
Speaker 1: before this happened, and I think the strength that we
Speaker 1: saw and broadly speaking, the need to have a secure
Speaker 1: identity platform both for travel, but also we're seeing growth,
Speaker 1: significant growth, we called it escape velocity in the last
Speaker 1: quarter in our enterprise business, so workforce security and keeping
Speaker 1: North Koreans out of critical infrastructure, healthcare and fighting fraud,
Speaker 1: waste and abuse in medicare and other areas. This is
Speaker 1: a really massively important time to be a secure identity
Speaker 1: platform and to be a trusted brand, and trust is
Speaker 1: massively important, and you're knocking.
Speaker 2: Down it seems like barriers left and right.
Speaker 3: I've just heard that some people from other countries who
Speaker 3: previously couldn't use Clear because they don't have a US
Speaker 3: ID or passport, can now use CLEAR.
Speaker 4: That is true.
Speaker 1: So forty two visa waiver countries can now enroll in CLEAR.
Speaker 1: So we're seeing a lot of Canadians, UK, South Koreans,
Speaker 1: Japanese and this is all ahead of the World Cup
Speaker 1: and they can do it all on their mobile phone
Speaker 1: with their passport. And so this is a really transformational
Speaker 1: time in travel. And I also think that this administration
Speaker 1: has been really focused on having the US lead in
Speaker 1: travel and innovation because today we don't Singapore, London, Tokyo.
Speaker 4: They all have better travel experiences than we do in
Speaker 4: the US.
Speaker 1: And being that we are a leader in innovation, we
Speaker 1: should lead in travel experiences and security.
Speaker 2: What do you think.
Speaker 3: About privatizing the TSA Because in my experience, and it's
Speaker 3: obviously only anecdotal, Clear brings me straight through to the
Speaker 3: X ray machine and then I'm stuck waiting forever in
Speaker 3: a lot of instances, right, if we privatize the TSA,
Speaker 3: does that part of the equation get even better.
Speaker 1: So, certainly in the budget that was released last week,
Speaker 1: the Trump administration talked about privatization. It is something that
Speaker 1: we advocate very strongly for the power of public private
Speaker 1: partnership is really important. These eGates we were able to
Speaker 1: roll out or we are rolling out at.
Speaker 4: No cost to taxpayers.
Speaker 1: So we've got to drive innovation and we've got to
Speaker 1: let the private sector do what they do well, which
Speaker 1: is innovation and procurement and speed and customers experience, whereas
Speaker 1: the government really is great at intelligence and analysis. And
Speaker 1: so I think the two together and adding more capital
Speaker 1: to your point, to the physical screening piece, to the
Speaker 1: home to gate experience is really important. And I think
Speaker 1: there's so much more that we can be doing there.
Speaker 1: And I think privatization and public it's not just privatization,
Speaker 1: because you see Kansas City and San Francisco places where
Speaker 1: you do have stronger public private partnerships and they functioned
Speaker 1: much better during the shutdown. You can't let you at
Speaker 1: travelers be a political football. So I do think i'd
Speaker 1: call it public private partnership.
Speaker 5: What are conversations with airports like when you want to
Speaker 5: get Clear added. What do they need to see? What
Speaker 5: does it take to convince them? Is it money, is
Speaker 5: it spending? What is it to get it rolled out
Speaker 5: in more places?
Speaker 1: So innovations about bringing people what they did not know
Speaker 1: they wanted, and for a long time people didn't know
Speaker 1: they wanted biometrics.
Speaker 4: Today we cover about seventy.
Speaker 1: Five percent of the US network, so we're trying really
Speaker 1: hard to get those last airports on board. You know,
Speaker 1: I think that they need to see the customer experience
Speaker 1: in other markets. I think they need to see the
Speaker 1: revenue share in other markets. Because Clear this year will
Speaker 1: pay over one hundred and thirty million dollars to our
Speaker 1: airport partners that they can use for infrastructure which is
Speaker 1: badly needed or other investments that they want. And so
Speaker 1: each airport is different, and we are working real hard
Speaker 1: on each one because customers want it. Security is enhanced,
Speaker 1: efficiency is enhanced. You just saw that it's a no
Speaker 1: brainer at this point.
Speaker 3: By the way, I went for recently a camera board.
Speaker 3: It was like a blood test or something at a
Speaker 3: hospital here in New York, and I was surprised to
Speaker 3: hear them ask me if I had CLEAR and then
Speaker 3: I was just whished straight through to the doctor's office
Speaker 3: rather than you know, going through all the rigmarole at
Speaker 3: the security checkpoint at the front desk. How much are
Speaker 3: you expanding beyond airports? How much of your business is that?
Speaker 1: We think healthcare is an enormous opportunity. You look at compliance, privacy, security,
Speaker 1: and customer experience. They have their own challenges and interoperability.
Speaker 1: So killing the clipboard and being able to enroll once
Speaker 1: and use it everywhere for check in for your electronic
Speaker 1: health record.
Speaker 4: Those are your records.
Speaker 1: You should be able to share them with anybody instantly,
Speaker 1: just like you can wire money and then also payment
Speaker 1: and so healthcare is a huge opportunity. We are partnered
Speaker 1: at the hospital level, We're partnered at the EPIC and
Speaker 1: the EHR level. We're partnered at the government level rural
Speaker 1: health transformation.
Speaker 4: It's a huge opportunity.
Speaker 5: How are you thinking about pricing clear plus two hundred
Speaker 5: and nine a year?
Speaker 4: Can you move that up? Are people willing to pay it?
Speaker 4: Are you?
Speaker 5: How do you think about different tiers? How is pricing
Speaker 5: existing in America when such a big conversation is happening
Speaker 5: right now that the consumer is stretched.
Speaker 1: So our average revenue per user is less than two
Speaker 1: hundred and nine because there's lots of different ways that
Speaker 1: people can enroll. And so the way we think about
Speaker 1: driving oarpoo or pricing is really through new services. And
Speaker 1: so we have taken pricing over the past few years
Speaker 1: because the service has massively improved. I believe that pricing
Speaker 1: is about bringing consumers and partner value, and as we've
Speaker 1: continued to drive the value, you can continue to drive
Speaker 1: the pricing. So things like concierge and other partnerships really
Speaker 1: bring value to our customers and then drive our pricing
Speaker 1: as well.
Speaker 3: I have a viewer writing in and says, when can
Speaker 3: we get clear of the Jet Blue JFK terminal? And
Speaker 3: by the way, I wonder if naming and shaming works right,
Speaker 3: because there's supposed to be a cutting.
Speaker 2: Edge airline, right, and they've got this whole new terminal.
Speaker 1: So we agree, we love terminal five and I remain
Speaker 1: very hopeful. Indefatigable is one of our core values, persistent
Speaker 1: and tireless, and so we love New York.
Speaker 4: Jet lose a New York company, and I agree, all right.
Speaker 3: Well, we love having you on. Thanks so much for
Speaker 3: joining us. If you can come back. Karen Sidman Becker There.
Speaker 3: She is the chairman and CEO of Clear