Subscription model in the travel industry - statistics and facts
The subscription model, based on the concept of offering customers exclusive services and products via membership schemes, might not be that revolutionary. In recent years, however, it has gained in popularity, being successfully implemented by companies across different sectors, from e-commerce giant Amazon to streaming platforms in the entertainment industry, such as Netflix and Spotify. Even though this business model is not yet as widespread in the travel industry as it is for other markets, it is gradually gaining momentum. In particular, the interest in this topic rose substantially during the coronavirus (COVID-19) pandemic, as travel businesses started to consider subscriptions as an option to secure recurring revenue streams, even during challenging times.
Even before the big buzz generated by Tripadvisor Plus, other businesses in the travel industry had already adopted subscription-based programs. The Spanish online travel company eDreams ODIGEO, for instance, introduced a membership plan called Prime in 2017, offering price reductions on travel reservations and car rentals. As of the third quarter of the 2022 fiscal year, the number of eDreams ODIGEO Prime subscribers worldwide peaked at over two million. Meanwhile, U.S. luxury travel company Inspirato based its entire business model on subscriptions, giving members of its Inspirato Pass access to exclusive travel experiences and perks. In 2021, the number of active Inspirato subscribers worldwide increased by 18 percent over the previous year, reaching a total of 13,800.
Which travel companies offer subscription services?
When Tripadvisor announced its Plus membership offer in June 2021, it seemed that the travel industry was eventually ready to embrace the subscription model. The plan initially included exclusive rate discounts on accommodation and travel bookings for an annual fee of 99 U.S. dollars, but just three months after the launch, the firm replaced the discounts with cash-back benefits in an effort to attract more hotels to the scheme. According to a study published in September 2021, at the time the company announced the revamp to its membership plan, New York was the city with the highest share of hotels participating in Tripadvisor Plus worldwide, followed by Miami and Sydney.Even before the big buzz generated by Tripadvisor Plus, other businesses in the travel industry had already adopted subscription-based programs. The Spanish online travel company eDreams ODIGEO, for instance, introduced a membership plan called Prime in 2017, offering price reductions on travel reservations and car rentals. As of the third quarter of the 2022 fiscal year, the number of eDreams ODIGEO Prime subscribers worldwide peaked at over two million. Meanwhile, U.S. luxury travel company Inspirato based its entire business model on subscriptions, giving members of its Inspirato Pass access to exclusive travel experiences and perks. In 2021, the number of active Inspirato subscribers worldwide increased by 18 percent over the previous year, reaching a total of 13,800.
