Travel Smart: Subscription Models Changing the Game

By Ivan PetrenkoApr 21, 2024 18:30 PMNews
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The inscription shown on the phone screen
The inscription shown on the phone screen. Source: pixabay

In 2024, the annual beach pilgrimage remains a sacred event on Brits' calendars. However, according to SkyScanner, the switch from expensive popular resorts to underrated alternatives is saving travelers up to 58% on flight costs. Amidst challenging economic times and the influence of social media platforms like TikTok and Instagram, a new trend is emerging.

As holidaymakers seek to stretch their budgets and travel businesses aim to fill their accommodations, is there a new way to pay for your seasonal getaway? With 80% of UK adults subscribed to at least one service, the travel sector is ripe for subscription-based models.

From a business standpoint, subscriptions make sense, especially in travel. Rather than relying on a large portion of annual revenue during peak seasons, subscriptions offer stability by spreading income throughout the year.

Companies like global hotel and lifestyle brand citizenM already offer subscription packages. Subscribers to mycitizenM+ gain priority access to the best discounts on hotel rooms and deals. This fosters guest loyalty, difficult to achieve in today's market. For business travelers, this model ensures efficiency. Hotels can better understand frequent travelers' needs, offering personalized experiences.

Flights are another area where consumers can take advantage of a subscription to get the most bang for their buck. Alaska Airlines has recently announced their $5 a month Alaska Access program that gives passengers access to continuous Wi-Fi on all flights, and pre-access to all sales and discounts ahead of their release to the general public. For a relatively small monthly fee, travelers can potentially save hundreds of dollars on flights across a year. And what’s in it for Alaska? A loyal customer base and a stable monthly stream of income.

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