How do travel subscription models impact hospitality?

The main motivators for adults to subscribe to travel-related paid programs in the US last year were hotel and flight deals, special offers and discounts, and the opportunity to get cashback (both rating 36%), according to a?Statista?report.

Hotel perks and special offers were another significant motivator (32%), followed by travel insurance (25%). This demonstrates the considerable advantage subscriptions create for hotels, as those signing up for any travel loyalty programs, including paid subscriptions, will be actively looking for more deals. Thus, hotels could greatly benefit from these business models by gaining a wider audience appeal which will inevitably boost occupancy levels.

Hotel Subscription Stats

• 16% of consumers have purchased a subscription membership to hotel services worldwide
• 27% of hotels are considering offering subscription memberships worldwide?
• 29% of hotels in Europe are considering offering subscription memberships

Benefits Of Travel Subscription Model

• Loyalty isn’t given. It must be earned – subscription models help build brand loyalty.
• Generates instant (sky-high) revenue as airlines can sell miles to credit cards.
• It’s easier (and cheaper) to retain existing customers over acquiring new ones.
• Offers customers an incentive to remain loyal. Positive reinforcement is a tried and tested way of boosting consumer behavior with psychology.
• Creates the strongest bond (financial) between consumers and the brand.
• More personal type of business model as they offer a less transactional relationship compared to the normal buy and sell business model.
• Consumers will receive added value and better experiences.
• Attracts elite travelers who want to travel frequently (and in style).
• Airlines use subscriptions to one-up competitors' elite status.
• Future-proofs revenue potential against challenging times.

For additional information about the subscription phenomenon,?download “Why travel subscriptions will keep trending.”