Travel Subscriptions On The Rise
Sandra Mianda??
Founder, Paypr.work ?? | Payment Technology Strategist | GTM Advisory | Research | Payment Education | Thought Leadership Assets | Keynote Speaker | MPE Advisory Board Member
Coming off from one of PhocusWire latest webinar on travel trends and learning about how the change of consumer behaviours and shift in loyalty is driving the emergence of?travel subscription models prompted me to look further into this growing trend.
Togetherness whilst having a sense of uniqueness is pushing travellers to look differently at how they book holidays today. They are searching for meaningful, purposeful and inclusive holidays. They are exploring more, they want to be inspired, they looking for experiences that convey emotional value with sustainability reflected across the entire travel journey. That is some of the output resulting from searches led into this topic by Google Travel Sustainable Team.
According to Eurocontrol, The European Organisation for the Safety of Air Navigation, the airline traffic is consistently rising, week-on-week, with the United Kingdom, Spain and Germany being the busiest countries in flights operation. Similarly, occupancy rate for hotels in the United Kingdom, as an example, is forecasted to get to 56% this year, whilst this has typically remained above 80 percent pre pandemic according to Statista data. This is a healthy indication that the travel industry is heading back to good operational levels. Although the recovery differs by markets and [sub travel] segments.
Subscriptions and memberships represent a way for travel companies to create lasting relationships with travellers.?Reading through a few articles to tie in with the overall insights shared from the Phocuswire panel, I’ve predominantly come across 5 subscriptions models in operation today (although they may be a lot of variations relying on the same principles):
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It is clear that travel membership models are evolving to embrace so many different aspects of travellers’ lives beyond the trip. For a great end-to-end experience with tangible benefits such as lower costs, I personally will be willing to subscribe to those models.?We may well see a Netflix of Travel or Travel Prime model erupting, with a cap fee to experience unlimited travel or is this an utopia? For now the travel boxes may well be a good teaser into the next trip...
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Sources
Inclusivity Focused Car, Bus and Rail Payments and Journey Orchestration Specialist PCI-DSS, Acquiring, Gateway, PSP Neo-Banking and SaaS pricing Distributed ledger for transit
2 年This is a good topic and very interesting and informative one too..not all airports have access to budget airlines and not all destinations are in the same continent. I believe you will have like air travel under 4 hours, under 8hours and under 12 hours
Helping Tier 1 and 2 hospitality customers with their payment solutions
2 年I like the idea of option 3 and 5, although I am guilty of going back to the same place a few times when I know it’s a winner (especially with the kids!).
Payments, Fintech | VP Acquiring Global Airlines at Elavon / U.S. Bank
2 年Some models, such as an annual travel subscription model, for example, has not been explored enough yet. It is definitely the area to watch or event better - lead the change and be a positive disruptor in the industry.