Case Study - Subscription Travel Platforms

Case Study - Subscription Travel Platforms

Summary

This case study looks at subscription travel platforms in the travel and tourism industry. It discusses the concept of subscription travel platforms and the role it has in the travel industry by analyzing their use cases across multiple sectors within the tourism industry including airlines, hotels, and OTAs. The case study also discusses the challenges and opportunities facing subscription travel platforms.

Scope

Subscribers will generally be able to access discounted prices for holiday products, such as accommodation, car rental, sightseeing activities, foodservice and more. Schemes are particularly appealing to those who travel a lot for leisure or business.

As the premise of the subscription model is to develop long-term relationships with customers, this type of service typically sees a transactional relationship being replaced with a more personal one. Subscribers will generally benefit from more personalized and tailored holiday content as well as being able to save time booking holidays.

A subscription service may position itself in a niche segment, such as luxury or eco travel. This can introduce travelers to a likeminded community and/or save them time when booking holidays.

Subscriptions and memberships represent a compelling way for travel companies to create lasting relationships with travelers as consumers who buy into subscription services are committed beyond just a one-time purchase.

The value and convenience enjoyed by members has the potential to outweigh a monthly subscription or membership fee as travelers can access instant savings, discounted stays and personalized travel advice.

Subscription models have the potential to completely transform an industry that faces challenges such as seasonality and the boom-or-bust cycles of bookings and commissions by ensuring a relatively predictable and stable revenue stream.

Reasons to Buy

Gain an understanding of Subscription Travel Platforms in the tourism industry.
Recognize the range of the potential challenges and associated opportunities of subscription travel platforms.
Gain an understanding of consumers behaiours towards subscription travel platforms.
Gain an understanding of the role of travel industry players and tourism bodies.
Gain an understanding of how the market for subscription travel platforms changed.