Jamie Biesiada
How many subscriptions do you have?
If you're anything like me, the answer is, "I don't know, but probably too many."
From Netflix to Canva, to my dog's vitamins via Amazon, there are a lot of things I've automated, for better or worse. Some -- like the aforementioned vitamins -- offer a lot of convenience. Just when I'm about to run out, more show up. Others, like the seemingly million streaming services I've signed up for and inevitably forgotten about, just mean another line item on my credit card statement every month ("subscription fatigue" is real!).
Subscriptions have even made their way into the travel industry in recent years. And Travelport believes that 2025 will be the year they gain traction.
Subscriptions trending in travel
Indeed, the rise of travel subscriptions is one of five trends identified in the GDS's State of Modern Retailing Report, released last week.
"Travelers are increasingly turning to subscriptions," Travelport said in a release on the report. "Online travel agencies like eDreams Odigeo have demonstrated the potential of this approach, boasting more than 6.5 million Prime subscribers. Its subscription model is currently the company's largest contributor of revenues and margins."
After conducting a consumer survey, Travelport found that 35% of respondents said they'd consider a travel subscription this year, looking for benefits like cost savings and perks.
While eDreams Odigeo is enjoying success from its subscription model, it's also a model that's failed others, like Tripadvisor. Last year, it shuttered Tripadvisor Plus, which invited consumers to pay an annual fee that they'd likely recoup via discounts with one booking. Experts said while the idea behind the product was sound, its execution was sloppy from an operational perspective.
Travel advisors have also dabbled in the subscription world, many very successfully. An annual retainer model could be called a subscription. They've become more common among agencies in recent years. Fischer Travel Enterprises in New York has famously charged initial and annual fees with commas in each figure.
Other advisors have even branded annual fees as straight-up subscriptions.
Entering the subscription economy
Considering consumer readiness to sign up for travel subscriptions, and the success others have seen in the space, maybe it's time for more advisors to capitalize on the subscription economy.
It wouldn't necessarily be the same kind of subscription that Tripadvisor offered. While enterprising advisors could likely negotiate some special deals and perks with suppliers they're especially close with, it would be difficult to offer a breadth of financial incentives.
But what about offering a higher level of service to subscribing customers?
Perhaps their emails always hit a VIP inbox, and their calls are the first answered? Maybe it's making restaurant reservations in-destination? Maybe it's an entire suite of services reserved for subscribers only, enabling advisors to cater toward their most loyal, and lucrative, clients?
People tend to like the ability to pay more for a better experience (case in point: theme parks and their skip-the-line services).
Most of my personal subscriptions are fairly innocuous, price-wise -- $10 or $15 a month. Some are even lower. I do have one that's a bit more expensive, with a pest control company. It costs around $60 a month and includes several yearly inspections and unlimited service calls. I'm always glad to have it when I see an ant in the house.
Paying a monthly fee for something isn't new (though it still feels weird to think of utilities as subscriptions), but what is relatively new is the sheer amount of subscriptions available -- for media, services and beyond. And I think years of paying lower subscription costs for things has softened consumers to the concept and made us more willing to say yes to a slightly higher cost.
That could be an open door for an enterprising advisor. Maybe it's not a subscription bill with a comma, but it's certainly worth more per month than Netflix considering the end investment in travel. Expertise commands a higher price.
Is a monthly or annual subscription right for every agency? Certainly not. But could it be another source of revenue and a loyalty engine? Certainly.