Travel subscriptions are taking off. Should you get on board?

Subscriptions have been introduced in almost every consumer industry, from television to tacos. There are even services that help subscribers cancel all their subscriptions. But one industry has lagged far behind: travel.

That could be changing. The travel subscription market has begun to expand and includes cheap flights, airport lounges, luxury accommodations and high-end credit cards.

“Subscription models can add a lot of predictability to an industry that can be very sharp,” said Amy Konary, vice president of the Zuora Subscribed Institute, a think tank focused on the economics of subscriptions.

Travel purchases are usually one-off and transactional. Airline and hotel loyalty programs aim to promote loyalty and benefits, but only travelers who travel (and pay) can reap the rewards. Subscriptions could turn this concept around by offering these benefits in advance.

“The subscription model allows you to access these premium benefits by paying directly,” Konary said.

Will customers accept this idea? Travel brands are rushing to find out.

Subscriptions come out

Alaska Airlines plunged into the waters of the March subscription with the launch of its “Flight Pass.” For a price starting at $ 49 a month, subscribers can book a roundtrip main cabin flight every two months for a penny plus about $ 15 in fares. The catch? Flights must be direct, booked for a limited period of time, and most importantly, fly between specific airports in California, Nevada and Arizona.

Confused?

“Communication has been the big challenge,” said Alex Corey, general manager of business and product development at Alaska Airlines. “It’s been hard for people to appreciate that this might not be for them. If I went to my favorite store and it didn’t meet my needs, I’d say, ‘Hey, do it this way.'”

Instead of trying to be everything to every traveler, Alaska subscription has focused on a small niche: younger Californians eager to walk around and flexible schedules. To date, just under half of subscribers are millennials or the Zer generation, according to Alaska.

It’s a niche product, no doubt, but Alaska is confident that it can appeal to a particular type of West Coast traveler.

“Californians travel 3.5 times more within their own state than residents of other states,” Corey said, explaining why the airline chose the state as a testing ground for its idea.

And Alaska focused on the lowest possible entry point, starting at $ 49 a month to make a flight subscription seem feasible to almost everyone.

“We wanted to compete with an Uber trip or a bar ticket,” Corey said.

Attention to nomads

Across the price spectrum, the Inspirato luxury travel platform offers a subscription service for holiday rentals and high-end hotels starting at $ 2,500 a month.

That’s $ 30,000 a year for the chance to book high-end accommodations around the world. It may seem like a huge bill for a vacation budget, but it’s potentially more reasonable for long-distance nomads who want to travel as much as possible.

However, the Inspirato subscription also includes a long list of warnings and exceptions. Season ticket holders can only book one trip at a time, reservations are made on a first-come, first-served basis, and many rooms and homes are only available during low season.

Cheaper digital nomads can choose Selina, a co-living and coworking subscription service that combines the cost of hosting, office space and a reliable Wi-Fi connection into one monthly bill. Subscribers can bounce around Selina’s global destinations and take advantage of surfing classes, yoga classes and other wellness activities.

These services offer potential customers an advantage that is difficult to quantify: simplicity. Instead of searching through hundreds of vacation rental listings, subscribers can make one payment per month and choose from a number of reviewed options.

However, simplicity alone will not reduce it, Konary said. Consumers are wary of adding another monthly bill to their long list of active subscriptions and should know that they are getting a good deal.

“As we become more familiar with these models, we have a high bar for what we expect in terms of value,” Konary said.

What is old is new again

Travel subscriptions are not a new idea. JetBlue Airways introduced an “All You Can Jet” unlimited flight pass in 2009. The promotion received a lot of attention, but it didn’t translate into a sustainable business model.

And there are already successful travel subscription services. Premium travel credit cards offer benefits to travelers, such as access to the airport lounge for an annual fee. And services like TSA PreCheck and Clear allow steering wheels to bypass normal safety lines.

But a new wave of subscriptions comes to travel with one big difference: specificity. Instead of trying to be the Netflix of travel, with something for everyone, the new services offer niche deals to specific demographics.

Not everyone wants to fly to California every two months or take surfing lessons in Belize in a coworking space. But for those who do, these subscriptions could provide a valuable way to travel without hassle. Or they could follow the path of MoviePass.

“I think what we’re doing is unique,” ​​Corey said. “I hope you take it.”