Guest Post: Subscribe and like - Future of holidaying is more Netflix than Blockbuster

Guy Meyers, senior director, customer success of Recurly, talks us through the subscription economy

Whether it’s a hop across the channel for a Parisian mini-break, or a beach-side all-inclusive, we Brits love to splash out on a holiday - in fact there’s been a 5% growth in holiday spending in the last year alone. UK tourists therefore are once again gearing up for a sunny escape, joining the millions worldwide who are set to bring tourism back to its height for the first time since 2020. But as travellers across the world continue to keep an eye on their budgets, travel and hospitality companies will need to find new ways to entice. 

This might be why Wizz Air, one of Europe’s most successful low-cost airlines, has chosen to launch its “all-you-can-fly” subscription package - the latest carrier to investigate subscriptions as a model for air travel. 

Subscriptions are not an entirely new concept for the travel industry, with Alaska Airlines launching “Alaska Access” earlier in the year which offers perks like discounted wifi and pre-access to flight sales. But where Wizz Air’s new scheme departs from its competitors is with its scale. 

Unlimited flights is certainly a tempting offer for any savvy jet-setter, but what’s in it for Wizz?

A loyal strategy 

The essential goal for any future-gazing business is loyalty and for many with low-cost offerings this can be difficult. Consumers here are looking for the best value and can be lost to competitors very easily - this is especially true of airlines. 

Wizz Air can count among its competitors the industry giants of EasyJet, RyanAir and Jet2, and many of their consumers use them interchangeably based on cost and destination. 

Subscriptions offer a unique solution to this problem, encouraging customer loyalty by offering better and better value with each ticket purchased. 

Most people are familiar and comfortable with subscriptions, with 79% of UK adults now signed up to at least one. This makes it an easy sell for the travel industry, just think of it as the Netflix solution to holidays. 

And air travel is not the only sector taking advantage here.

Familiar comforts 

In our modern interconnected world it is now possible to find a hotel from your favourite hospitality provider on every continent and in most major cities. Whether you love the pillows in a Hilton, the room service at a Marriott or the slippers at a Hyatt, you can normally find these comforts in whichever destination you find yourself. 

The universality of modern hotel chains makes them ripe for a subscription scheme, and many already exist. 

Global hotel and lifestyle brand citizenM have their mycitizenM+ package which gives priority, and occasionally members-only, access to discounts on hotel rooms around the world. 

With this strategy hotels can build on the loyalty of one successful trip and multiply it across all their sites, and with it also build a better profile of their guests. 

With a greater insight into guests businesses can not only tailor the hotel experience to a greater degree with every stay, but can also improve their targeting of consumers with the offers right for them. Data analytics will be able to predict, based on previous trips, whether a particular guest is a sun-worshipper or a snowsports fanatic - and push them to the right hotels accordingly. 

Ready for take-off

Across the sector we can see a real interest in subscription models, and realistically we’re only at the start of the journey. In the coming years more businesses will recognise the impact here and find unique ways to offer better experiences to their most loyal customers. 

For businesses themselves there are additional advantages that are often overlooked. Travel companies often experience a strong degree of seasonality, taking a large amount of their income during the summer months or during school holidays. With a more reliable revenue stream from subscriptions, spread across all 12 months of the year, travel companies can enjoy a greater level of stability and consistency.