Sounding Off: Do consumers want a travel subscription? Maybe…

Each Friday, PhocusWire dissects and debates an industry trend or new development covered on our site that week.

As Seward writes in his piece, younger generations do indeed value loyalty rewards in travel, but they’re more particular about the brands to which they pledge their allegiance.

What they want from those brands is shifting compared to older generations, as well, which gives travel providers an opportunity to rethink loyalty schemes to match consumer preferences.

Seward points to the subscription economy as a model that could be applied in travel - the idea being that if consumers are accustomed to paying a subscription service for everything from entertainment to food to transportation, they’re prepared to pay for travel, as well.

In theory, the concept makes sense: Why not add a Delta subscription alongside Netflix, Blue Apron and Lyft?

But it’s worth considering that perhaps consumers don’t want one more monthly fee in an overly saturated e-commerce market, particularly for an infrequent purchase such as travel.

Sure, for the road warrior-type of traveler, the model makes a lot more sense, but it’s questionable to think the average traveler with a Netflix or Amazon Prime subscription wants a similar service from his or her preferred travel brand.

Where the model becomes more appealing is if travelers see additional benefits beyond simply saving money. As Seward says, it helps to include perks and elevated service levels similar to what you see in a traditional loyalty programs as part of the offer.

The challenge for travel providers thus becomes understanding how a subscription service would reflect their brand purpose and value, which is what has attracted customers to them in the first place.

And, of course, the economics of the model have to work. Many a subscription service has launched and failed since the idea gained widespread popularity among consumers, so for travel brands to follow a similar route is not without risks.

So as much as it’s touted that younger generations want something new out of loyalty rewards, travel brands should get a clear picture on what that means before asking travelers to agree to monthly buy-in.