Among subscription sectors, travel is the most likely to see subscription growth from both existing and new members over the next 12 months, a new report finds.
According to a study by eDreams ODIGEO and OnePoll, which surveyed more than 10,000 shoppers in eight markets in North America and Europe, 90% of current travel subscribers say they would maintain or increase spending on those services over the next 12 months.
Of existing subscribers, 47% say they would increase spending on travel subscriptions, despite current economic challenges, while just 9% say they might consider decreasing their spending.
Overall, while the most popular subscription product category for consumers is entertainment, with 75% of shoppers holding subscriptions to streaming services like Netflix and Amazon Prime, only 29% plan to increase their subscription levels for entertainment compared to 47% for travel.
Meanwhile, of consumers who don’t currently subscribe to travel services, 24% say they would consider a travel subscription this year – a higher percentage than consumers considering subscriptions in other sectors such as food and beverage and health, beauty and fitness.
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The study found that, worldwide, only 1% of consumers say they would not consider themselves to be a subscriber, while on average, consumers have four subscription services each, signaling the potential for more subscription travel services to enter the market.
“Product excellence isn’t enough to command customer loyalty anymore. People increasingly value a personalized service, cost savings and the convenience of having products delivered directly to their front door or inbox automatically. All of these characteristics are unique benefits of subscription services designed to provide individual experiences that save members time and money,” says Dana Dunne, CEO of eDreams ODIGEO, which has offered its Prime subscription service since 2017.
“While these evolving consumer preferences have been developing over the last decade, our transformation from pay-as-you-go purchasers to a society of subscribers was sent into overdrive as being able to buy goods and services in this way helped millions of households tackle the extreme challenges of the 2020s, from the pandemic to lockdown, and now the cost of living crisis.”
Travel providers offering subscription services have gained momentum in recent months: In February, Alaska Airlines launched a flight subscription program. The airline’s partner, Caravelo, last month raised €3 million for its subscription solutions.