In 2024, the annual pilgrimage to the beach marks a sacred period in Brits’ calendars.

The switch from expensive popular holiday destinations for underrated and untapped alternatives are saving travellers up to 58% in flight costs, according to SkyScanner. Amidst challenging economic times and influences via TikTok and Instagram, there’s been a new trend emerging.

So, as holidaymakers are looking to make their budgets stretch further, and travel and hospitality businesses are looking to fill up their suites and seats, maybe there’s a new way to pay for your seasonal getaway? With 80% of UK adults signed up to at least one subscription, the travel sector is ripe for reaping the rewards of this business model.

From a business perspective, subscriptions make a lot of sense - especially in the travel sector. Instead of relying on a large percentage of your annual revenue in a few months of hot weather and school holidays, subscriptions spread the income across the entirety of the year - creating stability in revenue that is more predictable and consistent.

A home away from home

Companies like global hotel and lifestyle brand citizenM already offer subscription packages for consumers - but rather than with a traditional one-size fits all approach, they use advanced analytics to offer a more personalised approach. Subscribers signed up to mycitizenM+ are given priority or members-only access to the best discounts on global hotel rooms and deals. Instead of the hotel experience being a singular transaction, the company can build on their relationships with their guests, encouraging them to return time and time again and retaining their loyalty - something which is difficult to do in the current decade.

The universality of many hotel brands also makes them a suitable candidate for subscription billing as their loyalty can be spread across multiple locations in multiple countries. If you had a positive experience in one hotel in North America, there’s a good chance the experience will be equally pleasant in South-East Asia.

For many business travellers too, a model like this works to get the most efficiency out of the relationship. A hotel can better understand the needs of a frequent traveller - preparing a room in a certain way or ensuring that certain preferences are catered for.

Going that extra mile

Flights are another area where consumers can take advantage of a subscription to get the most bang for their buck. Alaska Airlines has recently announced their $5 a month Alaska Access programme that gives passengers access to continuous Wi-Fi on all flights, and pre-access to all sales and discounts ahead of their release to the general public. For a relatively small monthly fee travellers can potentially save hundreds of dollars on flights across a year. And what’s in it for Alaska? A loyal customer base and a stable monthly stream of income.

Alaska Airlines is bound to benefit from the first-mover advantage in this area but more airlines are soon to follow suit.

From their access to greater insights on their subscribers they are also able to offer personalised travel opportunities to frequent flyers. Does a particular customer always travel to see their family in New York? We can offer discounts on last-minute trips home. Does an avid skier like to try a new resort every Winter? Here’s affordable flights to the most up and coming resort in Colorado.

Subscribe and like

The latest evolutions in subscription technology have completely changed how we view this model of billing. The first generation allowed people to buy milk and newspapers, then streaming services came along, and this most recent iteration has made opportunities for all tech-savvy industries to reap the benefits too. Updates in our ability to process data, personalise offerings, take complex and varied payment types, and leverage our understanding of consumers, have all joined forces to make the subscriptions more effective at highlighting value to customers than ever before.

Travel and hospitality are the next industries to place subscriptions in their sight and the first companies to jump at the opportunity will pave the way for the rest.