Retail

Air Travel Subscription Service Launches

You have a subscription for video and music streaming, a monthly selection of beauty products, a rotating wardrobe, car sharing and even your meals. What could you possibly still need a subscription to? How about air travel?

Startup OneGo is banking that consumers will take the bait and see the rewards in a monthly air travel subscription, in the form of convenience, savings and preferred bookings. Targeted toward the frequent business traveler, OneGo recently announced its subscription model and the release of its iOS app, slated for March 1, with an Android release to follow soon thereafter.

In a recent article, Founder Paulius Grigas told Bloomberg: “By eliminating those factors like price and payment, you really allow people to focus on where they need to be; you let them focus on their needs.” And to do that, OneGo is working with seven major airlines and 76 major airports across the country, partitioning the U.S. into four regions to set subscription pricing. According to Bloomberg, the service will charge $1,950 per month for flights in any of three zones, while a month on the West Coast costs $1,500. A nationwide plan comes to $2,950 monthly.

OneGo's basic plan subscribers will be able to secure four reservations at any one time; for an extra $750, subscribers can up that to eight total bookings. Trips must be reserved at least seven days in advance, and for the service to work, they really are banking on those last-minute bookings. Things such as baggage fees and cabin upgrades will cost the subscriber extra.

Prepaying for flights and locking in low rates, as Bloomberg points out, are not new concepts among corporate travelers or major airlines. American Airlines Group Inc., United, Air Canada and others currently offer such products. American’s AirPass program begins at $10,000 and offers discounted rates on last-minute, full-price tickets. However, OneGo says it can save business travelers time because it will focus only on the best flight schedules and avoid wading through nonstop and connecting options, all with different prices.

Grigas told Bloomberg that his team has tested the model for 15 months, stressing it with a variety of airfares and road warrior booking approaches. “Every day, we have more confidence,” he says. Only time, and travelers, will tell.

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NEW PYMNTS STUDY: LEVERAGING THE DIGITAL BANKING SHIFT – SEPTEMBER 2020  

The September 2020 Leveraging The Digital Banking Shift Study, PYMNTS examines consumers’ growing use of online and mobile tools to open and manage accounts as well as the factors that are paramount in building and maintaining trust in the current economic environment. The report is based on a survey of nearly 2,200 account-holding U.S. consumers.

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