If we can subscribe to something like Apocabox — should the world end on a predictable monthly recurring billing schedule — why can’t we subscribe to more travel services? That gap in the market is yawning, but it won’t be for much longer as subscriptions are going on holiday.
JetBlue introduced this way back in 2009 as its “All-You-Can-Jet” program which, while well-received, eventually ended — existing now only as a sweepstakes where lucky fliers can win passes.
United Airlines picked up the gauntlet a few years later with its United Subscription offers, though those are about things like airport lounge access and extra legroom. All good, but we want more.
This was all before the subscription boom of 2020 that massively accelerated a love affair that was slowly taking shape for over a decade, but not quite getting there. It needed a nudge. Now, we’re seeing increasing action in travel subscriptions as airlines, rental car fleets and lodgings lock in recurring revenue to boost cash flow and inspire loyalty as few models do.
First into the fray in 2022 was Alaska Airlines, announcing its new Flight Pass subscription service in the first quarter. Plans start at $49 per month, allowing members to fly “up to 24 round-trip flights a year to the most popular routes within California, as well as nonstop service from California airports to Reno, Phoenix and Las Vegas, for a fixed monthly rate,” it said.
Alaska Airlines promotes Flight Pass as a “new way to fly allows travelers to lock in main cabin deals for a full year and rewards subscribers with lower-than-average fares on eligible flights.”
On Thursday (June 9), NerdWallet reported that “Instead of trying to be everything for every traveler, Alaska’s subscription has focused on a narrow niche: younger Californians with plenty of wanderlust and schedule flexibility. So far, just under half of subscribers are millennials or Generation Zers, according to Alaska.”
That’s a win for West Coast millennials, but what about the rest of us?
Luxury Wants In
On Thursday, luxury travel subscription service Inspirato announced the debut of its new subscription service, Inspirato Select. For the trifling investment of $24,000 a year (and don’t forget the $2,000 enrollment fee), members can choose from a half a million dazzling trip options. And what might those be at such nosebleed prices?
A press release tantalizes with “a long weekend in a five-star penthouse in New York City, four nights in a multimillion-dollar four-bedroom residence at a luxury resort in Los Cabos, a six-bedroom ocean view villa with a private pool for four nights in the British Virgin Islands, nine perfect nights in a suite at one of Chicago’s premier five-star hotels,” and “a four-bedroom residence for a five-night stay in the heart of Vail Village in Colorado.”
Sounds great. You may be wondering, “Can I book those without spending $24,000 a year for access through a particular site?” Sure, you can, but Inspirato is selling flexible, transferable luxury travel. For the high-end holidaymaker that might be something of a bargain.
Per the announcement, “Inspirato Select Trips are 100% transferrable and may be shared with others at no additional cost. This gives subscribers the flexibility to use their subscription in a wide variety of ways: They can enjoy their Select Trips themselves or gift them to family and friends. They can also use Select Trips for their businesses to motivate, reward, and retain top-performing employees, thank key colleagues and partners, and hold off-site retreats.”
As Netflix and other streaming platforms move to stop account sharing among non-subscribed viewers across extended families, luxury travel sees it as a value-add. It would have to be. But then, the dynamics of travel loyalty are shifting, along with everything else.
In May, The New York Times quoted Adam Levinter, author of “The Subscription Boom: Why an Old Business Model is the Future of Commerce,” as saying, “Travel and tourism have historically been linked to free points or free miles programs. With paid programs, customers are incentivized to spend because they have skin in the game.”
Parks and Rec and Rental Car Subscriptions
With inflation howling right now, suppose you don’t have a luxury travel budget. Maybe you don’t love flying. But you’ve had it with the endless COVID staycation. We’ve got ideas.
Playing to the trend of renting versus owning, rental car companies are offering subscription plans as an alternative to car buying, and while not cheap, for regular users there’s value.
Hertz My Car is a popular offering in the subscription auto space, giving subscribers three monthly subscription tiers starting at $599 a month for economy, $999 for full-size cars and small SUVs and trucks, and for $1,399 for luxury sedans, SUVs and large trucks.
Hertz lets subscribers exchange vehicles twice a month for other makes or models in their tier, and per a press release, “the all-inclusive monthly subscription covers vehicle maintenance, roadside assistance, limited liability protection and vehicle damage, which is limited to Tiers Two and Three. Vehicle damage protection is not included with Tier One,” but you can add it.
Such a deal. But where to go? The main complaint with some existing travel subscriptions is that they give access to special rates, but not the room or car or airplane seat itself: You still have to pay for those. If you’re cool with that, go for it.
If not, maybe drive that subscription rental car to an awe-inspiring national park.
The U.S. National Parks Service’s America the Beautiful Annual Pass — a steal at $80 in 2022 (less if you’re a veteran or a senior) — permits entrance to over 2,000 federal recreation sites.
According to an NPS blog, “Each pass covers entrance fees at national parks and national wildlife refuges as well as standard amenity fees at national forests and grasslands, and at lands managed by the Bureau of Land Management, Bureau of Reclamation and U.S. Army Corps of Engineers. A pass covers entrance, standard amenity fees and day use fees for a driver and all passengers in a personal vehicle at per vehicle fee areas” or four adults if day charges apply.
Rental car subscription — check. National Parks pass — got it. All that’s holding you back now is pandemic inertia. Guess what: Until the next season of “The Witcher” premiers, subscribe to a travel plan of some kind and hit the open road, or skies, and often. You’re a subscriber now.
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