How Subscription Model Can Transform Travel Industry
“How Subscription Model Can Transform Travel Industry” by Stephen Knight, Chairman and Co-Founder, and Jae Hopkins, CMO of Ultimate Travel Club
Travel has suffered from the pandemic in particular – whilst we can’t change the travel industry overnight, we can address some of the shortcomings of the current process; making booking and rebooking easier, and giving members access to better value and choice.
People love to travel, it’s in our DNA and whether it’s here or abroad, we have all missed it. Covid has led to an acceleration in a number of areas – whether it’s hybrid working, online shopping, or digital transformation. Consumers want more transparency; brands need to be more open and communicate their purpose with their audiences.
Travel Industry Will Recover
The future of the travel industry is bright. People love holidays. The travel industry will recover – the question is just when and how, but we won’t stop dreaming.
Customers are more knowledgeable and want bespoke options, rather than standard packages. They want to travel when they want, where they want, and how they want. They want more choice, more flexibility, more engagement with the places they visit, and they want to give something back, whether it’s to the people, places, or the environment.
Our research tells us that people want to travel less frequently but travel better, and when they do, they want to minimise their impact on the earth.
Gen Z and Millennials in particular are far more focused on the impact that travel has on the planet and society more broadly. We know the positive impact travel can have on mental wellness and cross-cultural understanding, as well as economics.
Subscription Model Can Transform the Industry
People like to manage their money in different ways. We have seen how the subscription model has transformed a number of markets including entertainment, consumables like gin, wine, flowers, groceries, even shaving. It’s transparent. Members know what they are paying, in the case of the travel industry, what members pay for their subscription goes straight into their travel account, pound for pound.
It feels like there’s always a compromise to be made when booking a holiday: either you don’t get the breadth of choice, or you pay over the odds. A subscription model can remove that by offering a wide range of flights, accommodation and more, with no commission or mark-ups.
By creating a club managed through subscription we can take people behind the curtain and give them access to rates the travel trade pay and, in some cases, even less through unique supplier agreements. By tapping into existing infrastructure and keeping our overheads to an absolute minimum we can make this work for us all.
The New Model Is Promising
Ultimate Travel Club is aiming to transform the travel industry with the subscription model. We had a successful Crowdfunder phase, and looking at the comments we received on the Crowdfunder, they were from people that are genuinely interested in a new model – they want more choice, better value and access to exclusive deals, and they need the flexibility to change their arrangements.
We decided to crowdfund because we want UTC to be a club that its members value, with a reputation for looking after its members and providing outstanding service, whether that’s digitally or through our customer service team. Like all good clubs, we will be driven by our members and their needs.
Providing Exclusivity Is Key
We wanted to float the idea and use the Crowdfunder to find some like-minded people, everything we do is driven by the members, so we needed to recruit a fan club of engaged and interested people who were willing to get involved and provide feedback. In return, we have given them a heavy discounted and unique membership offer along with access to the Directors and a broad range of exclusive benefits including the opportunity to invest, as well as attend our special events and seminars. We will continue to offer memberships in the 500 Club up until launch – so if you’re interested please take a look at our website. You can join the waitlist and get £50 off travel credit.