Trip vs. Club Subscriptions

Travel Subscriptions are like ice cream. There are so many (delicious) types that it can be hard to pick the right one. Luckily, just as ice creams can be fruity or creamy, travel subscriptions can also be divided into two main families: Trips and Clubs. To help you make the best decision, we are going to compare them in this article.

In a nutshell, all subscriptions offer benefits in exchange for a recurring fee, but Trips grant direct access to bookings, while Clubs only give access to perks. Both impact market share, direct sales and demand. However, Trips have a stronger effect on a smaller number of people, and Clubs have a weaker effect but on a wider audience. In the next section, we’re going to explain why.

Club Subscriptions

We’ll start with Clubs, that are the most common and easier type to understand. They allow users to access perks, like discounts and ancillaries, in exchange for a recurring fee. However, these perks only apply if subscribers buy the trip directly from the company.

This creates an incentive to buy tickets directly, but doesn’t completely stop people from searching and comparing to find the best offer. As a result, the company will receive a limited boost in market share and could see a reduction in distribution costs.

Trip Subscriptions

A stronger effect can be achieved with Trip Subscriptions. These work similarly to Clubs, but subscribers get access to trips that are lost if not used. As a result, when they decide to travel, they already have a ticket and no reason to search and compare offers.

Because there is no search, competitors, and intermediaries don’t get a chance to interfere in the booking process, guaranteeing an increase in direct bookings and market share.

Moreover, since unused trips are lost, subscribers have an incentive to travel more often. This leads to more unplanned trips, a boost in demand, and an additional increase in market share.

The best flavor

At this point, Trip Subscriptions may seem the best flavor of ice cream in the house. But before rushing for a scoop, we should keep in mind that Trip subscriptions are generally priced higher than Clubs, making the latter more attractive to a wider audience.

The end result is that Trips have a stronger and more concentrated effect, while Clubs have a weaker but more widespread effect. Therefore, depending on a company’s business goals, one solution can be more appealing than the other. But there’s a catch.

Trips and Clubs are just two flavors of ice cream, and the truth is that you can build your cone with more than one. Metaphor aside, what we mean is that there are multiple types of Subscriptions available, that can be mixed and matched to form the perfect (c)one for you, as long as you have the right technology. 

Contact us to start building your subscription and learn which is the best option for your company.

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