The Business Case for Travel Membership Programs
Subscription models have been a cornerstone of many industries for centuries, from doorstep milk deliveries to modern-day streaming services. Today, these models have penetrated every imaginable sector, reshaping how consumers access goods and services. The travel industry, traditionally reliant on one-time transactions, is now embracing the subscription economy, paving the way for travel membership programs to offer customers exclusive deals, seamless experiences, and recurring value.
According to Forbes, the global subscription economy market size is projected to be $1.5 trillion in 2025, up from $650 billion in 2020. Within the travel industry, these models provide consistent revenue streams and deepen customer loyalty. In this blog, we’ll explore the comprehensive business case for travel membership programs, focusing on their strategic advantages, different models, and how they can transform the travel industry.
What Are Travel Membership Programs?
A travel membership program is a subscription-based service in which customers pay a recurring fee, monthly, annually, or quarterly, in exchange for exclusive access to travel-related perks.
These may include discounted hotel stays, flight tickets, upgrades, VIP experiences, cashback rewards, and personalized travel services. Unlike traditional pay-as-you-go models, travel membership programs foster long-term customer relationships by delivering consistent value over time.
Travel subscriptions are gaining popularity across a wide array of travel sectors, including:
Airlines: Subscription-based flight services offering discounted or bundled flights.
Hotels and Vacation Rentals: Memberships providing exclusive room rates, upgrades, and extra amenities.
Tour Operators: Personalized tour packages at discounted rates, exclusive member tours, or last-minute deals.
Car Rentals and Ridesharing: Access to discounted or unlimited car rental services or premium perks.
These programs differ from travel loyalty programs, which reward customers for repeated purchases rather than charging a subscription fee regularly. However, travel benefits in membership programs are often far more extensive and immediate than loyalty-based models.
The Advantages of Travel Membership Programs for Businesses
For businesses in the travel sector, membership programs offer a robust solution to many challenges, including fluctuating seasonal demand, increasing competition, and rising customer expectations. Below are some key advantages:
1. Predictable Revenue Stream
One of the most significant advantages of travel subscription models is the predictable, recurring revenue stream they generate. Traditional travel companies rely on customers making one-off purchases, leading to volatile cash flows—particularly in off-peak seasons. Subscriptions, however, provide a steady income throughout the year, allowing businesses to manage better cash flow, resource planning, and growth strategies.
In 2022, 87% of travel subscribers planned to maintain or increase their subscription levels, demonstrating the potential for long-term financial stability through memberships.
2. Enhanced Customer Retention
Travel membership programs inherently encourage higher levels of customer retention. Customers who subscribe to these programs are more likely to stay loyal because they’ve already invested financially in the relationship. The result? Longer customer lifetimes and increased customer lifetime value (CLV).
According to McKinsey & Co., subscription-based customers are 60% more likely to stay with a brand for 12 months than one-time buyers. In the context of travel, a traveler subscribing to an airline, hotel, or vacation rental membership is far less likely to consider a competitor.
3. Reduction in Marketing and Acquisition Costs
By fostering long-term relationships with customers, travel membership programs reduce the need for costly marketing campaigns aimed at acquiring new customers. Instead, businesses can focus their marketing budgets on enhancing the experience for existing subscribers, improving retention, and creating word-of-mouth marketing through satisfied customers.
With rising digital advertising costs, retaining existing customers becomes far more cost-effective than acquiring new ones. This is why trip subscriptions and membership clubs are becoming pivotal in business growth strategies for travel companies.
4. Personalization Through Data-Driven Insights
Subscription models provide businesses with invaluable customer data, allowing for greater personalization. As members continue to use the service, businesses can track preferences, spending patterns, and behaviors, offering personalized travel experiences and targeted upsell opportunities.
For instance, airlines offering travel subscriptions can tailor flight offerings based on the user’s booking history, while hotels can offer custom room upgrades or dining experiences based on previous stays. This data-driven approach not only boosts customer satisfaction but also opens up new revenue channels through personalized marketing.
5. Increased Loyalty Through Exclusive Travel Benefits
With competition intensifying in the travel industry, exclusive travel benefits are a key differentiator. Membership programs allow companies to offer unique perks, priority boarding on flights, room upgrades, or last-minute booking flexibility—building a strong bond with customers.
These perks elevate the customer experience and encourage members to remain loyal to the program, especially when they feel they’re getting access to services or experiences not available to non-members.
Types of Travel Membership Programs
Travel membership programs can be broadly divided into two categories: trip subscriptions and membership clubs.
1. Trip Subscriptions
Trip subscriptions involve customers paying a fixed recurring fee to access a set number of travel products (e.g., flights, hotel nights, car rentals) within a specific timeframe. Subscribers can either accrue travel products on a monthly or annual basis, or enjoy unlimited access to a company's travel services with specific restrictions.
For example, Volaris v.pass, one of the most successful trip subscription models, allows members to take one domestic flight per month within Mexico. The predictable fee structure ensures customers get consistent value, and the company enjoys recurring revenue—even during low-demand periods.
Trip subscriptions can further be classified into:
Limited subscriptions: Subscribers receive a limited number of travel services, such as three flights or five hotel nights per month.
Unlimited subscriptions: Users can access unlimited travel services, but often with restrictions such as blackout dates, specific room types, or last-minute booking only.
2. Membership Clubs
In a membership club, members pay a fee to access discounts, priority services, or additional perks, such as extra baggage allowance or complimentary meals. These clubs don’t typically include a fixed number of travel products but offer cost savings and enhanced services, encouraging members to book more frequently.
For example, TripAdvisor Plus offers a membership with discounts on hotels, experiences, and additional perks, providing an appealing alternative to pay-as-you-go models. Members enjoy lower prices and exclusive access to deals, and businesses benefit from increased bookings and customer engagement.
Real-Life Examples of Travel Subscription Programs
1. Inspirato Pass
Inspirato, a luxury travel company, introduced the Inspirato Pass, offering members unlimited stays at their network of luxury vacation homes, hotels, and resorts for a monthly fee of $2,500. What sets Inspirato apart is its no-nightly-rates model, allowing members to book stays without paying nightly fees or additional costs. Members can access thousands of luxury accommodations, curated travel experiences, and personalized concierge services, catering to high-end travelers seeking flexibility and premium service.
2. Alaska Airlines Flight Pass
In 2022, Alaska Airlines launched the Flight Pass, a subscription program aimed at frequent West Coast travelers. For a fixed monthly fee, starting at $49, members can book six to 24 round-trip flights annually, depending on the plan. This program addresses the needs of regional travelers, offering affordable options for routine flights between specific destinations like California, Nevada, and Arizona, and providing flexibility with various advance booking windows.
3. Surf Air
Surf Air, a private membership airline, provides unlimited private flights for a monthly subscription starting at $1,950. Catering to business professionals and frequent flyers in California and Texas, Surf Air offers a unique travel experience by flying out of private terminals, significantly reducing wait times. Subscribers can enjoy an exclusive and seamless flight experience, making it an attractive option for busy executives looking to maximize their time.
4. BeRightBack (BRB)
BeRightBack (BRB) is a UK-based travel subscription service that offers travelers surprise trips to European destinations. For a monthly fee starting at £49.99, subscribers receive three curated surprise getaways each year, including flights and accommodations. BRB handles all the trip planning details, adding an element of adventure and spontaneity for subscribers who want a stress-free travel experience with a touch of mystery.
5. Airbnb Monthly Stays
While not a traditional subscription model, Airbnb’s Monthly Stays program has seen rapid adoption among digital nomads and long-term travelers. Airbnb offers discounts on stays longer than 28 days, making it a cost-effective solution for remote workers looking for flexible, extended accommodations. It provides a sense of home while traveling, with the added benefit of local immersion, allowing guests to live and work in various global locations without a long-term commitment.
How to Launch a Travel Membership Program for Your Business
Implementing a travel membership program is not a one-size-fits-all approach. Before launching a membership program, travel companies must carefully assess their market, customer behavior, and competitive landscape. Here’s a roadmap for getting started:
1. Define Your Target Audience
Identify who your subscription program will serve. Are you targeting digital nomads, luxury travelers, or families? Understanding your audience’s preferences will help shape the structure of your membership program, including pricing, benefits, and marketing strategies.
2. Design Your Value Proposition
What exclusive benefits will your travel membership offer? Consider perks such as discounts, access to premium services, or last-minute booking flexibility. Your value proposition must be compelling enough to entice customers to subscribe and stay loyal.
3. Develop a Pricing Strategy
Determine the right price point for your membership program. Consider offering multiple pricing tiers—basic, premium, and luxury—to cater to different customer segments. Additionally, free trials or discounted introductory offers should be offered to attract early adopters.
4. Integrate Technology for a Seamless Experience
Your subscription program’s success depends on a seamless customer experience. Invest in an integrated CRM and payment system to automate renewals, track customer preferences, and offer personalized recommendations. User-friendly mobile apps and web portals are crucial for members to manage their subscriptions and bookings effortlessly.
5. Monitor and Optimize
Once your program is live, closely monitor customer churn, engagement rates, and lifetime value metrics. Continuously optimize your program based on customer feedback and market changes to ensure it remains competitive and valuable.
At Custom Travel Solutions, we have worked to develop an extensive email-only series called Passport to Profit. This series allows you to see the value behind travel membership programs and how to create and promote one. Subscribe now!
Conclusion: The Future of Travel Membership Programs
The growth of travel membership programs reflects the broader trend toward subscription-based models across industries. With benefits like predictable revenue streams, enhanced customer loyalty, and personalized experiences, these programs offer a compelling business case for any travel company looking to remain competitive in an increasingly crowded market.
As travelers continue to demand convenience, flexibility, and value, the travel industry will see continued innovation in membership models. Whether it's a trip subscription for frequent fliers or a hotel membership club offering discounted stays, the future of travel will likely be shaped by how companies leverage the subscription economy to meet customer needs while driving long-term business growth.
If you need a robust technology partner to begin your journey of launching and growing a travel membership business, you can schedule a demo with one of our specialists to see how we can help you go live with your program within 10 days.
