The Rise of Travel Clubs: A New Era of Subscription-Based Travel

Over the last 12 months, we've continued to witness changes in business models across many sectors.

New and emerging start-ups are exploring new ways to pique the interests of savvy and budget-conscious consumers, and adjusting commercial models and payment offerings to suit these constantly evolving trends.

In recent months we've seen 'one-time subscription payment models' emerge and scale, and specifically for the travel industry, we've seen a significant transformation where brands and consumers are moving towards subscription-based platforms and closed-user group travel clubs.

This an exciting shift that has the potential to reshape how people plan and experience travel, one which could offer unbeatable benefits and exclusive access to travel services at trade prices to those who are 'in the club'.

With some companies globally already rolling this model out, including eDreams and other major brands - it's a compelling model for those looking to launch their own travel club or travel offering - which could quickly become a profitable and highly scalable business, without the reliance on commission revenue from bookings as the core revenue stream.

Here's a breakdown on why we think travel clubs are a game changer for the industry, and how we believe businesses can leverage our closed user group offering and platform to launch their own travel clubs with ease.

The Subscription Model: A New Pillar in the Travel Industry

The subscription model has quickly grown to become a cornerstone for many industries, and we are seeing now that travel is no exception. Companies like eDreams Odigeo have demonstrated the enormous potential of this model with their eDreams Prime service. Launched in 2017 as eDreams Prime, it boasts over 5.4 million members, with a target of 7.25 million by 2025. By paying an annual fee, they provide subscribers with access to exclusive deals and benefits.

How the numbers stack up...

• eDreams Prime, one of the leading subscription models in the travel industry, provides members with a variety of benefits, such as discounts on flights, hotels, and car rentals. As of 2024, the annual subscription fee for eDreams Prime is AUD $89.99. For those seeking additional perks, eDreams Prime Plus is available for AUD $99.99 per year. With a user base of 5.4 million, this model generates approximately AUD $550 million in annual recurring revenue for the company...
• Inspirato offers a luxury travel subscription called Inspirato Pass. For $2,550 per month, members get unlimited access to a portfolio of high-end vacation homes, hotels, and exclusive experiences. This model emphasizes luxury and personalized service, catering to affluent travelers looking for unique, hassle-free vacations. With 13,800 active subscriptions, Inspirato Pass generates approximately $422.5 million in annual recurring revenue (ARR).
• BeRightBack offers a subscription where members pay £49.99 per month for three surprise trips per year. Each trip includes flights and accommodation, with destinations revealed shortly before departure. A great potential model that would be underpinned by group booking allotment models for hotels and flights, potentially on distressed inventory, driving opportunities to secure incredible prices and on trips.

With some companies seeing incredible growth and success with their model, there are also some large brands or companies who have attempted to launch a travel club, albeit with no success. Most notably, Tripadvisor Plus, a subscription service launched by Tripadvisor to offer members exclusive discounts on hotels and travel-related services, was discontinued. Charging an annual fee of $99, it was intended to provide significant savings and added perks for frequent travelers but after some initial interest, Tripadvisor decided to shut down the service after three years due to challenges in meeting its goals and sustaining user engagement.

Why Subscription-Based Travel Clubs Are Appealing to Consumers

1. Accessing Travel at Trade Prices with Major Cost Savings: One of the primary advantages of closed-user group travel clubs is access to travel services at trade prices. By offering wholesale rates, these clubs can provide substantial discounts compared to standard market prices. This appeals to a broad audience, from budget-conscious travelers to luxury seekers looking for better value. The more bookings you make, the more you save.
2. Exclusive Benefits: Subscribers often receive benefits that are not available to the general public. These can include discounted flights, hotel bookings, car rentals, and even unique experiences like guided tours or exclusive event access. Such perks create a sense of exclusivity and enhance the overall travel experience.
3. Customer Loyalty and Retention: Subscription models foster customer loyalty by providing consistent value and convenience. Members are less likely to shop around for better deals when they are already receiving significant benefits from their subscriptions. This loyalty translates into recurring revenue for the business and a stable customer base.

How You Can Leverage the TRAVLR Technology

TRAVLR offers businesses an innovative, fully customizable, plug-and-play white-label travel solution, likened to the Shopify of travel. This platform enables partners to easily launch their own travel clubs, managing all facets, including subscription fees, through an intuitive interface. Businesses can prioritize or deprioritize industry partners, adjust discounts based on tiers, and maintain full control over the end-to-end user experience.

The platform’s modular features include competitions and gamification tools to engage customers, along with the flexibility to incorporate 56 different payment methods at checkout. Additionally, TRAVLR collaborates with businesses to curate VIP or exclusive events, offering an all-encompassing travel club solution tailored to small and enterprise-level companies. These features make it an ideal choice for businesses aiming to reward their customers through a loyalty solution or those seeking to enter the travel club sector.

One of TRAVLR's standout benefits is its comprehensive management service. TRAVLR handles all elements of the service, including customer support, finance, administration, hosting, technology, and infrastructure. This allows businesses to focus solely on promoting their platform and engaging with customers, without worrying about the operational complexities.

By leveraging TRAVLR's technology, businesses can quickly establish a competitive travel club that enhances customer loyalty and drives revenue. The platform’s flexibility and comprehensive management support make it a powerful tool for businesses looking to innovate and excel in the travel industry.

TRAVLR Case Study: The Bali Bible VIP TRAVEL CLUB

The Bali Bible, a premier source for all things Bali, has launched the VIP Travel Club as both a standalone B2C site and an upgraded premium service. Leveraging TRAVLR.com's platform, this club offers unbeatable prices on accommodations, activities, and services across Bali, providing exceptional value to members. The VIP Travel Club enhances the customer experience with exclusive deals and personalized recommendations, driving significant customer loyalty and increased revenue. This strategic approach has solidified The Bali Bible's position as a leading travel service provider for Bali enthusiasts.

TRAVLR Case Study: Kogan Travel

Kogan Travel leverages TRAVLR.com's white-label platform to offer a comprehensive range of free travel services, while Kogan First provides a VIP paid service with additional benefits. This partnership allows Kogan to offer personalized travel deals, enhancing customer experience and satisfaction. The integration has led to increased revenue and customer loyalty, demonstrating the profitability and effectiveness of incorporating travel services into their offerings. As a result, Kogan has successfully expanded its market reach and diversified its revenue streams.

Let's Partner and Launch a Travel Club!

With one of the biggest shifts in the industry towards subscription-based travel clubs, this opportunity represents a significant evolution in the travel industry but also a major opportunity that can move quickly. By offering access to travel services at trade prices and exclusive benefits, these clubs appeal to a wide range of travellers - and these customers could be yours. With companies like eDreams Odigeo demonstrating the success of this kind of model, they have paved the way for others to follow. Thanks to TRAVLR, businesses can easily launch a travel club of their own, tapping into this lucrative market and enhancing customer loyalty in days.

Embrace the future of travel with subscription-based models and closed-user group travel clubs, and reach out to us today at travlr.com or via LinkedIn!