In the context of the hospitality industry, a subscription model means offering guests a package where they pay a fixed amount to enjoy a set number of stays or services over a specified period. This could range from monthly stays at a particular hotel chain to access to exclusive amenities and experiences.
NB: This is an article from eZee Absolute
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For example, Inspirato, a luxury vacation home, offers a special subscription model that allows its members to book unlimited stays in 5-star properties including cruises and their vacation homes. The subscription rates started from 2500$ and for members, they could save on nightly rates, enjoy new experiences, and stay anywhere without spending additional costs.
Zoku, in Amsterdam, is another example of a micro aparthotel that offers flexible stays for guests with subscription plans starting from 2,750€ per month.
You can price the subscription plans based on your location, the amenities you offer and a handful of other key factors. But don’t be fixated on a price, remember flexibility is the key.
Challenges in Traditional Hotel Booking
Traditionally, the hospitality industry has thrived on one-time bookings. Guests research, compare prices and book a room for a specific duration. While this model has served us well, it presents limitations in today’s dynamic travel landscape. Factors like guest acquisition costs, guest loyalty, seasonality, and competition create constant pressure to secure bookings and maximize revenue.
A subscription model for hotel flips the script, transforming guests into loyal members. Here’s how it works:
- Membership Tiers: Hotels offer tiered subscription plans, each with varying costs and benefits. These tiers might unlock a set number of nights per month, discounted rates on any stay, room upgrades, or exclusive perks like spa treatments or airport transfers.
- Recurring Revenue: Guests pay a predictable monthly or annual fee, guaranteeing income for the hotel and budgeting ease for the guest.
- Building Loyalty: Subscriptions foster a deeper connection between guests and your brand. They become invested in your hotel, enjoying the convenience and familiarity it offers.
Think of it like a gym membership but for hotels. Here’s a Subscription Plan that you can refer to to understand what I am trying to say.
Guests commit to your brand in exchange for exclusive benefits and a streamlined booking experience. This fosters a sense of community and strengthens guest loyalty, a valuable asset in a competitive market.
The Potential of A Subscription Model in Hospitality
The power of subscriptions lies in their ability to address the key challenges hoteliers face.
Subscription fees provide a buffer against seasonal fluctuations, guaranteeing a baseline income and financial stability throughout the year. More importantly, it fosters a deeper connection with guests.
The convenience and predictability of a membership builds trust and loyalty, encouraging repeat business. This shift in focus, from short-term discounts to long-term value, allows hotels to move beyond the price wars that often dominate the traditional booking landscape.
