INDUSTRY
- Travel and Logistics
Data and AI in Travel Industry for a Memorable Passenger Experience
Highlights
- Guests expect great experiences and memories when they avail hospitality services. Businesses can ensure greater customer connect if they can provide such experiences not just during but also before and after stay.
- An ecosystem based on a subscription model will help hospitality providers indulge guests even when they are not staying, boosting guest retention.
- The eco-system connecting guests with hotels and their channel partners will create larger-than-life experiences on a repetitive basis during, before, and after stay to add sophistication to guests’ lifestyle and provide value to every stakeholder.
In this article
In this article
Indulgence beyond stay
In hospitality, the main draw for customers is great experience and unforgettable memories.
But, if an exceptional service experienced during a summer vacation leaves an indelible impression, can the experience be made part of the guest’s lifestyle for greater brand affinity?
Sure, through a subscription model.
A subscription model will provide a larger canvas for all stakeholders and partners in the hospitality industry to craft moments of sheer indulgence for guests not just during their stay but also beyond—even in their day-to-day life.
Existing subscription models require a long-term commitment and hefty annual fees, offer no rewards and limited access, and, more importantly, are restricted to a stay with the hotel. But an eco-system connecting the subscriber (guest), subscribee (hotel and its channel partners), and the subscription itself creates larger-than-life experiences on a repetitive basis during, before, and after a stay to add sophistication to the lifestyle of guests and provide value to every stakeholder in the ecosystem.
Subscription model catching on
Subscription services are gaining popularity in most sectors, even in the food and beverages sector as seen with the UK-based Gousto.
The subscription-based recipe box provider recently announced plans to create 1,000 new jobs as part of an expansion following a 129% spike in sales during 2020 and £315 million ($381 million) in sales in 2021. Luxury vacation rentals provider Inspirato is revolutionizing luxury travel using a similar subscription-based model, invading the hospitality space.
A subscription model will provide a larger canvas for all stakeholders and partners in the hospitality industry to craft moments of sheer indulgence for guests not just during their stay but also beyond—even in their day-to-day life.
Players and attributes of subscription ecosystem
A subscription model unveils a world of opportunities and provides curated experiences for everyone.
A subscription model ensures benefits for every stakeholder in the eco-system. The focal point of subscriber, subscribee, and subscription services is indulgence that leads to a state beyond satisfaction. Here are some of the advantages the model offers:
Connecting with guests before, during, after stay
Member retention
Gateway to increase brand affinity
Convenience, choices, and options for guests, members in accessing facilities, amenities
Affordability at customers’ fingertips
Me, my friends, and my family!
Hassle-free wellness and health options
Catering to foodies with culinary options
Fuel guests’ passion by providing lessons in new skills
Wellness—yoga, spa, massages
Technology, customization the key drivers
This ecosystem brings out the novelty factor that will improve its overall performance mainly through technology convergence and customization, improving customer experiences and businesses revenues.
The change in trends brought out by different hospitality and non-hospitality stakeholders is a significant starting point for a newfound system. This establishes a shared economy where different competing partners become mutually dependent to unleash a different growth trajectory.
Here’s how the different stakeholders of a subscription eco-system will come together to benefit from each other:
A model to thrive even in uncertain times
The proposed model is resilient and customized to meet the specific requirements of a subscriber.
While it has all the components of a well-positioned business model, it can also absorb any change in behavior, trends, industry norms, and cater to guests and business dynamics. This proposed model can be lucid, agile, and can also be integrated into hotel systems in the future for better revenue management strategies.
A few years back, the Airbnb business model disrupted hotel stay by offering a home-away-from-home experience instead of simply a room. Brands are waking up to the realization that the best way to thrive especially during uncertain economic times is to have consistent revenue streams through guests who continue to buy and engage with the brand.
So, it is important to envision new and exciting ways like a subscription model to engage guests in a world where choice comes easy and competition for customer’s attention, time, and money is fierce. It’s a battle for sure, but a strategic guest engagement program like subscription services in hospitality will help enterprises retain their most valuable guests.
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