The subscription economy: a new way to travel

Because Wipolo is incredibly curious on top of being an amazing trip buddy, here is our little analysis of the week. Enjoy!

Today, the obsession of ownership becomes progressively outdated.

We assist to the emergence of a new way of consumption which enables a great part of freedom and based on an instantaneous use of this need, at some point : what you want, only when you want it. We don’t own products anymore, we just consume its use. This is the rising of the « non-ownership » culture.

A lot of attractive options are launched to answer this need of repeated shopping.
Digital and artificial intelligence are an integral part of our everyday life and are now essential as distribution channels for this new industry. We redevamp the customer experience as « suscriber experience ».

Travel-plane

Some aims have to be respected to offer a suscriber experience which matches their expectations:

Personalization is key for an attractive subscription: because this business model is made to match better both ponctual and repetitive customers’ needs, it’s paramount for them to be able to chose a suscription which is like them and evolve with them.

Let suscribers control their account and their data: when a charged service is proposed by tacit agreement every month for example, trust quickly becomes the foundation on which the relationship between the suscriber and the brand is built. Earn this sought after faith is decided at the first connection: suscription, delivery service, customer service, billing and payment are key elements to conquer a suscriber. You also need to offer them a certain flexibility to manage their account. Privacy settings, for example, are greatly appreciated. This means not controling everything about data, but it’s paramount to convince new suscribers to choose you. In the suscription economy, the brand choosen by the suscriber is by definition its favorite one, a huge asset to boost retention. Interaction with other users (mainly friends and celebrities) also convince the suscribers thanks to a personalized content in which they identify themselves.

Let suscribers choose the level of service they want: because the suscription have to match with the suscriber, options have to be set up. It’s stimulates personalization we’ve just talked about previously. The users only pay what they need, for the duration they need: a flexibility which surely seduce them and oust the competitors.

 

This business model which is more and more used enables to revive some markets losing speed as we saw the music industry’s collapse at the end of the 1990’s and which became profitable again with the birth of suscriptions systems like Spotify or Deezer.

But how can it be applied to the tourism industry?

In transport for example, new offers to travel are created. They have already announced the beginning of the end for purchasing cars for few years. This is why new possibilities consumption in transport are emerging. Strengthened by the global sensibilization to sustainable development and by the millenials’, these digital natives, aspiration to networking and sharing economy, they answer their need of accessibility, convenience and fluidness. That’s on what Uber and Blablacar are based. But they are quite only occasional transports.
We now see new concepts appearing as the possibility to travel unlimited times a month by plane or by train, by way of monthly payment. A quickly profitable solution for all the globetrotters! This is what offers Surfair for example.
But enjoying an unlimited access to these transports is not enough: the suscribers have to feel like being part of a privileged club and taking advantage on additional exclusive privileges. So they can also benefit from a free upgrade for example.

This advantages are positive for both the suscribers and the brand: passengers become familiar to this travel model and are integrated to a privileged and pleasant group, and airlines strengthen their retention power.

But other types of subscriptions, that we find more original at Wipolo because they are kind of unexpected, see the day: it’s about travel boxes!
After cosmetics, wine and cheese, the travel lovers can now fin each month in their mailbox a little parcel which smells new horizons. Gastronomy, Do It Yourself, design, papercraft, art … all of this on the theme of the destination of the month: a true sensorial journey. We love this idea! (Two French boxes to shop: La BoxTrotteur and la Box de Nos Curieux Voyageurs.)

More innovations should appear in the tourism industry next years to answer this emerging need. At Wipolo, we can’t wait to see these mutations 🙂

See you very soon for some more news about our favorite industry, dear Wipolovers!

The Wipolo Team

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