The pandemic kickstarted a number of new and unexpected trends from home workouts to virtual quizzes and remote wine tastings. However, it is the significant increase in subscription spending during the pandemic that has caught the attention of businesses across the globe.
Being stuck at home during lockdowns has turned millions of people around the world into super subscribers. With brands from all sectors seeing huge subscriber growth, subscriptions are part of any forward-thinking business model.
A LendingTree survey conducted during Covid-19 restrictions showed that many Americans more than tripled their subscription service spending, with one in three people surveyed signing up to a new online subscription during this time. The US was not the only country to experience this. According to a study, conducted mid pandemic by Barclaycard Payments almost two thirds of UK homes are signed up to a regular subscription service and UK households now have an average of seven contracts, at cost of around £552 a year.
So, what is it about the subscription-based model that is proving so attractive to consumers?
Ultimately people are looking for simplicity and convenience. Subscription services tick those boxes and save consumers time and most importantly money. This model means that customers’ stress levels are reduced and as a result a brand seems easy, hassle free and therefore more likeable.
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The business benefits of a subscription service are clear too. The intimate and personalized offering drives brand loyalty and increases the likelihood of repeat business. It also provides an opportunity to directly engage customers with new tailored products and services, as a result a brand is viewed as reliable and trustworthy.
As the travel industry looks ahead to the next few months, businesses in the sector should expect a real shift in consumer behavior. As people look to make up for lost time post pandemic, consumers will be looking to subscribe to activities that get them out the house, offer them action and most importantly an experience they will remember.
The travel industry fits these criteria perfectly and is already seeing this pent-up demand translate into bookings. Travel subscription services have also experienced an uptick in interest as consumers look to plan post-pandemic trips. With travel now back on the agenda many travelers are looking for a bespoke service with a brand they trust. The subscription model fits that purpose perfectly, while also catering to price driven decisions and the demand for convenience.