Hotel subscription: Plans, models, and trends

What is a hotel subscription?

A hotel subscription is a service that allows guests to pay a recurring fee—typically monthly or annually—in exchange for ongoing benefits like room access, discounts, or special perks. This model is different from traditional bookings because it offers flexibility and consistent access, often at a reduced rate for long-term or repeat guests.

Subscriptions appeal to frequent travellers or remote workers seeking more flexible lodging arrangements, and they help hotels build a steady flow of income while strengthening relationships with their guests.

Why should hotels consider subscription plans?

Hotels that adopt subscription plans can enjoy several key advantages:

• Predictable revenue: Subscriptions ensure a steady stream of income, which helps balance cash flow during off-peak seasons. This provides financial stability and allows for better planning.
• Guest loyalty: Offering exclusive perks to subscribers builds stronger, longer-term relationships with guests, increasing the chances they’ll return to your property multiple times.
• Differentiation from competitors: A well-crafted subscription plan can set your hotel apart from others by offering a unique value proposition that attracts repeat guests who want flexibility and added benefits.

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What are the different hotel subscription models?

There are several types of hotel subscription models that hotels can explore depending on their target audience and business goals:

• Monthly or annual room subscriptions: Guests pay a recurring fee for access to a room or suite for a set number of nights per month. This model works well for business travellers, remote workers, or frequent visitors.
• Loyalty-based subscriptions: These subscriptions offer exclusive perks like room upgrades, complimentary meals, or access to premium amenities in exchange for an annual fee. They appeal to guests who want to feel like VIPs every time they visit.
• Work-from-hotel subscriptions: Designed for remote workers, these subscriptions provide access to a hotel room or workspace during the day. Guests may also receive high-speed internet, discounted food, or access to hotel facilities like gyms and pools.

How to implement a hotel subscription model

Here’s a step-by-step guide on how to implement a successful subscription model at your hotel:

Step 1: Assess your guest needs

Understand your target market and what they value most. Are they frequent business travellers looking for convenience, or digital nomads who need flexible workspaces? Tailor your subscription plan to meet these needs.

Step 2: Determine your pricing structure

Set competitive pricing that aligns with your hotel’s offerings. You’ll need to find the right balance between affordability for your guests and profitability for your business.

Step 3: Integrate with your current systems

Make sure your subscription model integrates smoothly with your existing booking and property management systems. This ensures seamless coordination between subscriptions and traditional bookings.

Step 4: Promote your subscription

Market your subscription plan effectively by highlighting its benefits across your website, social media, and guest communications. Consider offering limited-time discounts or exclusive perks to attract early subscribers.

Step 5: Monitor and refine

Track the performance of your subscription model by analysing guest feedback and booking data. Adjust pricing, perks, or promotional efforts based on guest preferences and market demand.

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Hotel subscription trends for independent brands and groups and chains

The subscription model is quickly gaining popularity across independent hotels and larger chains, and here’s why:

Growing effectiveness over traditional booking models

As guests increasingly seek flexible and long-term accommodation options, hotel subscriptions offer an appealing alternative to traditional bookings. They provide guests with stability and convenience, making them ideal for frequent travellers and remote workers.

Increasing number of guests opting for a subscription over regular bookings

More guests are choosing subscriptions for their travel needs, driven by the desire for flexible lodging arrangements and access to exclusive perks. Hotels offering these services are seeing higher engagement and repeat visits.

Growing interest in introducing a hotel subscription service

With the success of subscription services in other industries, hotels are beginning to explore how these models can work for them. Hoteliers are finding that subscription services not only attract more loyal guests but also enhance the overall guest experience.

Factors contributing to success or struggle with hotel subscriptions

Successful hotel subscription models rely on understanding guest preferences, setting the right price points, and offering meaningful perks. On the other hand, poor implementation, lack of promotion, or pricing that doesn’t align with guest expectations can hinder success.