Table of contents
1. What is a hotel subscription model?
2. From loyalty programs to subscriptions
3. How do hotel subscriptions work?
4. What are the different hotel subscription models?
5. Examples of hotel subscriptions
6. Designing a subscription model for hotel stays
7. The future of hotel subscriptions
1. What is a hotel subscription model?
2. From loyalty programs to subscriptions
3. How do hotel subscriptions work?
4. What are the different hotel subscription models?
5. Examples of hotel subscriptions
6. Designing a subscription model for hotel stays
7. The future of hotel subscriptions
1. What is a hotel subscription model?
Subscriptions now extend beyond magazines and streaming services. They have reached hospitality, where hotels are offering subscription-based options. These models give guests unique, continuous access to a hotel's amenities, rooms, or exclusive deals for a recurring fee.
Unlike traditional loyalty programs, which reward guests for sporadic visits, subscriptions aim to create a steady, reliable revenue stream. This also boosts RevPAR (revenue per available room). For hotels, this shift means greater predictability, while guests enjoy perks like exclusive services or discounted stays.
Unlike traditional loyalty programs, which reward guests for sporadic visits, subscriptions aim to create a steady, reliable revenue stream. This also boosts RevPAR (revenue per available room). For hotels, this shift means greater predictability, while guests enjoy perks like exclusive services or discounted stays.
2. From loyalty programs to subscriptions
Loyalty programs were once key to retaining customers in hospitality. They aimed to boost return visits with rewards. But subscription models offer a deeper connection by engaging guests in an ongoing, paid relationship.
A good subscription model keeps revenue flowing and boosts guest retention. It keeps the brand top-of-mind and engages guests with the hotel's services. Unlike one-off loyalty perks, subscriptions drive predictable revenue. They also boost hotel revenue by fostering exclusivity and belonging among subscribers. This makes each stay feel personalised.
A good subscription model keeps revenue flowing and boosts guest retention. It keeps the brand top-of-mind and engages guests with the hotel's services. Unlike one-off loyalty perks, subscriptions drive predictable revenue. They also boost hotel revenue by fostering exclusivity and belonging among subscribers. This makes each stay feel personalised.
3. How do hotel subscriptions work?
Hotel subscriptions usually run monthly or annually. They give customers access to hotel services, accommodation days, or exclusive perks. Subscription benefits vary. They range from guaranteed monthly stays to access to amenities and discounts on dining and wellness facilities.
For example, a hotel may offer a package. Guests pay a fixed monthly rate for a few discounted nights, free upgrades, and priority event bookings. Also, upselling in hotels plays a role. Digital platforms prompt guests to add extras, like dining and wellness packages.
Hotels using these strategies can boost profits. They can adjust subscription rates to peak and off-peak seasons with data-driven pricing. Revenue management strategies, like dynamic pricing, set the best price for each guest segment. They keep the subscription appealing while meeting revenue goals.
For example, a hotel may offer a package. Guests pay a fixed monthly rate for a few discounted nights, free upgrades, and priority event bookings. Also, upselling in hotels plays a role. Digital platforms prompt guests to add extras, like dining and wellness packages.
Hotels using these strategies can boost profits. They can adjust subscription rates to peak and off-peak seasons with data-driven pricing. Revenue management strategies, like dynamic pricing, set the best price for each guest segment. They keep the subscription appealing while meeting revenue goals.
4. What are the different hotel subscription models?
There are multiple ways hotels can structure subscriptions, each catering to different guest needs:
These options target specific guest groups. They help hotels boost revenue by appealing to local residents and traveling professionals who want flexibility.
- Unlimited stays. Subscribers get a set number of nights each month. In some places, they even get unlimited nights at specific hotels. This model particularly appeals to frequent travellers or business professionals.
- Workspace and accommodation packages. These packages are for digital nomads. They offer a mix of accommodation and workspaces, with flexible check-in and check-out times. The inclusion of coworking spaces makes it an ideal choice for remote workers.
- Wellness and amenity access. Here, the focus is on local residents or regular visitors who may not need a room but wish to access the hotel’s gym, spa, or pool facilities on an ongoing basis.
These options target specific guest groups. They help hotels boost revenue by appealing to local residents and traveling professionals who want flexibility.
5. Examples of hotel subscriptions
Some hotels have pioneered subscription models to cater to the evolving demands of their guests. Let’s take a look at four examples that illustrate the potential of these subscription options:
Selina’s Nomad Passport
Selina, a hospitality brand, blends hotels with coworking spaces. They introduced the "Nomad Passport." This monthly subscription lets guests stay a set number of nights at various Selina properties worldwide. It caters to digital nomads who crave flexibility. This model is particularly attractive to remote workers who value the variety and cultural immersion each Selina location provides.
Mint House’s Residence Membership
Mint House offers apartment-style stays. They blend homey comfort with hotel services. Their Residence Membership gives subscribers discounted rates and extended-stay options in spacious units complete with kitchens and workspaces. This setup appeals to business travellers and long-stay guests. They prefer more amenities than a standard hotel room provides.
Zoku’s WorkZoku Membership
The “WorkZoku” membership from Zoku is tailored for professionals who need a flexible workspace with accommodation options. Guests gain access to Zoku’s coworking spaces, networking events, and select rooms at a discounted rate. This model serves as a hybrid, accommodating both professional and travel needs, perfect for guests who want to stay productive and connected.
The Work From Hyatt Package
Hyatt offers a subscription that merges accommodation with workspace access, ideal for travellers combining work and leisure. Subscribers can book rooms with high-speed Wi-Fi and a private workspace. They also get access to a meeting room. These rooms are for those who need a dedicated work environment while traveling. This package capitalises on the “bleisure” (business and leisure) trend, making it a popular choice among remote professionals.
Each of these examples highlights a unique approach to subscriptions, showing the range of possibilities for hotels looking to implement this model.
Selina’s Nomad Passport
Selina, a hospitality brand, blends hotels with coworking spaces. They introduced the "Nomad Passport." This monthly subscription lets guests stay a set number of nights at various Selina properties worldwide. It caters to digital nomads who crave flexibility. This model is particularly attractive to remote workers who value the variety and cultural immersion each Selina location provides.
Mint House’s Residence Membership
Mint House offers apartment-style stays. They blend homey comfort with hotel services. Their Residence Membership gives subscribers discounted rates and extended-stay options in spacious units complete with kitchens and workspaces. This setup appeals to business travellers and long-stay guests. They prefer more amenities than a standard hotel room provides.
Zoku’s WorkZoku Membership
The “WorkZoku” membership from Zoku is tailored for professionals who need a flexible workspace with accommodation options. Guests gain access to Zoku’s coworking spaces, networking events, and select rooms at a discounted rate. This model serves as a hybrid, accommodating both professional and travel needs, perfect for guests who want to stay productive and connected.
The Work From Hyatt Package
Hyatt offers a subscription that merges accommodation with workspace access, ideal for travellers combining work and leisure. Subscribers can book rooms with high-speed Wi-Fi and a private workspace. They also get access to a meeting room. These rooms are for those who need a dedicated work environment while traveling. This package capitalises on the “bleisure” (business and leisure) trend, making it a popular choice among remote professionals.
Each of these examples highlights a unique approach to subscriptions, showing the range of possibilities for hotels looking to implement this model.
6. Designing a subscription model for hotel stays
To create a successful subscription model, hotels need to consider their target audience and market positioning carefully. By analysing guest preferences, hotels can set prices that meet customers' expectations. This will boost profits. Revenue management strategies play a crucial role here, helping hotels set rates that maximise occupancy and revenue without undercutting the value of the subscription.
Dynamic pricing can help set competitive subscription prices. It adjusts for factors like seasonality and demand. For example, a higher rate for prime times and popular spots, plus a discounted rate during quiet periods, helps keep occupancy high while providing value.
Moreover, with effective upselling strategies, hotels can add premium services to subscriptions, such as complimentary breakfasts, free parking, or priority bookings, enhancing the overall appeal of the package.
Dynamic pricing can help set competitive subscription prices. It adjusts for factors like seasonality and demand. For example, a higher rate for prime times and popular spots, plus a discounted rate during quiet periods, helps keep occupancy high while providing value.
Moreover, with effective upselling strategies, hotels can add premium services to subscriptions, such as complimentary breakfasts, free parking, or priority bookings, enhancing the overall appeal of the package.
7. The future of hotel subscriptions
As travellers’ expectations continue to evolve, subscription models are well-positioned to become a significant revenue stream in hospitality. Their flexibility and convenience appeal to a wide demographic. It includes local residents wanting easy access to amenities, and international travellers seeking a base across multiple cities.
Hotels willing to embrace this model could see considerable growth potential in terms of revenue and guest loyalty. In the future, we may see entirely subscription-based hotels. Guests would pay a flat rate for regular access to rooms, coworking spaces, and amenities. Will subscriptions fully replace traditional bookings? Perhaps not, but they represent an innovative revenue model that meets the needs of today’s flexibility-focused, loyalty-driven guests.
Hotels willing to embrace this model could see considerable growth potential in terms of revenue and guest loyalty. In the future, we may see entirely subscription-based hotels. Guests would pay a flat rate for regular access to rooms, coworking spaces, and amenities. Will subscriptions fully replace traditional bookings? Perhaps not, but they represent an innovative revenue model that meets the needs of today’s flexibility-focused, loyalty-driven guests.
