Subscription business models have emerged as a new way to manage business travel costs and streamline the booking process. In this article, we will explore the business plan behind subscriptions in business travel and highlight their benefits and challenges.
1. Overview of the subscription business model
In business travel, subscription packages are a type of service that offers businesses and travellers access to a range of travel benefits/tools in exchange for a recurring fee. The way subscription packages work can vary depending on the provider and the type of package being offered. Generally, subscription packages offer discounted rates or exclusive access to certain travel benefits.
For example, an airline might offer a subscription package that includes a set number of flights per month. A hotel might offer a subscription package that includes a certain number of nights per month, upgrades, and other amenities.
Business travel management tools such as Ayruu also offer monthly subscriptions that contain several services such as bookings, data analytics, approval system, etc.
2. Benefits for businesses
Subscription plans offer several advantages for businesses, in this part we are discussing the most important pros of a subscription business modal.
Cost savings: To start with, one of the primary benefits of subscription plans is the potential for cost savings. By paying a fixed fee for access to a range of travel benefits, businesses can avoid paying higher prices for individual bookings.
Convenience: Subscriptions can also provide businesses with greater convenience when it comes to managing their business travel program. With a subscription, businesses can book travel more quickly and easily, without having to search for deals or negotiate rates. Using a corporate travel management tool that proposes subscriptions, is a practical way to manage trips. No more need to send emails or call the travel agencies to book trips. You pay a monthly fee, and all the bookings and travel services are open to you to choose from.
Predictable costs: This business modal can also provide businesses with predictable costs, making it easier to budget for travel expenses. By paying a fixed fee each month or year, your business can avoid unexpected costs or fluctuations in travel prices.
On-demand packages: Some providers like Ayruu offer customizable subscription packages, which can be tailored to the specific needs of businesses.
3. Challenges and risks
After discussing the benefits of the business plan for your company, it is important to highlight the risks and challenges that might face you.
To begin with, some subscription packages may have hidden fees that are not disclosed upfront. These fees can include additional charges for certain services, such as customer service, modification, cancellation, etc. Good News! Here in Ayruu, we don’t charge additional fees or commissions for your use of our different plans. Discover our prices right here.
Moreover, some companies make it difficult to cancel subscriptions: Canceling can be difficult and may require advanced notice or penalty fees. This can be a challenge for businesses or travellers who experience changes in travel plans or need to adjust their subscription packages. Using Ayruu to manage your business trips, you won’t be bound by an engagement, all our offers are without engagement or at least for a minimum of one month.
To mitigate these challenges and risks, it is important for travellers and businesses to carefully review the terms and conditions of subscription packages before subscribing.
