The pandemic has sparked a number of new and unexpected trends, from home workouts to virtual quizzes and remote wine tastings. However, it was the significant increase in subscription spending during the pandemic that caught the attention of businesses around the world.
Being stuck at home during blackouts has turned millions of people around the world into super subscribers. With brands across industries experiencing huge growth in subscriber numbers, subscriptions are part of any forward-thinking business model.
A LendingTree survey conducted during the Covid-19 restrictions showed that many Americans more than tripled their subscription service spending, with one in three respondents signing up for a new subscription online during that time. The United States was not the only country to experience it. Nearly two-thirds of UK households subscribe to a regular subscription service, and UK households now have an average of seven contracts, at a cost of around £ 552 per year, according to a study conducted amid the pandemic by Barclaycard Payments. .
Who were the big winners? Zoom, unsurprisingly, increased its market value by 413% in 2020, ending the year with a market value of $ 96 billion, with the company’s sales in the last three months of 2020 increasing by 370%. For Netflix, 2020 has been the best year since the streaming giant added 37 million new customers and they weren’t the only ones, Disney + now has over 100 million customers, very impressive considering it doesn’t ‘was launched 18 months ago.
So what about the subscription-based model that is proving so appealing to consumers?
At the end of the day, people want simplicity and convenience. Subscription services tick these boxes and save consumers time and most importantly money. This model helps reduce the stress level of customers and as a result a brand looks easy, hassle-free and therefore more likable.
The business benefits of a subscription service are also clear. The intimate and personalized offer promotes brand loyalty and increases the likelihood of customer retention. It also offers the possibility of directly engaging customers with new bespoke products and services, so that a brand is seen as reliable and trustworthy.
As the travel industry looks to the next few months, companies in the industry should expect a real shift in consumer behavior. As people seek to make up for lost time after the pandemic, consumers will be looking to subscribe to activities that will get them out of the house, give them action and most importantly an experience they will remember.
The travel industry meets these criteria perfectly and is already seeing this pent-up demand translating into bookings. Travel subscription services have also seen an increase in interest as consumers look to plan post-pandemic travel. 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 goal perfectly, while also responding to pricing decisions and the demand for convenience.