Skift Take

The subscription model continues to show promise in travel.

EDreams Odigeo has added to its travel subscription service another 50,000 members since November, bringing its membership base to about 500,000 for its brands eDreams, Opodo, and GO Voyages. The effort is the biggest test yet of consumer interest in subscriptions as a way to buy travel.

The online travel agency group, based in Barcelona, launched the Prime program in 2017 with flights, but since November it has added 2.1 million hotels. Subscribers receive discounts in return for paying annual fees that range by country, such as about $50 (€44.90) in Italy and about $62 (€55) in France.

The pandemic has grounded many travelers, so eDreams Odigeo has been offering free extensions to current subscribers. It has also begun a promotional campaign that aims to entice new members with a half-year free trial.

The group hasn’t broken out the subscription service’s contribution to revenue and profit. But the rising adoption of the product has coincided with an uptick in bookings. Reservations rose 11 percent, year-on-year, in December, and continued to grow in January and early February before the pandemic spread.

EDreams Odigeo group offers subscriptions in France, Italy, Spain, and Germany. Usage varies by market. As Skift reported in November, Prime members in Italy had a 26 percent share of all bookings, with around two-thirds of Italian members renewing.

Skift first reported on eDreams Odigeo testing the subscription service last year. For more context on the broader sector trend, see Travel Megatrends 2020: Subscription Travel Is the Next Frontier of Loyalty.

In a separate effort, the group’s Opodo brand debuted earlier this month a service in the UK called a flight price index. The service compares historical with current flight prices to suggest the most affordable time to book flights and the best-value destinations from a home airport.

Edreams Odigeo, a public company, has reported a strong balance and liquidity position despite the crisis.

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Tags: edreams, edreams Odigeo, edreams odigeo group, loyalty, online travel agencies, subscriptions

Photo credit: Image of a French town. EDreams Odigeo, the travel agency group, has a half-million users of its hotel and flight buying subscription service called Prime. Frederic Jutant / EDreams Odigeo

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