Skift Breaking News Blog

Short stories and posts about the daily news happenings around the travel industry.

Travel Booking

Hapi Travel Launches Subscription Service for the U.S. Market

4 weeks ago

Subscription travel platform Hapi Travel Destinations has launched in the U.S.

More brands are building paid travel subscriptions, powered by shifts in traveler priorities and work-life flexibility, but Hapi Travel also wants to expand by offering “additional income in the new gig economy.”

A subsidiary of direct-sell specialist Sharing Services Global Corporation, it plans to add more “promoters” and says it lets users earn points when they book a vacation for their next trip, but also earn them when they refer other people.

It also claims to offer travel savings, which come at a cost: its Explorer subscription involves a basic monthly membership fee of $50 a month, while its Elite+ package costs $2,500 to join, and then $244 a year.

It offers discounts on hotels, resorts, cruises and condos, as well as car rentals, activities, flights and shopping, leveraging its direct-sell business.

“This new and unique membership-based travel club is designed for everyone to enjoy maximum savings and travel perks on the most luxurious vacation getaways throughout the world or save money on ordinary daily personal or corporate travel,” said John Thatch, CEO of Sharing Services Global Corporation.

In July, membership-focused travel tech firm Mondee went public. It mainly offers cloud-based tools to so-called “gig travel agents,” a category of independent workers it claims is growing. But the 1,000-employee company also offers direct-to-consumer subscription travel sales, rewards-based business travel programs, wholesaling services, and other offerings.

Business Travel

Mondee Adds 6 Million Subscribers Ahead of SPAC Deal

4 months ago

Travel technology company Mondee has seen “enhanced marketing costs” as it builds up the number of subscribers for its travel platforms.

The company now has 10 million users signed up to its subscription products including TripPlanet and Unpub, compared to four million in December last year. The boost may be a result of its new alliance with Arthur J. Gallagher, which gave it access to 287,000 business and organizations.

However, gaining new subscribers comes at a cost. Mondee posted a net loss of $7 million for the first quarter ended March 31, 2022, “after enhanced marketing costs to acquire lifetime customers and increase market share at this opportune inflection point of post-pandemic recovery.”

Mondee made a net loss of $12 million in the 2021 first quarter.

Gross revenue was $469 million, up 205 percent year-over-year, compared to $154 million in the first quarter of 2021. Net revenue was $38 million, up 179 percent year-over-year.

The results were posted on Friday, ahead of its planned business combination with Ithax Acquisition Corp. Mondee wants to list on the Nasdaq stock exchange under the ticker symbol “MOND”.

Its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $2 million, an improvement of $6 million compared to a loss of $4 million in the first quarter last year.

Last month Ithax, a special purpose acquisition company, raised an additional $20 million for its private investment in public equity, or PIPE, from Elliott Management and Siris Capital — the institutional investors who happen to be owners of Travelport.

Founder and CEO Prasad Gundumogula has said the company was ready to get back to a vigorous tempo of growth it saw before coronavirus. “The Mondee Marketplace made significant progress, buoyed not only by the post-pandemic travel recovery, but also by our unique traveltech ecosystem, causing us to regain the vigorous tempo of our pre-pandemic organic growth,” he said.

“Our customers and travelers have been early adopters of our recent fintech, martech, insurtech, and other ancillary offerings, driving the almost three-fold organic increase in our year-over-year net revenue.”

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