Phocuswright analyst Robert Cole suggests a subscription model could work for short-term rentals (STRs), assuming they can offer something not available anywhere else. Recent offerings include apartment rental company Zumper's new FlexPass subscription, which reportedly "gives you access to thousands of premium short-term rentals across the country for $300 a year." However, Airbnb, Vrbo, Vacasa, and Sonder say they do not offer guests a subscription service. Altido CEO Will Parry describes such models as "untested" and requiring "lots of useful perks to have a compelling value proposition for the consumer." The models' challenges for STRs include scaling up, value creation, and exclusivity, and they should serve a particular demographic. Phocuswright analyst Hollis Thomases notes subscriptions form the core of business for some travel brands, while others treat them as add-ons. Still, "subscription products and services are not for every business, and even those which have succeeded thus far may have a limited life expectancy," Thomases cautions.
PhocusWire (03/15/23) Kathryn Walson