The pandemic started a series of new and unexpected trends from home training to virtual quizzes and distant wine tastings. However, it is the significant increase in subscription costs during the pandemic that has caught companies all over the world.
Being stuck at home during lockdowns has made millions of people around the world super subscribers. As brands from all sectors are experiencing tremendous subscriber growth, subscriptions are part of any future-oriented business model.
ONE LendingTree survey conducted under Covid-19 restrictions showed that many Americans more than tripled their subscription costs, with one in three people surveyed signing up for a new online subscription during this period. The United States was not the only country to experience this. According to one investigation, conducted amid pandemic by Barclaycard Payments Nearly two-thirds of UK homes are subscribed to a regular subscription service, and UK households now have an average of seven contracts at a cost of around £ 552 a year.
Who were the big winners? Zoom did not surprisingly increase its market value by a huge amount 413% in 2020, ending the year with a market value of $ 96 billion, where the company’s sales in the last three months of 2020 increased 370%. For Netflix, 2020 has been the best year ever since the streaming giant added 37 million new customers and they were not the only ones Disney + now has over 100 million customers, very impressive considering that it was only launched 18 months ago.
So what is it about the subscription-based model that is proving so attractive to consumers?
Ultimately, people are looking for simplicity and convenience. Subscription services mark these fields and save consumers time and most importantly money. This model means that customers’ stress levels are reduced, and as a result, a brand seems light, hassle-free and therefore more sympathetic.
The business benefits of a subscription service are also clear. The intimate and personal offering drives brand loyalty and increases the likelihood of repeat business. It also provides the opportunity to directly engage customers with new bespoke products and services, as a result a brand is considered reliable and dependable.
As the travel industry looks forward to the next few months, companies in the sector should expect a real shift in consumer behavior. When people seem to be compensating for lost time after the pandemic, consumers will look to subscribe to activities that get them out of the house, offer them action and most importantly an experience they will remember.
The travel industry fits these criteria perfectly and is already seeing this suspended demand translate into bookings. Travel subscription services have also seen an increase in interest as consumers want to plan travel after the pandemic. With travel now back on the agenda, many travelers are looking for a bespoke service with a brand they trust. The subscription model fits perfectly for this purpose, while meeting price-driven decisions and the requirement for convenience.