June 3, 2020

Can Flight Subscriptions Help Airlines Recover From an Unprecedented Drop in Demand?

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https://skift.com/2020/06/02/can-flight-subscriptions-help-airlines-recover-from-an-unprecedented-drop-in-demand/

Can Flight Subscriptions Help Airlines Recover From an Unprecedented Drop in Demand?

2020-06-02 00:00:00, , Skift

Content Categorization
/Travel/Air Travel
/Business & Industrial
/News

Word Count:
1182

Words/Sentence:
19

Reading Time:
7.88 min

Reading Quality:
Intermediate

Readability:
11th or 12th

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Get the Latest on Coronavirus and the Travel Industry on Skift's LiveblogSeveral airlines had subscription offerings before Covid-19, including Air Canada, Lufthansa Group, and the Mexican low-cost-airline Volaris, Caravelo's lone customer.

But Uriz said there's more interest now, adding his company soon will announce a second airline customer, with several more possibly in the pipeline."I think airlines have gone to the next mental state, and they understand that they have to change the model," he said.

For several years, Iñaki Uriz has aggressively pushed airlines to adopt flight subscriptions, promising smooth and predictable revenue, but they were rarely interested, fearing lost sales.

Their revenue is not predictable, and not stable, and this has consequences," said Uriz, CEO of Caravelo, a Barcelona-based company that builds subscription platforms for airlines.

We saw quite a lot of subscription models, like Netflix, Spotify or iTunes music – models that charge a low monthly fee but lock customers in over a long period of time," said Holger Blankenstein, Volaris' executive vice president for airline commercial and operations.

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