Why It’s Time to Invest in the Travel Subscription Model

The travel industry has long been defined by strong demand – travel gross bookings reached US$1.6 trillion and are projected to climb to more than $1.8 trillion by 2027. Demand is strong, profitability is robust, and the sector continues to attract attention. Subscriptions – proven in streaming, retail, and software – are now reshaping travel, with eDreams ODIGEO (eDO) at the forefront of that shift.

From Transactions to Relationships

“Travel is a complex industry, traditionally defined by one-off transactions and fierce competition. Meanwhile, online travel continues to be the most rapidly expanding segment, expected to reach $1.5 trillion in 2032 from $625.9 billion in 2024,” says Dana Dunne, CEO of eDreams ODIGEO. “We recognized early that the future would not be defined by single-purchase bookings but by recurring relationships.”

In 2017, the company launched Prime, the world’s first travel subscription platform, designed to deliver tailored experiences, lasting loyalty, and meaningful savings. From just half a million subscribers at the start of 2020, Prime now serves more than 7.8 million members, making eDO the world’s largest travel subscription company.

Predictability Over Volatility

The true power of the subscription model, Dunne argues, lies in its ability to fundamentally change the nature of revenue. In a traditional model, revenue is volatile and dependent on constant customer re-acquisition.

“In our subscription model, we don’t need to fight for that next booking; we already have an engaged audience of millions,” he says. This resilience translates into predictable cash flows and durable margins – qualities that stand out in uncertain markets.

Meeting the New Traveler

The modern travel ecosystem is vast and fragmented, often leaving consumers overwhelmed. Though eDO has aggregated the global market into a single marketplace, this is not enough. The true differentiator, according to Dunne, is their proprietary AI, which provides surgically personalized travel options. By processing billions of predictions daily, the machine learning models don’t just search; they anticipate.

“The majority of our subscribers now choose the very first option generated by our algorithms,” Dunne notes, confirming that the technology is not just presenting options, but solving the customer’s needs with precision.

A Roadmap to 2030

“In 2021, we set out to transform from a transactional model into the world’s largest travel subscription program. Four years later, having quadrupled our subscriber base, we are ready for our next leap: surpassing 13 million Prime members by March 2030,” says Dunne.

This ambition rests on three interconnected strategies. First, the subscription model is evolving with monthly and quarterly payment options for the annual subscription, meeting consumer demand for flexibility while increasing long-term value per member by 13%. This transition to lower monthly and quarterly payments, rather than a single annual fee, unlocks significant growth opportunities. Notably, it enables diversification into new products with lower basket values, such as rail – a €40B-plus industry with higher purchase frequency than flights – broadening Prime’s appeal and reinforcing its role as a comprehensive travel solution. Third, international expansion is already proving highly scalable, with new markets in Latin America, Central Europe, and MEA delivering penetration and acquisition rates well above those seen in mature European markets.

Alongside these initiatives, eDO will deepen its competitive edge through greater investment in AI, enhancing personalization and operational efficiency. Together, these pillars form a coherent roadmap that builds on proven strengths while opening new avenues for growth.

A Rare Opportunity in Travel

The subscription model in travel unites three qualities rarely found together: stability through recurring income, rapid scale in a trillion-euro market, and growth powered by structural consumer shifts. Subscription travel is not just another product innovation – it is a fundamental change in how the industry operates, creating value for customers and the businesses that serve them. eDO has already proven the model works at scale. The bigger story is that it is only just getting started.

Learn more about eDreams ODIGEO at www.edreams.co.uk.