Thursday 22 August 2024

Could airline subscriptions be coming to Australia?

The concept of unlimited flights is a dream for many frequent flyers and travel enthusiasts. Sounds too good to be true? Well... the good news is airline subscriptions do exist. The bad news is they don’t exist in Australia. Yet.

Airline subscriptions have been around for a while, promising flexibility, cost savings, and a new way to explore the world.

Think of a Netflix subscription or an F45 membership but for flights. All-you-can-fly, if you like. But just like that gym membership you pay for and may not always use, those who get best value are those who use it all the time. The nitty gritty depends on the airline and it’s mostly a play in North America. For a fixed monthly or annual fee, subscribers gain access to a range of benefits, including discounted fares, unlimited flights within certain regions or priority services. Generally, these programs aim to offer predictability in travel expenses and enhance the overall travel experience.

Alaska Airlines was probably the first airline to market its offering as a ‘subscription’. Launched early in 2022, the Alaska Airlines Flight Pass is a subscription-based membership granting access to up to 24 round trips each year among 15 destinations in California, Arizona, Nevada, and Utah. With no blackout dates, subscribers can even fly on major holidays like Thanksgiving or Christmas without extra fees. Subscribers are locked for 12 months of travel with subscription cost starting at $72 per month. Other perks include flexibility to change flight and picking your own seat (which is a must when flying in the US).

Frontier Airlines made headlines in the US earlier this year when it launched its GoWild! All You Can Fly Pass, with access to all US and international destinations served by the airline. The airline has a range of passes including a Summer Pass valid from May to September 2024, a Winter Pass for September 2024 to February 2025, annual and monthly passes. The catch with Frontier is that domestic flights are confirmed one day before departure, and international flights up to 10 days from departure, making it suitable for flexible, last-minute travellers. Passes start from $220 per month for the month to month pass, $442 for the Winter Pass or $884 for the annual one.

Closer to Australia, Air Tahiti offers a Multi-islands Pass which could be useful for those island hopping throughout French Polynesia. The airline allows what it calls “two extensions” which allows travellers to visit the Austral Islands and part of the Marquesas Islands as well, in conjunction with a pass. Prices vary depending on the route, class type and whether it’s high or low season.

There are many regular routes for business travellers and fly-in-fly-out workers which means an airline subscription could make sense for consumers. “Australia is a difficult market because it lacks competition with just two operators,” explains aviation expert Trevor Jensen.

“It could be an interesting concept for a start-up, but it would need to operate out of Sydney and Melbourne to be viable. There would also need to be certainty around seat availability, without too many restrictions or rules to secure a fare. I could see an airline subscription model working for a younger demographic who may decide to spontaneously book a flight, especially if fares are cheap.”

A major criticism of airline subscription models is it encourages consumers to fly more. However, with the environment in mind, we should be aiming to fly less.


No comments:

Post a Comment