From tacos to salads coffee to carwashes, it can feel like there's a subscription for everything these days. In 2022, many a company is trying to figure out what products customers like so that they can get them on board for a longer and regular payment commitment.
For the most part, this strategy works: while 70% of Americans recently said that they spend more than $50 a month on unwanted membership charges and subscriptions, there is no shortage of people willing to sign onto everything from streaming services to monthly food passes.
Will That Work for Air Travel?
While some subscriptions are more attractive than others, paying a set price for travel has long been considered the epitome of a good deal — one story of a New York man who bought an unlimited American Airlines (AAL) AAirpass in the 1980s and spent the next two decades flying first class nonstop (before the airline finally withdrew the pass) frequently pops up as one example of someone who truly hit the flying jackpot.
While it's not quite unlimited, Seattle-based Alaska Airlines (ALK) just launched its own flight subscription service for the West Coast. Starting at $49 and going up to $199 a month, the Flight Pass allows those who hold it to take six, 12, or 24 nonstop flights a year on select routes in California as well as the Reno, Phoenix, and Las Vegas airports.
Alaska Airlines
"Flight Pass builds on our mission to offer travelers the most West Coast destinations at the best value," Alex Corey, managing director of business development and products for Alaska Airlines, said in a statement sent to TheStreet. "Our commitment to care means offering convenient and affordable options that fit our guests’ lifestyle and connect them to where they want to go."
Are We Going to Be Seeing More of This?
The Flight Pass comes with a number of conditions — the flights must be economy, require an annual commitment, and, depending on the price you choose, could require you to book 14 days in advance. (The $199 Flight Pass Pro lets you book up to two hours before departure).
And, of course, there's the question as to whether it's actually a good deal. That likely varies a lot by person and exactly which flights you book.
Are other airlines likely to follow suit? To remain profitable for both the airline and the holder, this type of flight pass usually works best for those who travel back-and-forth to select destinations. Air Canada currently offers flight passes from Canadian cities to everything from popular sun destinations to European metropolises but, at over $4,000 Canadian dollars a month for the latter is hardly a budget option.
Some other airlines that offer flight passes include Singapore Airlines and Malaysian-based AirAsia but, according to Alaska Airlines, theirs are the first domestic flight subscription service in the U.S.
"Since the start of the pandemic, subscription offerings have gained incredible popularity," an Alaska Airlines spokesperson told TheStreet. "[...] We've seen demand from our leisure travel guests in California and developed Flight Pass to meet their needs. We’ll consider expanding the program to other regions as we see how people respond."
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