OTAs currently charge up to 30 per cent commission fees on bookings, according to Tripadvisor. Pivoting to rely on subscription fees, the website says overall it will equate for cheaper travel for guests and lower overheads for hotels.
More importantly it could become a go-to site for members, when it comes to booking travel.
What will Tripadvisor Plus membership get you?
Tripadvisor Plus aims to do for travel what Netflix did for films and Spotify did for music. This could be a great thing, at least for travellers.
Tripadvisor is pricing annual Plus membership at $139 ($99USD).
For that you might get bottle of house wine in your mini-bar, or complimentary tickets to a local attraction through your hotel booking. Tripadvisor is currently loose with these details, and "perks" seem to be largely up to member hotels to decide on.
However, the key promise to members is a lower cost of travel and hotel bookings.
The Recurring Revenue Bundle (a 'Rundle' in tech jargon) is nothing new. Tripadvisor will be the latest tech company following the well-trodden path of the subscription model as popularised by tech companies such as Amazon's Prime service. A comparison the company's release was ready to draw.
However where Tripadvisor's membership departs from the tried and tested 'Rundle' and becomes a more adventurous.
It is launching during an ongoing pandemic. And while that same pandemic has put wind in the sails of other subscription models – such as streaming services or Amazon's prime delivery services – Coronavirus continues to make travel a difficult thing to bundle up with a membership subscription.
In its statement Tripadvisor says the plan will deliver "crucial cost saving to hotels" still recovering from the Covid-19 pandemic. However there are no additional promises of flexibility or hygiene to consumers at this stage.
Current travel restrictions mean that much of the potential of Tripadvisor Plus is yet to be tapped into. It will be interesting to see how many travellers take up the offer, even while international travel remains off limits.
Tripadvisor Plus was tested for US domestic travel in a limited, beta-phase trial in December. The company aims to include hotels all of the US by the end of the year.
From today hotels and in APAC, including New Zealand will be invited to participate in the programme. Kiwi travellers, however, will have to wait.