Why You May Subscribe to Your Next Vacation

The travel industry is increasingly adopting the subscription pricing model.  What types of products and services are travel-related companies offering?  What are the potential benefits of the subscription model in the travel industry?


Subscription to Discounts

Certain subscriptions programs offer access to discounts that are not available to the general public.  For example, for $99 per year, Tripadvisor offers reduced hotel and activity booking rates and perks like rental car upgrades.  Scott’s Cheap Flights offers services from $49 - $200/year for alerts on economy and first-class flights.


The draw of the subscription services is that these discounts are not listed on the travel firm’s website for the general public.  The providers of the deals require that they only be distributed to membership organizations.  Subscribers, in essence, are paying for exclusive travel prices that cannot be found elsewhere.


Airline Subscription Programs

Some airlines are now offering subscription programs that provide access to a fixed number of flights as well as services such as free Wi-Fi and checked baggage.  For example, Alaska Airlines offers credits to travelers who agree to pay a monthly fee to fly a fixed number of roundtrip flights.  The cost of the subscription varies based on the level of booking restrictions. 


United Airlines’ offerings include subscriptions for Club membership, premium seats, checked baggage, and free Wi-Fi.  With United, you can either pay cash or with miles.


Other subscriptions offer deep discounts for flights. For example, Spirit Airlines has a “$9 Fare Club” that costs $59.99 per year for access to deep flight discounts.


Hotel Programs

Hotels have also joined the fray and are offering subscription packages that include unlimited stays, priority rooms, discounts on food and drink, access to co-working spaces, and wellness classes.


While several subscription models focus on offering access to discounts, others focus on providing exclusive, high-end experiences.  For example, Inspirato offers a $2,500/month package that offers unlimited stays at its offering of high-end resorts.


Targeting Work-From-Homers

Other hotels, such as InterContinental, Marriott, and Accor are offering “work from hotel” packages to provide restless remote workers a change of scenery.


Why Travel Is Joining the Subscription Club

Travel subscriptions offer the same potential benefits as other subscription services, such as recurring revenues, ability to create customer loyalty, potential to target new customers or revenue streams, and additional data which can be used to customize product and pricing options.  These benefits may be helpful for travel during economic downturns when consumers often reduce discretionary spending.


How may individuals gain potential exposure to companies offering subscription models?


The Fount Subscription Economy ETF (SUBS)

The Fount Subscription Economy ETF (SUBS) seeks to provide investment results that, before fees

and expenses, generally correspond to the total return performance of the Fount Subscription

Economy Index.  The Index was designed to measure the performance of companies engaged in the business of providing subscription services, i.e., companies that sell products or services for recurring subscription revenue.


SUBS invests in companies that offer subscription-based pricing models, including those in the travel industry.



For a list of fund holdings, please click here.

Bong-Geun Choi Chief Economist

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 855-425-7426 or visit our website at www.fountetfs.com. Read the prospectus or summary prospectus carefully before investing.

Exchange Traded Concepts, LLC. serves as the investment advisor to the Funds. The Funds are distributed by SEI Investments Distribution Co., (SIDCO) 1 Freedom Valley Drive, Oaks, PA 19456. SIDCO is not affiliated with Exchange Traded Concepts, LLC. or Fount Investment Co. Ltd.

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Investing involves risk, including possible loss of principal. There is no guarantee the Funds will achieve their stated objectives. In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles, or social, economic, or political instability in other nations. Emerging markets involve heightened risks related to the same factors, as well as increased volatility and lower trading volume. 


The Funds’ concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors. For MTVR, the Fund may be concentrated in the entertainment and interactive media & services industries. The entertainment industry is highly competitive and relies on consumer spending and the availability of disposable income for success, which may cause the prices of the securities of companies to fluctuate widely. The prices of the securities of companies in the interactive media & services industry are closely tied to the overall economy's performance. Changes in general economic growth, consumer confidence, and consumer spending may affect them. MTVR may also be subject to the specific risks associated with metaverse companies. These risks include but are not limited to small or limited markets, changes in business cycles, world economic growth, technological progress, rapid obsolescence, and government regulation. Smaller, start-up companies tend to be more volatile than securities of companies that do not rely heavily on technology. Metaverse Companies may rely on a combination of patents, copyrights, trademarks, and trade secret laws to establish and protect their proprietary rights. There can be no assurance that these steps will be adequate to prevent the misappropriation of their technology or that competitors will not develop technologies that are equivalent or superior to such companies’ technology.


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Both Funds are subject to communication services sector risk, which can involve the same risks as being concentrated in the software industry. Network security breaches, potential proprietary or consumer information theft, or service disruption can negatively affect companies’ stock prices.


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