Tripadvisor’s attempt to create a subscription program that would give travelers discounts, drive bookings for suppliers, and revenue for itself is ending after just more than three years. This decision was announced by a Tripadvisor spokesperson in an emailed statement, marking the end of Tripadvisor Plus.
The program initially became available in beta in December 2020 and launched fully in June 2021 with a $99 annual membership fee. Suppliers such as hotels and car rental companies offered discounts and perks to members. However, just three months later, Tripadvisor shifted the program to a cash-back model in an attempt to attract more large hotel chains.
Since becoming CEO in July 2022, Matt Goldberg has talked about rethinking the Plus program, which was initially launched when Steve Kaufer was CEO. Goldberg highlighted the need to focus more on the benefits of free membership. He mentioned that asking consumers for a membership fee could be off-putting for a brand like Tripadvisor that did not require payments from consumers in the past.
In a statement released on Friday, Tripadvisor mentioned that Tripadvisor Plus was born out of their culture of innovation. They acknowledged that they now have a deeper understanding of their community’s preferences around benefits and rewards. With this knowledge, they aim to innovate and refine their approach to membership, focusing on the most engaged consumers to increase lifetime value.
Former Tripadvisor Plus participant Pablo Delgado Díaz-Pache, who is managing partner and CEO for America at a hotel marketing company Mirai, shared his thoughts on the program’s closure. He mentioned that the value proposition for hotels was arguable, but he appreciated Tripadvisor’s attempt to try something different in a competitive market dominated by Google, Booking, and Expedia.
The failure of the Tripadvisor Plus subscription program highlights the challenges of introducing a new paid membership model in a market where consumers are accustomed to free services. Tripadvisor’s decision to end the program and focus on enhancing the benefits of free membership shows their commitment to adapting to consumer preferences and driving engagement within their community. Despite the setback, Tripadvisor’s innovative spirit and willingness to evolve suggest that they will continue to explore new opportunities to deliver value to travelers and suppliers in the future.
Leave a Reply