Tourism is rising on a global scale. The industry generated $7.61 trillion for the global economy as a whole in 2016, which is up from $7.17 trillion in 2015. However, in recent years, the new blood flooding this industry is shaking things up.
Millennials represent 20% of global travelers, according to the United Nations, and they are disrupting the industry with their hunger for experiential consumption and exploring new destinations. A study from Airbnb, the peer-to-peer home sharing site that plays a huge part in the digital travel revolution, found that millennials would rather travel abroad than buy a home.
But there’s a key caveat. While millennials are prioritizing their discretionary spending toward travel, they want to do it for cheap. Most will be familiar with one of the many avenues to locate reduced airfare, hotels or rental cars. However, one of the most overlooked options is wholesale booking. Wholesale booking is advantageous for thrifty travelers because you have access to non-published rate that are oftentimes better than Expedia (EXPE) or Booking.com (PCLN). One of the most recent disruptors in this wholesale travel space and the global tourism sector is Sharing Services Inc. (SHRV), which looks to offer everything travelers need to book their perfect getaways, including more competitive deals and even financing programs.
The company’s flagship service is PathAways, a subscription-based travel community that gives members access to significantly cheaper deals than those of the major booking sites. The reason PathAways can offer these deals at much better rates is because the company doesn’t stuff bloated commissions and marketing costs onto their customers—a practice all-too-common among most travel sites these days.
“We are excited to start our journey toward creating a diversified travel holdings company,” Jordan Brock, President and CEO of Sharing Services, stated earlier this year. “Our management team offers over 50 combined years of relevant business development, travel and technology experience. Our goal at Sharing Services is not only to participate in the $7-plus trillion travel industry, but to transform it. We look forward to announcing several new product launches, including a ground-breaking mobile application, and other key corporate developments, throughout 2017.”
The Netflix of Discount Travel
Through PathAways, Sharing Services is able to offer travelers access to non-published fares that beat out the usual competitors. For a $99 annual basic subscription fee, vacationers are able to book wholesale rates that are not available to the rest of the market.
Popular travel search engines — companies like Kayak, Priceline and Orbitz — browse from the same list of published fares that anyone in the world can see. PathAways members receive superior rates on hotels, airfare and car rentals because they are bought in bulk, leading to savings of up to 50% in some cases. In addition, PathAways has a Pro membership level, which unlocks access to more deals on cruises, time-shares and more.
Oftentimes, when consumers book on Expedia or other travel engines, there are so many fees and commissions worked into the fare that any actual discounts become minimal or nonexistent. PathAways does not take a commission on its travel packages, and only generates revenue from the subscription fee from members, much like how Netflix (NFLX) and Amazon (AMZN) Prime works. And at under $100 a year, it the annual subscription can easily be recouped from the savings on even just a single trip.
Making Travel Accessible to Everyone
Sharing Services is also in the process of launching VacationFunding.com, its vacation financing arm, helping customers pay for trips that are often tricky to book because they require a full payment upfront.
This new division will operate like a bank by providing vacation funding for a small fee to travelers who book the entire vacation in advance, including hotel rooms and airline tickets. Travelers must complete all payments prior to departure in order to complete their program and receive their hotel and airline tickets.
“When we offer payment programs in our group vacation offers, about 70% of travelers opt to make payments, even with an extra additional fee,” Brock said. “Our new vacation funding program will add airfares to the equation and allow far greater numbers of families to travel and take those vacation days they deserve.”
The service addresses a significant market of potential travelers that often times are in need of financing, whether it’s because they don’t have a enough available credit, or even access to a credit card. Moreover, for many families an extended getaway is a risky proposition because most of the cheapest rates are non-refundable. Consequently, a sudden illness or change in plans could reap a disastrous effect on a family budget. Sharing Services will provide help for families in need with access to some much needed leisure that does not require a credit check. This opportunity could provide some homes with their first chance at a vacation in many, many years.
Vacation financing is not only a great way to offer families a chance to decompress without anxiety, but opens up an untapped demographic in the tourism industry. According to the company, by allowing an average family of four the ability to pay on a vacation, more and more households across the country could potentially afford to travel who wouldn’t be able to otherwise.
“We believe we can become the preeminent solution for all vacationers who want or need a vacation but also need help in the form of a payment plan, and, along the way, create a significant financial return for our investors,” F.A. Walters, Sharing Services treasurer said.
In addition, Sharing Services is in the process of acquiring actual brick and mortar travel agencies for those who want to speak with an experienced travel agent. Many times speaking with a travel agent is helpful for tourists to learn about new hot travel spots or find that perfect getaway locale they hadn’t know was there.
Sharing Services and its team are looking to revolutionize the travel industry that is clearly changing. As more and more millennials and their families look to explore the world, a cheaper and more sensible travel company will be needed to compete with the large search engines that currently own the marketplace. Sharing Services and its subscribing members are looking to change the game, and with price comparison tools readily available, it won’t be long before others start to see the benefits the company has to offer.
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