Alex Corey, Alaska’s MD of Revenue Products & Strategy, told me yesterday that the airline had been developing the idea of entering the subscription game for years — they were just looking for the right time and opportunity. About a year ago they began working with Caravelo on a firm plan, and yesterday all that hard work became public with the rollout of the Flight Pass and Flight Pass Pro.

The over-arching idea was to create something that would play into the never-ending appetite for subscriptions. Alex rattled off all sorts of numbers, including that subscriptions would reach $1.5 trillion by 2025 and there is a growing trend of “power subscribers” who have more than 10 subscriptions at a time. With the pandemic trends of people being able to work from anywhere along with wanting “safe exploration” and nearby vacations, Alaska figured it had finally found its opportunity.

First, Alaska had to define a target market, so it could build the right product. Initially that was the price-sensitive traveler who liked the idea of having an “incredibly low fixed price” that would allow them to plan their travels out for a full year. A college student going home (or on spring break) was an obvious example of someone with regular travel needs and a low budget. That defines the Flight Pass market.