How to Monetize a Travel App: Top 5 Strategies

Building a travel app is only half of the job. Sure, it’s an effective way to increase your brand recognition but gaining some profit won’t hurt as well, right? Moreover, for many entrepreneurs, an app is the first step in their business journey, so revenue is a must.

There are several ways to earn from a travel app. Let’s review the mechanics of each of those to help you choose the most appropriate one.

Commission fees

The first and the easiest way to make money from a travel app is to take a commission from the listed services. For example, if you offer your users accommodation, each host or a hotel might pay a small commission for getting listed.

Such a model is beneficial both for the app and the listing owners. While the app is earning profit by collecting small commissions from hundreds or thousands of listings, a hotel or a carrier has a steady flow of customers without spending money on ads and booking management.

In-app ads

Ads is a method that works well for any kind of app. While it has its downsides, like potentially being annoying for some users, in-app ads can help you make a profit from the application quite quickly.

If you care about your users and don’t want them to get a negative attitude towards your app, try to choose ads that match the topic and will likely be useful for the users. For example, if you run a flight booking app, a car rental service or a backpack store can be what the user will click on.

Merchant model

The next way to monetize your travel app is to use the merchant model. What is it? Basically, it means that you are booking service in stock, be it hotel rooms, bus tickets, or guided tours. Then you resell those to the users for a higher price while making a profit.

Because buying directly from a provider and getting the services in bulk, you will likely get a price that is lower than they would normally offer to the end customers. The margin is totally up to you.

Premium version

One more popular monetization way is adding a premium plan. Just like the in-app ads, this method works for virtually any type of application. You simply offer some additional features in the paid version attracting both the users who want to have the free version and those willing to pay for the wider functionality.

A premium plan can be combined with the in-app ads as removing the advertisements can be one of the premium features.

In-app purchases

Last but not least, your app can benefit from having some in-app purchases. What kind of purchases can your users make?

First of all, you can sell certain features separately instead of offering them as a premium package. For example, users can buy the possibility to view some exclusive listings in the booking app.

Secondly, your app can offer some offline services and products. For instance, as an accommodation booking application, you can provide transfer options or a translator to help the travelers with checking in.

Summing up

After having our travel app ready (by the way, we explained how to build one in a recent blog post), you will probably find yourself thinking about the monetization options. Rightfully so, the app should be bringing some profit. As you can see, there are several ways to earn a profit, each with its peculiarities. You can use one of those or even combine them.

What do think, which one works best for a travel app? Share your opinion in the comment section!