5 Industries That Will Most Likely Never Adopt a Subscription Model Many industries are adopting a subscription model — but these five well-known industries will probably never make the full jump.

There's no denying that subscriptions are all the rage. The subscription economy is among the fastest-growing industries, among others.

It does not appear that the subscription economy will slow down anytime soon. By 2025, the subscription economy will be worth $1.5 trillion, a 435% increase over the past nine years.

In addition, Statista found that United States consumers have 12 paid subscriptions to entertainment and media services alone. With 17 subscriptions each, millennials lead the way with the most subscriptions.

That being said, it may be understandable if you have subscription fatigue. Don't worry, though. The following five industries are most likely to skip this recent consumer trend.

Related: Survival of the Fittest: 3 Reasons Your Subscription Business Didn't Work

1. Airlines

There are several reasons why airlines might never fully adopt a subscription model:

• Variability in demand. Air travel demand can vary significantly depending on the season, the day of the week, and the route. Implementing a subscription model in this environment would be challenging, as airlines must ensure enough seats on all flights, regardless of demand.
• High fixed costs. Subscription models for airlines are challenging to offer due to high fixed costs, such as aircraft leasing and maintenance.
• Competition from other modes of transportation. Trains and buses, for example, often offer better prices than air travel. As a result, airlines would have difficulty charging enough subscription fees to cover their costs.

Even so, some airlines have attempted subscription-based services. For example, Delta Air Lines offered a subscription service called SkyMiles Select. Members received perks such as priority boarding and overhead bin space guarantees. However, Delta has ended the program.

In the future, airlines may be able to develop a more comprehensive subscription model. The implementation of such a model, however, would likely be complex and expensive. Moreover, it would need to be carefully designed not to cannibalize the airline's existing business.

As a whole, airlines will probably never fully adopt the subscription business model. Nonetheless, they may develop subscriptions that appeal to a specific market segment.

Related: The Subscription Economy Is Growing Fast. Here's How Your Business Can Adapt and Thrive.

2. Hotels

Hotels may fully adopt a subscription business model for the reasons airlines have not. These include:

• Demand variability. Many factors affect hotel demand, such as time of year, day of week, and location. The hotel would have to provide enough rooms for subscribers at all times, even during low-demand periods, so a subscription model would be difficult to implement.
• High fixed costs. Hotel operations have high fixed costs like property taxes, maintenance, and staffing. Therefore, it isn't easy to offer a subscription model that is both profitable and attractive to customers.
• Competition from other accommodation providers. Airbnb and vacation rentals are two options that offer more flexibility and affordability than hotels. Therefore, hotels may not charge a high enough subscription fee to cover their costs.
• Customer preferences. People often book hotels according to their specific needs and budgets. This could limit customer flexibility and discourage some travelers.

Hotels are still experimenting with subscription-based models despite these challenges. Some hotels offer subscription services that give members discounts on rooms, but these are typically limited to a few properties. However, they are typically limited to a few hotels and locations.

Related: Exploring Three Major Trends Driving The Hospitality Industry

In general, hotels may never fully adopt a subscription business model. There is, however, the possibility of developing more limited subscriptions that appeal to a specific customer segment.

3. Restaurants

Several factors may prevent restaurants from fully adopting subscription business models. These include:

• Variety of customer needs and tastes. Price, cuisine, location, and occasion are all factors that customers consider when dining. It would not be easy to implement a subscription model.
• Perishable goods. Due to food's perishability, restaurants must be careful how much food they prepare and when they restock. Restaurants would find it challenging to manage their inventory with a subscription model.
• High fixed costs. Many fixed costs, such as rent, staffing, and food, are associated with restaurants. Due to this, offering a subscription model that is both profitable and attractive to customers is challenging.
• Competition from other dining options. Consumers have other dining options, such as fast food, takeout, and delivery. A subscription model may make it hard for restaurants to compete with these options.

These are just some challenges restaurant owners will face when implementing a subscription business model. However, some restaurants are experimenting with this model. One example is Panera's Unlimited Sip Club, which offers unlimited self-serve beverages. SheWolf, a Detroit restaurant, did away with an $80-a-month subscription box option.

As such, it seems unlikely that restaurants will completely embrace a subscription model.

Related: More Restaurants Embrace Subscription Model to Drive Revenue and Retain Customers

4. Services that require specialized expertise.

Subscription models are more complicated to implement in industries requiring specialized expertise, such as legal and financial services.

• High complexity. It takes specialized expertise to provide legal and financial services, which are often complex. As a result, it isn't easy to develop a subscription model that can meet the needs of all customers.
• Demand fluctuation. Financial and legal services are often required as needed instead of regularly. While there are exceptions, such as tax season, subscription prices and demand can be challenging to predict because of this.
• Fixed costs are high. There are a lot of fixed costs for legal and financial firms, such as rent, staffing, and technology. It is, therefore, difficult to provide both a profitable and affordable subscription service.
• Regulatory requirements. There are many regulatory requirements for legal and financial services. Consequently, it isn't easy to implement a subscription model that complies with all laws and regulations.
• Customer preferences. Rather than committing to a subscription, some customers may prefer to pay for legal or financial services individually. This may be because they wish to have more control over their spending and choose the services they require.

Although subscription-based services may present challenges, some legal and financial services businesses could experiment with this model. For example, legal or financial subscription models may offer access to a team of experts or a resource library rather than offering unlimited services.

Still, there is little likelihood that legal and financial services will fully adopt subscriptions.

5. Insurance

Due to the following reasons, insurance companies will probably never fully adopt subscription businesses:

• Variability in risk. A claim's risk varies significantly over time. In this environment, the subscription model would be complex to implement since insurers must ensure enough reserves to cover claims.
• High fixed costs. Licensing, regulatory compliance, and technology costs for insurers are high. Subscription models cannot be both profitable and attractive because of this.
• Customer preferences. Rather than committing to a subscription, some customers prefer to pay for insurance on a case-by-case basis. As a result, they may wish to have more flexibility in choosing the coverage they need.

Related: Do You Have the Right Insurance for Your Business? Here's How to Understand Your Options

Additionally, many people view insurance as a safety net and may have reservations about locking themselves into a relationship with a specific insurer. Also, some people may be concerned about affordability under a subscription model.

It is still possible for insurers to experiment with subscription-based offerings despite these challenges. A subscription service like health or car insurance offers customers discounted rates. Typically, subscription services cater only to a subset of customers and are more expensive than paying for insurance case-by-case.