Travelport, a global technology company, has released its 2025 State of Modern Retailing Report, highlighting key trends in the travel industry, such as increased transparency, the rise of subscription models, and AI-driven improvements in the travel retail experience, based on new research and cross-industry insights.

 

“Consumers are clear about what they want from the travel industry: simplicity, transparency, and trust,” said Jen Catto, Chief Marketing and Product Officer at Travelport. “Our latest research shows that travel has reached a tipping point. Modern retailers who embrace radical transparency, adopt AI responsibly, and deliver streamlined experiences will thrive in this evolving landscape.”

 

FIVE KEY TRENDS TO WATCH IN 2025:

 

CONSUMER-WASHING ENDS; RADICAL TRANSPARENCY BEGINS

 

Travel companies face growing criticism for “consumer washing,” a practice where businesses advertise deceptively low prices, hiding fees or conditions until checkout. Nearly half (44 per cent) of surveyed consumers ranked airlines, hotels, and travel companies as major offenders, second only to credit card companies (45 per cent).

 

Modern retailing requires honesty at every stage of the customer journey. Brands that eliminate hidden fees and agencies that present clear, comparable options across suppliers will earn customer loyalty. Radical transparency is not just a necessity—it’s a competitive advantage.

 

DISRUPTORS DELIVERING SIMPLICITY WILL OUTPACE THE LAGGARDS

 

Fintech disruptors have reshaped banking, with 47 per cent of consumers agreeing they’ve made personal finances easier to manage. However, the travel industry lags behind. Over half of consumers (56 per cent) report that airline offers have become more confusing over the past decade.

 

To match fintech's success, travel brands must embrace agile, API-led technology that enables seamless integration of new content, data, and features. Those who simplify the shopping experience will stand out in a crowded market.

 

DISTRIBUTION PARTNERSHIPS DRIVE CONSUMER GROWTH

 

The overwhelming number of content options across industries has led to choice overload. In streaming services, for example, 56 per cent of consumers feel overwhelmed by the amount of content available on traditional and streaming channels, and 75 per cent would prefer one bundled subscription.

 

Travel is no different. Forward-thinking companies are forming unconventional partnerships to meet consumers where they shop. For example, low-cost carriers (LCCs) are opening up their content to travel retailers, recognising that a multi-channel approach simplifies the consumer experience while driving loyalty.

 

TRAVEL SUBSCRIPTIONS GAIN TRACTION

 

Travelers are increasingly turning to subscriptions. Online travel agencies (OTAs) like eDreams ODIGEO have demonstrated the potential of this approach, boasting more than 6.5 million Prime subscribers. Its subscription model is currently the company's largest contributor of revenues and margins.

 

1 in 3 consumers (35 per cent) surveyed said that they would consider a travel subscription in 2025, highlighting that this business model is primed for growth. Benefits such as convenience, cost savings, and exclusive perks make subscriptions a compelling alternative to traditional loyalty programs.

 

AI RAISES THE BAR FOR TRAVEL RETAILING

 

AI adoption is accelerating, with 58 per cent of people using AI in their personal or professional lives. Travel ranks in top three industries for AI trust, with 42 per cent of consumers trusting travel brands to use AI responsibly. In fact, 80 per cent of frequent travelers already feel comfortable using AI for trip planning.

 

AI-driven tools will revolutionise travel retailing in 2025, from predicting travel behavior to curating personalised offers. For agencies, AI will simplify managing multi-source content and enable more effective customer service and upselling. -TradeArabia News Service