Travelport has released its 2025 State of Modern Retailing Report, outlining key trends set to reshape the travel industry. The findings indicate an increasing demand for transparency, the rise of subscription models, and advancements in AI-driven travel retail experiences.
The report reveals that consumers desire simplicity, transparency, and trust in the travel industry. Travel companies that adopt AI responsibly, offer clear pricing without hidden fees, and provide streamlined experiences will likely succeed.
According to the report, five key trends will redefine travel in 2025:
1. Demand for Radical Transparency: Travel companies are scrutinized for deceptive pricing practices known as “consumer washing.” To gain customer loyalty, brands and agencies should provide clear, comparable options without hidden fees.
2. Need for Simplified Offers: Many consumers find airline offers increasingly confusing. The report suggests that travel brands adopt agile, API-led technology to seamlessly integrate content, data, and features to simplify the shopping experience.
3. Growth through Distribution Partnerships: Companies are forming unconventional partnerships to streamline the consumer experience due to content overload. This approach includes low-cost carriers opening their content to travel retailers to simplify shopping and boost loyalty.
4. Rise of Travel Subscriptions: Travel subscriptions are gaining popularity due to their convenience, cost savings, and exclusive perks. By 2025, one in three consumers will consider a travel subscription.
5. AI in Travel Retailing: With 42% of consumers trusting travel brands to use AI responsibly, AI-driven tools are set to revolutionize travel retailing. AI can predict travel behavior, curate personalized offers, and simplify customer service and upselling.
The full Travelport report can be found on their official website.
