In a recent report titled State of Modern Retailing, Travelport, a prominent global technology company specializing in travel bookings, outlined pivotal trends expected to shape the travel industry in 2025. The company’s research, which combines proprietary insights and industry-wide data, delves into key trends, including the growing demand for transparency, the rise of subscription models, and the increased integration of artificial intelligence (AI) into travel retailing. Travelport emphasizes that the travel industry is at a “tipping point,” where businesses must adapt to changing consumer expectations to remain competitive.
Consumer Transparency in Travel: A Growing Expectation
One of the most significant findings from Travelport’s 2025 report is the growing demand for transparency in the travel sector. The company noted that nearly half of consumers have expressed frustration with “consumer washing,” a term used to describe the practice of advertising deceptively low prices only to reveal hidden fees or conditions during the checkout process. This has particularly been the case with airlines and hotels, which 44% of surveyed consumers cited as major offenders. As travel companies grapple with criticism over this practice, consumers are calling for clear, upfront pricing and honest communication at every stage of their travel journey.
According to Travelport’s research, the demand for transparency is not just a matter of consumer satisfaction—it has become a competitive advantage for brands that prioritize it. Consumers increasingly expect clarity, and those who adopt radical transparency will earn customer loyalty. For the travel industry, this shift represents a profound opportunity to cater to the evolving needs of today’s travelers. Companies that eliminate hidden fees, offer simple and comparable options, and provide a straightforward booking experience are more likely to thrive in the coming years.
Simplification of the Travel Retail Experience
Another critical trend identified in the 2025 report is the need for travel brands to embrace simplification. Over the past decade, many consumers have found the airline booking process increasingly confusing, with over half of surveyed travelers stating that airline offers have become more complicated. To compete with fintech disruptors, such as those in the banking sector who have simplified personal finance management, travel companies must adopt more agile, API-led technologies. These technologies will enable the seamless integration of new content, data, and features, making the shopping experience more straightforward for travelers.
The simplification of the travel retail experience is crucial for addressing “choice overload.” Just as consumers feel overwhelmed by the vast content options available through streaming services, they also struggle with the array of choices in travel. To respond to this challenge, travel companies are seeking new partnerships to make the booking process easier and more accessible. Low-cost carriers (LCCs) are beginning to open up their content to travel retailers, recognizing that a multi-channel approach can streamline the consumer experience, fostering loyalty and increasing sales.
The Rise of Subscription Models in Travel
Travelport’s report also highlighted the growing popularity of subscription models in the travel industry. Online travel agencies (OTAs) like eDreams ODIGEO have already demonstrated the potential of this approach, with their subscription model being the company’s largest contributor to revenue and margins. With 35% of consumers expressing interest in travel subscriptions by 2025, this business model is expected to experience significant growth in the coming years.
Subscription services in travel provide a unique value proposition for consumers, offering convenience, cost savings, and exclusive perks. The appeal of subscriptions is particularly strong in the context of rising airfares and accommodation prices, as consumers seek ways to secure better value. The success of subscription models could potentially shift the focus away from traditional loyalty programs, which may no longer be sufficient to meet the expectations of modern travelers. With this shift, travel brands will need to consider how they structure their offerings to maintain customer engagement and retention.
AI’s Expanding Role in Travel Retailing
Artificial intelligence (AI) is another area where the travel industry is poised for significant transformation. According to Travelport, AI adoption is accelerating rapidly, with 58% of consumers already using AI in their personal or professional lives. In the travel sector, AI is ranked among the top three industries for trust in responsible AI use, with 42% of consumers trusting travel companies to use AI in a way that benefits them. Frequent travelers, in particular, are increasingly comfortable with the idea of using AI for trip planning and other aspects of their journey.
The rise of AI-driven tools promises to revolutionize the travel retailing experience in 2025. For travel agencies, AI can simplify content management, making it easier to curate personalized offers based on travelers’ preferences. It can also enable more effective customer service, as AI-powered systems can quickly respond to inquiries, process bookings, and even upsell services. For consumers, AI will enhance the booking process by predicting travel behavior and offering tailored suggestions. This level of personalization will improve the travel experience, making it more efficient and enjoyable for travelers worldwide.
The Impact on Global Travelers
For travelers, the trends outlined in Travelport’s 2025 report represent a promising shift toward more transparent, simplified, and personalized travel experiences. With the growing emphasis on radical transparency, travelers can expect to see clearer pricing and fewer hidden fees, making it easier to plan and budget for their trips. Subscription models may offer travelers greater flexibility and value, providing access to exclusive deals and perks. AI-driven tools will enable travel companies to better anticipate travelers’ needs, offering tailored recommendations that enhance their overall experience.
The future of travel retailing is focused on making the process as seamless and efficient as possible. By embracing these emerging trends, travel companies can meet the demands of modern consumers, providing a more streamlined and satisfying travel experience. For global travelers, this shift represents an exciting opportunity to enjoy a new era of travel that is defined by transparency, simplicity, and innovation.
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