Travelport unveils key insights shaping the 2025 travel industry

AI, radical transparency gains traction in travel industry
2025-01-16
/
/ New Delhi
Travelport unveils key insights shaping the 2025 travel industry

AI will establish its place and revolutionise the travel retail industry in 2025

Travelport, a global technology company supporting travel bookings for thousands of agencies and suppliers, has released its ‘2025 State of Modern Retailing Report’. In this second annual report, Travelport highlights several emerging trends reshaping the travel industry, with a focus on AI-driven advancements enhancing the travel retail experience.
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Combining proprietary research with insights from cross-industry trends, global technology company Travelport, which supports travel bookings for thousands of agencies and suppliers, has recently unveiled its second annual 2025 State of modern retailing report, titled Travel’s Tipping Point.

In a press statement, Travelport says that the report highlights emerging shifts that could potentially reshape the industry, particularly in travel retailing. According to the report, there an increased demand for transparency, as travel companies face increasing criticism for ‘consumer washing’—a practice where businesses quote misleadingly low prices and hide additional fees or conditions until checkout.

According to the report, consumer research survey of over 2,100 respondents, 44 pc of global consumers have called for radical transparency in travel companies’ practices, specifically addressing the issue of ‘consumer washing’. Consumers rank airlines, hotels, and travel companies as major offenders of this technique, second only to credit card companies, which are at 45 pc. This reflects that today’s consumers value honesty from businesses. Brands that avoid hidden charges and offer transparent options are more likely to enjoy customer loyalty.

Moreover, around half of the consumers are frustrated with the complicated process, emphasising that, unlike their fintech counterparts, which have simplified financial management for individuals, the travel industry has made the process more complex. Airlines continue to offer deals that have become increasingly confusing over the past decade. Therefore, according to the press statement, travel brands must adopt API-led technology to enable seamless integration of new content, data, and features.

Besides honesty and simplicity, the overwhelming availability of choices is another factor that turns off consumers today. As many as 75 pc of consumers prefer a single bundled subscription, while 56 pc feel overwhelmed by the content available on both traditional and streaming platforms.

To address similar challenges in the travel industry, companies are forming new partnerships to meet consumers where they shop. For example, low-cost airlines are sharing their content with travel retailers, recognising that a multi-channel experience simplifies the consumer journey and helps build loyalty.

To address the overload of choices, consumers are increasingly favouring travel companies that offer subscription models. Online travel agencies like eDreams, Odigeo have seen significant revenue growth and improved margins, thanks to their subscription offerings, with more than 6.5 million subscribers.

Due to benefits such as convenience, cost savings, and exclusive perks, 35 pc of consumers are opting for subscription-based models over traditional loyalty programmes in 2025.

Aiming to further enhance the travel retailing industry, cutting-edge technologies like AI, are attracting traction among industry leaders and consumers alike, as the travel industry enjoys a decent ranking in artificial intelligence trust.

Around 42 pc of consumers trust companies, which use AI responsibly, reflecting the fact, that AI will further establish its place and revolutionise the travel retail industry in 2025, and will predict a range of functions from predicting travel behaviour, to curating personalised offers, and simplifying management of multi-source content, hence enabling customer service and upselling, notes Travelport.

Overall, according to the report’s findings, the heightened demand for transparency, the rise of new subscription models, and AI-driven advancements are key factors shaping the future of travel retailing in 2025.

Jen Catto

Jen Catto

“Consumers are clear about what they want from the travel industry: simplicity, transparency, and trust. 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,” says Jen Catto, Chief Marketing and Product Officer, Travelport.

Combining proprietary research with insights from cross-industry trends, global technology company Travelport, which supports travel bookings for thousands of agencies and suppliers, has recently unveiled its second annual 2025 State of modern retailing report, titled Travel’s Tipping Point.

In a press statement, Travelport says that the report highlights emerging shifts that could potentially reshape the industry, particularly in travel retailing. According to the report, there an increased demand for transparency, as travel companies face increasing criticism for ‘consumer washing’—a practice where businesses quote misleadingly low prices and hide additional fees or conditions until checkout.

According to the report, consumer research survey of over 2,100 respondents, 44 pc of global consumers have called for radical transparency in travel companies’ practices, specifically addressing the issue of ‘consumer washing’. Consumers rank airlines, hotels, and travel companies as major offenders of this technique, second only to credit card companies, which are at 45 pc. This reflects that today’s consumers value honesty from businesses. Brands that avoid hidden charges and offer transparent options are more likely to enjoy customer loyalty.

Moreover, around half of the consumers are frustrated with the complicated process, emphasising that, unlike their fintech counterparts, which have simplified financial management for individuals, the travel industry has made the process more complex. Airlines continue to offer deals that have become increasingly confusing over the past decade. Therefore, according to the press statement, travel brands must adopt API-led technology to enable seamless integration of new content, data, and features.

Besides honesty and simplicity, the overwhelming availability of choices is another factor that turns off consumers today. As many as 75 pc of consumers prefer a single bundled subscription, while 56 pc feel overwhelmed by the content available on both traditional and streaming platforms.

To address similar challenges in the travel industry, companies are forming new partnerships to meet consumers where they shop. For example, low-cost airlines are sharing their content with travel retailers, recognising that a multi-channel experience simplifies the consumer journey and helps build loyalty.

To address the overload of choices, consumers are increasingly favouring travel companies that offer subscription models. Online travel agencies like eDreams, Odigeo have seen significant revenue growth and improved margins, thanks to their subscription offerings, with more than 6.5 million subscribers.

Due to benefits such as convenience, cost savings, and exclusive perks, 35 pc of consumers are opting for subscription-based models over traditional loyalty programmes in 2025.

Aiming to further enhance the travel retailing industry, cutting-edge technologies like AI, are attracting traction among industry leaders and consumers alike, as the travel industry enjoys a decent ranking in artificial intelligence trust.

Around 42 pc of consumers trust companies, which use AI responsibly, reflecting the fact, that AI will further establish its place and revolutionise the travel retail industry in 2025, and will predict a range of functions from predicting travel behaviour, to curating personalised offers, and simplifying management of multi-source content, hence enabling customer service and upselling, notes Travelport.

Overall, according to the report’s findings, the heightened demand for transparency, the rise of new subscription models, and AI-driven advancements are key factors shaping the future of travel retailing in 2025.

“Consumers are clear about what they want from the travel industry: simplicity, transparency, and trust. 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,” says Jen Catto, Chief Marketing and Product Officer, Travelport.

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