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Travelport Releases Second Annual State of Modern Retailing Report: 'Travel's Tipping Point'
Thursday, January 23, 2025
New proprietary research from Travelport, combined with cross-industry insights, highlights key trends that will transform the travel industry in 2025
LANGLEY, United Kingdom, Jan. 15, 2025 /PRNewswire/ -- Travelport, a global technology company that powers travel bookings for hundreds of thousands of travel agencies and suppliers worldwide, today unveiled its 2025 State of Modern Retailing Report. This report, combining new proprietary research and cross-industry insights, outlines critical trends reshaping the travel industry in 2025, including heightened demand for transparency, the emergence of new subscription models, and AI-driven advancements in the travel retail experience.
"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:
1. Consumer-washing ends; Radical transparency beginsTravel companies face
growing criticism for "consumer washing," a practice where businesses
advertise deceptively low prices, hiding fees or conditions until
checkout. Nearly half (44%) of surveyed consumers ranked airlines,
hotels, and travel companies as major offenders, second only to credit
card companies (45%).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.
2. Disruptors Delivering Simplicity Will Outpace the LaggardsFintech
disruptors have reshaped banking, with 47% of consumers agreeing they've
made personal finances easier to manage. However, the travel industry
lags behind. Over half of consumers (56%) 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.
3. Distribution Partnerships Drive Consumer GrowthThe overwhelming number of
content options across industries has led to choice overload. In
streaming services, for example, 56% of consumers feel overwhelmed by the
amount of content available on traditional and streaming channels, and
75% 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, recognizing that a
multi-channel approach simplifies the consumer experience while driving
loyalty.
4. Travel Subscriptions Gain TractionTravelers 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%) 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.
5. AI Raises the Bar for Travel RetailingAI adoption is accelerating, with
58% of people using AI in their personal or professional lives. Travel
ranks in top three industries for AI trust, with 42% of consumers
trusting travel brands to use AI responsibly. In fact, 80% of frequent
travelers already feel comfortable using AI for trip planning.AI-driven
tools will revolutionize travel retailing in 2025, from predicting travel
behavior to curating personalized offers. For agencies, AI will simplify
managing multi-source content and enable more effective customer service
and upselling.
To read the full report or to learn more about Travelport, please visit Travelport.com/Trends-2025.
About Travelport
Travelport is a global technology company that powers bookings for hundreds of thousands of travel suppliers worldwide. Buyers and sellers of travel are connected by the company's next generation marketplace, Travelport+, which simplifies how brands connect, upgrades how travel is sold, and enables modern digital retailing. Headquartered in the United Kingdom and operating in more than 165 countries around the world, Travelport is focused on driving innovation that simplifies the complex travel ecosystem.
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SOURCE Travelport
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