• | 12:00 pm

Travelport’s 2025 report reveals transparency, AI, and subscriptions reshaping travel retail

Transparency, streamlined customer journeys, strategic partnerships, and responsible AI use are key to travel retailers' success in the evolving market.

Travelport’s 2025 report reveals transparency, AI, and subscriptions reshaping travel retail
[Source photo: Chetan Jha/Fast Company Middle East]

Travelport’s 2025 State of Modern Retailing Report reveals key trends shaping the travel industry. It emphasizes transparency, subscription models, and AI-driven enhancements to the retail experience and highlights a growing demand for simplicity and trust among consumers.

“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.”

The report identifies key trends for 2025, starting with the demand for radical transparency. It highlights “consumer washing”—the practice of deceptive pricing with hidden fees—as a major concern. Nearly half (44%) of surveyed consumers cited airlines, hotels, and travel companies as major offenders. The report suggests that radical transparency, with clear pricing at every stage, is now a competitive advantage in the travel industry.

Simplicity is another critical factor highlighted in the report. While fintech disruptors have simplified personal finance for many (47% of consumers agree), the travel industry is seen as lagging behind. Over half (56%) of consumers feel airline offers are more confusing than they were a decade ago. The report suggests that travel brands must adopt agile, API-led technology to simplify the shopping experience and meet evolving consumer expectations.

The report also highlights the growing popularity of travel subscriptions, with one in three consumers (35%) surveyed expressing interest in a travel subscription by 2025. This points to significant growth potential for this model in the coming years.

AI also made the list as a key driver. With 58% of people using AI daily, the report reveals that travel ranks among the top industries for AI trust, with 42% of consumers expressing confidence in AI applications. Most (80%) of frequent travelers already feel comfortable using AI for trip planning.

AI-driven tools are expected to revolutionize travel retailing by predicting travel behavior, curating personalized offers, and streamlining content management and customer service for travel agencies.

More Top Stories:

FROM OUR PARTNERS