Travelport, a global leader in travel technology, has unveiled its much-anticipated 2025 State of Modern Retailing Report. Combining proprietary research with insights from across industries, the report outlines transformative trends shaping the travel sector in 2025. These include the increasing demand for transparency, the rise of subscription-based models, and the integration of AI in travel retail.
Meeting Consumer Expectations
“Travelers are vocal about their expectations: simplicity, transparency, and trust,” said Jen Catto, Chief Marketing and Product Officer at Travelport. “The industry has reached a pivotal moment. Retailers who adopt transparency, leverage AI responsibly, and prioritise seamless customer experiences will thrive in this evolving environment.”
Key Trends Shaping Travel in 2025
- Radical Transparency Replaces Consumer-Washing
Hidden fees and deceptive practices, often called “consumer washing,” have eroded trust. According to the report, 44% of consumers identify travel companies as offenders in misleading advertising, second only to credit card companies.
Transparency is now a competitive advantage. Businesses that eliminate hidden fees and present clear, comparable options will gain a loyal customer base, marking the end of consumer washing. - Simplicity as a Competitive Edge
While fintech disruptors have revolutionised banking, offering easier personal finance management for 47% of users, the travel industry lags behind. Over half (56%) of consumers report growing confusion over airline offers in the past decade.
Agile, API-driven technologies will be essential for travel brands to simplify shopping experiences. Companies that prioritise ease and clarity will stand out in an increasingly competitive market. - Collaborative Distribution Partnerships
Consumers face choice overload, with 56% feeling overwhelmed by the abundance of content in industries like streaming. In response, travel companies are forming unconventional partnerships.
For example, low-cost carriers are now collaborating with travel retailers to streamline content distribution. By adopting a multi-channel approach, brands can reduce complexity and foster customer loyalty. - Subscription Models Redefining Loyalty
Subscription services are gaining traction as an alternative to traditional loyalty programmes. Online travel agencies like eDreams ODIGEO have pioneered this model, with their Prime subscription driving significant revenue and margins.
The report reveals that 35% of consumers are open to travel subscriptions in 2025, citing convenience, cost savings, and exclusive perks as compelling reasons. - AI-Driven Retailing
With 58% of consumers using AI in their personal or professional lives, trust in AI is growing, particularly in travel, where 42% of respondents trust its responsible use. Moreover, 80% of frequent travellers are comfortable relying on AI for trip planning.
From behaviour prediction to personalised recommendations, AI is poised to revolutionise the travel experience. Travel agencies will also benefit, using AI to manage content and improve customer service.
Looking Ahead
The 2025 State of Modern Retailing Report makes it clear that the travel industry stands at a crossroads. Businesses willing to embrace transparency, leverage advanced technologies, and deliver simple, consumer-focused solutions will rise to the top. Travelport’s findings underline the need for bold strategies to meet the expectations of modern travellers.
Conclusion
Travelport’s research serves as a wake-up call for the industry. As travel retail evolves, companies that focus on trust, technology, and transparency will redefine the sector for years to come.
