As we move into 2025, the travel industry is experiencing a pivotal transformation, driven by technological advancements, shifting consumer expectations, and emerging business models. According to Travelport’s latest report, travel retailing is at a tipping point, similar to the digital revolutions in banking, fashion, and entertainment. By learning from these industries, travel can evolve into a seamless, customer-first experience that meets modern consumer demands.
Travelport surveyed 2,100+ global consumers to understand how retailing trends are evolving across industries, what travellers expect from their booking experience, and where travel companies must adapt to stay competitive. The findings reveal five major trends that will redefine how travel is bought, sold, and experienced in 2025.
1. Radical Transparency Replaces Consumer-Washing
Consumers are increasingly aware of misleading pricing tactics, often used in industries like airlines, hotels, and travel companies. Hidden resort fees, ambiguous luggage policies, and opaque fare structures erode trust. According to the survey, 44% of respondents believe the travel industry engages in misleading pricing, second only to credit card companies.
🔹 The shift: Transparency will become the cornerstone of modern travel retailing. Leading brands will offer:
✔ Clear, upfront pricing with no hidden fees.
✔ Simplified change and refund policies.
✔ Curated, relevant offers rather than overwhelming options.
✔ Faster, customer-centric service solutions.
Agencies that leverage data enrichment tools to clarify costs and provide trustworthy recommendations will gain a competitive edge. The future belongs to those who prioritize honesty and long-term customer relationships over short-term profit tactics.
2. A Tech and Mindset Shift in Travel Retailing
Much like fintech companies (Venmo, Monzo, Revolut) disrupted banking with simpler, more intuitive digital experiences, travel is poised for a similar evolution. Studies show that 56% of travelers find travel retailing more complex now than a decade ago, highlighting the need for user-friendly, streamlined processes.
🔹 Key takeaways for travel companies:
✔ Prioritize ease of use—simplify bookings, reduce jargon, and remove friction from transactions.
✔ Adopt mobile-first, cloud-based architectures to enhance speed, scalability, and reliability.
✔ Leverage automation and AI to provide better customer insights and predictive recommendations.
✔ Move beyond legacy systems—travel providers that fail to upgrade their tech stack risk falling behind.
The winners in travel retailing will be those that reimagine user experiences, much like how fintechs redefined digital banking.
3. Unexpected Distribution Alliances
As choice fatigue increases, consumers prefer bundled, curated options rather than navigating hundreds of disconnected providers. Travel is following a trend seen in streaming services, where brands are forming alliances to reduce fragmentation and improve accessibility.
🔹 The trend in numbers:
✔ 52% of consumers say there are too many streaming services.
✔ 75% prefer a bundled service rather than multiple separate subscriptions.
✔ 56% feel overwhelmed by the volume of content.
🔹 What this means for travel:
✔ More cross-brand collaborations between airlines, hotels, OTAs, and TMCs.
✔ Balanced distribution strategies—even low-cost carriers are opening up their content to travel agencies.
✔ The rise of multi-source content aggregators, ensuring customers get a holistic view of the best options.
Like Apple TV partnering with Amazon Prime, travel brands must embrace strategic partnerships to avoid option overload and deliver curated, simplified travel solutions.
4. Travel Subscription Services Will Take Off
Subscription-based business models are gaining traction in travel, mirroring trends in industries like e-commerce, entertainment, and finance. Companies such as eDreams ODIGEO have seen massive success, with their subscription program growing by 1.5 million members in the last year alone. By 2025, they aim to surpass 7.25 million subscribers, making this model their largest revenue driver.
🔹 The growing appeal of travel subscriptions:
✔ 49% of consumers were unaware of travel subscription services—but express interest.
✔ 58% of travelers who take three or more trips annually would consider subscribing.
✔ Gen Z is most open to travel subscriptions, signaling long-term market potential.
🔹 Why this matters for OTAs and travel agencies:
✔ Subscription models provide steady, recurring revenue.
✔ They enhance customer retention by fostering loyalty.
✔ People are willing to pay more for exclusive deals, early access, and curated experiences.
With Google’s rising acquisition costs for online travel brands, agencies must explore new monetization models to secure long-term profitability.
5. AI Becomes a Core Travel Retailing Tool
If 2024 was the year of AI hype, 2025 will be the year of AI adoption in travel. Survey findings show that trust in AI within travel is significantly higher than in most industries, signaling an opportunity for transformation.
🔹 Consumer trust in AI for travel:
✔ 42% trust travel brands to use AI responsibly.
✔ 52% of frequent travelers have confidence in AI-driven services.
🔹 How AI will redefine travel retailing:
✔ AI-powered data analysis will improve capacity planning, pricing optimization, and trend forecasting.
✔ Conversational AI search (ChatGPT, Microsoft Bing integration) will challenge Google’s dominance in travel.
✔ AI-driven content curation will help agencies manage the explosion of NDC and multi-source content, reducing complexity for travelers.
AI is no longer a future concept—it’s an essential tool for modernizing travel retailing. The brands that integrate AI effectively will gain a competitive advantage in personalization, efficiency, and enhancing customer experience.
The Future of Travel Retailing: Are You Ready?
As travel reaches its tipping point, companies must adapt or risk being left behind. Lessons from other industries highlight the urgency of embracing transparency, improving tech stacks, forming strategic alliances, integrating AI, and exploring new revenue models.
The travel retailers that will thrive in 2025 will:
✔ Prioritize transparency and customer trust.
✔ Enhance digital experiences and simplify transactions.
✔ Adopt flexible distribution models and partnerships.
✔ Leverage AI for automation, insights, and content curation.
✔ Explore subscription-based services for long-term profitability.
The coming year presents unprecedented opportunities—but only for those ready to innovate and evolve.
For an in-depth look at Travelport’s full findings, read the complete State of Modern Travel Retailing Report 2025:
🔗 Read the Full Report
