As we step into 2025, the travel industry is undergoing a significant transformation, driven by the needs of increasingly savvy travelers.
According to the “2025 State of Modern Retailing Report” from Travelport, a global technology company that works across 165 countries, the future of travel is about delivering transparency, simplicity, and trust.
From AI innovations to subscription models, travel brands are pulling out all the stops to make journeys more streamlined and satisfying.
“Our latest research shows that travel has reached a tipping point. Travel companies who embrace radical transparency, adopt AI responsibly, and deliver streamlined experiences will thrive in this evolving landscape” explains Jen Catto, Chief Marketing Officer at Travelport
Transparency takes the spotlight
Gone are the days when hidden fees and misleading advertisements could slip under the radar. With 44% of travelers identifying airlines, hotels, and travel companies as major culprits of deceptive pricing, the call for honesty is louder than ever.
The future of travel retail lies in straightforward pricing, where customers know exactly what they’re paying for upfront.
Clarity in pricing
If you’ve ever felt baffled by the complexity of airline pricing or holiday packages, you’re not alone. Over half of consumers believe the process has only grown more confusing in recent years.
To counteract this, travel companies are adopting fintech-inspired technology that simplifies the customer experience. By streamlining options and creating intuitive platforms, brands are making travel bookings easier and more transparent.
Subscriptions
Subscriptions are quickly becoming a preferred alternative to traditional loyalty schemes, promising flexibility and value in equal measure.
Imagine planning your trips the way that you subscribe to Netflix. That’s the future travelers are embracing, with 35% open to subscription-based travel in 2025.
Online travel agencies are leading this trend, offering convenience, exclusive perks, and cost savings.
Partnerships for seamless experiences
With more choices than ever, consumers often find themselves overwhelmed.
The solution? Collaboration. Airlines, hotels, and travel agencies are joining forces to bundle services and create seamless journeys.
By offering a one-stop shop for travel needs, partnerships simplify decision-making and enhance customer satisfaction.
AI: The travel assistant of the future
Artificial intelligence is no longer just a buzzword—it’s a trusted travel companion. With 58% of people already using AI in their daily lives, the travel sector is stepping up.
From predicting booking behaviour to curating personalized recommendations, AI is elevating the travel experience.
Trusted by 42% of travelers, it’s helping brands manage subscriptions, a compelling alternative to traditional loyalty programs.
As the travel industry evolves, it’s clear that the focus in 2025 is on aligning with traveler expectations.
By embracing transparency, simplicity, and innovation, travel brands are making traveling smoother, smarter, and more enjoyable.
IOL Travel