# 2025 State of Modern Retailing Report: Travel's Tipping Point

**Publisher:** Travelport  
**Published:** 2025-01-15  
**Category:** Travel tech  
**Type:** Report  
**Access:** Free  
**Official source:** https://www.travelport.com/press-releases/travelport-releases-second-annual-state-of-modern-retailing-report-travels-tipping-point  
**Canonical:** https://tourismintel.ai/reports/2025-state-of-modern-retailing-report-travel-s-tipping-point

## At a glance
- 44% of consumers identify airlines, hotels and travel companies as major offenders in deceptive pricing practices.
- 56% of consumers report airline offers have become more confusing over the past decade.
- 35% of consumers would consider a travel subscription in 2025; eDreams ODIGEO has 6.5 million Prime subscribers.
- 80% of frequent travelers feel comfortable using AI for trip planning; travel ranks in top three industries for AI trust.
- Travel subscriptions now represent eDreams ODIGEO's largest contributor of revenues and margins.

## What the report covers
Travelport's second annual report examines five critical trends reshaping travel retail in 2025: transparency, simplification, distribution partnerships, subscriptions, and AI adoption. Published January 2025, it combines proprietary consumer research with cross-industry insights. The report targets DMOs, hoteliers, travel agencies and travel-tech operators navigating evolving consumer expectations.

## Key findings
Consumer trust in travel faces significant erosion due to deceptive pricing. According to the survey, 44% of consumers rank airlines, hotels and travel companies as major offenders in 'consumer washing'—advertising low prices while hiding fees until checkout. This ranks second only to credit card companies at 45%. The report argues radical transparency and elimination of hidden fees is now both a necessity and competitive advantage.

Travel lags fintech in simplifying customer experience. While 47% of consumers agree fintech disruptors made personal finances easier, 56% report airline offers have become more confusing over the past decade. The report emphasises that travel retailers adopting agile, API-led technology to integrate content seamlessly will outpace competitors. Low-cost carriers opening content to travel retailers exemplify this strategy.

Travel subscriptions are emerging as a significant growth driver. The survey finds 35% of consumers would consider a travel subscription in 2025. eDreams ODIGEO demonstrates viability with 6.5 million Prime subscribers; subscriptions are already that company's largest revenue and margin contributor. Subscription benefits—convenience, cost savings, exclusive perks—position them as compelling alternatives to traditional loyalty programmes.

AI adoption in travel is accelerating with strong consumer acceptance. According to the report, 58% of people use AI in personal or professional lives. Travel ranks in the top three industries for AI trust, with 42% of consumers trusting travel brands to use AI responsibly. Notably, 80% of frequent travelers feel comfortable using AI for trip planning. The report predicts AI will revolutionise retailing through behaviour prediction and personalised offers.

## Key numbers
| Metric | Value | Note |
|---|---|---|
| Consumers ranking airlines, hotels and travel companies as major offenders in deceptive pricing | 44% | Survey result; second only to credit card companies at 45% |
| Consumers reporting airline offers have become more confusing over the past decade | 56% | Survey result |
| Consumers who would consider a travel subscription in 2025 | 35% | Survey result; approximately 1 in 3 consumers |
| eDreams ODIGEO Prime subscribers | 6.5 million | Observed figure; subscription model is company's largest revenue and margin contributor |
| People using AI in personal or professional lives | 58% | Observed statistic |
| Frequent travelers comfortable using AI for trip planning | 80% | Survey result |
| Consumers trusting travel brands to use AI responsibly | 42% | Survey result; travel in top three industries for AI trust |
| Consumers agreeing fintech disruptors made personal finances easier | 47% | Cross-industry comparison statistic |

## Why it matters
**DMOs & destinations** — Transparency and trust are now competitive imperatives. DMOs should audit partnership communications and booking information for hidden costs or confusing terms. The report's findings on subscription and AI-driven personalisation present opportunities for destinations to build direct traveler relationships and curate regionally specific offers that compete with OTA dominance.

**Hotels & hospitality** — Hotels face reputational risk from perceived pricing opacity; consumers associate hospitality with deceptive practices alongside airlines. Hoteliers must prioritise transparent rate displays, clear terms, and prominent disclosure of all charges. Growth in travel subscriptions and AI-curated offers signals hotels should explore direct subscription partnerships or AI-powered loyalty programmes to reduce OTA dependency.

**Travel tech & distribution** — API-led architecture and radical transparency are critical strategies. Travel-tech firms must modernise platforms to simplify multi-source content integration and reduce consumer confusion. The report signals strong market opportunity in subscriptions, AI-powered planning tools, and transparency-focused retailing. Platforms failing to adopt these technologies risk losing customers to disruptors.

## Methodology and limits
The report combines new proprietary consumer research from Travelport with cross-industry insights. The source text does not specify sample size, survey methodology, respondent demographics, or confidence intervals. The report distinguishes observed statistics (eDreams subscriber numbers), survey results (consumer perceptions), and cross-industry comparisons. This brief is based on the publicly available summary; full report methodology may be available at Travelport.com/Trends-2025.

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© Travelport for the original report. This brief is an original editorial summary by TourismIntel (https://tourismintel.ai). Read the original: https://www.travelport.com/press-releases/travelport-releases-second-annual-state-of-modern-retailing-report-travels-tipping-point