Is travel at a tipping point?

From fintech to fashion, many industries have recently gone through a seismic digital transformation and a dramatic shift to modern retailing. And, according to new research from Travelport, the travel industry’s very own watershed moment could be just around the corner.

Using this “outside in” approach, the findings offer broad perspectives that can help the travel industry stay on par with expectations set by some of the world’s best businesses, like Netflix, Venmo and Amazon. It also shares predictions for travel retailing that are likely to shape big change in the coming months. Some of the key findings include:

• “Consumer washing” is rife, and people are catching on to it
  Shoppers are growing wise to the tactics businesses use to earn more, under the guise of better service. In travel, this includes confusing pricing structures that lead to hidden charges or “junk” fees. The findings in Travelport’s new report show 44% of people think travel is guilty of “consumer washing” via misleading pricing.
  

• Banking’s getting easier. But travel isn’t.
  Travelport says travel’s fintech moment is coming. The new report draws parallels between the industry today and banking ten years ago and, observing the rise of Venmo and Revolut, notes that a similar disruption could be coming for travel. It also explores how critical a flexible tech stack is to any business trying to scale, while maintaining the simple customer experience fintech giants are renowned for
• Travel subscription services are set to take off
  From beers, to bikes, to books, more and more people are signing up to different subscription services. Most people don’t know this already exists for travel. But 58% of people who travel just three times per year would consider a subscription service for trips too.
  

  For the full set of findings, covering more topics like choice overload, AI, and more, read the full report here.

Looking ahead in 2025

There are plenty of opportunities to be seized this year by those who innovate early and nail modern retailing. Amid all this change, Travelport believes that travel agencies will remain the industry’s only true retailers. Only they can provide much needed transparency and guidance for customers seeking to navigate choice and complexity on this high-stakes purchase. 

And only they can help customers manage multi-brand shopping, presenting the best options in one convenient place. That way, consumers know they’re getting the best deal that truly puts their interests first, without spending hours shopping around and comparing prices.

As the tipping point inches closer, the question is: who will be the winners and who will be the losers?