Travelport’s 2025 Report highlights rise of subscription models, AI-driven advancements in travel retail

GLOBAL – Travelport, a global technology company, has released its 2025 State of Modern Retailing Report, highlighting key trends such as the rise of subscription models, and AI-driven improvements in the travel retail experience as important drivers for the industry.

Jen Catto, Chief Marketing and Product Officer at Travelport, stated, “Consumers want simplicity, transparency, and trust from the travel industry.”

Recent research indicates that the travel sector has reached a critical turning point. Companies that prioritize transparency, use AI responsibly, and streamline processes are well-positioned to succeed in this evolving landscape.

The rise of travel subscriptions is gaining traction, with online travel agencies (OTAs) like eDreams ODIGEO leading the way, having acquired over 6.5 million Prime subscribers.

This model has become the company’s largest revenue and margin contributor. According to a survey, 35% of consumers would consider subscribing to a travel service in 2025, highlighting the potential growth of this model.

The benefits of convenience, savings, and exclusive perks make subscriptions a more attractive alternative to traditional loyalty programs.

AI adoption is also accelerating, with 58% of people using AI in daily life. Travel is among the top three industries in terms of AI trust, with 42% of consumers trusting travel brands to use AI responsibly.

A significant 80% of frequent travelers are comfortable using AI for trip planning. By 2025, AI-driven tools will transform travel retailing, enabling personalized offers and simplifying multi-source content management, while improving customer service and upselling.

While fintech has revolutionized personal finance management, the travel industry lags behind. More than half of consumers (56%) believe airline offers have become increasingly confusing.

To compete with fintech’s success, travel brands must adopt agile, API-driven technology to integrate new content and features seamlessly. Simplifying the shopping experience will be key to standing out.

Consumers are also overwhelmed by the vast amount of content available across industries, with 56% of streaming service users expressing frustration.

In response, forward-thinking travel companies are forming innovative partnerships to meet consumers where they shop.

Low-cost carriers (LCCs), for example, are sharing their content with travel retailers, recognizing the value of a multi-channel approach in enhancing the consumer experience and fostering loyalty.

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