Travel rated second worst offender for ‘misleading pricing’, but change is coming

Travel rated second worst offender for ‘misleading pricing’, but change is coming

You might have heard of greenwashing, but have you heard of consumer-washing? Probably not, but you’ll be familiar with it.

Consumer-washing is the practice of ‘misleading’ consumers when it comes to pricing. It is when customers are attracted to buy at a great price, only to find out that, once they have gone to the checkout, their great price has been rendered obsolete by a number of asterisks.

Well according to global tech company Travelport, travel is pretty bad at consumer-washing. In fact, travel comes only second to credit card companies, with nearly half (44 per cent) of surveyed consumers ranking airlines, hotels, and travel companies as major offenders (credit card companies were at 45 per cent).

However, according Travelport’s latest Travel Trends 2025 report, this is all set to change as people are “tired of paying penalties and charges for things that should be freebies”.

Radical pricing transparency is speculated to be one of the big trends for the travel industry in 2025. But it is not the only one, here are the other trends which Travelport speculates will be defining travel:

Disruptors delivering simplicity will outpace the laggards

Fintech disruptors have reshaped banking, with 47 per cent of consumers agreeing they’ve made personal finances easier to manage. However, the travel industry lags behind. Over half of consumers (56 per cent) report that airline offers have become more confusing over the past decade.

To match fintech’s success, travel brands must embrace agile, API-led technology that enables seamless integration of new content, data, and features. Those who simplify the shopping experience will stand out in a crowded market.

Distribution partnerships drive consumer growth

The overwhelming number of content options across industries has led to choice overload. In streaming services, for example, 56 per cent of consumers feel overwhelmed by the amount of content available on traditional and streaming channels, and 75 per cent would prefer one bundled subscription.

Travel is no different. Forward-thinking companies are forming unconventional partnerships to meet consumers where they shop. For example, low-cost carriers (LCCs) are opening up their content to travel retailers, recognizing that a multi-channel approach simplifies the consumer experience while driving loyalty.

Travel subscriptions gain traction

Travelers are increasingly turning to subscriptions. Online travel agencies (OTAs) like eDreams ODIGEO have demonstrated the potential of this approach, boasting more than 6.5 million Prime subscribers. Its subscription model is currently the company’s largest contributor of revenues and margins.

1 in 3 consumers (35 per cent) surveyed said that they would consider a travel subscription in 2025, highlighting that this business model is primed for growth. Benefits such as convenience, cost savings, and exclusive perks make subscriptions a compelling alternative to traditional loyalty programs.

AI raises the bar for travel retailing

AI adoption is accelerating, with 58 per cent of people using AI in their personal or professional lives. Travel ranks in top three industries for AI trust, with 42 per cent of consumers trusting travel brands to use AI responsibly. In fact, 80 per cent of frequent travellers already feel comfortable using AI for trip planning.

AI-driven tools will revolutionise travel retailing in 2025, from predicting travel behaviour to curating personalised offers. For agencies, AI will simplify managing multi-source content and enable more effective customer service and upselling.

Jen Catto, chief marketing officer at Travelport said the research shows that things have reached a tipping point within travel.

“Consumers are clear about what they want from the travel industry: simplicity, transparency, and trust,” she said. “Our latest research shows that travel has reached a tipping point. Modern retailers who embrace radical transparency, adopt AI responsibly, and deliver streamlined experiences will thrive in this evolving landscape.”

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