Travel agencies have been tipped for success in 2025 following research looking at trends in retail.
Technology company Travelport, which surveyed 2,100 consumers across the world, outlines five predictions for the year in a report entitled ‘State of modern retailing: Travel’s tipping point’.
Among the predictions is that success will depend on travel companies demonstrating “radical transparency”.
More: Airlines’ drive for NDC ‘a Trojan Horse’ for direct sales, says Travelport
After pointing to the perception that airlines and hotels are among those most guilty of misleading prices, the report states: “There’s a huge opportunity for travel agencies to solve problems here. As trusted advisors, only they are positioned to offer the transparency people so badly need.”
The report also considers the role of artificial intelligence (AI) in the travel industry and suggests that 42% of consumers trust travel brands to use AI responsibly, which is a bigger percentage than in most other sectors.
Among frequent travellers, 52% trust the travel sector to use AI responsibly.
The report claims there will likely be three “transformational” shifts in AI within the travel industry this year.
Generative AI will have a greater role in data analysis and help to spot new opportunities, the report states, with the other shifts being that the dominance of Google’s search tool will falter and that “AI-powered content curation will help solve NDC challenges”.
The report also predicts that companies that embrace API-led technology and simplify the shopping experience will stand out in a crowded market.
“If you’re not up to speed with APIs, have no cloud-based micro-services and [are] not engaging with NDC, you’ll be left behind,” the report states.
Increasing cooperating between competing brands is another prediction, with the report citing Ryanair’s agreements struck with online travel agencies.
The report argues that a factor in cross-brand alliances is recognition that consumers risk suffering from “choice overload” amid a sharp rise in travel options and providers.
Suggesting a key role for travel agents, the report states: “In this age of excess, consumers crave a trusted partner to help them choose.”
Travel subscription services are expected to attract greater numbers of consumers and have been highlighted as valuable to the businesses offering them because they provide a “steady stream of recurring revenue”.
The report claims that 58% of people who travel just three times a year would consider signing up to a subscription service.
The report’s conclusion states: “At Travelport, we strongly believe that travel agencies are best placed to offer an overall retailing solution for travel.
“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 or getting bogged down in comparing prices.
“We think 2025 could be the year that travel agencies really get their moment to shine. As the tipping point inches closer, the question is: are you ready?”
Travelport chief marketing officer Jen Catto said: “Consumers are clear about what they want from the travel industry: simplicity, transparency and trust.
“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.”
Photo: Shutterstock/Yaroslav Astakhov