Travel Ranks As The Second Biggest Offender For ‘misleading Pricing,’ But Change Is On The Way.

Consumer-washing refers to the practice of misleading consumers with pricing. It’s when customers are lured in by a seemingly great deal, only to discover at checkout that a series of asterisks and hidden fees have undermined their bargain.

According to global tech company Travelport, the travel industry is one of the worst offenders when it comes to consumer-washing. In fact, travel ranks second only to credit card companies, with nearly 44 percent of consumers surveyed identifying airlines, hotels, and travel companies as major culprits—just behind credit card companies at 45 percent.

According to Travelport’s latest Travel Trends 2025 report, change is on the horizon as consumers grow frustrated with hidden penalties and charges for things that should be included in the price. As a result, radical pricing transparency is expected to become a key trend in the travel industry by 2025. This shift is part of a broader movement toward simplicity and transparency that consumers are demanding.

In addition to this, the report outlines several other trends that will define the travel landscape:

Disruptors delivering simplicity will outpace the laggards

Fintech disruptors have revolutionized personal finance, with 47% of consumers agreeing that they’ve made managing finances easier. Yet, the travel industry remains behind, with over half (56%) of consumers saying airline offers have become more confusing in the past decade. To catch up, travel brands must adopt agile, API-driven technology that allows for seamless integration of new content, data, and features. Those who simplify the booking experience and cut through the noise will stand out in an increasingly crowded market.

As these trends take shape, the travel sector will likely see a transformation that prioritizes clearer, more straightforward pricing and customer-friendly solutions.

Distribution partnerships drive consumer growth.

The overwhelming number of content options across industries has led to choice overload. For instance, 56% of consumers feel overwhelmed by the sheer amount of content available through traditional and streaming channels and 75% would prefer a bundled subscription to simplify their options.

Travel faces a similar challenge. To meet consumers where they shop, forward-thinking companies are forming unconventional partnerships. For example, low-cost carriers (LCCs) are opening up their content to travel retailers, recognizing that a multi-channel approach simplifies the consumer experience and drives customer loyalty. By offering more convenient ways to access travel options, these partnerships aim to meet the evolving demands of modern travellers.

Travel subscriptions gain traction.

Travelers are increasingly turning to subscription services to book travel more efficiently and rewardingly. Online travel agencies (OTAs) like eDreams ODIGEO have already tapped into this potential, with over 6.5 million Prime subscribers. This subscription model has become the company’s largest revenue and margin contributor.

In fact, 1 in 3 consumers (35%) surveyed said they would consider a travel subscription in 2025, signaling significant growth potential in this area. The benefits—such as convenience, cost savings, and exclusive perks—make travel subscriptions an attractive alternative to traditional loyalty programs, offering consumers a more streamlined and rewarding way to engage with travel brands.

AI raises the bar for travel retailing.

AI adoption is rapidly increasing, with 58% of people incorporating AI into their personal or professional lives. Travel is among the top three industries for AI trust, with 42% of consumers confident that travel brands will use AI responsibly. Notably, 80% of frequent travellers already feel comfortable utilizing AI for trip planning.

In 2025, AI-driven tools are set to transform travel retailing. From predicting travel behaviour to curating personalized offers, AI will allow brands to offer more targeted, tailored experiences. For travel agencies, AI will streamline multi-source content management, enhancing customer service and the ability to upsell. These advancements will raise the bar for efficiency and personalization in the travel sector, meeting the growing expectations of today’s tech-savvy consumers.

Jen Catto, Chief Marketing Officer at Travelport, emphasized that the research indicates the travel industry has reached a tipping point.

“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.”

As consumer expectations continue to shift, those who prioritize these values are well-positioned to succeed in the competitive travel market of the future.

For those travelling to Melbourne, a range of serviced and furnished apartments is available, offering flexibility, comfort, and convenient locations. These apartments provide travellers with a home-like experience, ideal for short and extended stays, complementing the growing trend of personalized, tech-driven travel experiences.