Travel is a good example of how the phrase “the one constant in life” applies more to it than other industries. This is an industry that can be affected by anything, from geopolitical and financial instability to regional conflicts to technology outages to a pandemic to increasingly shocking weather events.
This is a good way to gauge how these factors are already impacting travel and sentiments about the industry. Euromonitor International, in its latest Consumer Trends Report, highlights five areas travel companies would do well to keep an ear on as we head towards 2025.
One of the trends flagged in the report — “Filtered Focus” — is something the industry has been grappling with for years. Travel is a fragmented industry that often causes consumers to be confused.
Expedia released a report last year on the online journey that travelers take before making a purchase. They revealed that they spend an average of five hours consuming content and consult 141 web pages in the 45 days prior to booking a vacation. Euromonitor’s global consumer trends 2025 list shows that consumers will increasingly need help in filtering out information.
Filtered Focus revealed that customers are overwhelmed by the amount of information and choices available to them. Artificial intelligence isn’t helping either. The report stated that consumers want to reduce their time spent searching for the products they need. Brands who help them achieve this and communicate clearly throughout the process will stand out.
Euromonitor’s report said that companies can help consumers sort through the vast amount of information by offering “streamlined shopping experiences, tailored suggestions or stellar customer service.”
Travel companies have already made strides in this area. Skyscanner’s CEO John Mangelaars spoke at the recent WiT event in Singapore about providing users with more information up front to inspire and help them make a choice.
Many players, including Skyscanner’s parent company Trip.com Group, and HomeToGo, use AI to create curated lists that do the heavy lifting for their customers. Others such as Klook use the technology to improve consumer recommendations as they browse.
Natural language and visual searches are emerging as new ways to assist consumers in making decisions. Marriott Home & Villas unveiled its AI-powered search earlier this year and more recently, Landfolk introduced Daisy, its visual search functionality to help customers find what they want.
Livestreaming is also highlighted as a way to help consumers, as it presents products and services in a format that is easy to understand and engaging. It was revealed that 42% consumers bought via livestreaming. The figure isn’t specifically for travel, but some companies are already tapping into the trend. Trip.com Group set up a livestreaming centre in Bangkok earlier this summer.
Euromonitor has also identified a trend, “AI ambivalent,” which crosses over into the “filtered focus.” The report revealed consumers have concerns around whether to trust information generated by AI — less than half, 43%, consider it trustworthy.
The report also examined the level of comfort that different generations have with using technology. About a quarter (25%) of baby boomers were not comfortable with voice assistants making personalized product recommendations, compared to less that 10% of millennials.
Recent reports also explore how travelers perceive AI and their desire to use it in the booking process.
Euromonitor’s report also includes:
- Wiser wallets, which shows that consumers are more focused on saving money and less on impulse purchases. It’s interesting to see the trend in travel with more payment options being offered to travelers. These include buy now, pay later, save now, pay later and pay by instalments.
- Eco Logical is a brand that speaks to the desire for environmentally friendly options, but only if the benefits can be proven. The travel industry has been accused of greenwashing as doubts are raised about the effectiveness and efficiency of carbon offsetting programs.
