The phrase "the only constant in life is change" probably applies better to travel than most other industries.
This is an industry that is susceptible to just about everything from geopolitical and economic instability to regional conflicts, technology outages, a pandemic and increasingly shocking weather events.
How these impact consumers and their spending behavior tends to be a good barometer for how they are already affecting, or will go on to impact, travel and sentiment about the industry.
In its latest consumer trends report, Euromonitor International highlights five areas that travel companies would be wise to keep an eye on in as we head into 2025.
One of the trends flagged in the report — "Filtered Focus" — is something the industry has been grappling with for years. Travel is a sector known for fragmentation and the often disjointed processes that it inflicts on consumers.
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A report last year from Expedia on the online journey travelers go on before they make a purchase revealed they spend five hours on average consuming related content and consult 141 pages of content in the 45 days before booking a trip.
It's little wonder then that the need for help filtering information emerged as one of Euromonitor's top global consumer trends for 2025.
The Filtered Focus trend revealed customers are overwhelmed with the volume of information and choice available to them. And artificial intelligence hasn't helped, yet. The report said consumers want to reduce the time spent searching for what they need, and it's the brands that help them to do that and communicate clearly with them throughout that will standout.
In the report, Euromonitor said companies can help consumers cut through the reams of information with "streamlined shopping experiences, tailored recommendations or stellar customer service."
Travel companies are already making strides in this direction. At the recent WiT Singapore event, Skyscanner CEO John Mangelaars talked about giving users more information upfront to inspire them as well as help them make a decision.
Many players including Skyscanner-parent Trip.com Group and HomeToGo are using AI to produce curated lists removing some of the heavy lifting for customers while others such as Klook are using the technology to improve recommendations to consumers as they browse.
Natural language and visual search are also emerging as ways to help consumers make 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.
The report also highlights livestreaming as another potential way to help consumers as it showcases products and service in an easy to understand and engaging format. It revealed 42% of consumers purchased via livestreaming. While the figure isn't specific to travel, some companies in the space are already tapping into this trend with Trip.com Group setting up a livestreaming center in Bangkok earlier this year.
A further trend highlighted by Euromonitor that crosses over into "filtered focus' is "AI ambivalent." The report revealed consumers have concerns around whether to trust information generated by AI — less than half, 43%, consider it trustworthy.
It also delved into levels of comfort from different generations when it comes to using the technology. For example, about a quarter of baby boomers said they weren't comfortable with voice assistants providing personalized product recommendations compared to less than 10% of millennials.
Other recent reports explore how travelers want to use AI in the booking process as well as their perceptions around the technology.
Further findings from the Euromonitor report include:
- Wiser Wallets which reveals consumers are leaning away from impulse purchases and more towards saving money. It's interesting to note the trend from a travel perspective with an increasing payment options offered to travelers in recent years from buy now pay later to save now pay later and pay in instalments.
- Eco Logical, which speaks to the desire for sustainable options but only if they can be backed up by evidence of the environmental benefit. The travel industry is being increasingly called out for greenwashing with doubts raised over the effectiveness of carbon offsetting schemes.