OPINION: Why frictionless online travel matters for consumers

There’s no denying the future of travel is digital. 

Online travel companies have helped over 36 million people in the UK search or book travel over the last two years, while 77% of consumers have booked with an online travel company over the same period.  

What we’re seeing isn’t a gradual shift - it’s happening now. Consumers are taking advantage of the many benefits the digital experience delivers and this will continue at pace, with an estimated £17.5 billion expected to be spent by UK consumers on their next trip booked online.  

Keeping pace with consumer expectations 

Digital travel search and booking has evolved to respond to consumer needs, where things like real-time inventories, flexibility and comparison mean consumers enjoy more choice, convenience and transparency than ever before. In this way, OTUK members help lower the cost of holidays. 

Now we’ve entered the age of AI, where search results no longer simply respond to questions, or retrieve information reactively, the LLMs are anticipating, personalising and predicting consumer needs. In this new search environment, it is vital that consumers are still able to compare and book the best options for their needs rather than simply being shown the AI chatbot’s own content. 

There is huge opportunity, and demand, for continued innovation within travel. The question is, how can choice, transparency and simplicity be protected; and how can policy enable innovation to ensure maximum opportunities for growth?  

Upcoming changes to package travel rules will be an important test. 

Beyond the ‘traditional’ package holiday  

The digital economy is expanding across every sector, and travel is no exception. Booking is no longer limited to the traditional package holiday. Consumers today expect the flexibility to combine flights, hotels, rail, transfers or experiences in a single, seamless transaction. 

What matters most is value, simplicity and clarity - knowing what has been booked, what is included and how it is protected, without unnecessary complexity in the booking journey.  

Businesses that fail to deliver this simplicity for consumers, risk falling behind, particularly as changes to UK package travel regulations make compliance more complex and operationally challenging for businesses. 

Consumer value of a seamless experience 

Booking travel elements altogether delivers clear consumer advantages - it’s easier to compare overall costs and understand exactly what is included, and in many cases, combining services in one transaction unlocks better prices than purchasing each element separately.  

Just as important is the convenience and time consumers save when searching and booking online. Single transactions, saved passenger details, the ability to manage separate booking confirmations quickly and easily, the option to choose from different payment methods - there are a multitude of ways that consumers can benefit from a seamless experience.  

Delivering trust when plans change 

Travel can, of course, be unpredictable - delays, cancellations and last-minute changes can happen, and plans often need to be amended in real time. This is when digital convenience does more than simplify booking; it reduces stress and builds trust. Quick answers, efficient information sharing and itinerary adjustments when on the move, are all things that deliver greater consumer confidence. 

Strengthening trust through financial protections 

Whether it’s an ATOL protected package holiday or other protections such as ring-fencing payments and tailoring payment plans to the individual; customers expect and deserve to have trust in whoever they choose to book with and how.  

There is a clear need for simplicity and clarity at the point of sale, as 29% of consumers in our research admit they don’t understand their consumer rights and protections. Consumers should be able to understand exactly what they are purchasing and what protections apply to them. 

Supporting innovation through pro-consumer policy and regulation 

As the digital economy grows and consumer expectations increase, policy must keep pace. Rules written for an earlier era may not reflect the reliance that consumers have on digital travel platforms today - robust and proportionate regulation is essential to protect consumers, but it must also be clear, workable and aligned with today’s realities. 

The significant role that digital sectors - including online travel companies - play in driving economic growth across the UK should not be underestimated; the UK’s digital economy generated an estimated £286 billion in gross value added (GVA) in 2024 - around 13% of total UK economic output. 

Policy that provides certainty for businesses, clarity for consumers and encourages innovation by all companies will ensure the UK remains an attractive, competitive market for travel investment, and that online travel companies can continue to develop smarter, more integrated travel experiences that make planning and booking more intuitive, convenient and accessible to UK consumers.