Holiday Travel Demand Surges 10% as Airfares Decline and Eastern Europe Emerges as Top Destination
TL;DR
KAYAK's data reveals travelers can secure holiday trips for less with international flights down 7% and rental cars down 6% compared to last year.
KAYAK's analysis shows holiday travel interest increased 10% year-over-year while prices remained stable or declined across flights, hotels, and rental cars.
Affordable holiday travel options from KAYAK enable more families to reunite and create cherished memories during the festive season.
Eastern European destinations like Warsaw and Prague saw 65-73% more searches as travelers discover festive markets and cultural winter escapes.
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Travel search data from KAYAK indicates holiday travel interest has increased 10% year-over-year for 2025, yet prices across major travel categories remain stable or have declined, creating favorable conditions for seasonal travelers. International flight prices have decreased by 7% compared to 2024, while domestic flights saw a modest 1% reduction. Rental car prices in the United States dropped 6%, and hotel rates remained relatively stable with domestic properties increasing only 2% and international hotels rising 5%.
Kate Williams, KAYAK travel trends expert and CCO, noted that despite strong interest, travelers can find deals by maintaining flexibility with dates and destinations. The data reveals Eastern Europe has emerged as a significant trend for holiday travel, with Warsaw, Poland experiencing a 73% increase in flight searches year-over-year, followed by Prague, Czech Republic at 65%. Tallinn, Estonia and Budapest, Hungary also showed notable increases in search volume. The region's growing accessibility, including new flight routes and the inclusion of Romania and Bulgaria in the Schengen Area, contributes to its appeal for U.S. travelers seeking affordable, culturally rich winter experiences.
For budget-conscious travelers, several destinations show substantial airfare reductions. Domestic travel deals include Myrtle Beach, South Carolina with an 18% decrease averaging $342, Bozeman, Montana down 10% at $509, and Reno, Nevada reduced by 15% to $414. International destinations offering significant savings include Tokyo, Japan with a 29% price drop averaging $1,071, Venice, Italy down 18% at $823, and Helsinki, Finland reduced by 19% to $727. Historical data suggests Cyber Monday typically delivers the lowest domestic fares of the season, while Travel Tuesday offers the best international deals, patterns likely to continue in 2025.
Travelers should prepare for congestion at major airports during peak periods. Thanksgiving travel is expected to concentrate around hubs including LAX, SFO, BOS, DEN, ORD, JFK, EWR, WAS, DFW, and ATL based on search demand. Christmas travel will see similar patterns with LAX, SFO, BOS, JFK, ORD, WAS, EWR, MIA, SEA, and DFW projected as the busiest airports. Avoiding peak travel times and allowing extra time at these high-traffic locations can help minimize holiday travel stress.
KAYAK's new AI Mode represents a significant advancement in travel planning technology, allowing users to conduct conversational searches using natural language prompts. Travelers can input requests such as finding Christmas week getaways under specific budget constraints and receive real-time flight, hotel, and car rental options instantly. Williams emphasized that having a trip to anticipate provides valuable psychological benefits during the holiday season, and AI tools can efficiently surface optimal destinations matching individual budget parameters. The complete 2025 Holiday Travel Forecast methodology analyzed search queries from U.S. origins across flights, hotels, and rental cars for Thanksgiving and December holiday periods, with all data reflecting year-over-year comparisons from identical search windows in 2024.
Curated from 24-7 Press Release
