Holiday travel interest is up 10% year-over-year in 2025, according to data from KAYAK, the world's leading travel search engine. Despite this surge in demand, prices across major travel categories are either stable or declining, offering travelers opportunities for affordable seasonal getaways.
KAYAK's flight search data reveals that international flight prices are down 7% compared to 2024, while domestic fares have dipped 1%. Rental car prices in the U.S. have dropped 6%, and hotel rates remain steady, with domestic increases of 2% and international increases of 5%. Kate Williams, KAYAK travel trends expert and CCO, noted, 'Interest is strong, but prices are holding steady or lower compared to last year. There are deals to be found if you are able to be flexible with dates and destinations.'
Eastern Europe has emerged as a top holiday travel trend, with several destinations seeing major increases in flight searches. Warsaw, Poland, is up 73% year-over-year, Prague, Czech Republic, is up 65%, and Tallinn, Estonia, and Budapest, Hungary, also saw notable increases. New flight routes and the inclusion of Romania and Bulgaria in the Schengen Area are making the region more accessible and appealing to U.S. travelers.
For value-conscious travelers, KAYAK identified destinations with the biggest drops in airfare. Domestically, Myrtle Beach, SC, saw an 18% decrease (average $342), Bozeman, MT, dropped 10% (average $509), and Reno, NV, decreased 15% (average $414). Internationally, Tokyo, Japan, is down 29% (average $1,071), Venice, Italy, decreased 18% (average $823), and Helsinki, Finland, dropped 19% (average $727). KAYAK also notes that in 2024, Cyber Monday delivered the lowest domestic fares of the season (average $316), while Travel Tuesday offered the lowest international fares (average $793), trends travelers may see again in 2025.
To help travelers navigate the holiday rush, KAYAK analyzed seasonal flight search trends to identify the busiest airports. For Thanksgiving, major hubs including LAX, SFO, BOS, DEN, ORD, JFK, EWR, WAS, DFW, and ATL are projected to see the highest traffic. For Christmas, airports such as LAX, SFO, BOS, JFK, ORD, WAS, EWR, MIA, SEA, and DFW are expected to be busiest. KAYAK advises steering clear of peak travel times and allowing extra time at these airports.
KAYAK's new AI Mode aims to simplify trip planning through conversational searches. Users can type natural prompts like 'Find me a Christmas week getaway for under $500, somewhere warm, leaving from LAX' to instantly receive real-time flight, hotel, and car rental options. 'Having a trip to look forward to at the end of the year is the gift we all need,' said Williams. 'If you haven't booked yet, let our AI tools do the hard work for you to surface the best destinations for your budget.'
KAYAK's full 2025 Holiday Travel Forecast is available at https://www.kayak.com/news/holiday/. KAYAK, part of Booking Holdings (NASDAQ: BKNG), is the world's leading travel search engine.
