Travel search data from KAYAK indicates holiday travel interest has increased 10% year-over-year for the 2025 season, yet prices across major travel categories remain stable or have declined, creating favorable conditions for travelers seeking seasonal getaways. International flight prices have decreased 7% compared to 2024, while domestic flights dipped 1%, rental car prices dropped 6% in the U.S., and hotel rates remained relatively stable with domestic properties up 2% and international hotels up 5%.
Kate Williams, KAYAK travel trends expert and CCO, noted that while interest remains strong, price conditions are favorable for travelers who maintain flexibility. "Interest is strong, but prices are holding steady or lower compared to last year," Williams said. "There are deals to be found if you are able to be flexible with dates and destinations."
Eastern Europe has emerged as a significant trend for holiday travel in 2025, with several destinations experiencing substantial increases in flight searches. Warsaw, Poland saw a 73% year-over-year increase in searches, while Prague, Czech Republic increased 65%. Tallinn, Estonia and Budapest, Hungary also showed notable growth. The region's popularity surge is attributed to new flight routes and the inclusion of Romania and Bulgaria in the Schengen Area, making Eastern Europe more accessible and appealing to U.S. travelers seeking affordable, culturally rich winter experiences.
For value-conscious travelers, KAYAK identified destinations with the most significant airfare reductions. Domestic travel deals include Myrtle Beach, South Carolina with airfare down 18% (average $342), Bozeman, Montana down 10% (average $509), and Reno, Nevada down 15% (average $414). International destinations showing substantial price drops include Tokyo, Japan with a 29% decrease (average $1,071), Venice, Italy down 18% (average $823), and Helsinki, Finland down 19% (average $727).
Historical booking patterns suggest strategic timing for securing the best deals. In 2024, Cyber Monday delivered the lowest domestic fares of the season at an average of $316, while Travel Tuesday offered the lowest international fares at $793 average, patterns that may repeat in 2025 according to KAYAK's analysis available at https://www.kayak.com/news/holiday/.
Major airport congestion is expected during peak holiday periods. For Thanksgiving travel, airports including LAX, SFO, BOS, DEN, ORD, JFK, EWR, WAS, DFW, and ATL are projected to see the highest traffic volumes based on search demand. During Christmas, LAX, SFO, BOS, JFK, ORD, WAS, EWR, MIA, SEA, and DFW are expected to be the busiest for holiday departures and arrivals.
KAYAK's new AI Mode represents a significant advancement in travel planning technology, allowing users to conduct conversational searches for trip planning. The AI tool enables travelers to type natural prompts such as "Find me a Christmas week getaway for under $500, somewhere warm, leaving from LAX" and receive instant, 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," Williams commented. "If you haven't booked yet, let our AI tools do the hard work for you to surface the best destinations for your budget."
