Holiday Travel Interest Surges 10% While Prices Remain Stable or Decline

According to data from KAYAK, the world's leading travel search engine, holiday travel interest has increased 10% year-over-year while prices across major travel categories remain stable or have decreased, providing travelers with more affordable trip opportunities this holiday season. Flight search data indicates strong interest in holiday trips compared to 2024, with favorable pricing trends including international flight prices down 7% year-over-year, domestic flight prices dipping 1%, rental car prices dropping 6% in the U.S., and hotel rates holding relatively steady with only minor increases.

Eastern Europe has emerged as a prominent holiday travel trend in 2025, with several destinations experiencing substantial increases in flight searches compared to last year. Warsaw, Poland saw a 73% year-over-year increase, known for its festive markets and excellent value, while Prague, Czech Republic increased 65% year-over-year, offering classic holiday charm. Tallinn, Estonia and Budapest, Hungary also showed notable increases in search interest. 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 seeking affordable, culturally rich winter escapes.

For travelers seeking value, KAYAK identified destinations with the most significant airfare reductions compared to last year. Domestic travel deals include Myrtle Beach, South Carolina with airfare down 18% year-over-year averaging $342, Bozeman, Montana down 10% averaging $509, and Reno, Nevada down 15% averaging $414. International travel deals feature Tokyo, Japan with a substantial 29% decrease averaging $1,071, Venice, Italy down 18% averaging $823, and Helsinki, Finland down 19% averaging $727. Historical patterns suggest Cyber Monday delivered the lowest domestic fares of the season in 2024, while Travel Tuesday offered the lowest international fares, trends that may repeat in 2025.

To help travelers prepare for holiday congestion, KAYAK analyzed seasonal flight search trends to identify peak traffic periods. During Thanksgiving, major hubs including LAX, SFO, BOS, DEN, ORD, JFK, EWR, WAS, DFW, and ATL are projected to see the highest traffic volumes based on search demand. For Christmas travel, airports such as LAX, SFO, BOS, JFK, ORD, WAS, EWR, MIA, SEA, and DFW are expected to be the busiest for holiday departures and arrivals. Travelers can minimize stress by avoiding peak travel times and allowing extra time at these high-traffic airports. KAYAK's new AI Mode, an AI travel planning tool, helps simplify trip planning through conversational searches that provide real-time flight, hotel, and car rental options based on natural language prompts.