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Travel Trends 2025: Cost, Comfort, and Local Getaways

As the world gears up for the 2025 holiday season, new insights from Sojern, a leading digital marketing platform for the hospitality industry, reveal a notable shift in traveler behavior. With economic pressures, changing political climates, and evolving travel preferences, travelers are opting to stay closer to home. The data illustrates how this year's consumers are defining value in their travel decisions, affecting both the nature of their trips and how they plan them.

A Closer Look at Traveler Preferences

Noreen Henry, Chief Revenue Officer at Sojern, points out that travelers are making more conscious choices about how and where to spend their money. “This holiday season, travelers are making more deliberate choices about where and how they spend their money,” she explains. The analysis indicates that regional trips, flexible pricing, and last-minute deals will be central to capturing the dining and entertainment market during periods of reduced long-distance travel.

In the U.S., a staggering 90% of vacationers are expected to travel by car, reflecting a shift in mindset among American travelers. The change follows a summer marked as the “summer of savings,” where flight prices during peak travel periods dropped compared to the previous year.

Domestic vs International Travel

Flight bookings for domestic travel increased by 4%, whereas international flight bookings to key destinations fell markedly. Notable downturns were observed in popular regions such as Canada, Mexico, the Caribbean, Asia, and Europe, witnessing declines of 14%, 5%, 8%, 9%, and 3% respectively. Moreover, the international inbound travel to the U.S. continues its year-long decline, with bookings to New York and Florida dropping by 16% and 18%. Yet interest from U.S. citizens in these states remains stable or even on the rise.

Looking ahead, pivotal days like Black Friday, Cyber Monday, and Travel Tuesday are anticipated to be crucial for vacation bookings. This pattern of waiting for special offers leads to shorter booking windows and spikes in demand around promotional periods.

The LATAM Shift with Puerto Rico Rising

Turning to Latin America and the Caribbean, travel habits reflect a similar trend of financial caution and shifting preferences. Overall, flight bookings from the U.S. to this region decreased by 8% with countries like Mexico, the Dominican Republic, and Costa Rica showing declines. However, Puerto Rico stood out by consolidating its position as the favorite Caribbean destination for Americans, outpacing traditional hotspots like Mexico and the Dominican Republic. The bookings for Puerto Rico increased by 9%, including a 7% boost from the U.S. market and a robust 28% rise from international sources.

Europe’s Emerging Preference for Short Trips

Across Europe, short trips are becoming increasingly popular, coinciding with a decline in long-distance travel. Cities such as Budapest, Warsaw, and Gdansk, recently voted as having the best Christmas market in Europe, are receiving significant traveler interest. Within Europe, internal travel has jumped by 8%, while bookings to North America have dropped by 17%. Notably, the USA failed to appear among Europe’s 15 most popular international destinations during this holiday season.

Canada has emerged as the leading choice for Western Hemisphere travel, accounting for 27.5% of bookings from European travelers. Leading European destinations include Spain, Germany, and the UK. At the city level, London and Paris rank high on travelers' lists, thanks to their winter charm. Additionally, Dubai remains a top international destination for Europeans, indicating that while long-distance travel may be declining, selected global hubs still retain strong demand.

Austria reports a 21% increase in bookings driven by festive traditions in Vienna, and Eastern European cities are emerging as significant competitors, with Hungary and Poland pushing growth rates upwards.

With approximately 55% of bookings from Europe still outstanding, the trend for last-minute bookings presents a significant opportunity for travel marketers to engage audiences throughout the holiday season.

GCC's Event-Driven Momentum

The Gulf Cooperation Council (GCC) is poised for a strong season marked by domestic market growth and major events. Saudi Arabia's domestic bookings surged by 25%, with an overall 5% uptick fueled by infrastructure developments and events. In the UAE, Dubai remains the dominant player, capturing 88% of inbound travel, despite a 6% decrease in overall bookings. The city leads in international flight bookings in the Middle East and Africa, holding 25% of shares from Europe’s travelers. The upcoming Formula One Grand Prix in Abu Dhabi this December is expected to further boost high-value inbound travel.

Asia-Pacific Demand During Chinese New Year

As we look towards Chinese New Year (CNY) 2026, starting on February 17, there is an anticipated surge in travel demand within the Asia-Pacific region. Flight bookings are predicted to spike by 26%, with hotel reservations up by 16% compared to CNY 2025. Notably, rates from China to various destinations have increased by 54%, indicating a robust return to international travel.

East Asia leads with a 42% increase in hotel bookings, followed by Southeast Asia and domestic travel. Top destinations include Hong Kong, Seoul, and Taipei in East Asia, while Singapore, Bangkok, and Manila dominate Southeast Asia. Furthermore, there is a remarkable 330% rise in bookings from Chinese travelers to Europe, the Middle East, and Africa, illustrating a resurgent confidence among Chinese travelers supported by a blend of rich cultural experiences and culinary adventure.

This analysis, along with tailored recommendations for travel marketers, can be accessed via Sojern’s online platform. As a leader in the hotel and hospitality marketing space, Sojern provides valuable insights that help brands tailor their strategies in response to these evolving travel trends, ensuring they meet the needs of today’s travelers.