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Holiday Travel 2025: KAYAK's Insights on Trends and Deals

As we look ahead to the year 2025, KAYAK, renowned as the leading global travel search engine, has released an extensive report detailing holiday travel trends. This year, the interest in holiday travel has surged by 10% compared to the previous year, signifying a robust demand among travelers eager to embark on seasonal adventures. Interestingly, despite the increased enthusiasm, airfares and travel costs are showing favorable trends that can benefit budget-conscious travelers.

Flight Prices Drop While Interest Rises

Analyzing flight search data, KAYAK reports a welcoming trend for potential travelers: the prices for international flights have decreased by 7% year over year, while domestic flight prices have seen a modest dip of 1%. Moreover, rental car prices in the U.S. are down 6%. This creates a unique opportunity for individuals and families planning their holiday getaways to find affordable options. Domestic hotel rates remained stable, with a slight increase of 2%, while international accommodations rose modestly by 5%.

Kate Williams, KAYAK's Chief Commercial Officer and travel trends expert, notes the heightened interest together with stable or declining prices as a rare combination. “There are deals to be found if travelers remain flexible with their dates and destinations,” she emphasizes.

A Spotlight on Eastern Europe

An exciting trend noted in KAYAK's report is the rise of Eastern Europe as a prime holiday destination for 2025. Several countries in this region have seen significant increases in flight search interest. Warsaw, Poland, experienced a staggering 73% growth in flight searches year-over-year, thanks in part to its charming festive markets and appealing value for visitors. Similarly, Prague, Czech Republic, renowned for its classic holiday ambiance, saw a 65% rise in traveler interest. Other destinations like Tallinn in Estonia and Budapest in Hungary also gained popularity among holiday travelers.

This surge in interest is bolstered by the introduction of new flight routes and the inclusion of Romania and Bulgaria in the Schengen Area, making these culturally rich destinations more accessible to U.S. travelers seeking affordable winter escapes.

Discovering Value: Where to Find the Best Deals

KAYAK's data highlighted specific destinations showcasing the most significant drops in airfare, perfect for those in search of budget-friendly options. Notably, in the domestic market, Myrtle Beach, SC, offers a remarkable 18% drop in airfare year-over-year, averaging $342. Bozeman, MT, has also become a contender, with airfares reduced by 10% (average $509). Internationally, travelers can take advantage of substantial cuts in airfares to Tokyo, Japan, which decreased by 29% (average $1,071), and Venice, Italy, down 18% (average $823).

Additionally, for keen deal-seekers, Cyber Monday delivered the lowest domestic flight fares of the season at an average of $316, while Travel Tuesday boasted the best international prices at $793. These trends suggest a potential to repeat in 2025.

Timing is Everything: Best Days to Fly

For those aiming to maximize their holiday budgets, KAYAK's research identified the most cost-effective days to fly. For domestic flights around Thanksgiving, travelers should consider departing on November 24, which is noted as the cheapest day at an average fare of $415. Similarly, for Christmas travel, flying out on December 24 could mean quieter airport experiences and lower prices, averaging $393 domestically and $864 internationally.

Avoiding peak travel days can indeed save travelers hundreds of dollars, along with providing a more relaxed airport atmosphere.

Embrace Smart Travel with AI Tools

In line with technological advancements, KAYAK has introduced a new AI Mode designed to revolutionize the travel planning experience. This travel planning tool simplifies the task by allowing users to engage in conversational searches. For instance, users can type prompts like, “Find me a Christmas week getaway for under $500, somewhere warm, leaving from LAX,” and receive immediate flight, hotel, and car rental options.

Kate Williams asserts, “Having a trip to look forward to at the end of the year is the gift we all need. If you haven't booked yet, let our AI tools do the hard work for you to discover the best destinations fitting your budget.”

To delve deeper into KAYAK’s full 2025 Holiday Travel Forecast and explore detailed insights, visit KAYAK's news page.

About KAYAK

As part of Booking Holdings Inc. (NASDAQ: BKNG), KAYAK is the leading travel search engine globally, helping millions of travelers find their ideal flight, stay, car rental, and vacation packages. With billions of queries across various platforms, the KAYAK app streamlines travel planning for both leisure and corporate travel needs.

KAYAK's methodology involves analyzing U.S. origin search queries related to flights, hotels, and rental cars for travel during the Thanksgiving and December holiday periods, reflecting year-on-year comparisons from the same search windows in 2024.