Exploring 2025 Holiday Travel Trends: Budget, Comfort, and Nearby Vacations

Insights into 2025 Holiday Travel Trends

As the 2025 holiday season approaches, a fresh set of travel trends is emerging, driven by economic challenges, shifting political climates, and evolving traveler preferences. According to the latest data shared by Sojern, a prominent digital marketing platform for the hospitality sector, travelers are opting to stay closer to home, book trips later, and prioritize financial considerations when planning their vacations.

Noreen Henry, Chief Revenue Officer of Sojern, emphasizes that this year’s holiday travelers are making more deliberate decisions: "This holiday season, travelers are making more intentional choices about where and how they spend." The research suggests a notable shift, with travel marketers urged to promote local getaways, flexible pricing, and late-booking options to attract this evolving consumer base.

American Travel Preferences

In the United States, there's a striking trend as almost 90% of holiday travelers prefer road trips over flights. This reflects a broader realignment in Americans' approach to winter vacations, particularly in the face of economic uncertainty. Evidence of this shift can be traced back to a summer period where airfare prices dropped significantly, leading to a new trend of local travel.

Despite domestic flights experiencing a small uptick of 4% year-over-year, many international destinations are witnessing a decline in bookings from the U.S., with significant reductions noted for Canada, Mexico, and Europe. Even popular spots like New York and Florida are seeing a downturn of 16% and 18%, respectively.

Looking ahead, major shopping days such as Black Friday and Cyber Monday are predicted to be key catalysts for holiday travel bookings. Travelers are increasingly waiting for exclusive deals, resulting in a compressed booking timeline and spiking demand around promotional events.

Changes in the Latin American Market

Travel trends in Latin America reflect a cautious approach, with overall flights from the U.S. to the region down 8%. Mexico, the Dominican Republic, and Costa Rica have all reported declines in visitor numbers. However, it's noteworthy that Puerto Rico is experiencing a surge in popularity as a top Caribbean destination, with bookings increasing by 9%, outpacing traditional favorites due to its desirable appeal and travel experience.

European Tastes Shift

In Europe, there's a similar pattern emerging as travelers are favoring shorter escapes over long-haul trips. Cities renowned for their Christmas markets, like Budapest and Gdansk, are gaining traction among European travelers. As domestic travel within Europe rises by 8%, there is a stark contrast with a 17% drop in bookings to North America, which has vanished from this year's list of top 15 holiday destinations.

Interestingly, Canada has risen to become a leading choice for European travelers, capturing 27.5% of outbound bookings.

GCC Momentum and Event Tourism

Meanwhile, the Gulf Cooperation Council (GCC) region is poised for a strong seasonal window, bolstered by domestic developments and large-scale events. Saudi Arabia, for instance, is witnessing a 25% boost in domestic travel due to improvements in infrastructure and large gatherings. Dubai continues to dominate as a hub for international travel, while the Formula 1 Abu Dhabi Grand Prix later in the year is expected to significantly enhance luxury inbound travel.

Anticipated Growth for Chinese New Year

Looking ahead, the upcoming Chinese New Year in 2026, marking the Year of the Fire Horse, shows early signs of demand growth, with flight bookings across the Asia Pacific region increasing by 26%. Growth is particularly robust from China, suggesting a resurgence in international travel confidence and expanding traveler interests in both regional and long-haul journeys.

Travel destinations in East Asia, such as Hong Kong and Seoul, are set to benefit significantly during this festive period, while international bookings to regions including Europe are also on the rise, reflecting a diverse articulation of travel desires among Chinese tourists.

In summary, as potential travelers prepare for the 2025 holiday season, it is clear that economic factors, local preferences, and strategic timing will play pivotal roles in shaping their travel plans. For travel marketers, adapting to these trends and promoting value-driven and conveniently timed offerings could lead to successful engagement throughout the busy season.