According to data from travel search engine KAYAK, holiday travel interest is up 10 percent year-over-year. Despite higher interest, prices across major travel categories are stable or down, giving travelers more opportunities to find affordable trips this holiday season.
Holiday Travel Forecast: Interest Up, Prices Down
KAYAK flight search data indicates that interest in holiday trips are up 10 percent compared to 2024, showing that travelers are eager to take seasonal getaways. Prices are trending favorably across most categories:
- International flight prices are down 7 percent YoY
- Domestic flight prices dipped 1 percent
- Rental car prices dropped 6 percent (U.S.)
- Hotel rates held steady (+2 percent domestic / +5 percent international)
“Interest is strong, but prices are holding steady or lower compared to last year,” said Kate Williams, KAYAK travel trends expert and CCO. “There are deals to be found if you are able to be flexible with dates and destinations.”
Trending Holiday Destinations
Eastern Europe has emerged as a top holiday travel trend in 2025, with several destinations seeing major increases in flight searches compared to last year:
- Warsaw, Poland – up 73 percent YoY, known for festive markets and great value
- Prague, Czech Republic – up 65 percent YoY, offering classic holiday charm
- Tallinn, Estonia and Budapest, Hungary also saw notable increases
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.
Top Destinations to Find Holiday Deals
For travelers hunting value, KAYAK found these destinations having the biggest drops in airfare compared to last year:
Domestic travel deals:
- Myrtle Beach, SC: airfare down 18 percent YoY (average $342)
- Bozeman, MT: down 10 percent (average $509)
- Reno, NV: down 15 percent (average $414)
International travel deals:
- Tokyo, Japan: down 29 percent (average $1,071)
- Venice, Italy: down 18 percent (average $823)
- Helsinki, Finland: down 19 percent (average $727)
For travelers who treat holiday deals like a sport: in 2024, Cyber Monday delivered the lowest domestic fares of the season (average $316), while Travel Tuesday offered the lowest international fares (average $793), trends travelers may see again in 2025.
Best Days to Fly (and What to Avoid) This Season
To stretch holiday budgets further, KAYAK analyzed holiday flight search data to pinpoint the most affordable departure days:
- Thanksgiving: Fly November 24 – the cheapest day for domestic flights (average $415).
- Christmas: Fly December 24 – quieter airports and lower prices (avg. $393 domestic / $864 international).
Avoiding peak travel days can save travelers hundreds while offering a less stressful airport experience.
Travel Smarter with KAYAK’s New AI Mode
KAYAK’s new AI Mode, an AI travel planning tool, helps travelers simplify the trip planning process by using conversational searches. Users can type natural prompts like: “Find me a Christmas week getaway for under $500, somewhere warm, leaving from LAX” and instantly get 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,” added Williams. “If you haven’t booked yet, let our AI tools do the hard work for you to surface the best destinations for your budget.”
Source: KAYAK
Related Stories
International Tourism Slated to Surge Through 2030
State of AI in Travel: Guest-Facing Adoption Still Very Limited
Report: More Travelers Are Using AI Without Realizing the Risks
Deloitte: More Americans Plan Trips, But on a Tighter Budget