Holiday Travel 2025: Increased Interest and Lower Airfares as AI Tools Gain Popularity

KAYAK, a leading travel search engine, has released data indicating a notable increase in holiday travel interest for 2025. Despite this surge, airfares and other travel-related costs are either stable or declining, presenting travelers with more opportunities to secure affordable holiday trips. This article delves into the key trends and insights from KAYAK’s data, highlighting the impact of AI tools on travel planning.

Holiday Travel Forecast: Interest Up, Prices Down

KAYAK’s flight search data reveals a 10% increase in holiday trip interest compared to 2024. Favorable pricing trends across various travel categories accompany this heightened interest. International flight prices have decreased by 7% year-over-year, while domestic flight prices have dipped by 1%. Rental car prices in the U.S. have dropped by 6%, and hotel rates have remained relatively steady, with a 2% increase domestically and a 5% increase internationally. According to Kate Williams, KAYAK’s travel trends expert and CCO, travelers can find deals if they remain flexible with their travel dates and destinations.

Trending Holiday Destinations: Eastern Europe Takes the Spotlight

Eastern Europe has emerged as a popular holiday travel destination in 2025, with several cities experiencing significant increases in flight searches. Warsaw, Poland, has seen a 73% year-over-year increase, while Prague, Czech Republic, has experienced a 65% rise. Tallinn, Estonia, and Budapest, Hungary, have also noted substantial interest. The introduction of new flight routes and Romania and Bulgaria’s inclusion in the Schengen Area have made this region more accessible and appealing to U.S. travelers seeking affordable, culturally rich winter escapes.

Where the Holiday Deals Are: Top Destinations to Find Deals

KAYAK’s data highlights several destinations offering significant airfare reductions compared to the previous year. For domestic travel, Myrtle Beach, SC, has seen an 18% decrease in airfare, averaging $342. Bozeman, MT, and Reno, NV, have experienced 10% and 15% reductions, respectively. Internationally, Tokyo, Japan, has seen a 29% decrease in airfare, averaging $1,071, while Venice, Italy, and Helsinki, Finland, have experienced 18% and 19% reductions, respectively. Cyber Monday and Travel Tuesday are expected to offer the lowest fares of the season, continuing a trend observed in 2024.

Best Days to Fly (and What to Avoid) This Season

To maximize holiday travel budgets, KAYAK has identified the most cost-effective departure days. For Thanksgiving, flying on November 24 is the cheapest domestic option, averaging $415. For Christmas, flying on December 24 offers quieter airports and lower prices, with domestic flights averaging $393 and international flights averaging $864. Avoiding peak travel days can result in significant savings and a less stressful airport experience.

Explore KAYAK’s complete 2025 Holiday Travel Forecast.