Holiday Travel Surge 2025: KAYAK Data Reveals Affordable Flights, Top Destinations, and AI Planning Tools, All You Need To Know

As the holiday season approaches, KAYAK’s 2025 travel data indicates a marked increase in interest, with holiday travel searches rising by 10 percent compared to last year. Despite the growing demand, flight prices, car rentals, and hotel rates are remaining stable or even lower, creating opportunities for cost-effective getaways. KAYAK’s insights provide valuable guidance for travellers looking to make the most of this season, with many finding the holiday period more accessible than anticipated.

Key Insights from KAYAK’s 2025 Holiday Travel Forecast

KAYAK’s search data highlights a 10 percent year-over-year increase in holiday travel interest, signalling strong enthusiasm for seasonal trips. However, prices are bucking the trend of rising demand, offering welcome relief for budget-conscious travellers. Notably, international flight prices have dropped by 7 percent, and domestic flight costs have seen a slight reduction of 1 percent. U.S. rental car prices have decreased by 6 percent, making road trips more affordable, while hotel rates have remained largely unchanged, with domestic hotel prices rising by just 2 percent and international rates seeing a modest 5 percent increase.

This price stability presents an excellent opportunity for travellers to plan their holidays without breaking the bank. Flexible planning around dates and destinations continues to be key for securing the best deals.

Eastern Europe Emerges as a Top Holiday Travel Trend

One of the most exciting trends for 2025 is the surge in holiday interest toward Eastern Europe. Destinations such as Warsaw, Poland (up 73 percent), Prague, Czech Republic (up 65 percent), and Tallinn, Estonia, have all witnessed significant increases in flight searches. These cities are increasingly popular for their festive markets, cultural charm, and affordability, making them ideal winter escapes for travellers seeking value.

The inclusion of Romania and Bulgaria in the Schengen Area has further boosted the region’s appeal, as U.S. travellers now enjoy easier access to these fascinating destinations. This trend points to a shift in the traditional holiday hotspots, with Eastern Europe offering a fresh alternative to the more crowded and expensive locations.

Best Deals for Domestic and International Travel

For those looking to save on airfares, KAYAK’s data identifies several destinations offering notable price drops. Domestic destinations like Myrtle Beach, South Carolina, Bozeman, Montana, and Reno, Nevada have seen flight prices drop significantly, with fares down by 18 percent, 10 percent, and 15 percent respectively.

Internationally, cities like Tokyo, Japan, Venice, Italy, and Helsinki, Finland are offering impressive discounts, with airfare reductions of 29 percent, 18 percent, and 19 percent, respectively. For those flexible enough to travel on off-peak days, such as Thanksgiving and Christmas Eve, the cost savings can be even greater. KAYAK has highlighted these dates as some of the cheapest for both domestic and international flights.

Best Days to Fly and Tips for Holiday Travel

Travellers seeking to stretch their budgets further should aim to fly on specific dates when prices are at their lowest. KAYAK recommends flying on November 24 for Thanksgiving to secure the most affordable domestic flights, with an average price of USD 415. For Christmas, December 24 is the best day to fly, with domestic flight fares averaging USD 393 and international fares around USD 864.

To avoid the chaos of peak travel days and secure better prices, flying on these less crowded days can significantly enhance the overall travel experience.

KAYAK’s AI Mode: Revolutionising Travel Planning

KAYAK’s new AI Mode offers a game-changing way to plan trips effortlessly. By allowing users to input conversational prompts, such as “Find me a Christmas getaway for under USD 500, somewhere warm, leaving from LAX,” AI Mode instantly provides a selection of flight, hotel, and car rental options. This tool streamlines the planning process, making it easier than ever to discover tailored, budget-friendly holiday destinations.

KAYAK’s AI tools are designed to simplify the travel planning process by providing real-time, personalised recommendations. With travel interest peaking in 2025, leveraging these technological advances can help reduce the complexity of planning, allowing travellers to make smarter decisions on where to go and how to get there.

A Promising Holiday Travel Season Ahead

With increased interest in holiday travel and favourable price trends, KAYAK’s 2025 holiday forecast points to an exciting and affordable season for travellers. Eastern Europe is emerging as a must-visit destination, and technology, such as KAYAK’s AI Mode, is revolutionising the planning experience. As prices remain stable or lower across many categories, 2025 presents a golden opportunity for those looking to take a memorable trip during the holiday season.

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