As the 2025 holiday season approaches, an exciting trend is emerging in the travel industry: holiday travel interest is rising, while airfare prices are trending downward. According to a study conducted by Kayak, one of the world’s leading travel search engines, searches for holiday travel have seen a 10 percent increase compared to the previous year, indicating strong demand for seasonal getaways. The downward trend in flight prices across key travel categories, including international and domestic flights, makes this an ideal time for travellers to plan their trips.

Airfare Prices Fall and Travel Demand Grows

In recent months, airfares have become more affordable, with international flights experiencing a 7 percent drop, while domestic fares have decreased by 1 percent compared to 2024. Alongside these reductions, other travel-related costs have also followed a downward trajectory. Rental car prices have decreased by 6 percent, offering savings for road-trippers, and hotel rates have remained relatively stable, with only slight increases. The combination of these factors has contributed to a significant increase in holiday travel searches, which is up by 10 percent from the previous year. This suggests that more people are seeking to travel during the holiday season while benefiting from the savings available.

Eastern Europe Emerges as a Top Holiday Destination

One of the most noticeable trends for 2025 is the surge in popularity of Eastern Europe as a holiday destination. Several cities in the region have seen marked increases in flight searches, including Warsaw (Poland), Prague (Czech Republic), Tallinn (Estonia), and Budapest (Hungary). This shift highlights travellers’ growing interest in exploring less traditional, yet equally enchanting, destinations. Furthermore, new flight routes to cities like Romania and Bulgaria are expanding accessibility to these regions, making them even more attractive to holiday travellers.

The rise in interest for Eastern Europe is partly due to its rich cultural heritage, picturesque landscapes, and affordability compared to more traditional European destinations. Cities like Prague and Budapest offer a perfect blend of history, architecture, and modernity, making them ideal for a winter getaway. These emerging destinations are poised to become major holiday hotspots in the coming years, offering a unique and relatively affordable alternative to popular Western European cities.

Best Deals for Domestic and International Travel

For travellers looking for the best value on their holiday bookings, several destinations are standing out with significant airfare reductions. Among domestic locations, Myrtle Beach, South Carolina has seen an 18 percent decrease in airfare, while Bozeman, Montana and Reno, Nevada have experienced drops of 10 percent and 15 percent, respectively. These destinations provide excellent options for travellers looking to explore closer to home without breaking the bank.

On the international front, Tokyo, Japan is leading the charge with an impressive 29 percent drop in airfare prices, followed by Venice, Italy (18 percent down) and Helsinki, Finland (19 percent down). These price reductions offer an excellent opportunity for those wishing to explore far-flung destinations during the festive season. With these price drops, long-haul travel is more accessible, allowing people to visit iconic cities with a smaller impact on their wallets.

Key Days for Holiday Travel Deals

For those planning to book flights, Cyber Monday and Travel Tuesday are expected to offer the lowest fares of the season, with Cyber Monday traditionally bringing the best domestic deals and Travel Tuesday offering the most competitive international fares. In addition, travellers can take advantage of key days for Thanksgiving and Christmas travel. For the Thanksgiving holiday, the cheapest day for domestic flights is expected to be November 24, while for Christmas, the best time to book will likely be December 24, which typically sees fewer crowds at airports and lower prices.

Kayak’s AI Travel Planning Tool

In response to the growing demand for efficient trip planning, Kayak has also launched its new AI Mode, a travel planning tool designed to simplify the search and booking process. Using advanced AI, the tool enables users to input natural language prompts and receive personalised recommendations for the best destinations within their budget. This innovative tool is designed to streamline the process of holiday planning, ensuring travellers can easily find the best deals without spending hours researching and comparing options.

Optimism for Holiday Travel in 2025

With prices trending lower across key travel categories and increased interest in holiday travel, the 2025 season looks promising for both travellers and the industry as a whole. Eastern Europe’s rise as a must-visit destination, combined with affordable domestic and international options, positions this holiday season as an excellent opportunity for exploration. The introduction of AI-powered tools like Kayak’s AI Mode further enhances the convenience of travel planning, offering smart solutions for both seasoned and first-time travellers. As the festive season approaches, these factors combined will make it easier than ever for travellers to plan and book their perfect holiday getaway.

The post Best Holiday Deals for 2025: Affordable Airfares to Domestic and International Destinations appeared first on Travel And Tour World.