According to new data from KAYAK, the world's leading travel search engine, holiday travel interest is up 10% year-over-year in 2025, yet prices across major travel categories are stable or down, providing travelers with opportunities to find affordable trips this season. KAYAK's analysis of search queries from U.S. origins for flights, hotels, and rental cars during the Thanksgiving and December holiday periods reveals that international flight prices are down 7% year-over-year, domestic flight prices dipped 1%, rental car prices dropped 6%, and hotel rates held steady with a 2% increase domestically and 5% internationally.
"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." The data also highlights trending destinations, with Eastern Europe taking the spotlight. Flight searches to Warsaw, Poland, are up 73% year-over-year, Prague, Czech Republic, up 65%, and 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 to U.S. travelers seeking affordable, culturally rich winter escapes.
For travelers seeking value, KAYAK identified destinations with the biggest drops in airfare compared to last year. Domestically, Myrtle Beach, South Carolina, saw airfare down 18% (average $342), Reno, Nevada, down 15% (average $414), and Bozeman, Montana, down 10% (average $509). Internationally, Tokyo, Japan, experienced a 29% drop (average $1,071), Helsinki, Finland, down 19% (average $727), and Venice, Italy, down 18% (average $823). KAYAK notes that 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 that may repeat in 2025.
To help travelers navigate the holiday rush, KAYAK analyzed seasonal flight search trends to identify peak congestion at major airports. For Thanksgiving, airports including LAX, SFO, BOS, DEN, ORD, JFK, EWR, WAS, DFW, and ATL are projected to see the highest traffic. For Christmas, LAX, SFO, BOS, JFK, ORD, WAS, EWR, MIA, SEA, and DFW are expected to be busiest. KAYAK advises steering clear of peak travel times and allowing extra time at these airports.
KAYAK's new AI Mode aims to simplify trip planning through conversational searches. Users can type natural prompts like "Find me a Christmas week getaway for under $500, somewhere warm, leaving from LAX" to 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," said 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." The full 2025 Holiday Travel Forecast is available on KAYAK's news page.
