Holiday Travel Demand Rises 10% While Airfares Decline, Eastern Europe Emerges as Top Value Destination

Travel interest for the 2025 holiday season has increased 10% compared to 2024, according to data from travel search engine KAYAK, yet prices across major travel categories remain stable or have declined, creating favorable conditions for travelers seeking seasonal getaways. This combination of heightened demand with more affordable pricing represents a significant shift in holiday travel economics, offering consumers better value during traditionally expensive travel periods.

Flight search data indicates international airfares have decreased 7% year-over-year, while domestic flights saw a modest 1% decline. Rental car prices in the U.S. dropped 6%, and hotel rates remained relatively stable with domestic properties increasing just 2% and international hotels rising 5%. "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."

Eastern Europe has emerged as a surprising hotspot for holiday travel, with several destinations experiencing dramatic increases in flight searches. Warsaw, Poland leads with a 73% year-over-year increase, followed by Prague, Czech Republic at 65%. Tallinn, Estonia and Budapest, Hungary also saw notable growth. The region's popularity surge is attributed to new flight routes and the inclusion of Romania and Bulgaria in the Schengen Area, making Eastern Europe more accessible and appealing to U.S. travelers seeking affordable, culturally rich winter escapes.

For value-conscious travelers, KAYAK identified several destinations with significant airfare reductions. Domestically, Myrtle Beach, South Carolina shows an 18% decrease with average fares of $342, while Bozeman, Montana dropped 10% to $509 and Reno, Nevada fell 15% to $414. Internationally, Tokyo, Japan leads with a 29% price reduction averaging $1,071, followed by Venice, Italy down 18% to $823 and Helsinki, Finland decreasing 19% to $727. Historical data suggests Cyber Monday delivered the lowest domestic fares in 2024 at $316 average, while Travel Tuesday offered the best international deals at $793, patterns that may repeat in 2025.

Travelers should prepare for congestion at major airports during peak periods. Thanksgiving travel will see highest traffic volumes at LAX, SFO, BOS, DEN, ORD, JFK, EWR, WAS, DFW, and ATL based on search demand. Christmas travel will concentrate around LAX, SFO, BOS, JFK, ORD, WAS, EWR, MIA, SEA, and DFW. Avoiding peak travel times and allowing extra time at these high-traffic airports can help minimize holiday travel stress.

KAYAK's new AI Mode represents a technological advancement in travel planning, using conversational searches to simplify the process. Users can type natural prompts like "Find me a Christmas week getaway for under $500, somewhere warm, leaving from LAX" and receive real-time flight, hotel and car rental options instantly. "Having a trip to look forward to at the end of the year is the gift we all need," Williams noted. "If you haven't booked yet, let our AI tools do the hard work for you to surface the best destinations for your budget."