KAYAK Data Reveals 10% Surge in Holiday Travel Searches, Airfares Decline as AI Aids Planning

KAYAK's 2025 Holiday Travel Forecast shows a 10% increase in travel interest year-over-year, with airfares dropping up to 29% internationally and new AI tools helping travelers find deals.

Bay Area Metrowire Staff
Technology
KAYAK Data Reveals 10% Surge in Holiday Travel Searches, Airfares Decline as AI Aids Planning

According to data from KAYAK, the world's leading travel search engine, holiday travel interest is up 10% year-over-year. Despite higher interest, prices across major travel categories are stable or down, giving travelers more opportunities to find affordable trips this holiday season.

KAYAK flight search data indicates that interest in holiday trips are up 10% compared to 2024, showing that travelers are eager to take seasonal getaways. Prices are trending favorably across most categories: International flight prices are down 7% YoY, domestic flight prices dipped 1%, rental car prices dropped 6% (U.S.), and hotel rates held steady (+2% domestic / +5% international).

"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 top holiday travel trend in 2025, with several destinations seeing major increases in flight searches compared to last year. Warsaw, Poland is up 73% YoY, known for festive markets and great value. Prague, Czech Republic is up 65% YoY, offering classic holiday charm. 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 and appealing to U.S. travelers seeking affordable, culturally rich winter escapes.

For travelers hunting value, KAYAK found these destinations having the biggest drops in airfare compared to last year. Domestic travel deals include Myrtle Beach, SC with airfare down 18% YoY (average $342), Bozeman, MT down 10% (average $509), and Reno, NV down 15% (average $414). International travel deals include Tokyo, Japan down 29% (average $1,071), Venice, Italy down 18% (average $823), and Helsinki, Finland down 19% (average $727). For travelers who treat holiday deals like a sport: 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 travelers may see again in 2025.

To help travelers better prepare for the holiday rush, KAYAK analyzed seasonal flight search trends to identify where congestion is expected to peak and how travelers can navigate it more smoothly. For Thanksgiving, major hubs including LAX, SFO, BOS, DEN, ORD, JFK, EWR, WAS, DFW, and ATL are projected to see the highest traffic volumes based on search demand. For Christmas, airports such as LAX, SFO, BOS, JFK, ORD, WAS, EWR, MIA, SEA, and DFW are expected to be the busiest for holiday departures and arrivals.

KAYAK's new AI Mode, an AI travel planning tool, helps travelers simplify the trip planning process by using conversational searches. Users can type natural prompts like: "Find me a Christmas week getaway for under $500, somewhere warm, leaving from LAX" and 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 Kate 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."

Explore KAYAK's full 2025 Holiday Travel Forecast at https://www.kayak.com/news/holiday/.

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