Holiday Travel 2025 Shows Increased Demand with Falling Prices as AI Tools Transform Planning

Travel interest for the 2025 holiday season has increased by 10% compared to 2024, according to data from KAYAK, the world's leading travel search engine. Despite this heightened demand, prices across major travel categories remain stable or have decreased, creating favorable conditions for travelers seeking affordable holiday getaways. International flight prices have dropped 7% year-over-year, while domestic flights have seen a modest 1% decrease and rental car prices in the U.S. have fallen by 6%.

Eastern Europe has emerged as a surprising hotspot for holiday travel, with several destinations experiencing significant increases in flight searches. Warsaw, Poland leads the trend with a 73% year-over-year increase in searches, followed by Prague, Czech Republic at 65%. Tallinn, Estonia and Budapest, Hungary also showed 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 culturally rich winter experiences at affordable prices.

For budget-conscious travelers, KAYAK identified several destinations with substantial airfare reductions. Domestically, Myrtle Beach, South Carolina shows the most significant decrease with airfare down 18% year-over-year to an average of $342, while Bozeman, Montana dropped 10% to $509 and Reno, Nevada fell 15% to $414. International deals include Tokyo, Japan with a 29% reduction to $1,071, Venice, Italy down 18% to $823, and Helsinki, Finland decreased 19% to $727. Historical data suggests travelers may find the best deals during specific shopping events, as Cyber Monday delivered the lowest domestic fares in 2024 at $316 average, while Travel Tuesday offered the best international fares at $793.

Major airports across the United States are preparing for significant congestion during peak travel periods. For Thanksgiving, airports including LAX, SFO, BOS, DEN, ORD, JFK, EWR, WAS, DFW, and ATL are projected to see the highest traffic volumes based on search demand. During Christmas, LAX, SFO, BOS, JFK, ORD, WAS, EWR, MIA, SEA, and DFW are expected to be the busiest for holiday departures and arrivals. Travelers are advised to avoid peak travel times and allow extra time when navigating these high-traffic airports.

The travel planning process is being transformed by artificial intelligence tools, with KAYAK's new AI Mode helping travelers simplify trip planning through conversational searches. Users can input natural language prompts such as "Find me a Christmas week getaway for under $500, somewhere warm, leaving from LAX" and receive instant, real-time flight, hotel, and car rental options. This technology enables travelers to quickly identify destinations that match their budget and preferences without extensive manual searching. The combination of increased travel interest, favorable pricing trends, and advanced planning tools creates an optimistic outlook for the 2025 holiday travel season.