Travel search data from KAYAK indicates holiday travel interest has increased 10% year-over-year while prices across major travel categories remain stable or have declined, creating favorable conditions for seasonal getaways. International flight prices have decreased 7% compared to 2024, domestic flights dipped 1%, and rental car prices dropped 6% in the United States, with hotel rates showing minimal increases of 2% domestically and 5% internationally.
Eastern European destinations have emerged as particularly popular choices for holiday travelers, with Warsaw, Poland seeing a 73% increase in flight searches and Prague, Czech Republic up 65% year-over-year. Tallinn, Estonia and Budapest, Hungary also showed notable increases in search interest. The region's growing appeal is attributed to new flight routes and the inclusion of Romania and Bulgaria in the Schengen Area, making Eastern Europe more accessible to U.S. travelers seeking affordable, culturally rich winter experiences.
For travelers focused on finding the best deals, domestic destinations showing significant airfare reductions include Myrtle Beach, South Carolina with an 18% price drop to an average of $342, Bozeman, Montana down 10% to $509, and Reno, Nevada decreasing 15% to $414. International bargain destinations feature Tokyo, Japan with a substantial 29% price reduction to $1,071, Venice, Italy down 18% to $823, and Helsinki, Finland decreasing 19% to $727. Historical data suggests travelers may find the best domestic fares on Cyber Monday and optimal international pricing on Travel Tuesday.
Major airport hubs are expected to experience significant congestion during peak holiday periods. Thanksgiving travel will likely see the highest traffic volumes at airports including LAX, SFO, BOS, DEN, ORD, JFK, EWR, WAS, DFW, and ATL based on search demand analysis. Christmas travel is projected to create similar congestion patterns at LAX, SFO, BOS, JFK, ORD, WAS, EWR, MIA, SEA, and DFW. Travelers are advised to avoid peak travel times and allow extra time at these high-traffic locations to minimize stress.
The travel planning process is being transformed by artificial intelligence tools, with KAYAK's new AI Mode enabling conversational searches that allow users to 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. This technology simplifies trip planning by handling the complex search work, helping travelers identify destinations that match their budget and preferences more efficiently than traditional search methods.
