Holiday Travel 2025: KAYAK Data Shows Searches Up 10% and Airfares Trending Down as Travelers Turn to AI tools for Smarter Planning

Core Insights - Holiday travel interest has increased by 10% year-over-year, indicating strong demand for seasonal getaways despite stable or declining prices across major travel categories [2][5] Travel Trends - Eastern Europe has become a prominent holiday travel destination in 2025, with significant increases in flight searches, attributed to new flight routes and the inclusion of Romania and Bulgaria in the Schengen Area [2] - Notable increases in flight searches include Warsaw, Poland (up 73% YoY), and Prague, Czech Republic (up 65% YoY), highlighting the region's appeal for affordable and culturally rich winter escapes [6] Price Analysis - International flight prices have decreased by 7% year-over-year, while domestic flight prices dipped by 1% [5] - Rental car prices in the U.S. dropped by 6%, while hotel rates remained stable with a 2% increase domestically and a 5% increase internationally [5] Best Travel Days - The cheapest day for domestic flights during Thanksgiving is November 24, with an average fare of $415, while December 24 is recommended for Christmas travel, offering lower prices and quieter airports [8] Travel Deals - KAYAK identified several destinations with significant drops in airfare compared to last year, including Myrtle Beach, SC (down 18% YoY, average $342) and Tokyo, Japan (down 29% YoY, average $1,071) [7] AI Travel Planning - KAYAK has introduced a new AI Mode to assist travelers in planning their trips through conversational searches, enhancing the user experience by providing real-time options for flights, hotels, and car rentals [4][9]