If you’re thinking of squeezing in a winter getaway this year, you’re not alone—and the data backs it up. KAYAK, one of the world’s most widely used travel search engines, reports that holiday travel interest is up 10% year-over-year. But here’s the twist: while demand is climbing, prices across flights, hotels, and rental cars are holding steady or even dropping. It’s a rare moment in travel where enthusiasm isn’t immediately met with painful price tags. holiday travel deals

That means 2025’s holiday season is shaping up to be unusually friendly to spontaneous planners and deal hunters.

KAYAK’s latest search analysis shows several bright spots:

• International airfares are down 7% YoY
• Domestic fares dipped 1%
• U.S. rental car rates fell 6%
• Hotels rose modestly: +2% domestically and +5% internationally

“Interest is strong, but prices are holding steady or lower compared to last year,” said Kate Williams, KAYAK’s CCO and travel trends expert. “There are deals to be found if you are able to be flexible with dates and destinations.”

And that flexibility may open doors to some surprising places this winter.

Eastern Europe becomes 2025’s breakout holiday star

The biggest story in KAYAK’s destination data is the rise of Eastern Europe as a go-to holiday escape. Several cities posted big jumps in traveler interest—and if you’ve followed Alertify long enough, you won’t be shocked. Regions with good value, walkable old towns, and festive atmospheres tend to see spikes once accessibility improves.

Warsaw leads the pack with a massive 73% YoY surge in searches. Its Christmas markets, museums, and surprisingly reasonable winter prices make it a strong contender for budget-savvy holiday travelers. Close behind is Prague, where searches are up 65%. And cities like Tallinn and Budapest—both already favorites for their winter charm and affordability—are climbing too.

Part of the growth likely comes from better connectivity. More direct routes, plus Romania and Bulgaria entering the Schengen Area, are making cross-border travel smoother. For U.S. travelers, especially, the region is becoming one of the easiest ways to get a “European Christmas” feel without a painful bill.

Where to find the best holiday airfare deals

If you’re traveling purely for value, KAYAK’s data highlights several destinations—both domestic and international—where airfare has taken a noticeable dip compared to last year.

Domestic destinations with the biggest drops

• Myrtle Beach, SC: airfare down 18% (avg. $342)
• Reno, NV: down 15% (avg. $414)
• Bozeman, MT: down 10% (avg. $509)

International destinations with the best savings

• Tokyo, Japan: down 29% (avg. $1,071)
• Helsinki, Finland: down 19% (avg. $727)
• Venice, Italy: down 18% (avg. $823)

These price dips land at the right moment. In 2024, Cyber Monday delivered the lowest domestic fares of the season, and Travel Tuesday did the same for international trips—a pattern that might repeat.

The cheapest days to fly for Thanksgiving and Christmas

Holiday timing always matters, and KAYAK’s data gives some clear guidance:

• Thanksgiving: flying on November 24 delivers the lowest domestic fares, averaging $415.
• Christmas: December 24—yes, the day before—remains the cheapest time to fly, with domestic flights averaging $393 and international flights around $864.

For anyone willing to travel on the holiday eve, the reward is not just lower prices but notably calmer airports—a double win if you’re aiming for a low-stress journey.

KAYAK’s new AI Mode aims to simplify trip planning

KAYAK is clearly banking on AI to improve the planning experience. Its new AI Mode works through natural, conversational prompts. Instead of manually filtering your way through results, you can type something like: “Find me a Christmas week getaway under $500, leaving from LAX, somewhere warm,” and get curated flight, hotel, and rental suggestions in seconds.

According to Williams,

“Having a trip to look forward to at the end of the year is the gift we all need. If you haven’t booked yet, let our AI tools do the hard work for you.”

Conclusion: A competitive market, smarter tools, and a clear trend shift

What stands out most from KAYAK’s holiday forecast is how aligned it is with the broader trend across the industry. Competitors like Google Flights, Hopper, and Skyscanner have been highlighting similar patterns: moderate demand growth, stabilizing fares, and strong deal pockets in specific regions—particularly Eastern Europe and Northeast Asia.

The combination of softened prices and rising interest rates suggests that airlines and hotels are working harder to maintain load factors and occupancy, partly influenced by increased competition and a still price-sensitive traveler base. Travelers benefit from that tension.

Reliable data from sources including KAYAK, Hopper’s price trackers, and airline-reported capacity outlooks all point in the same direction: holiday travel in 2025 is more accessible than last year and significantly more budget-friendly in several long-haul markets.

For travelers—and for the industry—it’s a rare sweet spot: high excitement, manageable prices, and smarter planning tools. Not a bad recipe for a winter getaway.