With the new year quickly approaching, American travelers are already mapping out their 2025 trips, and Kayak’s latest report reveals some surprising trends and helpful insights.
According to the company’s search data, next year’s travel landscape is shaping up to be a mix of exciting international destinations, unexpected deals and shifting industry norms. Here’s what you need to know to plan your upcoming adventures with confidence.
Kayak’s intel shows that two-thirds of flight searches for 2025 are for international travel, reflecting a growing appetite for global exploration. Even better, airfare for trips abroad is down four percent compared to 2024. However, domestic airfare is trending upward with a three percent increase, so globetrotting might be your best bet for value next year.
When it comes to the trajectory of costs once you’ve arrived at your destination, hotel rates seem to be stable compared to 2024, whether you’re traveling abroad or domestically. Unfortunately, rental car prices are reflecting an eight percent rise internationally and a four percent increase closer to home. So, road trips might not be your best bet unless you’re using the family car.
Asia has claimed the spotlight as the go-to region for budget-conscious travelers next year and has been Kayak’s leading trending region for several years already. Airfare to Asia is the cheapest it’s been in three years, with ticket prices dropping seven percent compared to 2024. Japan leads the charge, with three of Kayak’s top 10 trending destinations being located within the island nation.
Traveler interest in going to Japan in general is up 11 percent compared to 2024, while airfare prices have fallen by five percent. Tokyo emerged as the most-searched international destination for 2025, with interest in the destination up 11 percent over the current year. Meanwhile, interest in Sapporo—a hub for festivals—is up a whopping 31 percent and interest in Osaka—Japan’s gastronomic capital— is up 12 percent.
Elsewhere on the planet, there’s also a shift toward less-frequented destinations over traditional favorites. For instance, travelers are swapping Lima for Cusco in Peru and opting for Da Nang instead of Ho Chi Minh City in Vietnam. In terms of finding a destination where costs are dropping compared to 2024, look toward the Caribbean. Air travel to this region is the lowest it’s been in the past three years, with airfare prices falling 17 percent.
Also interestingly, according to Kayak, travelers should snag any great deals they see as soon as possible, rather than waiting for the elusive “sweet spot”. The company contends that there’s no best time to book anymore. However, the data shows that booking more than six months out from your departure date actually coincides with higher prices, so you may want to avoid the urge to book too far in advance.
As you get closer to your departure date, week-to-week price changes seem to be fairly insignificant, but setting a price alert can still help you track airfare and snag the best prices when they drop. In terms of deciding when is the best time to travel, February of this year was revealed to be the cheapest for vacationing.
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