Travel Price Trends: What 2025 Has in Store for Your Wallet

The new year has many voyagers contemplating their 2025 holiday arrangements — and the expenses associated with those trips.

Approximately half — 51% — of Americans indicate that airfare will impact their destination selections this year, as stated by Skyscanner. Furthermore, 50% acknowledged that hotel prices play a role.

The typical individual has been spending more on travel recently: Airline ticket prices rose 8% in December, year-over-year, while hotel expenses grew by 2%, according to the consumer price index.

However, experts suggest that travelers can still discover discounts.

The finest deals may be accessible by venturing overseas in 2025 — particularly by exploring the Asia-Pacific region, experts asserted.

International airfare has decreased by 4% this year compared to 2024, based on a recent Kayak analysis. It found that around two-thirds of all flight inquiries for travel in 2025 are oriented towards international flights.

In contrast, airfare for domestic U.S. flights in 2025 has risen by 3% compared to the previous year, according to Kayak.

Kayak’s analysis scrutinized its internal search data gathered between May 1 and October 31, 2024, pertaining to travel in 2025.

Domestic fares in January are approximately 12% higher compared to the same month last year, as reported by Hopper, a travel site. These rates are expected to remain above levels seen in 2023 and 2024 until at least the middle of the year.

“Overall, this year will be more costly than last year” for domestic travel, stated Hayley Berg, chief economist at Hopper.

This is primarily due to the affordability of domestic flights in 2024, as airlines “flooded the market” with available seats, according to Berg.

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“Prices this year are remarkably similar to those in 2023,” she mentioned. “And 2024 genuinely surprised us with how low they became.”

In the interim, long-haul fares to Europe, South America, Oceania, and Asia are steady or decreased at the beginning of this year, Berg noted.

Naturally, overseas trips are likely to be pricier on a monetary basis than those closer to home: The average round-trip U.S. flight was approximately $300 in January, in comparison to $685 to South America, $750 to Europe, and about $1,100 to Asia, according to Hopper.

Average hotel prices at international locations and in the U.S. are comparable to those of 2024, according to Kayak.

Car rentals are 8% and 4% pricier for international and domestic rates, respectively, it noted.

Pricing significantly hinges on when travelers make reservations and schedule their journeys.

For instance, travel to Asia is currently the most affordable it has been in three years, as found by Kayak. Average airfare to the continent has declined by 7% year-over-year, it reported.

“Asia continues to show year-over-year as the best value,” stated Berg.

Even destinations that are experiencing heightened interest from travelers — like Sapporo and Osaka in Japan — are poised to be more economical.

Search interest in Sapporo, for instance, has increased by 31% year-over-year, but average airfare has dropped by 19%, now sitting at $1,230, according to Kayak. Fares to Osaka, known as Japan’s “gastronomic capital,” are down 14% to $1,233, it reported.

Tokyo ranks as the most-searched international destination for 2025, according to their data.

Hotel rates in Asia-Pacific are anticipated to be 11% lower during the first half of 2025 compared to the same timeframe in 2024, according to Lighthouse, a hospitality market analysis firm.

Airfare to Asia-Pacific locations is retracting from elevated levels reached post-Covid-19, according to Berg.

Asian countries generally took longer to reopen their borders and eliminate Covid restrictions when compared to others. Presently, airlines are introducing more flight routes, increasing supply, and reducing seat costs, Berg mentioned.

“We must observe what the new market equilibrium will manifest as,” Berg conveyed.

Jet fuel prices — a significant cost component for airlines — were down 11% in January relative to the previous year, stated Hopper.

Similar to Asia, travel to the Caribbean is also the most economical it has been in three years, with airfare down 17% in comparison to 2024, according to Kayak.

Another factor aiding travelers financially overseas: the strength of the U.S. dollar against several international currencies, she mentioned.

Argentina, Japan, Mexico, Brazil, and Hungary are among the top destinations where the dollar can be most advantageous, “making activities, dining, and accommodations more affordable,” Fish concluded.

There are several methods consumers can dependably reduce travel expenses.

1. Flexibility is essential

“Being flexible is truly crucial for saving on travel,” Berg stated.

This pertains to various facets of travel, such as the destination, the season you choose to visit that area, and the days of the week you embark on your journey, experts indicated.

For instance, flights are typically less expensive during the middle of the week. Hotel bookings reflect a similar pattern. The takeaway: Weekends are likely to be more costly.

“Shifting your [hotel] reservation to midweek instead of weekends or planning your travel during the off-peak season can result in significant savings,” wrote Sally French, a travel specialist at NerdWallet, in an email.

Seasonal trends have a “massive impact” on airfare prices, Fish noted.

A dream trip to Europe in August will be costly and congested, but visiting in September or October can save you 30%, Berg remarked. Opt for a city adventure instead of a beach getaway during spring break, or postpone your European trip until fall, Fish suggested.

Experts also recommend travel “alternatives,” a lesser-known but similar substitute for a popular location.